Afghanistan : Mazar Gas-Fired Power Project

Nonsovereign Project | 52306-001

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.

Project Details

  • Project Officer
    ADB Disclosure
    Private Sector Operations Department
    Request for information
  • Approval Date
    20 February 2020
  • Country/Economy
    Afghanistan
  • Sector
    • Energy
Project Name Mazar Gas-Fired Power Project
Project Number 52306-001
Borrower / Company Afghan Power Plant Company Limited
Country / Economy Afghanistan
Location Nation-wide
Type or Modality of Assistance
3893 Loan Ordinary capital resources USD 10.00 million Approved
8378 Loan Leading Asia's Private Infrastructure Fund (LEAP) USD 10.00 million Approved
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.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
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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