The Asian Development Bank (ADB) has agreed to provide $154m in financing to improve power supply network in Western Afghanistan.
The funding will be utilised to improve electricity supply in Afghanistan by extending the power grid into the western provinces of Herat and Farah while ensuring access to electricity for vulnerable communities in those provinces.
The ADB grant also includes $36.4m from the Asian Development Fund.
Administered by ADB, the Afghanistan Infrastructure Trust Fund (AITF) has also provided $118m additional funding in co-financing.
This is contributed by the Italian Government through the North Atlantic Treaty Organization Afghan National Army Trust Fund.
The project will help to extend the supply of electricity from Turkmenistan under the ongoing power purchase and sales agreement between Afghanistan and Turkmenistan.
It also includes the supply of electric transmission from local wind and solar photovoltaic projects of up to 100MW as well as the replacement of electricity generated from diesel with renewable and imported gas-based grid power at a lower cost.
The project is in line with Afghanistan’s National Energy Supply Program, ADB’s Strategy 2030, and the Central Asia Regional Economic Cooperation Program’s Energy Strategy 2030.
ADB energy specialist Takhmina Mukhamedova said: “Herat and Farah are not connected to the national grid, leading to higher costs of doing business for people in these provinces, environmental degradation, and weak sustainable development indicators.
“Connecting villages in these two provinces to the grid will tangibly and sustainably improve health outcomes, living conditions, and economic opportunities for households living in the harshest conditions.”