Afghanistan: Energy Supply Improvement Investment Program (Tranche 7)

Sovereign Project | 47282-009

Project Name Energy Supply Improvement Investment Program (Tranche 7)
Project Number 47282-009
Country / Economy Afghanistan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0769-AFG: Energy Supply Improvement Investment Program Tranche 7
Asian Development Fund US$ 36.40 million
Grant 0770-AFG: Energy Supply Improvement Investment Program Tranche 7
Afghanistan Infrastructure Trust Fund US$ 118.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming Effective gender mainstreaming
Project Rationale and Linkage to Country/Regional Strategy
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects DABS prepared an IEE study for Tranche 7 and updated the environmental assessment and review framework prepared for this MFF, which were disclosed on the ADB website. The project will result in short-term, site-specific environmental impacts during construction, which are primarily related to soil erosion, deterioration of air quality, generation of noise and vibration, construction waste, and occupational and community health and safety. Risks related to electromagnetic fields and natural hazards, such as earthquakes, landslides, and rockfalls, can result in adverse impacts during operation. These impacts can be mitigated by careful line routing, resilient design, and effective environmental management plan (EMP) implementation, which were budgeted in the project cost. DABS did not carry out detailed baseline surveys and consultations due to security concerns in the project area, but will carry them out during detailed design, with the IEE study duly updated and cleared by ADB before construction. DABS will report on the EMP implementation through semiannual environmental monitoring reports. PMO's Environmental Specialist supported by an international environmental consultant of the Project Supervision Consultant are responsible for monitoring and supervision of the Environmental Management Plan and provisions of the IEE.
Involuntary Resettlement

DABS updated the MFF land acquisition and resettlement framework allowing sectional approach in September 2019. Three SDDRs prepared by DABS for Pul-e-Hashemi, Shindand and Farah substations were disclosed. DABS prepared two draft LARPs for the Pul-e-Hashemi to Shindand and Shindand to Farah transmission lines, based on the preliminary design. These draft LARPs identified the total of about 217 households with about 1,736 persons to be affected. Of these, about 30 households with about 240 persons will be physically displaced. The total number of economically displaced persons to be significantly affected will be confirmed by the final LARPs. Once the detailed designs are finalized, DABS will update the LARPs and submit for ADB's approval before implementation. No civil works will start on any section of the transmission lines until the LARPs are fully implemented in the respective sections and a third-party monitoring report validating compliance with the LARPs is accepted by ADB. ADB will finance up to $1 million from ADF grant to cover non-land component of the total LAR cost. The PMO will engage a resettlement team as part of the project supervision consulting firm to conduct the displaced persons census and survey and implement the final, implementation ready LARP. A LARP coordinator will be assigned within the project supervision consulting team to liaise between the PMO and the displaced persons. DABS will submit semiannual social safeguards monitoring for ADB's review. In addition, the third-party monitoring firm engaged by ADB will monitor the project implementation.

The Pul-e-Hashemi substation, the upgrade of which will be financed by the tranche, is an associated facility to this project as per the definition provided in the Safeguard Policy Statement. DABS prepared environmental and social safeguard due diligence reports in compliance with the Safeguard Policy Statement requirements. Impacts from this facility were also analyzed in the IEE study.

Indigenous Peoples The field survey found that no indigenous people, as defined by the Safeguard Policy Statement, is involved or affected.
Stakeholder Communication, Participation, and Consultation
During Project Design The project is designed to provide at least 176,191 residents of Shindand and Farah Districts (of which 49% are females) with continuous access to the grid electricity supply. The women in Shindand and Farah are mostly engaged in household chores and family care. Many of them are also involved in dairy production, and meat processing, and even in leather and wool production, albeit, inside their homes. Women are among the major users of household energy. Give the unpredictable power supply, women tend to work longer, as they engage in both housework and income-earning activities. Long power outages impair their productivity and earning opportunities. The project will ease women's household burdens and enable livelihood and income-generating activities.
During Project Implementation The project envisages participation of civil society organizations in project implementation. Local NGO/Facilitating partner will be recruited under Tranche 1 of MFF II to support development of the training modules on energy-based livelihood and conduct of the trainings in the selected districts. The design of the training will allow equipping the trainers with the necessary equipment for them to start their livelihood, for example repair kits for appliances, or high-speed sewing machines, or even food processing equipment, etc.
Business Opportunities
Consulting Services The Project Supervision Consultant will be recruited under MFF II Tranche 5 according to ADB Guidelines on the Use of Consultants (2013, as amended from time to time)._Up to 219 person-months (91 international, 128 national) of consulting services are required to (i) develop and implement comprehensive project management plan to ensure most efficient, timely and economical implementation of the project; and (ii) supervise the engineering contractor for supply, installation, commissioning and testing of equipment. Estimated contract duration is 32 months. A consulting firm will be engaged by DABS using the quality-and cost based (QCBS) method with a standard quality cost ratio of 90:10. The reason for the quality cost ratio is due to the complexity of the project.

All procurement of goods and works will be undertaken in accordance with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

DABS will employ turnkey contractors to design, manufacture, supply, install and commission the substations and transmission lines. The procurement follows OCB procedure using the ADB single stage two-envelope bidding procedure. ADB standard bidding documents for Plant Design, Supply and Install are used.

Responsible ADB Officer ADB Disclosure
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Concept Clearance -
Fact Finding -
MRM 30 Oct 2020
Approval 02 Dec 2020
Last Review Mission -
Last PDS Update 02 Dec 2020

Grant 0769-AFG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2020 17 Dec 2020 16 Apr 2021 31 Dec 2025 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 39.00 Cumulative Contract Awards
ADB 36.40 02 Dec 2020 0.00 0.00 0%
Counterpart 2.60 Cumulative Disbursements
Cofinancing 0.00 02 Dec 2020 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory

Grant 0770-AFG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2020 17 Dec 2020 16 Apr 2021 31 Dec 2025 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 118.00 Cumulative Contract Awards
ADB 0.00 02 Dec 2020 0.00 77.96 66%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 118.00 02 Dec 2020 0.00 0.00 0%

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