‫تاریخچهومقایسهبرنامههایانرژیروستایی‬

‫درچهارچوبوزارتاحیاوانکشافدهات‬

‫مقایسه تاریخچه و ساختار برنامه های همبستگی ملی (مرحله اول‪ ،‬دوم و سوم) و بخش انرژی‬
‫برنامه ملی انکشاف منطقوی‬

‫بررسی و مقایسه چهارچوب فعالیت مرتبط با انرژی در برنامه میثاق شهروندی و برنامه انرژی‬
‫پایدار برای انکشاف دهات افغانستان‬

‫و تطابق آنها با سند استراتژی ملی انکشاف افغانستان‬

‫زمستان ‪1396‬‬

‫احمد حسین رسولی‪ ،‬محمد بالل نیرم‪ ،‬غالم سرور فیاض‪ ،‬محمد انور نوید‪ ،‬محمد سلیم سلیمی‬

‫برنامه انرژی پایدار برای انکشاف دهات افغانستان وزارت احیا و انکشاف دهات‪،‬‬
 ‫فهرست‬
1:‫مقدمه‬

1‫دیدگاه استراتژی انکشاف ملی افغانستان‬

3‫اهداف عمده استراتژی انکشاف ملی افغانستان در سکتور انرژی‬

5:‫بحث‬

7‫برنامه انرژی پایدار برای انکشاف دهات افغانستان‬

8‫برنامه میثاق شهروندی‬

9:‫نتیجه گیری‬

:‫لیست ضمیمه ها‬

ANDS ‫) استراتژی انکشاف ملی افغانستان‬1

2014 ‫ تا پایان سال‬2008 ‫) خالصه گزارش کار بخش انرژی برنامه ملی انکشاف منطقوی از‬2

‫) گزارش بانک جهانی در مورد مرحله اول برنامه همبستگی ملی‬3

2008 ‫) گزارش برنامه ملی انکشاف منطقوی در سال‬4

ASERD ‫) سند برنامه انرژی پایدار برای انکشاف دهات افغانستان‬5

‫ تحت استراتژی ملی انکشاف‬NPPs ‫ اولویت بندی و پالن اجرایی برنامه های دارای اولویت ملی‬،‫) گزارش کنفرانس کابل‬6

‫ جلد دوم‬،‫افغانستان‬

‫) صورت جلسه ارایه مدل های کسب و کار مرتبط با پروژه های انرژی‬7

‫ وزارت مالیه‬،‫) صورت جلسه برنامه انرژی پایدار برای انکشاف دهات افغانستان با واحد مرکزی مشارکت‬8

‫) سند رهنمود عملیاتی برنامه میثاق شهروندی‬9

)Afghanistan National Peace and Development Framework, ANPDF ( ‫) چهارچوب صلح و انکشاف ملی‬10
 ‫عنوان‪:‬‬
‫تاریخچه و مقایسه برنامه های انرژی روستایی در چهار چوب وزارت احیا و انکشاف دهات‬

‫•مقایسه تاریخچه و ساختار برنامه های همبستگی ملی (مرحله اول‪ ،‬دوم و سوم) و بخش انرژی برنامه ملی انکشاف منطقوی (‪)ERDA/ NABDP‬‬
‫بررسی و مقایسه چهارچوب فعالیت مرتبط با انرژی در برنامه میثاق شهروندی و برنامه انرژی پایدار برای انکشاف دهات افغانستان‬
‫و تطابق آنها با سند استراتژی انکشاف ملی افغانستان‬

‫چرا در وزارت احیا و انکشاف دهات دو برنامه برای انرژی روستایی وجود دارد و چگونه باید‬ ‫خالصه مسأله‬
‫آنها را ادغام کرد؟‬

‫• قاعده پذیرفتن کمک های کشور های تمویل کننده از طریق اداره های مربوط به ملل متحد و سایر ادارات و مصرف منابع مالی تحت برنامه های وزرات ها‪ ،‬باعث شد وزارت‬
‫احیا و انکشاف دهات پیش از تشکیل حکومت وحدت ملی دو برنامه همبستگی ملی و برنامه ملی انکشاف منطقوی را اجرا کند‪ ،‬پس از تشکیل حکومت وحدت ملی‪ ،‬طراحی‬
‫برنامه میثاق شهروندی در دستور کار وزارت احیا و انکشاف دهات قرار گرفت‪ ،‬این وزارت برنامه دیگری را نیز پیش از تشکیل حکومت وحدت ملی به نام برنامه انرژی پایدار‬
‫برای انکشاف دهات افغانستان طراحی کرده بود که پس از تشکیل کابینه کار خود را آغاز کرد‪.‬‬

‫برای تهیه این گزارش‪ ،‬فعالیت های انجام شده در هر دو برنامه را با اهداف تعیین شده در‬
‫خالصه یافته ها و‬
‫‪ ،ANDS‬به عنوان مبنا‪ ،‬مقایسه کرده ایم‪.‬‬ ‫نتیجه گیری‬

‫•بر اساس مطالعه سند برنامه ها‪ ،‬گزارش های بانک جهانی‪ ،‬گزارش های ساالنه و داخلی برنامه های مرتبط با انرژی در وزارت احیا و انکشاف دهات‪ ،‬و مقایسه آنها با ‪ ANDS‬می‬
‫توان نتیجه گرفت برنامه انرژی پایدر برای انکشاف دهات افغانستان ‪ ASERD‬تطابق الزم را با ‪ ANDS‬دارد‪ ،‬برنامه همبستگی ملی(مرحله اول) پیش از تهیه ‪ ANDS‬طراحی و اجرا‬
‫شده بود‪ ،‬در طراحی مراحل دوم و سوم نیز مطابق سند های موجود‪ ،‬شاخص های مربوط به ‪ ISN‬یادداشت استراتژی موقت (متعلق به بانک جهانی) معیار اجرا و ارزیابی بوده اند و‬
‫این شاخص ها بر شاخص های ‪ ANDS‬ارجحیت داشته اند‪ .‬گرچه اجرای برنامه همبستگی ملی به بهبود شاخص های ‪ ANDS‬کمک کرده است‪ ،‬اما این برنامه به طور مستقیم‬
‫مسئول بهبود این شاخص نبوده است‪.‬‬

‫• در طراحی برنامه میثاق شهروندی‪ ،‬و بر اساس سند ‪ PID/ISDS‬منتشر شده توسط بانک جهانی و رهنمود اجرایی آن مکانیزمی برای اطمینان از تطابق با شاخص های ‪ANDS‬‬
‫مشاهده نمی شود‪.‬‬

‫•پیشنهاد وزارت این است که بهتر است به جای ادغام برنامه ها‪ ،‬استندرد های مربوط به نحوه اجرا و گزارش دهی و اهداف کلی برنامه ها همسان و هم شکل شوند‪.‬‬
‫•پیشنهاد وزارت این است که در صورتی که دولت تصمیم به ادغام فعالیت های جاری‪ ،‬در وزارت احیا و انکشاف دهات در زمینه انرژی‪ ،‬تحت یک برنامه را دارد و در صورتی که‬
‫کلیات ‪ ANDS‬هنوز نافذ هستند‪ ،‬بهتر است برنامه حاصل از ادغام‪ ،‬تجربیات و اصول تبین شده در برنامه انرژی پایدار برای انکشاف دهات افغانستان را به رسمیت شناخته و برای‬
‫بهبود امور به کار گیرد‪ .‬باید در نظر داشت ادغام برنامه های جاری‪ ،‬بدون در نظر گرفتن تاثیرات این عمل بر نحوه مدیریت منابع مالی و نیروی انسانی ممکن نیست‪ .‬بررسی این‬
‫مسئله خارج از حوزه این گزارش است‪.‬‬
‫• در صورتی که دولت معتقد است ‪ ANPDF‬جایگزین ‪ ANDS‬شده است‪ ،‬بررسی سند چهارچوب صلح و توسعه ملی افغانستان ‪ ANPDF‬نشان می دهد‪ ،‬برنامه میثاق شهروندی‪،‬‬
‫به عنوان یک برنامه دارای اولویت ملی ‪ NPP‬تحت برنامه انکشاف سکتور خصوصی ‪ Private Sector Development Program‬مسئول پاسخ به نیاز های اولیه انرژی در‬
‫روستا های در کشور است‪ ،‬اما در سند ‪ PID/ISDS‬برنامه میثاق شهروندی و ‪ ANPDF‬هیچ مکانیزمی برای اطمینان از نحوه مشارکت سکتور خصوصی در بخش انرژی و ایجاد‬
‫رابطه میان ارایه دسترسی به انرژی با فعالیت های درآمد زا و کاهش فقر چنان که در ‪ ANDS‬آمده بود وجود ندارد‪.‬‬
 ‫مقدمه‪:‬‬

‫آنچه در ادامه می آید خالصه ای از فعالیت های وزارات احیا و انکشاف دهات در سکتور انرژی است‪ .‬در انجام این فعالیت ها سعی شده است‬
‫بیشترین تطابق با متن استراتژی انکشاف ملی (‪ )ANDS‬که در اپریل ‪ 2008‬توسط کابینه جمهوری اسالمی افغانستان به تایید رسید‪1‬وجود‬
‫داشته باشد‪ .‬این استراتژی دارای سه محور اصلی یعنی‪:‬‬

‫‪ )1‬امنیت‪،‬‬
‫‪ )2‬اداره و حاکمیت قانون و حقوق بشر‪،‬‬
‫انکشاف اجتماعی و اقتصادی‬ ‫‪)3‬‬

‫است‪ ،‬این استراتژی تحت محور های یاد شده به تشریح هشت سکتور و هفده سکتور فرعی و شش مساله که میان محور های یاد شده و‬
‫سکتور ها مشترک هستند پرداخته است تا فعالیت های وزارت های دولت افغانستان و حمایت های کشور های اهدا کننده منابع مالی را‬
‫انسجام بخشد و تبیین کننده خواست های مردم در زمینه کاهش فقر از طریق برنامه ریزی از پایین به باال باشد‪ .‬به منظور اندازه گیری‬
‫تاثیرگذاری‪ ،‬این استراتژی شامل تعریف ‪ 86‬دست آورد متوقعه و ‪ 276‬شاخص توسعه است‪ ،‬و بودجه الزم برای رسیدن به اهداف تعیین شده‬
‫در آن‪ 35.9‬میلیاد دالر تخمین زده شده بود‪ ،‬از کل این مبلغ‪ ،‬دولت توانست ‪ 16.5‬میلیارد دالر را در دوره پنج ساله انفاذ این استراتژی‬
‫(‪ )2008-2013‬برای رسیدن به اهداف آن بسیج نماید‪ ،‬دولت ‪ 4.9‬میلیارد دالر از منابع مالی خود را از طریق بودجه ملی (‪ )on budget‬و‬
‫‪ 10.7‬میلیارد دالر را به صورت خارج از بودجه ملی (‪ )off-budget‬صرف رسیدن به اهداف این استراتژی نمود‪.‬‬

‫مطابق گزارش وزارت مالیه در سال ‪ ، 2013‬و بر اساس شاخص های تعیین شده در استراتژی سکتور زراعت و انکشاف دهات‪ 69 ،‬فیصد از‬
‫اهداف تعیین شده به دست آمده اند‪ .‬همین گزار ش در مورد سکتور فرعی انرژی می گوید‪ :‬بهبود دسترسی به انرژی برق در دهات هنوز با‬
‫مشکالتی روبرو است و مشارکت سکتور خصوصی در این بخش جذب نشده است‪ .‬در این گزارش توصیه شده است باید بر تشویق سکتور‬
‫خصوصی به سرمایه گذاری در سکتور انرژی قابل تجدید روستایی تمرکز بیشتری صورت گیرد‪.‬‬

‫نگهداری (حفظ و مراقبت) از زیر ساخت ها و تسهیل رشد و انکشاف کسب و کار های کوچک و متوسط در دهات نیز یکی از چالش ها بر‬
‫شمرده شده است که نیاز به برنامه ریزی دقیق تر دارد‪.‬‬

‫دیدگاه استراتژی انکشاف ملی افغانستان‬

‫دیدگاه استراتژی انکشاف ملی افغانستان (‪ )ANDS‬در مورد مسئله انرژی روستایی به شرح زیر به صورت خالصه همراه با ذکر مرجع به صورت‬
‫پانویس ارایه می گردد‪:‬‬

