Afghanistan : Mazar Gas-Fired Power Project
The project involves development, construction, operation, and maintenance of a 58.56 MW greenfield, indigenous gas-based reciprocating engine power plant in Mazar-i-Sharif, Afghanistan.
Private Sector Operations Department
Request for information
20 February 2020
|Project Name||Mazar Gas-Fired Power Project|
|Borrower / Company||Afghan Power Plant Company Limited
|Country / Economy||Afghanistan
|Type or Modality of Assistance||
|Operational Priorities||OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
|Sector / Subsector||
Energy / Conventional energy generation
|Gender||Some gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Infrastructure Finance Division 1|
|Responsible ADB Officer||ADB Disclosure|
|Project Sponsor(s)||Ghazanfar Group of Companies
Hassan Allam Holdings
|Description||The project involves development, construction, operation, and maintenance of a 58.56 MW greenfield, indigenous gas-based reciprocating engine power plant in Mazar-i-Sharif, Afghanistan.|
|Objectives and Scope||The Project will provide long-term financing not readily available in Afghanistan and will increase domestic power generation and reduce import of electricity by contributing to Afghanistan's long-term energy security, affordability, and sustainability.|
|Linkage to Country/Regional Strategy||The project is consistent with ADB's Strategy 2030, which includes expanding and diversifying private sector operations in new and frontier markets, such as fragile and conflict affected-situation countries. ADB's support for the project is also in line with its Afghanistan country partnership strategy, 2017-2021 as it supports one of the three key priority areas: energy. The project will improve energy affordability, sustainability, and security, and increase access to reliable sources of domestic power generation in Afghanistan.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||An Environmental and Social Impact Assessment (ESIA) has been prepared and was approved by the National Environment Protection Agency of Afghanistan in May 2018. An independent environmental and social compliance review was conducted for the project in 2019 and developed an Environmental and Social Action Plan (ESAP) to address gaps identified against applicable standards. The potential environmental impacts of the project include dust, heat, noise and occupational hazardous during construction and impacts on air emissions, noise, waste generation and occupational hazards during operation. These impacts are generally site-specific, reversible and will be managed by the implementation of the Environmental and Social Management Plan (ESMP).|
|Involuntary Resettlement||In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as Category C for involuntary resettlement. The project has not caused any physical or economic displacement impacts. A separate Land Acquisition Resettlement Plan has been prepared (and disclosed) for non-significant displacement impacts expected during construction of the transmission line.|
|Indigenous Peoples||In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as Category C for Indigenous Peoples. The project area is not within areas where distinct and vulnerable Indigenous Peoples or ethnic minority groups reside.|
|Stakeholder Communication, Participation, and Consultation||Consultations have taken place during preparation of the ESIA, including with local residents and workers, women's groups, local authorities and civil society. The main concerns are related to disturbances and pollution, local employment and opportunities for women. A Stakeholder Engagement Plan (SEP) will be developed and includes a grievance redress mechanism to ensure grievances, if any, will be communicated and addressed appropriately.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||09 Apr 2019|
|Credit Committee Meeting||04 Dec 2019|
|Approval||20 Feb 2020|
|Last PDS Update||01 Jul 2020|
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ADB, APPC Sign Loan for Gas-Fired Power Plant to Enhance Afghanistan’s Energy SecurityThe Asian Development Bank (ADB) and the Afghan Power Plant Company Limited (APPC) today signed a $10 million loan as part of a financing package for the Mazar gas-fired power plant, supporting Afghanistan’s efforts to achieve...