Afghanistan : Energy Supply Improvement Investment Program Tranche 6
In December 2017, the Government of Uzbekistan and the Government of Afghanistan agreed to jointly develop a 500-kilovolt (kV) power interconnection from the Surkhan substation in Uzbekistan to the Khwaja-Alwan substation in Afghanistan. On 29 August 2019, ADB received the Afghan government's periodic financing request to finance the Afghan segment of the facility as tranche 6 through a grant totaling $110 million from ADB's Special Funds resources (Asian Development Fund). The project is linked and sequenced with the MFF's earlier projects.
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| Project Name | Energy Supply Improvement Investment Program Tranche 6 | ||||
| Project Number | 47282-007 | ||||
| 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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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity OP7: Fostering regional cooperation and integration |
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| Sector / Subsector | Energy / Electricity transmission and distribution |
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| Gender | Some gender elements | ||||
| Description | In December 2017, the Government of Uzbekistan and the Government of Afghanistan agreed to jointly develop a 500-kilovolt (kV) power interconnection from the Surkhan substation in Uzbekistan to the Khwaja-Alwan substation in Afghanistan. On 29 August 2019, ADB received the Afghan government's periodic financing request to finance the Afghan segment of the facility as tranche 6 through a grant totaling $110 million from ADB's Special Funds resources (Asian Development Fund). The project is linked and sequenced with the MFF's earlier projects. It is aligned with ADB's Strategy 2030 operational cluster 3 on infrastructure and economic connectivity, and supports five operational priorities: (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; (iv) strengthening governance and institutional capacity; and (v) fostering regional cooperation and integration. It is in line with ADB's country partnership strategy, 2017-2021 for Afghanistan. The project is also in line with the CAREC Energy Strategy 2030, which prioritizes regional interconnection as one key pillar. The project is included in ADB's country operations business plan, 2019-2021 for Afghanistan. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | On 4 December 2015, the Asian Development Bank (ADB) approved a multitranche financing facility (MFF) for the Energy Supply Improvement Investment Program in Afghanistan in an amount not exceeding $750 million from ADB's Special Funds resources (Asian Development Fund) and $450 million as ADB-administered co-financing, totaling $1.2 billion. The three executing agencies for the MFF are (i) Afghanistan's state-owned power utility, Da Afghanistan Breshna Sherkat (DABS), for the power subsector; (ii) the Ministry of Mines for the gas subsector; and (iii) the Ministry of Energy and Water for policy support and the renewable energy subsector. The MFF availability period ends on 31 December 2025. The investment program will boost energy trade and regional cooperation, strengthen the country's energy infrastructure, increase energy supply to accelerate the electrification rate, and improve operational efficiency in the sector. | ||||
| Impact | Access to sustainable energy supplies across Afghanistan improved (National Energy Supply Program). |
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| Project Outcome | |
|---|---|
| Description of Outcome | Supply of imported power increased. |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Reliable cross-border power transmission system between Uzbekistan and Afghanistan established Capacity of DABS for operating the project and its system in parallel operation with Central Asia Power System built. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | ADB Disclosure |
| Responsible ADB Department | Sectors Group |
| Responsible ADB Division | Energy Sector Office (SG-ENE) |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | 13 Jan 2020 |
| Approval | 30 Sep 2020 |
| Last Review Mission | - |
| Last PDS Update | 30 Sep 2020 |
Grant 0742-AFG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 30 Sep 2020 | 03 Nov 2020 | 10 Dec 2020 | 31 Dec 2025 | - | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 120.00 | Cumulative Contract Awards | |||
| ADB | 110.00 | 21 Jul 2023 | 100.11 | 0.00 | 91% |
| Counterpart | 10.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 21 Jul 2023 | 0.00 | 0.00 | 0% |
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ADB Approves $110 Million Grant to Enhance Power Supply in Afghanistan
The Asian Development Bank today approved a $110 million grant to boost power supply and strengthen Afghanistan’s energy sector by improving its sustainability and promoting cross-border trade in energy.