‫تالش برای افزایش نقش سکتور خصوصی در تامین انرژی و قبول این که اقتصاد افغانستان به شدت به انرژی قابل اعتماد و به‬ ‫‪‬‬
‫‪2‬‬
‫صرفه نیاز دارد‪.‬‬
‫وظیفه دولت افغانستان در دسترس قراردان انرژی با کیفیت و مقدار مورد نیاز به کسانی است که می توانند از آن استفاده کنند و‬ ‫‪‬‬
‫بهای آن را بپردازند‪ ،‬با قیمتی که هزینه های تولید و انتقال انرژی را پوشش دهد‪( ،‬همه مشمول این قاعده می شوند‪ ،‬فقط فقیر‬
‫‪3‬‬
‫ترین قشر جامعه از آن مستثنی است)‬
‫تالش برای ایجاد اصالحات و تهیه پالیسی ها و قوانین الزم برای حمایت از فعالیت سکتور خصوصی در تامین انرژی‬ ‫‪‬‬
‫برق رسانی به تنهایی نمی تواند مشکالت مردم را حل کند‪ ،‬انرژی روستایی باید فرصت های اشتغال را در که در نبود انرژی از بین‬ ‫‪‬‬
‫رفته اند را فعال کند‪.‬‬
‫‪4‬‬
‫نیاز به تمرکز بر تولید انرژی به شکل محلی و پراکنده برای کاهش هزینه های انتقال‬ ‫‪‬‬

‫‪1-Attachment‬‬ ‫‪No1: Afghanistan National Development Strategy 2008 – 2013 Executive Summary‬‬
‫‪2‬‬ ‫‪Attachment No1: Afghanistan National Development Strategy 2008, V3, Executive Summary, Page1‬‬
‫‪3 Attachment No1: Afghanistan National Development Strategy 2008, V3, Executive Summary, Page2‬‬
‫‪4‬‬
‫‪Attachment No1: Afghanistan National Development Strategy 2008, V3, Executive Summary, Page3‬‬

‫‪1|Page‬‬
 ‫تالش برای تنظیم کمک های دولتی (سابسیدی) به نحوی که این کمک در اختیار نیازمند ترین قشر جامعه قرار گیرد‬ ‫‪‬‬
‫تاکید برای تغییر جهت در فعالیت های مرتبط با انرژی روستایی و افزایش تمرکز انرژی روستایی بر فعالیت های درآمد زا‬ ‫‪‬‬
‫جذب سرمایه گذاری های جدید در سکتور انرژی‬ ‫‪‬‬

‫استراتژی انکشاف ملی افغانستان تشریح می کند انکشاف انرژی قابل تجدید روستایی به دالیلی مانند‪ :‬هزینه های اولیه زیاد (اجرای پروژه)‪،‬‬
‫‪1‬‬
‫نبود تامین کنندگان‪ ،‬نبود مکانیزم مناسب تامین مالی پروژه ها و ضعف های اداری و سازمانی به تعویق افتاده است‪.‬‬

‫این استراتژی‪ ،‬وزارت احیا و انکشاف دهات را یکی از نهاد های نقش آفرین در عرصه انرژی به شمار می آورد‪2‬و ذکر می کند هفت وزارت به‬
‫شکلی از اشکال با سکتور انرژی ارتباط دارند و این امر مشکالتی را در تهیه استراتژی‪ ،‬اجرا و نظارت از اجرای آن به شکل موثر برای سکتور‬
‫‪3‬‬
‫انرژی به وجود آورده است‪.‬‬

‫این استراتژی ضمن برشمردن فعالیت های کشور های تمویل کننده اشاره می کند برنامه همبستگی ملی ‪ 1700‬دیزل جنراتور و ‪ 500‬دستگاه‬
‫برق آبی کوچک را (پیش از تهیه این استراتژی) اعمار کرده است و شش صد و پنجاه قری ه را نیز تحت پوشش توزیع سیستم های آفتابی‬
‫(سولر) قرار داده است‪ 4(.‬در زمان تهیه استراتژی در سال ‪ ، 2008‬بعد ها برنامه توزیع دیزل جنراتور ها به دلیل در نظر گرفته نشدن پایداری‬
‫مالی متوقف شد‪ ،‬برنامه توزیع دستگاه های برق آفتابی‪-‬سولر‪ -‬نیز به دلیل مشکالتی که در مکانیزم کنترل کیفیت و مالکیت این دستگاه ها‬
‫توسط خانوار های روستایی وجود داشت متوقف شد)‬

‫در ادامه‪ ،‬تهیه کنندگان استراتژی اعالم می کنند دولت افغانستان (در زمان تهیه این استراتژی) هیچ نوع پالیسی مشخص در مورد انرژی‬
‫روستایی یا تشویق سکتور خصوصی برای سرمایه گذاری در این بخش ندارد و ساز و کار هماهنگی میان نهاد های ذیدخل در سکتور انرژی‬
‫روستایی نیاز به بهبود اساسی دارد‪( .‬در سال‪ 2009‬وزارت احیا و انکشاف دهات تحت فعالیت های برنامه ملی انکشاف منطقوی پیش نویس‬
‫پالیسی انرژی قابل تجدید روستایی را تهیه کرد‪ ،‬این پالیسی به دلیل کشمکش ها میان این وزارت و وزارت انرژی و آب هیچگاه نهایی نشد‪،‬‬
‫اخیراً برنامه انرژی پایدار برای انکشاف دهات افغانستان‪ ،‬سندی را با عنوان استراتژی انرژی قابل تجدید دهات افغانستان تهیه نموده است که‬
‫در حال نهایی شدن است)‬

‫استراتژیست های دولت افغانستان در ادامه روش های مختلفی را برای دخیل ساختن سکتور خصوصی در حوزه انرژی بیان می کنند‪ ،‬تمرکز‬
‫آنها بیشتر بر نحوه خصوصی سازی د افغانستان برشنا موسسه است (که بعد ها به د افغانستان برشنا شرکت تغییر ماهیت داد)‪ ،‬آنها تفکیک‬
‫مالکیت قسمت های مختلف تصدی ها را نیز یکی از مرحله های خصوصی سازی می دانند اما در سال ‪ 2008‬زمان را برای اجرای آن مناسب‬
‫نمی دانند‪.‬‬

‫آنها در ادامه عدم دسترسی بخش خصوصی را به قرضه های کوچک و عدم تعهد سیاسی به ایجاد شبکه های برق روستایی موانع عمده بر‬
‫گسترش دسترسی مردم دهات به انرژی بر می شمارند‪ ،‬آنها می گویند روابط می ان وزارت احیا و انکشاف دهات و انرژی آب نیاز به منطقی‬
‫شدن دارد تا آنها بتوانند در حیطه مربوط به خودشان خدمات ارایه کنند‪( 5.‬قانون تنظیم خدمات برق به همین منظور تهیه شده و اخیراً‬
‫توشیح گردیده ‪ ،‬عالوه بر آن رییس جمهور اسالمی افغانستان در یکی از جلسات کابینه وز ارت احیا و انکشاف دهات را مجاز به اجرای پروژه‬
‫های انرژی تا سقف ‪ 1‬مگاوات اعالم نمودند)‬

‫‪1‬‬
‫‪Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 1, Page22‬‬
‫‪2‬‬ ‫‪Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 1, Page23‬‬
‫‪3 Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 1, Page24‬‬
‫‪4 Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 1, Page26‬‬
‫‪5‬‬
‫‪Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 1, Page29‬‬

‫‪2|Page‬‬
 ‫اهداف عمده استراتژی انکشاف ملی افغانستان در سکتور انرژی‬
‫‪1‬‬
‫اهداف عمده استراتژی انکشاف ملی افغانستان در سکتور انرژی عبارتند از‪:‬‬

‫تغییر ساختار اداره سکتور انرژی و {حمایت از} روش های بازگرداندن هزینه های انجام شده برای تامین انرژی‬ ‫‪‬‬
‫احیا و توسعه شبکه ملی توزیع انرژی‬ ‫‪‬‬
‫جذب سرمایه گذاری بخش خصوصی در سکتور انرژی ( از طریق روش هایی مانند تشویق این بخش به ایجاد مراکز مستقل تولید‬ ‫‪‬‬
‫برق ‪ IPPs‬و اعالن قرار داد های خرید عمده برق‪ ،‬این قرارداد ها ضمن این که دولت را قادر به تهیه انرژی مورد نیاز در شبکه می‬
‫‪2‬‬
‫کند‪ ،‬تامین سرمایه گذاری الزم برای ایجاد زیر ساخت ها را به بخش خصوصی منتقل می کند)‬
‫بهبود دسترسی به انرژی در مناطق روستایی ( از طریق اجرای پروژه های برق آبی‪ ،‬آفتابی‪ ،‬بازیافت فضوالت و تبدیل به انرژی و‬ ‫‪‬‬
‫حتی در صورت لزوم استفاده از دیزل جنراتور‪ ،‬به صورتی که پروژه ها توجیه تجاری داشته باشند و بتوانند هزینه های خود را‬
‫‪3‬‬
‫برگردانند و پایداری مالی داشته باشند و در عین حال ایمن باشند)‬
‫تجهیز منابع داخلی برای تامین انرژی‬ ‫‪‬‬

‫آنچه در ادامه می آید بخش هایی از اهداف کالن استراتژی است‪:‬‬

‫افزایش نقش سکتور خصوصی در حوزه انرژی‬ ‫‪‬‬

‫تهیه ماستر پالن انرژی روستایی(در حال حاضر بانک جهانی در حال انجام یک تحقیق و تهیه پالن برق رسانی با کمترین هزینه‬ ‫‪‬‬
‫‪ Least Cost Electrification Plan‬برای کشور است‪ ،‬وزارت احیا و انکشاف دهات در کنار سایر نهاد ها در این زمینه پیگیر‬
‫‪4‬‬
‫و دخیل است)‬
‫‪5‬‬
‫تهیه سیستم تعرفه بر مبنای مارکت و ایجاد پالن خروج برای سابسیدی ها{ی احتمالی}‬ ‫‪‬‬

‫استراتژیست ها متعقد هستند افغانستان به برنامه ای نیاز دارد که بیش از برق رسانی‪ ،‬به ارایه انرژی (نه تنها به شکل برق) بر اساس تکنولوژی‬
‫مناسب تمرکز داشته باشد‪ .6‬و تاکید می کنند سکتور به قانونی مدرن نیاز دارد تا تمام حوزه انرژی را تحت پوشش قراردهد ( به جای داشتن‬
‫قوانین مختلف برای گاز و نفت و برق به شکل جداگانه) و سکتور انرژی به حضور یک نهاد مقرراتی و تنظیم کننده نیاز دارد‪( .‬وزارت انرژی و‬
‫آب اداره ریگوالتری را به همین منظور ایجاد خواهد کرد)‬

‫عالوه بر آن بر تفکیک نقش وزارت های احیا و انکشاف دهات و انرژی و آب از هم دیگر تاکید شده است‪ ،‬بررسی گزینه های مختلف برای‬
‫اجرا و مالکیت پروژه ها بر اساس روش های موفق تجربه شده بین المللی نیز جزء توصیه های استراتژی است‪7(.‬برنامه انرژی پایدار برای‬
‫انکشاف دهات افغانستان به انجام این توصیه ها در قالب سند برنامه متعهد است)‬

‫این استراتژی هدف میان مدت خود را برای اصالح سکتور در بخش فرعی انرژی قابل تجدید و انرژی روستایی‪ ،‬تحکیم اختیارات وزرات احیا‬
‫‪8‬‬
‫و انکشاف دهات اعالم نموده است‪.‬‬

‫‪1‬‬ ‫‪- Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 2, Page31‬‬
‫‪2‬‬ ‫‪- Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 2, Page39‬‬
‫‪3 - Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 2, Page41‬‬

‫‪ - 4‬یافته های این تحقیق نیز توصیه می کنند بهترین راه حل برای برق رسانی به قریه جات افغانستان استفاده از شبکه های محلی ‪ Mini-grids‬است‪.‬‬
‫‪https://www.kth.se/en/itm/inst/energiteknik/forskning/desa/desa-news/a-gis-approach-to-electrification-planning-in-afghanistan-‬‬
‫‪1.745665‬‬
‫‪5 - Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 2, Page32‬‬
‫‪6 - Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 2, Page34‬‬
‫‪7 - Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 2, Page39‬‬
‫‪8‬‬
‫‪- Attachment No1: Afghanistan National Development Strategy 2008, V3, Chapter 2, Page43, Table 10‬‬

‫‪3|Page‬‬
 ‫این استراتژی به دولت پیشنهاد می کند برنامه های خود را به صورتی تهیه کند که بر چهار موضوع زیر تاکید داشته باشند‪.‬‬

‫{اطمینان از } فعالیت زیر ساخت ها به شکل موثر‬ ‫‪‬‬

‫اداره سکتور‬ ‫‪‬‬
‫انرژی روستایی و انرژی قابل تجدید‬ ‫‪‬‬
‫توسعه {منابع} تامین انرژی‬ ‫‪‬‬

