Afghanistan Ministry of Finance and the Asian Development Bank (ADB signed a contract worth 415 million dollars to boost Afghanistan’s energy supply and strengthen the country’s cross-border trade in energy.
The assistance includes $188.23 million from the ADB Asian Development Fund; $225.77 million in co-financing from the Afghanistan Infrastructure Trust Fund supported by the Governments of Belgium, Canada, Germany, the Netherlands, and the United States; and $1 million from the People’s Republic of China Regional Cooperation and Poverty Reduction Fund.
The Afghan government will also allocate $5 million for the second installment of this project from its own internal resources.
“We are grateful for the continued support of ADB to the energy sector in Afghanistan,” said Eklil Hakimi, Afghan Minister of Finance. “Energy is one of the government’s priority sectors and a foundation for economic growth. The Government of Afghanistan and ADB will continue working closely to develop the energy sector for the improved livelihoods and welfare of all Afghans.”
ADB also considers this project very essential for the economic growth of Afghanistan.
“Insufficient energy supplies severely constrain economic development and income opportunities across Afghanistan,” said Thomas Panella, ADB Country Director in Afghanistan. “This assistance will support the government’s national energy supply program, which will expand power supply to boost economic growth, provide employment, and reduce poverty.”
ADB is Afghanistan’s largest development partner in the energy sector with cumulative grant assistance of nearly $2.2 billion all of which is on budget.
ADB has been working to not only develop power imports for urgently needed electricity, but to provide distribution systems; develop domestic generation; build capacity and promote institutional reforms; and is currently developing a large renewable program that will include off-grid options.