Afghanistan : Energy Supply Improvement Investment Program Tranche 6

Sovereign Project | 47282-007

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 / Economy
  • Afghanistan
Project Status
Active
Project Type / Modality of Assistance
  • Grant
Source of Funding / Amount
Grant 0742-AFG: Energy Supply Improvement Investment Program Tranche 6
Source Amount
Asian Development Fund US$ 110.00 million
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
Sector / Subsector
  • Energy / Electricity transmission and distribution

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).

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

Contact

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

Funding

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
  Total (Amount in US$ million)
Project Cost 120.00
ADB 110.00
Counterpart 10.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 100.11 0.00 91%
Cumulative Disbursements 06 Jun 2024 0.00 0.00 0%

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