Afghanistan: Supporting the Forum for Coordination of Energy Stakeholders

Energy / Electricity transmission and distribution - Energy sector development and institutional reform - Energy utility services

The TA will recruit international and national experts to (i) propose the structure and mandate for the coordination platform in DABS, (ii) develop the standard operating procedures, (iii) prepare the terms of reference for the coordination staff, and (iv) finance the first 2 years of its operation.

The TA will provide a platform for technical discussion and dialogue among development partners and government agencies through close coordination, harmonization, and collaboration of efforts. It is envisaged that coordination will lead the sector to coherent strategic improvements and implementation of investment plans, as well as provide capacity and analytical support to strengthen energy sector investments in Afghanistan.

The energy sector experiences technical, financial, and governance deficits, and lacks integrated planning. Although significant international assistance has been channeled into project-based financing, the pace of energy sector reform and institutional capacity building has not kept pace with the improvements in physical infrastructure. While assistance is provided by ADB to restructure Da Afghanistan Breshna Sherkat (DABS), the government-owned electricity utility, and to improve institutional, regulatory, and commercial framework in the sector, there remains a need to strengthen the overall coordination among the stakeholders.

Previously, the energy sector coordination platform, the Inter-Ministerial Commission for Energy (ICE) had been supported by ADB from 2007-2009 and 2013-2017 and by the United States Agency for International Development (USAID) from 2009-2012 and had produced tangible results to meet the energy sector investment needs of Afghanistan. ICE was generally useful for the coordination of stakeholders for ten years (2007-2017). However, since the MOE is not directly involved in project implementation, the sustainability plan of ICE was not followed by the MOE. More importantly, ICE was not integrated and institutionalized into the government structure (tashkeel). There is still, thus, a critical need to strengthen and sustain the effort for coordination of sector planning, implementation, monitoring, and oversight of investments into the Afghanistan energy sector by the government, development partners, and private sector. Being the leading development partner, ADB aims to ensure a high level of coordination and harmonization in the energy sector among the development partners and government entities.

The need for coordination is especially acute due to the closure of ICE TA, which used to serve as a dialogue platform between the various stakeholders. Given the importance of the energy sector to the Afghan economy and large investment portfolios of development partners, there is an urgent need to coordinate the ongoing project implementation, policy and reform dialogue, and future development activities.

To provide necessary inputs in energy sector coordination to the government and development partners, the TA will build upon (i) the recommendation of ICE for the energy sector coordination platform for technical dialogue among government agencies and development partners, and (ii) ADB's experience in the energy sector.

(i) Energy sector's institutional capacity enhanced to improve coordination of energy investment budgeting and ensure balanced regional access (Afghanistan National Peace and Development Framework or ANPDF, 2017-2021).

(ii) ADB Strategy 2030's operational priority related to strengthening governance and institutional capacity enhanced.

FORCES secretariat operationalized.

Coordination and information exchange among energy stakeholders increased.