‫بعد ها در سال ‪ 2010‬گزارشی از فعالیت های دولت بر مبنای سند استراتژی ملی انکشاف افغانستان و تعیین اولویت برنامه های ملی تهیه‬
‫شد تا در کنفرانس کابل ارایه شود‪ ،‬این گزارش در دو جلد منتشر شد‪.‬‬

‫این گزارش ها پالن اجرایی و اولویت بندی برنامه ها را بر مبنای استراتژی ملی انکشاف افغانستان در شش کالستر و ‪ 22‬برنامه بیان میکنند‪.‬‬

‫در جلد دوم این گزارش تحت برنامه ملی دارای اولویت ‪ 1‬تحت کالستر زراعت و انکشاف دهات‪ ،‬جزء ‪ ،D‬بخش انرژی برنامه ملی انکشاف‬
‫منطقوی (‪ )ERDA/ NABDP‬که مسئول ارایه خدمات در زمینه انرژی روستایی به مردم بود معرفی شده است‪ 1‬و مکانیزم اجرا‪ ،‬اهداف‬
‫مشکالت‪ ،‬نیاز های مالی این بخش ارایه شده است‪.‬‬

‫( این بخش در همان زمان در حال انجام مطالعاتی برای امکان ارتقاء فعالیت هایش به شکل یک برنامه ملی بود‪ ،‬صندوق انکشاف ملل‬
‫متحد‪ ،UNDP‬با استخدام یک مشاور‪ ،‬سندی برای این برنامه تهیه کرد تا از تطابق فعالیت های آن با استراتژی انکشاف ملی افغانستان‬
‫اطمینان حاصل شود‪ ،‬پس از تشکیل کابینه حکومت وحدت ملی در سال ‪ ،2015‬سند این برنامه میان وزیر احیا و انکشاف دهات و صندوق‬
‫توسعه ملل متحد امضا شد‪).‬‬

‫‪ - 1‬ضمیمه شماره ‪ -2‬خالصه گزارش کار بخش انرژی برنامه ملی انکشاف منطقوی از ‪ 2008‬تا پایان سال ‪2014‬‬

‫‪4|Page‬‬
 ‫بحث‪:‬‬

‫‪ )1‬چرا در چهارچوب وزارت احیا و انکشاف دهات دو برنامه فعال در زمینه انرژی روستایی وجود دارد؟‬
‫‪ )2‬کدام یک از این برنامه ها‪ ،‬مشارکت بیشتری در برآورده کردن اهداف دولت که در سند استراتژی ملی انکشاف افغانستان انعکاس‬
‫یافته است دارند؟‬
‫‪ )3‬در صورتی که دولت تصمیم به ادغام این دو برنامه بگیرد اصول حاکم بر کدام برنامه باید برای اجرای برنامه ملی انتخاب شوند؟‬

‫در جواب باید گفت دلیل وجود دو برنامه‪ ،‬وجود قاعده پذیرفتن کمک های کشور های تمویل کننده و پذیرفتن برنامه های پیشنهادی آنان‬
‫در قالب برنامه ها تحت وزارت های مرتبط در زمان دولت قبلی بوده است‪.‬‬

‫تاریخچه فعالیت های مرتبط با انرژی روستایی در وزارت احیا و انکشاف دهات (قبل از اگست سال ‪ 2014‬و تشکیل حکومت وحدت ملی)‬
‫نشان می دهد وزارت احیا و انکشاف دهات در همین دوره در حال اجرای دو برنامه بزرگ در سطح ملی بود که هر کدام به نوعی در زمینه‬
‫انرژی روستایی فعال بودند‪.‬‬

‫‪ )1‬برنامه همبستگی ملی (‪ )NSP‬که توسط ‪ ARTF‬تمویل می شد‪:‬‬

‫‪ ‬فعالیت های مرتبط با انرژی روستایی در برنامه همبستگی ملی پس از آن آغاز شد که نیاز به انرژی برق در پالن‬
‫های انکشافی قریه جات توسط مردم به این برنامه اعالم گردید‪( .‬برنامه همبستگی ملی در سند خود مکانیزمی‬
‫برای پاسخگویی به نیاز مردم به انرژی نداشت)‬

‫‪ )2‬برنامه ملی انکشاف منطقوی(‪ )NABDP‬که خارج از بودجه عمومی ملی (‪ )off-budget‬توسط صندوق انکشاف ملل متحد‬
‫تمویل می شد‪:‬‬
‫‪ ‬برنامه ملی انکشاف منطقوی با درک نیاز مردم به انرژی اقدام به ایجاد بخش انرژی برای انکشاف‬
‫()‪ )Energy for Rural Development in Afghanistan, ERDA‬دهات افغانستان نمود‪ ( .‬این برنامه‬
‫مکانیزم خاص اجرای پروژه های انرژی را تهیه کرده بود)‬

‫م رحله اول برنامه همبستگی ملی‪ ،‬پیش از تهیه سند استراتژی ملی انکشاف افغانستان طراحی و اجرا شده بود‪ ،‬بنابراین نباید انتظار داشت‬
‫خواست های استراتژی در آن در نظر گرفته شده باشد‪ ،‬گرچه نتیجه برخی فعالیت ها تحت برنامه همبستگی ملی‪ ،‬برای ارایه گزارش پیشرفت‬
‫شاخص های این سند و شاخص هایی که وزارت احیا و انکشاف دهات مسئولیت گزارش آنها را داشت به کار برده شده اند‪.‬‬

‫بررسی سند مرحله اول برنامه همبستگی ملی‪1‬نشان می دهد‪ ،‬این برنامه صرفاً برای اهدافی نظیر موارد زیر طراحی و اجرا شده بود‪:‬‬

‫پایه گذاری تقویت اداره در سطح قریه جات‬ ‫‪‬‬

‫حمایت از پروژه هایی که توسط مردم مدیریت می شوند و دسترسی آنها را به زیر ساخت ها و خدمات بهبود می دهند (که بعد‬ ‫‪‬‬
‫ها پروژه های انرژی را نیز شامل شدند)‬

‫دست آورد برنامه همبستگی ملی پس از ختم مرحله اول موارد زیر بود‪:‬‬

‫ایج اد چهارچوب تصمیم گیری مشورتی در سطح قریه جات و ارایه رهبری محلی به عنوان پایه ای برای تنظیم روابط مردم در‬ ‫‪‬‬
‫قریه ها و میان قراء‬
‫‪2‬‬
‫بازسازی و انکشاف در سطح محلی و ارتقاء ظرفیت مردم محل که انتظار می رود به کاهش فقر منجر شود‪.‬‬ ‫‪‬‬

‫‪ - 1‬ضمیمه ‪ -3‬گزارش بانک جهانی در مورد مرحله اول برنامه همبستگی ملی‬
‫‪2‬‬‫‪The World Bank; Report No: ICR0000524; IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-H0720 IDA-H1740 IDA-H2090 JPN-‬‬
‫‪54367 MULT-53939); October 24, 2007‬‬

‫‪5|Page‬‬
‫در حین اجرای مرحله اول برنامه همبستگی ملی‪ ،‬مردم قریه جات نیاز خود را به پروژه های انرژی از طریق تهیه پالن های انکشافی قریه به‬
‫وزارت احیا و انکشاف دهات اعالم نمودند‪ ،‬برنامه همبستگی ملی‪ ،‬به کمک موسسات همکار اقدام به تهیه الزامات تخنیکی و مالی و مدیریتی‬
‫برای این پروژ ها نمود‪( .‬این الزامات‪ ،‬در تط ابق با نیاز های سکتور که در سند استراتژی انکشاف ملی افغانستان ‪ ANDS‬بیان شده است‬
‫نبودند)‬

‫این الزامات اگرچه در زمان خود به اجرای پروژه ها و مدیریت آنها توسط مردم قریه کمک کرد‪ ،‬تبدیل به سنتی برای اجرای پروژه های انرژی‬
‫در وزارت احیا و انکشاف دهات شد‪ .‬این سنت پذیرفته شده از نحوه اجرای این پروژه ها در قالب برنامه همبستگی ملی در غیاب وجود سند‬
‫استراتژی ملی‪ ،‬پالیسی ها و سایر اسناد قانونی چنان قدرت گرفت که بعد ها برنامه ملی انکشاف منطقوی حتی با طراحی الزاماتی به موجه‬
‫تر و مدرن تر‪ ،‬مجبور به قبول معیار های مرسوم در برنامه همبستگی ملی شد‪ 1،.‬مسئله ای که به ناکامی بخشی از تالش های هر دو برنامه‬
‫منجر شد‪.‬‬

‫این الزامات شامل انتخاب نوع تکنولوژی‪ ،‬نوع مالکیت و نحوه مدیریت پروژه های برق آبی‪ ،‬نحوه دخالت دادن بخش خصوصی در اجرای پروژ‬
‫ها و مهم تر از همه عدم تعریف تعرفه و مکانیزم های مرتبط با کسب و کار خدمات انرژی (‪ )Rural Energy Business Models‬بود‪.‬‬

‫نگاهی به اسناد منتشر شده توسط بانک جهانی نشان می دهد در زمان طراحی و اجرای مرحله دوم برنامه همبستگی ملی نیز‪ ،‬استراتژی ملی‬
‫انکشاف افغانستان چنان که باید مورد توجه قرار نگرفته است‪ .‬بانک جهانی در گزارش خود در سال ‪ 2009‬با اشاره به اینکه کشور در وضعیت‬
‫پس از جنگ قرار دارد ذکر می کند هنوز استراتژی کمک به کشور (‪ )Country Assistance Strategy, CAS‬تهیه نشده است‪ ،‬کمک‬
‫های انجام شده به افغانستان در چهارچوب مرحله دوم برنامه همبستگی ملی در تطابق با یادداشت استراتژی موقت ‪ ISN‬بانک جهانی در‬
‫اختیار دولت قرار گرفته است‪( 2.‬یادداشت استراتژی موقت ‪ ISN‬سندی است که استراتژی های بانک را در قبال افغانستان مستند و منعکس‬
‫می کند)‪.‬‬

‫در این گزارش ذکر شده است کمک های انجام شده مطابق اهداف استراتژیک بانک جهانی مطابق سند ‪ ،ISN‬تحت محور ترویج رشد اقتصاد‬
‫روستایی و بهبود معیشت در روستا ها (‪ )Promoting growth of rural economy and improving rural livelihood‬دولت‬
‫افغانستان را قادر می سازد تا اهداف ذکر شده خود را در استراتژی ملی انکشاف افغانستان ‪ ANDS‬تحقق بخشد‪ ،‬اما این سند نشان نمی دهد‬
‫این امر چگونه باید انجام شود و یا چگونه باید از انجام آن اطمینان یافت‪.‬‬

‫روش مدیریت مراحل سه گانه برنامه همبستگی ملی بر مبنای سنجش شاخص های تعیین شده توسط بانک جهانی و در مقابل‬
‫اسنادی مانند ‪ ISN‬بوده است‪ ،‬بنابراین سنجش شاخص های تعیین شده در ‪ ANDS‬برای مدیران ارشد برنامه همبستگی ملی‬
‫در درجه دوم اهمیت بوده است‪.‬‬

‫‪ - 1‬ضمیمه شماره ‪ -4‬به گزارش برنامه ملی انکشاف منطقوی در سال ‪ 2008‬مراجعه کنید؛ روش های تبین شده در این گزارش برای اجرای پروژه های انرژی بعد ها به روش کار برنامه‬
‫همبستگی ملی که بسیار ساده تر بود تقلیل داده شدند‪.‬‬
‫‪2‬‬
‫‪The World Bank; Report No. 48224-AF; SECOND EMERGENCY NATIONAL SOLIDARITY PROJECT; April 14,2009; page 6‬‬

‫‪6|Page‬‬
‫پس از تشکیل حکومت وحدت ملی و تشکیل کابینه در اوایل سال ‪ ، 2015‬وزارت احیا و انکشاف دهات‪ ،‬اجرای دو برنامه بزرگ را در دستور‬
‫کار خود داشت که با مسئله انرژی سر و کار داشتند‪:‬‬

‫‪ )1‬طراحی و اجرای برنامه میثاق شهروندی‬

‫‪ )2‬اجرای برنامه انرژی پایدار برای انکشاف دهات افغانستان‬

‫برنامه انرژی پایدار برای انکشاف دهات افغانستان‬

‫در تابستان سال ‪ 2015‬این وزارت توانست سند برنامه انرژی پایدار‪1‬برای انکشاف دهات افغانستان را که در پایان سال ‪ 2013‬در چهارچوب‬
‫برنامه ملی انکشاف منطقوی با حمایت صندوق انکشاف ملل متحد ‪ ،UNDP‬و به صورتی که در کنفرانس کابل‪2‬مشخص و طراحی شده بود‬
‫و در تطابق با استراتژی ملی انکشاف افغانستان چهار بخش داشت را به امضا برساند و اجرای آن را آغاز کند‪.‬‬

