On 17 June, the Asian Development Bank (ADB) and the Afghan Power Plant Company Limited (APPC) signed a $10 million loan, ADB said in a statement.
According to ADB, this loan is part of a financing package for the Mazar gas-fired power plant, supporting Afghanistans efforts to achieve long-term energy security through affordable domestic power sources.
The project is the first private sector gas-fired plant in Afghanistan to be funded by development finance institutions, says ADB.
ADB says that in line with its long-term corporate strategy, Strategy 2030, the bank supports essential infrastructure through the private sector in a fragile and conflict-affected situation.
"ADB will also administer a $10 million loan for the project provided by Leading Asias Private Infrastructure Fund (LEAP)," the statement adds.
The ABD says that the loan provides long-term financing to build and operate a 58.56-megawatt gas-fired power plant located near Mazar-i-Sharif in northern Afghanistan.
"The project cost a total of $89 million, will use indigenous gas and is expected to generate 404 gigawatt-hours of power annually," the statement writes.
Director of Infrastructure Finance Chakraborty, said, "This project is definitive proof that indigenous gas-based power generation is capable of displacing electricity imports in Afghanistan and helping to deliver energy security."
He added, "Its success will send an important signal to the market that Afghanistans power industry is now ready to attract more private sector investment and financing."
APPC Chairman Ismail Ghazanfar said, "This is the first step in Ghazanfar Groups vision of helping to develop 5,000 megawatts of energy generation facilities in Afghanistan through partnerships with international development banks, local and international companies, and the Government of Afghanistan."
It is worth mentioning that Afghanistan imports at least 75% of its energy needs.
LINK: https://www.ansarpress.com/english/18677
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