Afghanistan: Energy Supply Improvement Investment Program Tranche 5
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.
Central and West Asia Department
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|Project Name||Energy Supply Improvement Investment Program Tranche 5|
|Country / Economy||Afghanistan
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Electricity transmission and distribution
|Gender Equity and Mainstreaming||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|
|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.|
|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.
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.
|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.|
|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||Central and West Asia Department|
|Responsible ADB Division||Energy Division, CWRD|
|MRM||25 Oct 2018|
|Approval||06 Dec 2018|
|Last Review Mission||-|
|Last PDS Update||30 Sep 2020|
|Approval||Signing Date||Effectivity Date||Closing|
|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||17 Jun 2022||64.09||0.00||53%|
|Cofinancing||0.00||17 Jun 2022||11.36||0.00||9%|
|Status of Covenants|
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