‫بخش های این برنامه عبارت اند از‪:‬‬

‫انکشاف خدمات انرژی روستایی و افزایش دسترسی مردم دهات به انرژی‬ ‫‪‬‬
‫انکشاف پالیسی و مقررات مربوط به انرژی روستایی برای پر کردن خالء های قانونی و ضعف های سازمانی‬ ‫‪‬‬
‫انکشاف و اجرای مدل های مبتکرانه ارایه پروژه های انرژی روستایی‬ ‫‪‬‬
‫‪3‬‬
‫انکشاف و اجرای برنامه های ارتقاء ظرفیت و تبلیغات‬ ‫‪‬‬

‫این برنامه طراحی شده است تا با منابعی در دسترس آن قرار می گیرد‪ ،‬به تهیه ابزار های قانونی و مقراراتی الزم برای حمایت از سرمایه‬
‫گذاری بخش خصوصی کمک نماید‪.‬‬

‫در شیوه اجرا نیز‪ ،‬این برنامه موظف است‪ ،‬شیوه هایی را به کار گیرد تا بانک ها به سرمایه گذاری در سکتور انرژی تشویق شوند‪ ،‬وجود‬
‫‪4‬‬
‫همکاری بانک ها برای کمک به روند جذب سرمایه بخش خصوصی ضروری پنداشته می شود‪.‬‬

‫در سند این پروژه پیشنهاد شده است برای اطمینان از پایداری‪ ،‬پروژه های انرژی به شکل قرار داد ساخت‪ ،‬تملک‪ ،‬بهره برداری( ‪ )BOO‬و‬
‫اجاره و بهره برداری (‪ )LO‬به اعالن سپرده و اجرا شوند‪ (.‬در زمان تهیه این سند‪ ،‬قانون مشارکت عامه و خصوصی وجود نداشت‪ ،‬اما این دو‬
‫روش قرارداد در حال حاضر در قانون مشارکت عامه و خصوصی به رسمیت شناخته شده است‪ ،‬این برنامه طرح کلی خود را برای طرح های‬
‫‪5‬‬
‫کسب و کار تهیه کرده است در ضمیمه موجود است)‬

‫گرچه این برنامه در دو و نیم سال فعالیت خود دست آورد هایی هم داشته است‪ 6،‬از وجود خالء های قانونی برای رسیدن به اهداف خود رنج‬
‫می برد و نیاز به حمایت سیاسی بیشتر برای رسیدن به اهداف خود دارد‪.‬‬

‫‪ - 1‬ضمیمه شماره ‪ -5‬سند برنامه انرژی پایدار برای انکشاف دهات افغانستان ‪ASERD‬‬
‫‪ - 2‬ضمیمه شماره ‪ -6‬کنفرانس کابل‪ ،‬اولویت بندی و پالن اجرایی برنامه تحت استراتژی ملی انکشاف افغانستان‪ ،‬جلد دوم‬
‫‪ - 3‬ضمیمه شماره ‪ -5‬سند برنامه انرژی پایدار برای انکشاف دهات افغانستان ‪ASERD‬‬
‫‪ - 4‬ضمیمه شماره ‪ -5‬سند برنامه انرژی پایدار برای انکشاف دهات افغانستان ‪،ASERD‬‬
‫‪ - 5‬ضمیمه شماره ‪ -6‬طرح کلی برنامه انرژی پایدار برای انکشاف دهات افغانستان در مورد طرح های کسب و کار قابل اجرا در چهارچوب پروژه های انرژی تحت وزارت احیا و انکشاف دهات‬
‫‪ - 6‬برنامه انرژی پایدار برای انکشاف دهات افغانستان از ابتدای کار خود در سال ‪ ،2015‬سروی پروژه های انرژی را در سراسر کشور آغاز کرد‪ ،‬حاصل این سروی مشخص شدن بیست و پنج‬
‫سایت در هفده والیت کشور برای اجرای پروژه های انرژی بود‪ ،‬این برنامه در سال جاری با توجه به امکانات مالی اقدام به آغاز مراحل تدارکاتی برای پنج پروژه نمود‪ ،‬امید می رود این پنج پروژه‬
‫‪ 8/3‬مگاوات انرژی مدرن و پاک را در اختیار دهات افغانستان قرار دهند‪ .‬کاهش مرگ و میر ناشی از هوای آلوده در خانه ها یکی از حیطه های فعالیت این برنامه است‪ ،‬این برنامه از طریق فروش‬
‫اجاق های اصالح شده همراه با ارایه هشتاد فیصد سابسیدی در این راستا گام نهاده است‪ .‬خأل های قانونی و مقرراتی و کمبود ظرفیت در نیروی انسانی در نهاد های مسئول مانعی برای تسریع‬
‫خدمت رسانی در زمینه های مرتبط با انرژی روستایی است‪ ،‬برنامه همزمان با اجرای پروژههای انرژی‪ ،‬تالش دارد تا از طریق تهیه پالیسی ها‪ ،‬مقررات و استندرد های الزم در هماهنگی با سایر‬
‫نهاد های ذیدخل‪ ،‬محیط قانونی و چهارچوب سازمانی مناسبی برای اجرای پروژه های انرژی روستایی ایجاد کند‪ .‬در همین راستا‪ ،‬این برنامه استراتژی ملی انرژی قابل تجدید روستایی را به‬
‫عنوان سندی تعیین کنند تهیه نموده است‪ .‬این برنامه همچنین همکاری های نزدیکی با نهاد های علمی کشور داشته است‪ ،‬تجهیز البراتوار انرژی قابل تجدید دانشگاه کابل نتیجه این همکاری‬
‫ها است‪ .‬برنامه‪ ،‬با همکاری دانشگاه آمریکایی افغانستان یک دوره پیشرفته آموزش مدیریت پروژه های انرژی را نیز برگذار کرده است‪ ،‬شاگردان این دوره از نهاد های مختلف ذیدخل در پروژه‬
‫های انرژی قابل تجدید انتخاب شده اند‪ ،‬این دوره زمینه ایجاد فهم مشترک از مفاهیم مرتبط با مدیریت پروژههای انرژی را میان تمام نهاد های ذیدخل ایجاد می کند‪ .‬این برنامه در سال جاری‬

‫‪7|Page‬‬
‫کارکنان این برنامه طی جلسه ای که با حضور معین انرژی وزارت انرژی و آب و معین برنامه های وزرات احیا و انکشاف دهات و نمایندگانی‬
‫از شرکت برشنا و وزارت مالیه تشکیل شده بود‪ ،‬مدل های کسب و کار مد نظر خود را در تطابق با سند برنامه و پیش نویس پالیسی مشارکت‬
‫عامه و خصوصی به شرکت کنندگان ارایه کردند و خواستار ارایه نظرات سایر دست اندرکاران گردیدند‪ ،‬متن این مذاکرات در ضمیمه شماره‬
‫‪ 7‬موجود است‪.‬‬

‫(در این جلسه وزارت انرژی و آب‪ ،‬پیشنهاد کرد‪ ،‬وزرات احیا و انکشاف دهات مطابق قانون تنظیم خدمات برق‪ ،‬مجوزی برای تولید و توزیع‬
‫انرژی از و زارت انرژی و آب دریافت کند و به این وسیله زمینه قانونی را برای مدل کسب و کار تولید و توزیع انرژی توسط بخش خصوصی را‬
‫در پروژه های انرژی خود فراهم کند ‪ ،‬به دلیل پیچیدگی های مربوط به تنظیم مالکیت زیر ساخت های انرژی که توسط این وزرات ایجاد می‬
‫شوند و جریان مالی ناشی از فروش برق ‪ 1،‬این پیشنهاد مورد توجه رهبری وزارت احیا و انکشاف دهات قرار نگرفت)‬

‫این برنامه همچنین برای جستجوی راه حل اجرای پروژه ها تحت مشارکت عامه و خصوصی‪ ،‬با اداره مرکزی مشارکت در وزارت مالیه نیز‬
‫جلساتی داشت‪ ،‬حاصل این جلسات پیشنهاد اداره مرکزی مشارکت برای تهیه یک بسته از پروژه های مد نظر و ارایه آن به شکل یک برنامه‬
‫در سطح معینان وزارت ها بود‪ ،‬به دلیل مشغله کاری زیاد معین وقت وزارت احیا و انکشاف دهات و توجه بیش از اندازه وی به برنامه میثاق‬
‫‪2‬‬
‫شهروندی‪ ،‬این پیشنهاد مسکوت ماند‪.‬‬

‫برنامه میثاق شهروندی‬

‫طراحی برنامه میثاق شهروندی در سال ‪ 2015‬پس از تشکیل کابینه در دستور کار وزارت احیا و انکشاف دهات قرار گرفت‪ .‬رهنمود عملیاتی‬
‫این برنامه که در پایان سال ‪ 2016‬منتشر شده است در مورد پروژه های انرژی چنین می گوید‪:‬‬

‫در قسمت ساختار اداری ‪ 3:‬وزارت احیا و انکشاف دهات یک ریاست عمومی برای برنامه دارای اولویت ملی میثاق شهروندی خواهد داشت و‬
‫تحت این ریاست عمومی ریاستی برای پروژه های انرژی روستایی ایجاد خواهد شد‪ .‬این سند در مورد نحوه فعالیت و حیطه فعالیت این‬
‫ریاست عمومی و ریاست انرژی روستایی سکوت کرده است‪.‬‬

‫و از نظر مسائل تخنیکی و انجینری‪ ،‬این برنامه تمام مسائل مربوط به انجام سروی ها‪ ،‬طراحی ها را منوط به تطابق با دستورالعمل هایی‬
‫‪4‬‬
‫دانسته است که باید بعداً توسط برنامه میثاق شهروندی ایجاد شود‪.‬‬

‫در مورد مشارکت بخش خصوصی این سند صرفا به دو اشاره کوتاه در قسمت ارتقاء ظرفیت شوراها (معرفی نقش دولت و رابطه دولت‪ ،‬سازمان‬
‫‪5‬‬
‫های غیر دولتی ‪ NGO‬و بخش خصوصی) و برگزاری جلسات دوره ای با بخش خصوصی بسنده کرده است‪.‬‬

‫میزبان دو اجالس بزرگ با حضور نهاد های ذیدخل و نمایندگان سکتور خصوصی بوده است‪ ،‬هدف از برگزاری این دو جلسه بررسی مشکالت مرتبط با تدارکات پروژه ها و ایجاد محیط مناسب‬
‫قانونی برای طرح های کسب و کار با مشارکت سکتور خصوصی در پروژه های انرژی بوده است‪.‬‬
‫‪ - 1‬این برنامه جلسه ای نیز با ریاست عواید وزرات مالیه برای جستجوی راه حلی برای مسئله جمع آوری تعرفه های ناشی از فروش برق داشت‪ ،‬در این جلسه ریاست عواید به ماده چهل دوم‬
‫قانون اساسی استناد کرد که جمع آوری هر گونه محصو ل و عواید صرفاً وظیفه وزارت مالیه است‪ .‬گرچه وزارت احیا و انکشاف دهات و برنامه قصد دسترسی مستقیم به عواید ایجاد شده را ندارد‪،‬‬
‫اما ساز و کار جمع آوری و مدیریت این عواید در حال حاضر وجود ندارد‪ ،‬جلسه مذکور بدون نتیجه پایان یافت‪.‬‬

‫‪ - 2‬ضمیمه شماره ‪ -8‬صورت جلسه برنامه انرژی پایدار برای انکشاف دهات افغانستان با واحد مرکزی مشارکت‪ ،‬وزارت مالیه‬
‫‪ - 3‬ضمیمه شماره ‪ -9‬سند رهنمود عملیاتی برنامه میثاق شهروندی‪ ،‬صفحه ‪22‬‬
‫‪ - 4‬ضمیمه شماره ‪ -9‬سند رهنمود عملیاتی برنامه میثاق شهروندی‪ ،‬صفحه ‪47‬‬
‫‪ - 5‬ضمیمه شماره ‪ -9‬سند رهنمود عملیاتی برنامه میثاق شهروندی‪ ،‬صفحه های ‪ 18‬و ‪53‬‬

‫‪8|Page‬‬
 ‫نتیجه گیری‪:‬‬

‫برنامه انرژی پایدار برای انکشاف دهات افغانستان که در ادامه تالش های برنامه ملی انکشاف منطقوی به وجود آمده است‪ ،‬چنان که در‬
‫(ضمیمه شماره ‪ ، 5‬سند برنامه انرژی پایدار برای انکشاف دهات افغانستان ‪ ،‬صفحات ‪ 15‬و ‪ )30‬قسمت تحلیل وضعیت و ارتباط به پالیسی‬
‫ها ( ‪ ) Situation Analysis, Policy Linkage‬آمده است‪ ،‬خود را موظف به بهبود شاخص های تعیین شده توسط استراتژی انکشاف ملی‬
‫افغانستان می داند‪ .‬ای ن امر در اسناد مربوط به برنامه میثاق شهروندی‪ ،‬به دلیل این که این برنامه در تطابق با استاندارد های بانک جهانی‬
‫تهیه شده‪ ،‬مورد غفلت واقع شده است‪.‬‬

