The President of the Islamic Republic of Afghanistan Mohammad Ashraf Ghani approved the contract of tow Public private partnerships projects.
President Ghani called the projects the initial steps towards domestic generation of energy and beginning of a significant move towards energy sector’s self-reliance through private sector investment. These projects’ contracts are BOO (Built, Own and Operate a) and before they were approved by HEC.
The projects are:
1- Mazar-e-Sharif Gas Power Plant Project
Mazar-e-Sharif power generation project will be established in Balkh province with a production capacity of more than 52 megawatts of electricity from gas, which will be a sustainable energy generation source for the citizens and investors/entrepreneurs. Ghazanfar Group of Companies invests $75 million in this project. The project will generate tax, which will be $136 million, and other revenue through domestic gas sales, for the government. The total revenue from gas sales will be $136 million.
2- Bayat Power Project
Bayat Power project will be built in Jawzjan province, which will have electricity generating a capacity of more than 40 megawatts. The project will be a sustainable domestic source of energy generation from gas for the customers (citizens and investors/entrepreneur) and will increase government revenue through taxation and gas sale. Total taxation of the project will be around $8.7 million and the government revenue through the gas sale will be $37. Bayat Power Company invests around $38.85 million in this project.
It is worth mentioning that the MEW, ARAZI, DABS, MoM welcomed the projects’ approval and reaffirmed their readiness for their implementation.