KABUL - The Asian Development Bank (ADB) has announced providing Afghanistan a $4 million loan for a solar power project in Kandahar province.
The ADB signed an agreement to the effect with the Barakat Kandahar Solar Energy (BKSE) -- a special purpose vehicle (SPV).
BKSF majority is owned by 77 Afghanistan -- a subsidiary of 77 Group. The co-borrowers in this deal include three subsidiaries of 77 Group, an ADB statement said.
Azim Hashimi, senior public-private partnership specialist at ADBm called a reliable energy source important for the growth and development prospects of Afghanistan, with low power generation and access.
“ADB’s support for this important project will help provide long-term financing that is not available locally to build and operate a state-of-the-art solar power plant in Afghanistan,” he added.
Burak Unsal, 77 Group representative and project director, thanked ADB for paving the way for investors in Afghanistan by supporting the first private sector-financed independent power producer (IPP).
Afghanistan ranks in the bottom 5% in terms of per capita electricity usage, with only 30% of the country’s population connected to the grid in 2015.
In terms of the energy mix, solar power accounts for only about 1% or 3 MW of the country’s total installed generation capacity.
This is despite Afghanistan having about 220,000 MW of solar power generation potential. The government aims to develop the country’s renewable energy generation.
The 15.1 MW Kandahar solar power project will generate about 27.5 GWh of electricity annually and avoid 8,500 tonnes of carbon dioxide emissions.
It will also help boost the share of renewable energy in the country’s total installed power generation capacity up to 5,000 MW by 2032. (Pajhwok)