‫برنامه انرژی پایدار برای انکشاف دهات افغانستان ‪ ASERD‬با در نظر داشت این نکته که شوراهای انکشافی قریه نتوانستند پروژه های انرژی‬
‫را که توسط این وزارت برای آنها ساخته شده بود را به درستی مدیریت کنند و اینکه ارایه انرژی برای مصرف روشنایی نمی تواند به ایجاد‬
‫فعالیت های درآمد زا و کاهش فقر در سطح قریه جات‪ ،‬که هدف اصلی وزارت احیا و انکشاف دهات است کمک کند‪ ،‬تصمیم به ایجاد پروژه‬
‫های بزرگ تر تا سقف یک مگاوات گرفت‪ ،‬تا بتواند در عرصه کاهش فقر تاثیر گذار باشد‪.‬‬

‫تغییر اندازه پروژه ها‪ ،‬نیاز به همکاری سکتور خصوصی را در زمینه های حفظ و مراقبت‪ ،‬مدیریت و بهره برداری پروژه ها پر رنگ تر کرده‬
‫است‪ ،‬از سویی دیگر‪ ،‬پروژه های کالن تر‪ ،‬به دلیل ذات عایداتی بودن شان‪ ،‬برای سکتور خصوصی جذابیت الزم برای سرمایه گذاری را ارایه‬
‫می کنند‪.‬‬

‫لذا‪ ،‬این برنامه تصمیم به اجرای پروژه ها تحت قواعد قراداد های ساخت‪ ،‬تملک و بهره برداری (‪ )BOO‬و اجاره و بهره برداری (‪ )LO‬مطابق‬
‫با قانون مشارکت عامه و خصوصی گرفته است‪.‬‬

‫با توج ه به این که یکی از انتقاداتی به برنامه همبستگی ملی در مورد پروژه های انرژی وارد می شد‪ ،‬عدم موفقیت (عدم پایداری) آنها بود‪،‬‬
‫باید گفت‪ ،‬برنامه انرژی پایدار برای انکشاف دهات افغانستان ‪ ،ASERD‬چنان که از نامش پیداست‪ ،‬بر چهار عامل زیر را که باعث پایداری‬
‫پروژه ها می شوند تاکید دارد‪:‬‬

‫تکنولوژی‬ ‫‪‬‬
‫چهارچوب اداری‬ ‫‪‬‬
‫پیوستگی با محیط‬ ‫‪‬‬
‫برآورده کردن نیاز های مصرف کننده‬ ‫‪‬‬

‫وزارت احیا و انکشاف دهات می تواند از یافته ها و الزامات و اسناد ایجاد شده در این برنامه برای بهبود روند اجرای پروژه های انرژی برنامه‬
‫میثاق شهروندی نیز استفاده کند‪.‬‬

‫اما باید در نظر داشت‪ ،‬هر برنامه‪ ،‬چهارچو ب نظارت و ارزیابی خاص خود را دارد که تعیین می کند چگونه باید منابع مالی و منابع بشری را‬
‫برای اهداف آن برنامه به کار گرفت‪ .‬ادغام برنامه ها نیاز به بررسی دقیق تری در این زمینه دارد‪.‬‬

‫پیشنهاد وزارت این است که به جای ادغام دو برنامه موجود در یک برنامه‪ ،‬که می تواند مشکالتی را در نحوه مدیریت منابع مالی و بشری‬
‫ایجاد کند‪ ،‬بهتر است‪ ،‬استندارد های گزارش دهی‪ ،‬نحوه اجرا و اهداف کلی برنامه ها همسان و همشکل شوند‪.‬‬

‫با توجه به اسناد ضمیمه و این گزارش‪ ،‬باید مسائل دیگری را نیز در نظر گرفت‪:‬‬

‫به نظر می رسد ‪ ANPDF‬پیشنهاد ایجاد یک برنامه ملی دارای اولویت را مطرح کرده است که هنوز نام مشخصی ندارد و در این‬ ‫•‬
‫سند از آن به شکل ‪ An NPP for developing infrastructure and energy‬یاد شده است برنامه ای که وظیفه دارد تا‬
‫‪1‬‬
‫تولید داخلی انرژی را به ‪ 2300‬مگاوات برساند‪.‬‬

‫‪ - 1‬ضمیمه شماره ‪ ،10‬چهارچوب صلح و انکشاف ملی‬

‫‪9|Page‬‬
‫باتو جه به این که برنامه میثاق شهروندی ارایه ‪ 100‬وات برای هر خانواده را مبنای کار خود قرار داده است‪ ،‬نمی توان انتظار‬ ‫•‬
‫داشت‪ ،‬پروژه هایی که با این دید و دامنه محدود تعریف می شوند بتوانند مشارکت عمده ای در رسیدن به هدف باال داشته باشند‪.‬‬

‫گزارش اخیر بانک جهانی در سال ‪ 2014‬میزان دسترسی مردم روستاهای افغانستان به انرژی برق را ‪ 87.8‬فیصد‪1‬نشان میدهند‪،‬‬ ‫•‬
‫گرچه این گزارش در مورد منبع و مقدار آن سکوت کرده اند اما می توان حدس زد‪ ،‬اشاره این گزارش به دسترسی مردم به دستگاه‬
‫های برق آفتابی خانگی است (‪ )Solar Home Systems‬که استفاده از آن به طور گسترده ای در قریه جات مرسوم است‪ ،‬لذا‬
‫پیشنهاد می شود‪ ،‬پیش از اجرای پروژه های انرژی برنامه میثاق شهروندی که هدف آن ارایه ‪ 100‬وات برای هر خانوار است‪،‬‬
‫مطالعات کافی صورت بگیرد و فقط این پروژه ها در نقاطی اجرا شوند که مردم واقعاً به آن نیاز دارند‪.‬‬

‫‪-https://data.worldbank.org/indicator/EG.ELC.ACCS.RU.ZS?locations=AF&type=shaded&view=map&year=2014‬‬
‫‪1‬‬

‫‪10 | P a g e‬‬
 ‫ضمیمه شماره ‪:1‬‬
‫استراتژی انکشاف ملی افغانستان‬
‫‪ANDS‬‬
 Islamic Republic of Afghanistan
Afghanistan National Development Strategy
1387 -1391 (2008 - 2013)

A Strategy for Security, Governance,

Rule of Law, Human Rights, Social-Economic Gorwth
and Poverty Reduction

VOLUME THREE
Social and Economical Development Pillar
Energy, Transportation, Water Resource Management
Information and Communications Technology
Urban Development, and Mining Sector Strategies

Afghanistan National Development Strategy (ANDS) I

 ºÌu€·Y¾¼u€·Y×Yºˆ]
In the Name of Allah, the Most Compassionate, the Most Merciful

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º7 Æ5 ˆ F ½F 5S
3 ¹2 Â7 ¬3 5 ]Z»3 €4 ÌJ ¤3 Ë4 3Ó×Y
Verily, never will Allah change the condition of people unless they
change it themselves (Holy Quran, 013,011)

VISION FOR AFGHANISTAN

By the solar year 1400 (2020), Afghanistan will be:

ƒ A stable Islamic constitutional democracy at peace with itself and its neighbors, standing with full
dignity in the international family.

ƒ A tolerant, united, and pluralistic nation that honors its Islamic heritage and the deep seated
aspirations toward participation, justice, and equal rights for all.

ƒ A society of hope and prosperity based on a strong, private-sector led market economy, social
equity, and environmental sustainability.

ANDS Goals for 1387-1391 (2008/09-2012/13)

The Afghanistan National Development Strategy (ANDS) serves as Afghanistan’s Poverty Reduction
Strategy Paper (PRSP) and uses the pillars, principles and benchmarks of the Afghanistan Compact as
a foundation. The pillars and goals of the ANDS are:
1. Security: Achieve nationwide stabilization, strengthen law enforcement, and improve personal
security for every Afghan.

2. Governance, Rule of Law and Human Rights: Strengthen democratic processes and institutions,
human rights, the rule of law, delivery of public services and government accountability.

3. Economic and Social Development: Reduce poverty, ensure sustainable development through a
SULYDWHVHFWRUOHGPDUNHWHFRQRP\LPSURYHKXPDQGHYHORSPHQWLQGLFDWRUVDQGPDNHVLJQLÀFDQW
progress towards the Millennium Development Goals (MDGs).

A further vital and cross-cutting area of work is eliminating the narcotics industry, which remains a
formidable threat to the people and state of Afghanistan, the region and beyond.

Afghanistan National Development Strategy (ANDS) I

 In the name of Allah, the most Merciful, the most Compassionate
Six and half years ago, the people of Afghanistan and the international community joined hands to liberate
Afghanistan from the grip of international terrorism and to begin the journey of rebuilding a nation from a
past of violence, destruction and terror. We have come a long way in this shared journey.

In a few short years, as a result of the partnership between Afghanistan and the international community,
we were able to create a new, democratic Constitution, embracing the freedom of speech and equal rights
IRUZRPHQ$IJKDQVYRWHGLQWKHLUÀUVWHYHUSUHVLGHQWLDOHOHFWLRQVDQGHOHFWHGDQHZSDUOLDPHQW7RGD\
FORVHWRÀYHPLOOLRQ$IJKDQUHIXJHHVKDYHUHWXUQHGKRPHRQHRIWKHODUJHVWPRYHPHQWVRISHRSOHWRWKHLU
homeland in history.

Thousands of schools have been built, welcoming over six million boys and girls, the highest level ever for
Afghanistan. Hundreds of health clinics have been established boosting our basic health coverage from a
depressing 9 percent six years ago to over 85 percent today. Access to diagnostic and curative services has
increased from almost none in 2002 to more than forty percent. We have rehabilitated 12,200 km of roads,
over the past six years. Our rapid economic growth, with double digit growth almost every year, has led
to higher income and better living conditions for our people. With a developing road network and a state-
of-the-art communications infrastructure, Afghanistan is better placed to serve as an economic land-bridge
in our region.

These achievements would not have been possible without the unwavering support of the international
community and the strong determination of the Afghan people. I hasten to point out that our achievements
must not distract us from the enormity of the tasks that are still ahead. The threat of terrorism and the men-
ace of narcotics are still affecting Afghanistan and the broader region and hampering our development.
Our progress is still undermined by the betrayal of public trust by some functionaries of the state and unco-
RUGLQDWHGDQGLQHIÀFLHQWDLGGHOLYHU\PHFKDQLVPV6WUHQJWKHQLQJQDWLRQDODQGVXEQDWLRQDOJRYHUQDQFH
DQGUHEXLOGLQJRXUMXGLFLDU\DUHDOVRDPRQJRXUPRVWGLIÀFXOWWDVNV

To meet these challenges, I am pleased to present Afghanistan’s National Development Strategy (ANDS).
This strategy has been completed after two years of hard work and extensive consultations around the
country. As an Afghan-owned blueprint for the development of Afghanistan in all spheres of human en-
GHDYRUWKH$1'6ZLOOVHUYHDVRXUQDWLRQ·V3RYHUW\5HGXFWLRQ6WUDWHJ\3DSHU,DPFRQÀGHQWWKDWWKH
ANDS will help us in achieving the Afghanistan Compact benchmarks and Millennium Development
Goals. I also consider this document as our roadmap for the long-desired objective of Afghanization, as we
transition towards less reliance on aid and an increase in self-sustaining economic growth.

I thank the international community for their invaluable support. With this Afghan-owned strategy, I ask
all of our partners to fully support our national development efforts. I am strongly encouraged to see the
participation of the Afghan people and appreciate the efforts of all those in the international community
and Afghan society who have contributed to the development of this strategy. Finally, I thank the members
of the Oversight Committee and the ANDS Secretariat for the preparation of this document.

