Grants for Energy and Transport Projects in Afghanistan Signed
Afghanistan will receive around $436 million in grants from the Asian Development Bank (ADB). Three grant agreements for energy and transport projects were signed on 7 March 2013 by Finance Minister Omar Zakhilwal of the Islamic Republic of Afghanistan and ADB Country Director Joji Tokeshi of the Afghanistan Resident Mission.
The first of three grants, valued at $200 million, is tranche four of the multitranche financing facility that funds the Energy Sector Development Investment Program, approved in 18 December 2012. This grant will finance the construction of transmission lines and substations allowing up to 300 megawatts of power generated in Turkmenistan to be exported to northwest Afghanistan. Distribution networks will also be built in the cities of Pul-e-Alam and Gardez to electrify 20,000 households in southern Afghanistan.
Two grants at $176 million from the Asian Development Fund and $60 million from the Afghanistan Infrastructure Trust Fund, respectively, will finance the second tranche of the Transport Network Development Investment Program, approved in 10 December 2012. This tranche involves the construction of 188 kilometers (km) of priority national and regional roads including a 106 km section of the Kabul–Jalalabad road, the 50 km Angoor Ada–Sharan Economic Corridor, and the 32 km Chah-e-Anjir–Gereshk road. These road projects will create increased capacity for cross-border links with Pakistan—Afghanistan’s largest trading partner. They will help boost the economy of southern Afghanistan as well as regional trade, by completing transport corridors 5 and 6 of the Central Asia Regional Economic Cooperation (CAREC) Program. These corridor sections will also complete key national road network radian links between Afghanistan’s Ring Road and provincial capitals.
The signing was witnessed by the management and directors of ADB’s Central and West Asia Department, project team leaders of the energy and transport divisions, and representatives of the Office of the General Counsel.