fbpx 47282-006: Energy Supply Improvement Investment Program Tranche 4 (Formerly Multitranche Financing Facility II: Energy Development 2014–2023) | Asian Development Bank

Afghanistan: Energy Supply Improvement Investment Program Tranche 4 (Formerly Multitranche Financing Facility II: Energy Development 2014–2023)

Sovereign (Public) Project | 47282-006 Status: Active

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 Name Energy Supply Improvement Investment Program Tranche 4 (Formerly Multitranche Financing Facility II: Energy Development 2014–2023)
Project Number 47282-006
Country Afghanistan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0556-AFG: Energy Supply Improvement Investment Program (Formerly Multitranche Financing Facility II: Energy Development 2014-2023)
Afghanistan Infrastructure Trust Fund US$ 60.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming 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.
Project Outcome
Description of Outcome Power supply to eastern Afghanistan increased
Progress Toward Outcome

The bidding documents for two packages (i) 220-kV Kabul-Jalalabad transmission line, and (ii)The 220/110 kV substation have been prepared and approved by ADB on 26 September 2018. Both packages were announced on 5 October 2018. The bid opening was held on 6 and 7 January 2019 respectively. 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 re-tendering. The revised bid documents for this package were submitted for review to ADB on 30 Oct 2019 and IFB using LIB has been issued to eight bidders in Q1-2020.

The contract for the 220/110 kV substation was signed in December 2019. The contract is not yet effective due to delays in processing the advance payment. It is expected that the advance payment will be processed by mid-April 2020 and the contract will become effective by April 20, 2020.

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 document for 220/110-kV substation was 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 was delayed. The contract was awarded in December 2019. After completion of the project, the result will be achieved on 31 May 2022.The project will extend the national grid into the eastern provinces with a population of nearly 2 million people. It will allow (i) transmission of indigenous power generation and extension of the power interconnection to the country's eastern load centers; (ii) interconnection of isolated networks into a unified grid, and (iii) greater power system stability. The project will also provide sustainable power to two industrial parks in the east and enable grid stability - by interconnecting transmission lines in the adjoining provinces. The transmission line will have the capacity to transmit 300 MW of power and energize an additional 300,000 new connections to residential, commercial and industrial consumers. So after completion of the project, the result will be achieved after 31 May 2022.The bidding documents for 220-kV Kabul-Jalalabad transmission line were prepared and approved by ADB on 26 September 2018. The package was announced on 5 October 2018. The bid opening was held on 6 January 2019. The 220-kV Arghandi (Kabul) to Jalalabad Transmission Line bidding has failed due to improper adherence to the ADB procurement guidelines. The revised bid documents for this package was submitted to ADB on 20 Oct 2019 and IFB using LIB was issued to eight bidders in Q1-2020.
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 Initial Environmental Report is under preparation by DABS team. The report will be disclosed after necessary public consultation in Q1 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 Q1 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 wukk 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 Mukhamedova, Takhmina
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Da Afghanistan Breshna Sherkat
[email protected]
Chaman Houzouri, Kabul, Islamic Republic
of Afghanistan
Timetable
Concept Clearance -
Fact Finding -
MRM 02 Nov 2017
Approval 07 Dec 2017
Last Review Mission -
Last PDS Update 01 Apr 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 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 65.00 Cumulative Contract Awards
ADB 0.00 07 Dec 2017 0.00 10.08 17%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 60.00 07 Dec 2017 0.00 1.81 3%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory Unsatisfactory Unsatisfactory Unsatisfactory - Unsatisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

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Tenders

Tender Title Type Status Posting Date Deadline
Grant No. 0556-AFG(EF): Energy Supply Improvement Investment Program (Tranche 4) [NPA/DABS/97/W-2138/ICB] Invitation for Bids Closed 05 Oct 2018 07 Jan 2019
Grant No. 0556 AFG: Energy Supply Improvement Investment Program (Tranche 4) [NPA/DABS/97/W-2132/ICB] Invitation for Bids Closed 05 Oct 2018 06 Jan 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PROCUREMENT OF PLANT -DESIGN SUPPLY INSTALLATION TESTING AND COMMISSIONING OF 220/110/20-KV SUBS Grant 0556 23 Dec 2019 ZWAKMAN NABIZAI CONSTRUCTION COMPANY & STATE 15TH STREET KAR-TE-SEH KABUL AFG. AFGHANI. IS. REP. OF Da Afghanistan Breshna Sherkat 10,081,838.62

Procurement Plan