Afghanistan : Energy Supply Improvement Investment Program Tranche 5

Sovereign Project | 47282-008

Tranche 5 subprojects are linked and sequenced with projects under all previous tranches of the MFF. Tranche 5 will extend and strengthen the national grid into two remaining eastern provinces with a population of nearly 1.2 million, roughly 4% of Afghan population. The Tranche 5 will construct transmission lines, substations and finance operations of the program management office in DABS. The proposed transmission lines would provide significant value addition to (i) evacuate power from multiple photovoltaic solar projects (under implementation and planned) in the region, (ii) provide sustainable power to multiple industrial parks in eastern Afghanistan, (iii) strengthen supplies from 100 MW Naghlu hydropower plant, and (iv) enable grid stability by interconnection with transmission lines in adjoining provinces.

Project Details

Related Projects

Project Name Energy Supply Improvement Investment Program Tranche 5
Project Number 47282-008
Country / Economy Afghanistan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0634-AFG: Energy Supply Improvement Investment Program Tranche 5
Asian Development Fund US$ 143.42 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution
Gender Some gender elements
Description Tranche 5 subprojects are linked and sequenced with projects under all previous tranches of the MFF. Tranche 5 will extend and strengthen the national grid into two remaining eastern provinces with a population of nearly 1.2 million, roughly 4% of Afghan population. The Tranche 5 will construct transmission lines, substations and finance operations of the program management office in DABS. The proposed transmission lines would provide significant value addition to (i) evacuate power from multiple photovoltaic solar projects (under implementation and planned) in the region, (ii) provide sustainable power to multiple industrial parks in eastern Afghanistan, (iii) strengthen supplies from 100 MW Naghlu hydropower plant, and (iv) enable grid stability by interconnection with transmission lines in adjoining provinces. The project will: (i) construct a 95 kilometer 220-kV transmission double circuit line between Nangrahar provincial capital Jalalabad and Kunar provincial capital Asadabad; (ii) commission 2 X 40 megavolt-ampheres (MVA) substation in Asadabad; (iii) finance a 69 kilometer 220-kV single circuit transmission line between Ghazni provincial capital and Paktika provincial capital Sharana; (iv) construct 2 X 16 MVA substation in Sharana with construction of 2 bays in an existing Ghazni substation; and (v) strengthen planning and project implementation capacity in DABS.
Project Rationale and Linkage to Country/Regional Strategy Numerous surveys have confirmed that after security, provision of sustainable and affordable energy supplies is the most pressing need of the Afghans. Of 34 provinces in Afghanistan, 19 are not connected to the power grid, which increases the cost of doing business, damages the environment, and impedes the achievement of sustainable development indicators. This further constrains growth opportunities; creates disparities in economic development; and fuels ethnic and regional tensions, insecurity, and discontent. The off-grid rural provincial populace pays nearly 3 to 4 times the cost of energy compared to urban grid connected consumers. For equity, it is imperative to supply grid power to all provincial capitals. The project will provide grid power supply to 2 provinces and will replace diesel powered generation with sustainable and affordable grid power. The project would extend access to additional grid-electricity to existing and new customers in the Kunar and Paktika regions, with a capacity to evacuate around 450 MW of power that could energize some 450,000 connections to existing and new consumers (residential, commercial and industrial) gradually being added by DABS in these two provinces.
Impact

Access to sustainable energy supplies across Afghanistan improved
Project Outcome
Description of Outcome

Supply of imported and indigenous power increased
Progress Toward Outcome For 220/20 kV substation at Kunar, the notice to proceed was issued on 27 June 2020 and mobilization of contractor is in process. As for the turnkey package for 220/20 kV substation at Sharana and 220 kV line bay extension at Ghazni substation, advance payment for mobilization of contractor was disbursed on 4 August 2020 and the contractor is still to be mobilized.
Implementation Progress
Description of Project Outputs

Transmission capacity in eastern Afghanistan expanded

Power distribution capacity increased

Planning and project implementation capacity of DABS strengthened
Status of Implementation Progress (Outputs, Activities, and Issues)

ADB issued no objection on draft bid documents for 220/20 kV substation at Kunar on 18 February 2019, IFB was published on 13 March 2019, and bids were opened on 2 June 2019. ADB issued no objection for contract award on 18 December 2019, and contract was signed on 31 December 2019 with Turkey Firm, Best Elektrik. The notice to proceed was issued on 27 June 2020. Mobilization of contractor is in process.

ADB issued the no objection letter on draft bid documents for 220/20-kV substation at Sharana and 220 kV line bay at Ghazni Station on 21 May 2019, IFB was published on 27 May 2019, and bids were opened on 25 September 2019. ADB issued no objection for contract award on 29 January 2020 and contract was signed on 8 March 2020 with VICC-Metro Elektrik JV. Advance payment for mobilization of contractor was disbursed on 4 August 2020. The contractor is still to be mobilized.

Activities ongoing.

Activities ongoing.

Activities ongoing.

ADB issued no objection letter on draft bid documents for 220-kV double circuit transmission line from Jalalabad to Kunar on 18 February 2019, IFB was published on 13 March 2019, and bids were opened on 1 June 2019. ADB issued no objection letter for contract award on 23 January 2020. Contract signing was on 9 May 2020. ADB issued Commitment Letter for L/C. Advance payment for mobilization of contractor was disbursed on 7 August 2020. The L/C was already established.

ADB issued the no objection letter on draft bid documents for 220-kV transmission line from Ghazni to Sharana on 20 May 2019, IFB was published on 27 May 2019, and bids were opened on 24 September 2019. ADB issued the no objection letter on the Financial Bid Evaluation report on 3 August 2020.
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental impacts are envisaged as site-specific and temporary. Those impacts can be mitigated through careful line routing, resilient design and by EMP implementation.
Involuntary Resettlement No civil works will start until the LARP is fully implemented by DABS. The LARP implementation will be monitored semiannually with reports submitted for ADB's review.
Indigenous Peoples The field survey found that no ethnic minority, as defined by SPS, is involved or affected.
Stakeholder Communication, Participation, and Consultation
During Project Design

Being undertaken at project survey and preparatory phase.
During Project Implementation Additional consultative meetings will be scheduled once detailed design of the project is completed.
Business Opportunities
Procurement Procurement of works and goods will follow ADB's Procurement Policy (2017, as amended from time to time) using open competitive bidding for the turnkey contract packages.
Responsible ADB Officer ADB Disclosure
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Timetable
Concept Clearance -
Fact Finding -
MRM 25 Oct 2018
Approval 06 Dec 2018
Last Review Mission -
Last PDS Update 30 Sep 2020

Grant 0634-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Dec 2018 09 Dec 2018 14 Mar 2019 31 Dec 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 148.00 Cumulative Contract Awards
ADB 143.42 21 Jul 2023 64.09 0.00 53%
Counterpart 4.58 Cumulative Disbursements
Cofinancing 0.00 21 Jul 2023 11.36 0.00 9%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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