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Turkish firm ‘moves forward’ with plans to invest in Afghan energy producing sector

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The Islamic Emirate’s minister of energy and water met on Sunday with the head of a Turkish construction company in Kabul to discuss investment in the energy production sector.

According to the ministry of energy and water, the company, 77 Insaat, expressed interest in investing in power-producing projects including a wind-generating endeavor that could produce 200 megawatts of electricity in Afghanistan.

The ministry said in a series of tweets that the IEA’s energy and water minister Abdul Latif Mansoor met with Suleyman Ciliv, the head of the company, “and discussed and exchanged ideas about the development of joint cooperation of investment in the energy production projects from different sources.”

At the meeting, Mansoor praised the initiative being taken by the company in Afghanistan and said the implementation of the second phase of the Kajaki Dam project by the company was a valuable achievement for the people of Afghanistan.

Mansoor emphasized the need for investment in energy projects and assured Ciliv that the leadership of the energy and water ministry is committed to cooperating with the company.

“Both parties agreed to sign a cooperation agreement to invest in a 200 megawatts wind power generation project as soon as possible, so that on the basis of this agreement, the practical works of this project will start in the future,” the ministry said.

Energy in Afghanistan is provided by hydropower followed by fossil fuel and solar power but currently more than 50% of electricity is imported from neighboring countries.

Many rural areas do not have access to power, while urban areas are often hampered by severe restrictions.

Afghanistan currently generates over 600 megawatts (MW) of electricity but its imports total over 670 MW more.

The Afghan National Development Strategy has identified alternative energy, such as wind and solar energy, as a high value power source to develop.

Last year the ministry of energy and water identified 16 electricity-generating projects that, once established, will increase power output and help make the country less reliant on its neighbors for this critical commodity.

The ministry said at the time that of these 16, there are 12 thermal and solar power projects that have been identified and proposals have been shared with domestic and foreign investors in the hope of attracting financial backing.

Economists have meanwhile said that if investors can be found to support this sector, and if more electricity is generated, industry will grow.

Power projects ‘prioritized’

In April last year, the IEA’s Economic Commission, chaired by Deputy Prime Minister Mullah Abdul Ghani Baradar, gave orders for various ministries to prioritize projects to generate electricity.

At the time, the commission said after “extensive discussions on all issues that the private sector is prepared to invest in”, it was decided that the generation of electricity should be a priority.

According to the statement, the commission instructed various ministries under the leadership of the ministry of energy and water, to also generate electricity from coal.

A shortage of power has plagued Afghanistan for decades despite it having ample hydropower, coal and fossil fuel resources - as well as potential for solar and wind energy projects.

Over the past few years however, one successful private partnership has emerged – between the Afghan government and Bayat Power, Afghanistan’s largest, Afghan-owned and operated power production company which has the region’s most technologically advanced gas fired electric power plant.

Launched in 2019, this commercial operation provides reliable and affordable electric power to hundreds of thousands of people in Afghanistan.

Located in Sherberghan, in the north of the country, the epicenter of the nation’s gas-rich region, Bayat Power has steadfastly aimed to provide essential power for Afghanistan’s economic growth.

Powered by a Siemens SGT-A45 ‘Fast Power’ turbine, the world’s most advanced mobile gas to energy power solution, phase one of Bayat Power-1’s operations generates up to 44 megawatts of power for Afghan homes and businesses.

To date, Bayat Power has delivered over 700 million kilowatts of domestic power to the Afghan grid. However, Bayat Power hopes to eventually roll out three phases in total that will generate more than 200 megawatts of electricity – enough to serve millions of Afghan residential and commercial clients.

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Shoemaking industry in Takhar province facing stagnation

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A number of shoemakers in northern Takhar province say that while their handmade shoes are of better quality than imported shoes, but still sales are down.

According to them, there were more than 20 shoe-making shops in the past, but now some have been closed due to the decline in sales.

The shoemakers make most of their shoes from leather. A number of industrialists say that this industry is now facing stagnation.

Abdul Raqib, a shoemaking factor owner, said: “The government should support us. Currently, we import soles. It can be made with good quality in Afghanistan, and we could even compete against Turkish shoes.”

Meraj, another shoemaking factory owner, said: “Shoe sales were higher in the republic era. There were military shoes. Sales have declined now, but we still thank Allah.”

Shoemakers make these shoes with basic tools and by hand, with 5 to 8 people working in each shop.

Javed, a shoemaker, said: “Our sales are not so good. We can make any type of shoe or slipper. We want the government to support us.”

A number of Takhar residents say that domestically produced shoes are of high quality and with lower price compared to imported shoes, so people prefer domestic products to foreign products.

Mir Ata, a resident of Takhar, said: “We are very happy about domestic shoes. People should buy it. They are of good quality.”

However, the officials of Takhar Industry and Commerce Department say that they are committed to support the industrialists.

Abdul Rahman Ghaznawi, provincial director of industry and commerce, said: “People prefer domestic shoes and slippers. Takhar’s products are sold in Kunduz, Baghlan and Badakhshan as well.”

Meanwhile, industrialists say that if the government supports them, they will be able to make the best products and can be more competitive.

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Daily truck clearances at Torkham drop from 400-500 to 5-10

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Pakistan’s Sarhad Chamber of Commerce and Industry (SCCI) has said that daily truck clearances at Torkham crossing have declined from 400-500 to 5-10.

SCCI President Fazal Muqeem Khan said this at the signing ceremony of a memorandum of understanding (MoU) with the Pakistan-Afghanistan Joint Chamber of Commerce and Industry to promote bilateral trade and cooperation.

He said the volume of trade between Pakistan and Afghanistan had fallen from $3 billion to $1 billion annually.

Fazal Muqeem also highlighted the adverse impact of the 2% Infrastructure Development Cess (IDC) imposed by the Khyber-Pakhtunkhwa government on trade and transit.

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Turkish scholars, charity officials assess investment prospects in Afghanistan

Officials pledged to encourage Turkish investors to explore and capitalize on investment opportunities in Afghanistan

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Afghanistan’s Acting Minister of Energy and Water, Mullah Abdul Latif Mansoor, met with a delegation of Turkish scholars and officials from the Adif Charity Foundation on Tuesday to discuss various political, religious, and social issues.

According to the Ministry of Energy and Water, Mullah Mansoor praised Adif’s humanitarian efforts in Afghanistan and highlighted the country’s ample resources for energy production.

He emphasized that Afghanistan currently offers a favorable environment for investment in all sectors, assuring the Turkish delegation of the Islamic Emirate’s commitment to ensuring the safety and security of investors and their assets.

In response, Adif officials pledged to encourage Turkish investors to explore and capitalize on investment opportunities in Afghanistan, signaling a potential boost in economic and developmental cooperation between the two nations.

 

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