Hamid Karzai
President of the Islamic Republic of Afghanistan

Afghanistan National Development Strategy (ANDS) V


ENERGY SECTOR STRATEGY
Afghanistan’s energy sector and its economy are
at a crossroads. Energy, abundantly and cost
effectively supplied, can be a very important input
in the sustainable development of Afghanistan.
However, energy is no panacea. In fact, if it is
supplied imprudently, instead being a vehicle
for growth, it will pull down the Government’s
development efforts and be a drag on economic
growth. Capital investment in energy is rising
rapidly attesting to the efforts to the Islamic
Republic of Afghanistan (IROA) and the donor
community. At the same time though, the
HIÀFLHQF\ RI HQHUJ\ RSHUDWLRQV LV QRW LQFUHDVLQJ
If left unchecked, much of the investment that is
being made will be wasted.
To illustrate this gravity of the problem, the cost of
losses has been estimated. Because of the state of
the infrastructure and the familiar short comings
of Government owned and operated energy
provision, losses are enormous. Losses in 2005
amounted US$ 128.5 million.
Figure 1. Annual Impact of Poor
Commercial Operations and Subsidies
$ 300,000
$250,000
Thousands of US Dollars
$200,000
$150,000
$100,000
$50,000
$0
2005 2005
EXECUTIVE
SUMMARY
The actual cost to the economy is greater! What
this highlights is that continuing to operate on
a business as usual basis is unsustainable. The
number one priority in the energy sector must
EH RQ RSHUDWLQJ HIÀFLHQF\  FRPPHUFLDOL]DWLRQ
of DABM, investments in transmission and
distribution to reduce losses, and, repair and
maintenance of all power assets. Moreover, it is
LPSRUWDQWWRIRFXVQRZRQHIÀFLHQWXVHRIHQHUJ\
and the enabling policy, legal and regulatory
frameworks should address this issue.
When this is considered against the Afghan
&RPSDFW *RDOV WKH LPSRUWDQFH RI HIÀFLHQF\
becomes even more important. By 2010 the
number of connections to meet the AC goals will
rise by 211 percent while capacity will increase
only 194%, assuming that imports go according
to plan. This means that unless there are changes
LQ HIÀFLHQF\ WKH DYHUDJH N:K FRQVXPHG SHU
connection must go down. This is not a recipe
for economic growth. Compounding the problem
and not included in this analysis are that the
demand for power will actually rise and that with
more connections the cost of un-served energy
will rise. While it is imperative that additional
infrastructure be added, it is even more important
WKDW WKH ,52$ IRFXV RQ HIÀFLHQF\  :KLOH PXFK
can be done by the Government, the real solution
lies in creating and expanding a meaningful role
Subdies
Comercial for the private sector.
Lsses
Technical Realizing that the Afghan economy is starved of
Losses
reliable and cost effective energy, the immediate
task of the IROA, with assistance from the Donor
community, is then to provide energy to those that
Afghanistan National Development Strategy (ANDS) 1
can use best use and pay for it (and that may well
be business), in the quantities and quality that
they need, at a price that covers cost (for all but
the poorest members of society), and to do so in
the most cost effective manner. At the same time
though, it must begin to take steps that will provide
a solid footing for the transition of the sector from
Government provision to Private Sector provision.
This strategy acknowledges that there are many
steps that need to be taken on the road to fully
involving the private sector. It will begin with
changes in policy and laws and involvement of
the private sector in rural energy provision and
in outsourcing at DABM. It is a gradual process
that will be enhanced by a deliberate process of
reform.
The availability of secure energy supplies within
$IJKDQLVWDQ ZDV VLJQLÀFDQWO\ GLVUXSWHG E\ WKH
FRQÁLFWV RI WKH SDVW WZR GHFDGHV 3RVWFRQÁLFW
efforts by the Islamic Republic of Afghanistan
(IROA) and international donors to date have
focused on expanding the availability of energy
resources throughout the country. Particular
emphasis has been on expanding and rehabilitating
the electricity sector in the major economic hubs
of the country and providing basic service in rural
areas. Efforts also have been taken to improve
the supply of natural gas, increase availability of
hydro-electric generation, rehabilitate and expand
electricity and natural gas transmission and
distribution systems, develop renewable energy
resources in rural and remote areas, increase low-
cost power imports and improve the capability of
energy sector institutions.
Since 2001, Afghanistan energy efforts have
focused on “bailing out the boat” or keeping the
lights on and providing heat in the winter. At
some point, one must also focus on stopping the
ÁRZRIZDWHUEHIRUHWKH\EHFRPHH[KDXVWHG7KH
short term focused activities alone can continue
only so long before the long term growth path
of the country is adversely impacted. Having
achieved moderate success in these areas, the time
is ripe to review current activities and programs
2୳ Afghanistan National Development Strategy (ANDS)
and place greater emphasis on behalf of the IROA
and donors on a more long-range, sustainable
future for the energy sector. This would include
balancing on-going efforts to rehabilitate and
expand energy resources with a longer-term
strategy for the sector.
The Afghan Energy Strategy contains an implicit
prioritization of energy sub-sector activities.
Electricity is given far greater preference or priority
than other sectors because modern economies are
built on electricity. Priority is then assigned to
other sub-sectors based on their supporting role
in electricity and in overall economic activity. In
practical terms this means that MoM and MoCI
need to prioritize their policies, programs and
projects towards the production of fuels for
electricity generation. The strategy is based on
ÀYHSURQJVRUSLOODUV
1 ,QFUHDVHG(IÀFLHQF\LQ([LVWLQJ
Operation: At this time, it is easier, faster and
cheaper to gain a megawatt of power from
LQFUHDVLQJHIÀFLHQF\WKDQIURPEXLOGLQJDQHZ
generating plant. For example, for every US $5
the Government spends in providing compact
ÁXRUHVFHQWOLJKWEXOEVLWDFWXDOO\VDYHV86
and 49 watts.
2 Improved Sector Governance and
Public-Private Partnership Promotion1: The
ultimate success of the energy sector depends
critically on mobilizing the private sector. This
can begin now with establishing a multi-sector
regulator, looking to outsource at State Owned
Enterprises, preparing the enabling legal, policy
and regulatory infrastructure for business, and
the commercialization of SOEs.
3 Improved Coordination and Capacity
Development: Additionally, coordination
among the Government entities must increase
and coordination between the Government
1 Clearly there is overlap between pillars 1 and 2. Increased
HIÀFLHQF\ZLOOLQVRPHSDUWQHFHVVLWDWHLPSURYHG*RYHUQDQFH
DQGWKHXOWLPDWHHIÀFLHQF\JDLQVZLOOEHSRVVLEOHRQO\ZLWK
private provision. These commonalities notwithstanding,
these two areas are different in their major focus.
and the Donor community must likewise be
strengthened. Assistance needs to be given to ICE
to strengthen its capacity. An integrated energy
master plan is required to serve as a road map for
the Government and Donors alike. To accomplish
WKLV FDSDFLW\ PXVW EH VLJQLÀFDQWO\ VWUHQJWKHQHG
and training is an imperative
4  5XUDO(QHUJ\YHUVXV5XUDO(OHFWULÀFDWLRQ:
Most rural Afghans are unable to pay for expensive
electricity. Energy is required for growth but
energy alone won’t do the job. The role of rural
energy to seek out opportunities for economic
activities that lack energy, that will pay for energy
and thereby subsidize rural energy consumption
while raising rural incomes at the same time.
5  ([SDQGHGRU1HZ6XSSO\: Investments
in new capacity or energy infrastructure:
A lot of progress has been made, but not
enough, in creating new supply. It is time now
that the Government and Donor community
can consider alternative supplies such as wind
energy or reducing consumption alongside the
more traditional methods. New supply must be
rationalized and efforts focused on a few large
projects such as the North East Power System.
These are the pillars of Afghanistan’s near term
energy strategy. Alongside addressing the
immediate and short term needs, it is imperative
that the country look to longer term issues.
Because it is building its energy infrastructure
anew, it can learn from the lessons of experience in
RWKHUFRXQWULHV,WFDQIRFXVRQHQHUJ\HIÀFLHQF\
renewable energy and decentralized energy. If it
does this at the same time it builds its industrial
EDVHWKHQWKHEHQHÀWVDUHHQRUPRXV7KXVZKLOH
a national grid is important to transport power
IURPFKHDSHUPDUNHWVLWZLOOSURYHPRUHEHQHÀFLDO
Afghanistan National Development Strategy (ANDS)
in the long run to focus on decentralized power. A
recent British study concluded that 61 percent of
the energy value of the primary fuel disappears.
“Another 4 percent vanished in transmission.”
This means that roughly two thirds of the energy
is lost in a centralized system. By locating power
generation closer to users, these losses can be
VLJQLÀFDQWO\ UHGXFHG  7KXV  WKH  ORQJ  WHUP
strategy will increasingly focus on cogeneration,
distributed power, renewable and end-use
HIÀFLHQF\DVZHOODVWKHPRUHWUDGLWLRQDODUHDV
The strategy is focused on poverty reduction
WKURXJK DOO LWV ÀYH SLOODUV  )LUVW E\ LPSURYLQJ
RSHUDWLQJ HIÀFLHQF\ WKH GUDLQ RQ JRYHUQPHQW
resources is reduced. More is available for other
programs. Similarly, by focusing on end-use
HIÀFLHQF\WKHGUDLQRQWKHFXVWRPHU·VUHVRXUFHVLV
reduced. More of their income is available for other
things. Second, improving sector governance will
DOVRKDYHDVLJQLÀFDQWLPSDFWRQSRYHUW\,WZLOO
bring about better subsidy mechanisms so that the
subsidy is targeted to those that need it the best
way possible. While it will reduce the overall level
of subsidy in the sector but the neediest members
of society will have access to energy at subsidized
rates. Moreover, every Afghani of subsidy that
can be freed up in this sector can be used in other
sectors. Third, this strategy reorients rural energy
to focus on income generating activities. Thus,
E\GHÀQLWLRQWKLVLVDSRYHUW\UHGXFWLRQDFWLYLW\
Fourth, the economy is starved for energy. The
ÀIWKSLOODULVWKHLQYHVWPHQWLQQHZHQHUJ\VXSSO\
and the economy can’t grow without energy;
poverty can’t be reduced in Afghanistan without
economic growth. Finally, the combined impact of
these policies, programs and projects will be more
HQHUJ\ VXSSOLHG PRUH HIÀFLHQWO\ DQG UHOLDEO\
This is a solid prescription for economic growth,
which growth is important for poverty reduction.
3
and possible coal power development. Therefore,
UHFRYHU\RIWKHFHPHQWLQGXVWU\ZLOOVLJQLÀFDQWO\
alter the total demand for coal. Mechanisms are
not in place to transparently and rapidly address
winter coal issues.
Coal for power: In addition to the Aynak copper
power needs, Government has begun to assess the
power needs of the proposed Hajigak Iron Ore
deposit as well as simply the generation of coal
for power to supply the central and western parts
of the country that now have no or limited power
access. This is a topic where both the Ministry
of Mines and the Ministry of Energy and Water
have important roles but have yet to determine
strategic priorities for development of coal for
power including methods to attract sustainable
investment. Opportunities such as this argue
for the development a cogeneration policy and
VLPSOLÀHG SRZHU SXUFKDVH DJUHHPHQWV IRU FR
generated power.

(million short tons)

Table 6. Coal Energy Data

Coal 1980 1990 2000 2001 2002 2003 2004 2005

Production 0.131 0.116 0.089 0.092 0.096 0.099 0.103 0.099

Consumption 0.131 0.116 0.089 0.092 0.096 0.099 0.103 0.099

Source: the US Energy Information Agency

8. Rural and Renewable Energy Table 7. Wind Potential

Total
Renewable energy offers the greatest hope for Wind Wind
Wind Capacity
Resource Speed
Afghanistan in general and rural energy in Class Installed
Utility Scale m/s
particular. Renewable energy includes hydro, (MW)
solar, wind, geothermal, biomass and wood. Good 4 6.8-7.3 75,970
Excellent 5 7.3-7.7 33,160
+\GURERWKODUJHDQGVPDOOUHSUHVHQWVVLJQLÀFDQW Excellent 6 7.7-8.5 33,100
untapped resources. According to the ADB, there
Excellent 7 > 8.5 15,800
is 18,400 MW of untapped hydro potential in the
country1. Afghanistan has excellent wind potential Total 158,100
in many areas and is economical compared to
Source: National Renewable Energy Laboratory
diesel as shown in the table below.
remains a high cost energy resource for electricity.
The Indian Government has funded a solar village
Not all of this potential wind energy can be
initiative. While solar PV is expensive compared to
economically converted into electricity because
the cost of generation for other alternatives, there
of a number of factors such as distance from
is strong evidence that with the proper enabling
population centers and wind speed. However, the
environment of micro credit and training, solar
ÀUVWLQLWLDOVXUYH\LQGLFDWHVWKDWWKHUHLVVLJQLÀFDQW
home systems are a viable electricity source2. Solar
potential which can be tapped at around US$ 0.09
FRRNHUVKDYHVKRZQVLJQLÀFDQWSURPLVHLQRWKHU
per kWh.
countries and may have widespread application
here.
7KHUH LV VLJQLÀFDQW VRODU SRWHQWLDO EXW LW VWLOO 2 For example, according to Micro Energy International solar
PV in Bangaldesh cost between US$ 0.45 to US$ 0.60 per kWh.
1 Renewable Energy in Afghanistan, Regional Economic Despite this high cost Grameen Shakti 70,000 solar home
Cooperation Conference, Ali Azimi, 2006. systems between 1996 and 2004.

