Afghanistan : Energy Supply Improvement Investment Program Tranche 4 (Formerly Multitranche Financing Facility II: Energy Development 2014–2023)
Technical and capacity constraints in Afghanistan have inhibited electrification rate at 32%, which is among the lowest 5% globally. 20 out of 34 provinces are not connected to grid supply which increases cost of doing business, deteriorates environment, and subdues sustainable development indicators. This constrains growth; creates disparities; and fuels ethnic and regional tensions, insecurity, and discontent. The proposed tranche will extend the national grid into eastern provinces with a population of nearly 2 million, and will allow evacuation of indigenous generation and extension of power interconnection towards Pakistan. The Tranche 4 will construct a 220-kilovolt (kV) transmission line between Kabul and Jalalabad. An additional transformer of 200 MVA (megavolt ampheres) will be installed at this substation.
Project Details
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| Project Name | Energy Supply Improvement Investment Program Tranche 4 (Formerly Multitranche Financing Facility II: Energy Development 2014–2023) | ||||
| Project Number | 47282-006 | ||||
| Country / Economy | Afghanistan |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Grant |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Energy / Electricity transmission and distribution |
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| Gender | No gender elements | ||||
| Description | Technical and capacity constraints in Afghanistan have inhibited electrification rate at 32%, which is among the lowest 5% globally. 20 out of 34 provinces are not connected to grid supply which increases cost of doing business, deteriorates environment, and subdues sustainable development indicators. This constrains growth; creates disparities; and fuels ethnic and regional tensions, insecurity, and discontent. The proposed tranche will extend the national grid into eastern provinces with a population of nearly 2 million, and will allow evacuation of indigenous generation and extension of power interconnection towards Pakistan. The Tranche 4 will construct a 220-kilovolt (kV) transmission line between Kabul and Jalalabad. An additional transformer of 200 MVA (megavolt ampheres) will be installed at this substation. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | The Project will finance extension of the north east power grid to country's eastern load centers, interconnect isolated networks into a unified grid, and underpin power system stability. The transmission line would (i) evacuate power from multiple photovoltaic solar projects (under implementation and planned) in the region, (ii) provide sustainable power to two industrial parks in east, and (iii) enable grid stability by interconnection with transmission lines in adjoining provinces. The transmission line will have capacity to energize additional 300,000 new connections to residential, commercial and industrial consumers. | ||||
| Impact | Access to sustainable energy supply across Afghanistan improved. |
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| Project Outcome | |
|---|---|
| Description of Outcome | Power supply to eastern Afghanistan increased |
| Progress Toward Outcome | The bidding documents for 220/110-kV substation were prepared and approved by ADB on 26 September 2018. The package was announced on 5 October 2018. The bid opening was held on 7 January 2019. The bid evaluation report (BER) 220/110/20kV substation at Jalalabad Shaikh Mesri was submitted to ADB on 29 August 2019. Due to the missing information in BER, the approval is delayed. The Contract was awarded in December 2019. |
| Implementation Progress | |
| Description of Project Outputs | Transmission capacity expanded in eastern Afghanistan Power distribution capacity increased in Nangarhar province |
| Status of Implementation Progress (Outputs, Activities, and Issues) | The bidding documents for 220/110-kV substation were prepared and approved by ADB on 26 September 2018. The package was announced on 5 October 2018. The bid opening was held on 7 January 2019. The bid evaluation report (BER) 220/110/20kV substation at Jalalabad Shaikh Mesri was submitted to ADB on 29 August 2019. Due to the missing information in BER, the approval is delayed. The contract was awarded in December 2019. So after completion of the project, the result will be achieved on 31 May 2022. The bidding documents for the 220kV transmission line between Arghundy substation and Jalalabad substation in Nangarhar province were approved by ADB on 26 September 2018. The bid was announced on 5 October 2018. The bid opening was held on 6 January 2019. The Technical Bid Evaluation Report (TBER) for the 220-kV Kabul-Jalalabad transmission line was submitted to ADB for review. Due to improper adherence to the ADB procurement guidelines, ADB recommended for re-biding. The revised bid documents for this package were submitted to ADB for review and no-objection on 30 October 2019. Following ADB no-objection, IFB using LIB method was issued to eight bidders in Q1-2020. The submission deadline was 31 March 2020. However, due to the COVID-19 situation the bidders requested the online submission and extension of the submission deadline. The submission deadline was extended till 16 May 2020 and alter extended to 25 July 2020. The draft technical bid evaluation report was submitted to ADB and ADB has provided comments on 5 October 2020. |
| Geographical Location | Jalalabad, Kabul |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The project is category "B" for the environmental aspect under ADB's Safeguards Policy Statement 2009. The Environmental Assessment and Review Framework was prepared and disclosed in October 2017. The Arghandeh-Jalalabad Initial Environmental Examination was prepared and disclosed in October 2017. The Initial Environmental Report is under preparation by DABS team. The report will be disclosed after necessary public consultation in Q2 2020. the Environmental Management Plan (EMP) Attached in bidding documents. |
| Involuntary Resettlement | The project is category "B" for involuntary resettlement under ADB's Safeguards Policy Statement 2009. The Land Acquisition and Resettlement Plan is under preparation by DABS Safeguard tram. Report will be disclosed after necessary public consultation in Q4 2020. |
| Indigenous Peoples | The project is category "C" for indigenous people with no impact on Indigenous Peoples envisaged. No reports will be prepared. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Stakeholder consultation will be undertaken after Q4 2019. |
| During Project Implementation | Stakeholder consultation and participation will be promoted throughout project implementation and will be undertaken during physical construction expected in 2020-2022. |
| Business Opportunities | |
|---|---|
| Consulting Services | N/A |
| Procurement | Procurement of works and goods to be financed under PFR 2 will be undertaken in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding (ICB) will generally be used for supply contracts estimated to cost more than $500,000 and for works contracts that cost more than $2 million. National competitive bidding (NCB) will be used for goods and works above $100,000 and below their ICB thresholds. Shopping will be used for goods and works equal to or below $100,000. |
| Responsible ADB Officer | ADB Disclosure |
| Responsible ADB Department | Sectors Group |
| Responsible ADB Division | Energy Sector Office (SG-ENE) |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | 02 Nov 2017 |
| Approval | 07 Dec 2017 |
| Last Review Mission | - |
| Last PDS Update | 28 Oct 2020 |
Grant 0556-AFG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 07 Dec 2017 | 25 Jul 2018 | 22 Aug 2018 | 31 May 2022 | 31 Dec 2023 | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 65.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 21 Jul 2023 | 0.00 | 52.96 | 88% |
| Counterpart | 5.00 | Cumulative Disbursements | |||
| Cofinancing | 60.00 | 21 Jul 2023 | 0.00 | 1.81 | 3% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory |
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