ADB to Study Power Trade Potential to Afghanistan
Jan 22, 2007 - Xinhua
Manila: ADB is providing a US$3 million
technical assistance grant to study the potential
for regional electricity trading that would help optimize
utilization of power resources in both Central and
The feasibility study will prepare a
proposed power trading project that would, in its
initial stages, earn revenues for the Kyrgyz Republic
and Tajikistan by allowing them to initially export
1,000 megawatts of electricity to Afghanistan and
Pakistan, where there are significant energy shortages.
The ADB, European Bank for Reconstruction
and Development, Islamic Development Bank, and World
Bank along with bilateral and private sector stakeholders
have been participating and assisting the Multi-Country
Working Group in their consideration of the project.
"The Multi-Country Working Group
has taken important steps toward regional cooperation
in power trade and ADB is pleased to contribute through
this study to support their efforts to progress to
the next stage in project development," says
F. C. Kawawaki, an ADB Senior Investment Specialist.
"Although there is some existing
interconnection between Afghanistan and Central Asia,
and additional bilateral projects are under development,
there is considerable scope for expansion of regional
cooperation in the power sector. This project marks
the beginning of the process to bring the demand and
supply sides together."
The study will look into the feasibility
and viability of the proposed project, including assessment
of power availability and demand in the countries,
possible transmission routes, economic and financial
costs, and environmental and social safeguard assessments.
The countries have also requested World
Bank to provide technical assistance focusing on the
Commercial Assessment study, which together with ADB's
assistance will be utilized by the four countries
to determine the way forward.