Afghanistan National Development Strategy (ANDS) 19

Solar cookers were deployed in Afghan refugee
camps in Pakistan.
7KHUHDUHPDQ\HQYLURQPHQWDOEHQHÀWVIURPXVLQJ
renewable energy such as reduced emissions
(both indoor and outdoor) but the development
of renewable energy must also consider the
potentially negative environmental impacts. It
is important that EIA guidelines be followed and
the as with any energy project, public debate is an
important tool.
There is an overwhelming view that rural areas
need electricity and that providing access is
the best use of resources for energy. An Asia
Foundation survey in 2006 concluded that hack of
reliable electricity at the local level was the second
most important problem behind unemployment.
When survey respondents were asked that what
the largest problems at the national level were,
they have citied electricity as the ninth most
important problem. The Asia Foundation sample
was not representative of the country from an
HQHUJ\SHUVSHFWLYHDQGXVHGDGHÀQLWLRQIRUUXUDO
that obfuscates the real patterns of importance in
planning development assistance3.4 The results
from other countries consistently indicate that
there is a hierarchy for demand to services and
electricity is usually further down on the ladder
than services such as an all weather road, water
supply, schools, and clinics. For example, if the
preponderance of survey respondents already has
access to road, water and schools, then electricity
may well be their next choice of service. In rural-
remote Afghanistan, if Afghans are similar to the
peoples of the region, then access to electricity will
not be their most urgent priority.
3 According to their survey, 49% of rural respondents had
access to electricity and 89% of urban respondents had access.
Their sample was not representative of the country with
regard to energy access. In part, what they call rural actually
represents sizable population centers. Moreover, their ques-
tion did not ask if access to energy was an issue but rather the
extent to which energy is a problem.
4 The distinction between rural and urban in Afghanistan also
causes blurring of responsibilities between MEW and MRRD
and so we use the term rural-remote to denote those areas of very
low population density that are far removed from population and
commercial centers and lack access to basic services. More will be
developed on this later in the strategy.
20୳ Afghanistan National Development Strategy (ANDS)
Additionally, experience the world over has
provided an important lesson with regard to
blindly providing access to electricity. There is no
guarantee that increased access to electricity will
EULQJ HFRQRPLF EHQHÀWV  6LPSO\ ORRN DURXQG LQ
Kabul and other urban areas where residential
access has increased. If access to electricity is not
targeted to or coupled with income generating
activities, then rural access brings lighting and
little else.
9. DEMAND
Although there is little data for Afghanistan on
rural energy use, inferences can be drawn from
similar countries in the region. There is a tendency
to assume that grid connected electricity offers
the best form of energy for rural populations.
Experience throughout the world has shown that
there is a progression in the use of energy. Due
to the dispersed nature of the rural population,
renewable energy offers the best solution for
HOHFWULÀFDWLRQ IRU WKH PDMRULW\ RI $IJKDQLVWDQ·V
rural population that currently does not have
access to electricity and has no real expectation of
connection to the grid5.
It is very important that the economic conditions
and opportunities of rural population be fully
understood when devising a rural energy
strategy. Too often donors and Government
RIÀFLDOV KDYH EOLQGO\ IROORZHG D SROLF\ RI UXUDO
HOHFWULÀFDWLRQ  7KH UHVXOW KDV EHHQ PXFK KLJKHU
cost energy delivered than people can afford and
little, if any, associated economic activity. The
goal of increasing energy is poverty reduction and
economic growth. Electricity alone in rural areas
is unable to do that job.
What is not known about rural Afghan’s
economic and energy characteristics? First, rural
Afghani’s are poor by most countries’ standards.
“Over 20.4% of the rural population cannot meet
5 Government of Afghanistan; Ministry of Energy and
:DWHU3ROLF\IRU5HQHZDEOH(QHUJ\5XUDO(OHFWULÀFDWLRQ
December 8, 2006.
the minimum level of dietary energy required
to sustain a healthy life.” 6 Unemployment is
rampant. Average household income is estimated
to be no greater than $231 a year.7
Probably less than 4% of rural households have
access to electricity8. Of those with access, 7%
use electricity for lighting. Kerosene lamps
are the major source of lighting, representing
roughly 86 percent. It is highly likely given what
is known about other countries, that the main
VRXUFH RI FRRNLQJ IXHO LV IURP VHOI FROOHFWHG ÀUH
wood from which there is no monetary outlay or
charcoal. This information is valuable because it
tells us how much of a rural household’s money
income is devoted to energy. Using detailed
data for Balochistan, the average rural household
spends only 3.5% of its budget on energy and this
includes imputed or noncash outlays. Clearly,
for many families on the lower end of the income
spectrum, the vast majority of energy services are
self supplied – that is through the gathering of fuel
wood, crop residues, and other biomass. Energy
expenditures were dominated by wood, charcoal,
and kerosene. Wood and charcoal are used
mainly for cooking and heating, while kerosene is
the main source of lighting. Rural Afghanistan is
similar.
Extreme poverty in rural areas also is related
to lack of income earning opportunities. The
productive use of energy helps reduce poverty by
providing alternative sources of livelihoods and
increase educational and training opportunities.
The remoteness of rural locations and the rough
terrain make expansion of the electricity grid into
these areas economically infeasible. Therefore,
the application off-grid technologies to these
areas—including renewable energy resources—
and other forms of energy is the primary focus of
IROA activities.
6 ANDS Macroeconomy and Poverty Diagnostic, Chapter
7 This was based on the ratio of rural household income
to urban household income in Pakistan. Clearly, the rural
population of Pakistan is on average better off than that of
Afghanistan.
8 AEIC http://www.afghanenergyinformationcenter.org/
Rural.html
Afghanistan National Development Strategy (ANDS)
10. SUPPLY
There is no reliable data on traditional energy use
in rural Afghanistan. The bulk of commercial
energy is supplied by kerosene, Hydro power and
diesels. Hydro, wind and solar offer opportunities
for small scale supply. Following hydro, solar
energy has the greatest potential as a renewable
energy source, but cost remains a major barrier.
Estimates indicate that in Afghanistan solar
radiation averages about 6.5 kWh per square meter
per day and the skies are sunny about 300 days a
year. Consequently, the potential for solar energy
development is high, not only for solar water
heaters for homes, hospitals and other buildings,
but also for generating electricity. In addition,
VRPH  VLWHV KDYH EHHQ LGHQWLÀHG IRU PLFUR
hydro resource development with the potential to
generate 100 MW of power.
Other renewable energy technologies, particularly
micro-hydro and wind energy, have broad
applicability within rural areas of Afghanistan and
offer employment opportunities directly through
operation and maintenance requirements, and
indirectly through businesses like agro-processing
that provide off-farm work.
The IROA, primarily through the Ministry of Rural
Rehabilitation and Development in cooperation
with the MEW has developed projects to promote
micro-hydro development in rural areas. In
addition, under the US National Renewable Energy
Laboratory, wind mapping has been undertaken
for many parts of Afghanistan as a basis for
developing individual projects. The data indicate
good potential for generating wind electricity in
several parts of the country. The lead institute
to support development of these resources in
Afghanistan is the National Renewable Energy
Research and Development Center, a part of
MEW.
Hydropower, solar, wind and biomass offer
the most potential to contribute to energy
21
supply. Development, however, requires sound
LQVWLWXWLRQDO DQG ÀQDQFLDO VXSSRUW VXVWDLQHG
commitment and a long-term development
horizon. Use of renewable energy is beset by
a number of factors, including high upfront
costs,9 ODFN RI VXSSOLHUV LQDGHTXDWH ÀQDQFLQJ
mechanisms, and weak institutional and technical
capacity.
11. Afghanistan as an Energy Transit Route
Due to its location between the oil and natural
gas reserves of the Caspian Basin and the Indian
Ocean, Afghanistan has long been mentioned as a
potential energy route. This might include power
transmission via high tension lines, or perhaps
eventually a gas pipeline.
Afghanistan is well positioned to be a transit route
for electricity produced in CAR countries and
exported to South Asia, and perhaps eventually
it might also become a net exporter of power
produced from its own hydro, natural gas, and
coal resources. Efforts are currently underway
to increase electricity imports from Uzbekistan,
Tajikistan, Turkmenistan and Iran and to upgrade
cross-border transmission links. Development of
a regional power network with Afghanistan as a
transit route between CAR and South Asia is an
important potential medium-term objective.
At the present time, with support from the ADB and
the World Bank, the four countries of Tajikistan,
Kyrgyzstan, Afghanistan and Pakistan are actively
exploring construction of a high tension line that
would transmit 1300 MW of power from Central
Asia through Afghanistan to Pakistan, with
Pakistan receiving 1,000 MW, and Afghanistan
gaining 300 MW. Construction of such a project
would directly address Afghanistan’s need for
power, and might also help to lay the groundwork
for an eventual natural gas pipeline.
9 )RUH[DPSOHHVWLPDWHIRU3KRWRYROWDLFHOHFWULFLW\DVSHU
MRRD (Mostafa Torkan, May 24, 2007) is $12,000/kW, as
compared to: (i) Micro-hydropower at $1,200/kW and Diesel
generated power at $500/kW.
22୳ Afghanistan National Development Strategy (ANDS)
During the mid-1990s, Unocal had pursued a
possible natural gas pipeline from Turkmenistan’s
Dauletabad-Donmez gas basin via Afghanistan to
Pakistan, but withdrew after 1998. The Afghan
government has recently tried to revive the Trans-
Afghan Pipeline (TAP) plan, and has held talks on
these matters with Pakistan, and Turkmenistan.
Little progress appears to have been made. The
President has stated his belief that the project could
generate $100-$300 million per year in transit fees
for Afghanistan, while creating thousands of jobs
in the country. Given the obstacles to development
of a natural gas pipeline across Afghanistan, it
seems unlikely that such an idea will make any
progress until the security position is resolved.
The estimated cost of the pipeline is $2.5-$3.5
billion which represents a further obstacle to its
implementation.
CASA-1000 and Proposed Power Levels. CASA-
1000 is a proposed transmission system to
transmit 1,000 Megawatts of surplus electricity
from Tajikistan and the Kyrgyz Republic to
Pakistan, with power transiting through and
energy deliveries happening within Afghanistan.
If it goes forward, it would start operations circa
2011. Kabul would have a substation, which
initially would receive approximately 100 MW
going up to about 300 MW by 2016. Over the life
of the project about 90% of the power would be
used by Pakistan while, 10% would be taken by
Afghanistan.
With 562 km of HTDC transmission, Afghanistan
has the largest share of CASA 1000 transmission
lines, representing about 52.1% of the total project
costs. Total estimated project costs are $545.6 mil
of which Afghanistan’s allocation is $284.5 mil.
Afghanistan would receive common equity of
$59.8 mil and begin receiving dividends following
a grace period. Current analysis indicates a
return of 16% on equity by year 2033. In addition,
Afghanistan would begin receiving a 52.1%
share of Transit Fees once CASA-1000 becomes
operational.
12. Energy for the New City at Dehsabz
Guiding the energy strategy for Dehsabz is
the Trias Energetica concept comprising three
pillars: Reduce energy demand to the lowest rate
possible; supply the energy that is required from
sustainable resources; and, where fossil energy is
UHTXLUHGXVHLWDVHIÀFLHQWO\DVSRVVLEOH$OWKRXJK
Afghanistan has one of the lowest per capita
energy consumption rates in the world, that rate is
expected to increase to a level comparable to that
of Kazakhstan and Turkmenistan over the next
30 years. Energy demand will increase as the city
grows, so the energy supply must keep pace with
the anticipated demand if project momentum is
to be achieved and maintained. Consequently
energy generation and distribution infrastructure
will be a priority in each construction phase.
Reducing energy demand is a design consideration
incorporated in every building and system in
DehSabz. From the use of concrete core activation
PHWKRGVWRKHDWDQGFRROÁRRUVZDOOVDQGFHLOLQJV
via geothermal sources, to the correct solar
orientation of each building, the demand for
energy is minimized. Energy that is required is
generated as much as possible through sustainable
means including hydro-electricity, micro hydro-
electricity, passive and active solar generation,
biomass and refuse combustion, deep geothermal
power. But, as exciting as the possibilities of
zero ecological footprints through sustainable
energy production are, there will be gaps in the
HQHUJ\SURGXFWLRQF\FOHWKDWZLOOKDYHWREHÀOOHG
by diesel generators. But even here sustainable
technologies can be applied. Afghanistan is
searching for replacement crops for Opium
Poppies so as to ensure sustainable livelihoods in
rural districts. The production of biodiesel for the
generators will require a yield of approximately
The energy strategy includes the concept of a
robust network, able to withstand the rigors of
the climate and the terrain. Traditional power
networks operate on the concept of centralized
production and wide area distribution, making
them vulnerable to environmental effects, system
defects and, if the generation capacity is outside
the nation, market effects. The Dehsabz energy
strategy is founded on the principle of widely
distributed and diverse generation, coupled to
network enabled but localized distribution. In
effect energy is consumed as close to the point
of production as possible, reducing losses in the
transmission system while reducing the expense
and engineering required in a high tension
distribution system. The power grid is networked
however so that power can be distributed among
the districts at peak times and to mitigate system
failures or environmental effects.
Such a fully integrated and sustainable energy
network has never been built before, thus Dehsabz
has the potential to become a world leader in the
ÀHOGVKRZFDVLQJOHDGLQJHGJHWHFKQRORJLHV7KH
national prestige accruing from such a project
will generate national pride and help to restore
Afghanistan to its rightful place as a valued
regional trading partner and economic ally.
INSTITUTIONAL PLAYERS
Responsibility for energy is complicated; at
present, four ministries have portfolios that
include direct engagement with the energy sector
and its development in Afghanistan:
‡ Ministry of Energy and Water
(electricity generation (hydro, imports),
transmission, distribution)
‡ Ministry of Mines (oil, gas, coal)
‡ Ministry of Rural Rehabilitation and
42,000 dry Tonnes of oil seed per year. Combined
with the biodiesel requirements of other cities and
local rural requirements it is conceivable that the
production of biomass for fuel could gradually
replace poppy cultivation in large parts of the
'HYHORSPHQWUXUDOHOHFWULÀFDWLRQ
‡ Ministry of Commerce and Industries
(liquid fuels)
The Ministries maintain Kabul headquarters and
UHJLRQDO RIÀFHV LH 0R0 KDV VHYHQ UHJLRQDO
nation. RIÀFHV LQ DGGLWLRQ WR VWDWH RZQHG HQWHUSULVH

