Contacts:
In Kabul:
Abdul Raouf Zia (93) 702 80800 Washington, 22 June 2004 – In order to provide an improved and more reliable power supply to the people in Kabul, the World Bank today approved a US$105 million credit to the government of Afghanistan. The Emergency Power Rehabilitation Project will restore and expand the distribution network, rehabilitate the largest generation station supplying Kabul and the associated transmission line, and improve commercial operations of the utility. At the Afghanistan government’s request, the Emergency Power Rehabilitation Project was designed to accommodate significant co-financing where the Bank, government and other donors will cooperate to bring electricity to residents in other main cities. The total budget for the program is estimated at US$220 million, of which the World Bank’s International Development Association (IDA) will provide US$105 million. IDA funds will be used for the Kabul area, and additional cities will be added as co-financing becomes available to ensure regional balance. Afghanistan’s power sector is severely constraining the development of the country. Officially, access to power is only about 6 percent, one of the lowest in the world; only 234,000 customers are connected to the public grid, of which approximately 30 percent are in Kabul. There is about 450 MW installed capacity in generation facilities, of which only 271 MW are available and most of the units require overhaul or replacement. The existing facilities provide an unreliable service for only a few hours each day. Distribution systems in the country are destroyed due to insufficient investment, lack of maintenance, and outright theft of materials over the last 23 years. “Afghanistan’s existing systems suffered extensive deterioration during decades of war and currently provides poor quality service,” said Julia M. Fraser World Bank Senior Financial Analyst and the Project Team Leader. “The World Bank recognizes the urgent need, and is providing support to a reliable and financially sustainable power system, which is essential for the development of Afghanistan. ” The Emergency Power Rehabilitation Project will specifically finance the rehabilitation and expansion of the distribution network in Kabul, the rehabilitation of the Naghlu hydro power station (100 MW), the largest plant serving Kabul, including the rehabilitation of 110 kV transmission line from Naghlu to the Kabul East Substation and to the Kabul North. The project will also include technical assistance for the commercialization of the power utility (Da Afghanistan Breshna Moassese-DABM) and for capacity building for the Ministry of Water and Power staff. The Ministry of Water and Power (MWP) will have overall responsibility for project execution and implementation. The IDA credit for the Emergency Power RehabilitationProjectcarries no interest, a 0.75 percent service charge, and has a 40-year maturity, with a 10-year grace period. For more information on the project, visit: http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid;=000012009_20040430130800 For more information on the World Bank’s activities in Afghanistan, visit: http://www.worldbank.org/af For more information on the Afghanistan Reconstruction Trust Fund, visit: http://www.worldbank.org/artf |
