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Afghanistan: Energy Supply Improvement Investment Program Tranche 6

Sovereign (Public) Project | 47282-007 Status: Active

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.

 
Project Name Energy Supply Improvement Investment Program Tranche 6
Project Number 47282-007
Country Afghanistan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0742-AFG: Energy Supply Improvement Investment Program Tranche 6
concessional ordinary capital resources lending / Asian Development Fund US$ 110.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming 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).
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 Gurgenidze, Nana
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
Da Afghanistan Breshna Sherkat
Chaman Houzouri, Kabul, Islamic Republic
of Afghanistan
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 30 Sep 2020 100.11 0.00 91%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2020 0.00 0.00 0%

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Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
DESIGN BUILD & OPERATE OF 500KV SINGLE CIRCUIT TL UZB-AFG BORDER TO 500KV KHAWAJA ALWAN SUBSTATION Grant 0742 25 Dec 2020 NATIONAL ELECTRIC GRID OF UZBEKISTAN (NEGU) 42 OSIE STREET JUNUSABADSKY DISTRICT 100084 TASHKENT UZBEKISTAN REP. OF Da Afghanistan Breshna Sherkat 100,110,495.20

Procurement Plan