The Asian Development Bank (ADB) has approved US$1.2bn in grants to reinforce ongoing energy projects in Afghanistan and to provide new funds to boost energy supply, improve power sector efficiency, and promote cross border trade in energy. A first tranche of US$275m will be disbursed for release in 2015. The remaining tranches are expected to follow through to 2025.
Afghanistan's energy consumption has soared since 2005 and the country is heavily reliant on energy imports (about 80% of total supplies are imported) while the national grid is not synchronized with the systems of Iran, Tajikistan, Turkmenistan, and Uzbekistan.
The first tranche of the grant will expand the Turkmenistan-Afghanistan power interconnection, by building a 300 km long, 500 kV transmission line between Sheberghan to Dashte Alwan and a 60 km long, 220 kV line from Andkhoy to Sheberghan. The grant will also support a business plan and tariff framework for the state power utility, Da Afghanistan Breshna Sherkat.
The following tranches will support the upgrade of the transmission network and measures to boost both domestic gas production and imports via the Turkmenistan-Afghanistan-Pakistan-India gas pipeline.