Afghanistan National Development Strategy (ANDS) 23

RIÀFHV WKURXJKRXW WKH FRXQWU\ LH WKH 0LQLVWU\
of Energy and Water (MEW) oversees DABM that
maintains 19 regional “breshnas” or operations).
$ ÀIWK PLQLVWU\ WKH 0LQLVWU\ RI 8UEDQ
Development, is engaged with energy in two
forms: (1) street lighting primarily in Kabul and
(2) heating10RIWKHÀYH.DEXOEDVHG´0DFURUD\RQ
Apartment blocks” constructed during the Soviet
era. Until late 2006 there was weak coordination
of energy related development among these
ministries. Coordination has continued to be
weak through 2007. Coordination may improve
somewhat in the years 2008 – 2010.
In addition, the Ministry of Finance plays an
integral role in determining and agreeing to
development and national budget funds for
energy-related projects. The Ministry of Economy
ZDV LGHQWLÀHG LQ $XJXVW  WR OHDG DQG
coordinate the above ministries as members of
the Inter-Ministerial Commission for Energy
(ICE) discussed below. Finally, the Cabinet of
Ministers and High Economic Council of Ministers
(comprised of key economic ministers) have
XQGHÀQHGEXWGHÀQLWHUROHVLQUHYLHZLQJHQHUJ\
project selection, funding levels and approval at
various times to various degrees. Parliament’s
Economic Committee has included energy in its
portfolio and conducted occasional meetings with
energy ministers and their staff.
There are eleven state owned enterprises operating
in the energy sector. They include companies such
as DABM and Afghan Gas.
The Inter-Ministerial Commission for Energy (ICE)
was established by a Presidential Decree signed
in December 2006 as the coordinating and policy
making body for energy sector activities. Chaired
by the Minister of the Economy, it includes the
Ministries of Energy and Water, Finance, and
Mines as core members and the Ministries of
Commerce and Industry, Foreign Affairs, Urban
Development and Rural Rehabilitation and
Development as ad hoc members.
The establishment of ICE was designed to help
the Government understand, support, design,
and monitor energy development based on
10 District heating was installed as part of the initial
construction.
24୳ Afghanistan National Development Strategy (ANDS)
commercial principles. It has oversight of energy
sector policy and infrastructure investments and
coordinates support from development partners.
ICE brings together a wide array of government
and donor interests to assure coordinated action
and practical planning. It is not be responsible
for project implementation but develops sound
SROLF\ LQ OLQH ZLWK ÀVFDO DQG SROLF\ SULRULWLHV
and international standards. ICE is supported
by an ADB grant, which includes formation of a
commercial advisory team within the Commission
that assists the Government in identifying energy
investments and shaping ongoing projects. It also
assists the Government in agreements to stimulate
private sector investment. The Ministry of Finance
is the executing agency for the project.
In addition to the above established institutions,
the following advisor positions and national
programs play a role in energy sector development
in Afghanistan:
‡ Advisor on Mines and Energy to the
2IÀFHRIWKH3UHVLGHQW
‡ Afghanistan Investment Support Agency
(AISA).
‡ Afghanistan National Development
Strategy (ANDS).
‡ Afghan National Standardization
Authority (ANSA).
‡ MRRD’s National Solidarity Program
(NSP)
‡ Priority Reform and Reconstruction
Program (PRR)
The complexity of this institutional framework
FRQWULEXWHV WR WKH GLIÀFXOWLHV LQ GHYHORSLQJ DQ
effective strategy for the sector and in implementing
and monitoring sector rehabilitation and reform
measures. Attention to sector governance aimed
at streamlining and combining functions within
the ministries with the ultimate goal of reducing
the IROA’s direct involvement in the energy sector
in favor of increased private sector participation
need to be an important part of the IROA’s overall
Energy Sector Strategy.
LEGAL, POLICY AND REGULATORY
FRAMEWORKS
MoM laws and regulations in accordance with the
country’s constitution form an appropriate basis
for attraction of investments.
There are three energy laws:
‡ Power Consumption Law of 1982;
addresses power imports, generation,
transmission and distribution;
‡ Hydrocarbons law has already been
dispatched to the parliament for approval.
‡ Coal: Minerals Law of 2005; regulations
to be drafted in 2007-08.Additionally,
the Environment Law has been in force
since January 2007 and this provides a
framework for reviewing projects and
their impact on the environment.
DONOR PROGRAMS AND PROJECTS11
While there are many donors involved in all
aspects of energy production, the largest are
the World Bank, the Asian Development Bank,
Germany, India and the US. The Table below
is a summary of the donor participation in the
electric power sector according to Afghanistan
Energy Information Center (AEIC) as of mid-
2006. Additionally the ADB is involved in the
JDV ÀHOG UHKDELOLWDWLRQ DW 6KHEHUJKDQ DQG :%
is supporting coal mine feasibility study. The
WB has also sponsored studies of distribution
systems for major load centers in the north and
has planned similar work in the southern cities
of Kandahar and Lashkar Gah once the security
situation there has stabilized. Also as indicated
in the Table, the donors are active in both actual
infrastructure projects as well as in institutional
and capacity building efforts.
More recently there have been projects to upgrade
the distribution systems at Lashkar Gah, Qalat,
and Aybak underbillion, depending on the
country’s absorptive capacity.
The WB is intensively involved in the power
VHFWRU,WKDVDÀYH\HDUSODQWRWDOLQJELOOLRQ
depending on the country’s absorptive capacity.
The WBs plan has the following goals for 2008:
11 This section draws heavily from LBG/BV Needs Assess-
ment Infrastructure report.
Afghanistan National Development Strategy (ANDS)
‡ Rehabilitate 94MW of hydropower
capacity;
‡ Establish 25,000 new connections in
Kabul;
‡ Integrate the Energy Programme with the
plans for the new city at Dehsabz
‡ Rehabilitated medium voltage network in
Kabul and Mazar-e-Sharif;
‡ TA in energy sector, including the
corporatization of DABM;
‡ Trade facilitation to encourage energy
transfer from Central Asia; and
‡ Continued involvement in NEPS.
The ADB has also been very active in the energy
sector: As a total amount of 12 USD has been
allocated in grant for testing and preparing gas
wells aimed at settling the requirements of the
gas factory of 100 megawatt turbine based in
Sherberghan. Also, Afghanistan
Development Bank(ADB) has allocated another
24 ml USD for rehabilitation of gas infrastructures
that is 12 for rehabilitation of gas wells and the
remaining 12 ml will be for exchange of gas
delivery network from the gas based area of
Khawja Gogerdak till power and fertilizer factories
with a length of 100kms. Loan 2165AFG/Grant
0004AFG Power Transmission and Distribution
Project ($50M), and iii) Loan 2304AFG Regional
Power Interconnection Project (Afghan side$35M
from ADB out of the total project cost of $55.5M
(in Loan 2303 TAJ, $21.5M from ADB out of the
total project cost of $54M)).
ADB support has been vital in implementing:
‡ A capacity-building and training program
for the MEW and its enterprises;
‡ A Project Preparatory Technical Assistance
(PPTA) for small and medium hydropower
development;
‡ A capacity-building TA at the MEW;
‡ A hydropower and transmission project;
and
‡ Continued support for NEPS and the
Priority Reform and Restructuring
Program.
25
A. Rural Energy Donor Operations
At present, about 650 villages are supplied with
electricity from photovoltaic (PV), through a
program funded by the National Solidarity
Program (NSP) and under the auspices of MRRD.
The NSP is a nationwide community-driven
development program run by the Ministry
of Rural Reconstruction and Development
(MRRD) and funded by various bilateral and
multilateral donors, primarily through the
Afghanistan Reconstruction Trust Fund (ARTF).
NSP is supported by non-government (NGO)
partners that facilitate the election of Community
Development Councils (CDCs) and help the
councils to identify community development
projects. NGOs are contracted as facilitating
partners to assist communities in the technical
DQG ÀQDQFLDO LPSOHPHQWDWLRQ RI SURMHFWV WKDW
for energy have include micro-hydro and diesel
SRZHULQVWDOODWLRQV163·VSDUWQHUVKDYHLGHQWLÀHG
over 3000 rural energy projects. NSP has funded
around 1700 diesel generators and 500 micro
hydro plants.
Other donors (e.g., Government of India) and
NGOs (e.g., Norwegian Church Aide) are active in
this area. The private sector also is encouraged to
SDUWLFLSDWH DQG LQYHVW LQ UXUDO HOHFWULÀFDWLRQ DQG
GHSOR\PHQW RI HQHUJ\ HIÀFLHQF\ DQG UHQHZDEOH
energy technologies. Although, NGOs and
donors provide much assistance, there appears
WREHQRFOHDU,52$SROLF\IRUUXUDOHOHFWULÀFDWLRQ
or for promoting private sector participation in
rural energy projects; also coordination among
ministries and other project participants’ needs
improvement.
THE ROLE OF THE PRIVATE SECTOR
Throughout the world, the role of the private
VHFWRU LQ HQHUJ\ LV JURZLQJ DQG LV VLJQLÀFDQW LQ
most countries. In Afghanistan, it is virtually
nonexistent. The roles of the private sector vary
from managing government owned assets to
outright ownership and operation. There are
examples where all these mechanisms coexist in
one country. There are other examples where
countries have chosen one model and others
26୳ Afghanistan National Development Strategy (ANDS)
where the country transitions over time from
the simplest model (management contract) to
complete ownership and operation.
To be sure, there are obstacles in Afghanistan to
greater private sector involvement, primarily to
investment, but some of these obstacles can be
overcome or offset with innovative mechanisms.
The private sector can be called upon to manage,
operate, invest and/or own energy entities and
operations. Each different mechanism has its
advantages and disadvantages. Often, there
is a progression from management through
ownership that takes into account the current
situation. In the electricity sub-sector for example,
it is highly unlikely under the current security,
institutional, policy and legal/regulatory
situation that private investors will be attracted
to invest in a large-scale power plant. However,
until these issues are resolved, there are many
other ways to use the private sector. Billing
can be outsourced. The construction arms of
DABM could be sold off, allowing DABM to
focus on core operations. Following DABM’s
commercialization, distribution could be given on
a management contract. Individual power plants
could be given on management contract. There
are a variety of mechanisms available now for
the IROA to tap the private sector as it prepares
the enabling frameworks and other requisite
mechanisms to foster full private sector ownership
and operation.
One of the questions that have been posed in this
strategy exercise is whether or not DABM (and
other SOEs) should be unbundled. In this context,
unbundling has meant the separation of the utility
into different operating units and the privatization
by sale of one or more of those units or ownership
unbundling. For example, the distribution part
of DABM might be separated into several smaller
distribution companies and then sold as could
be generation. The empirical evidence is mixed
and does not strongly support one position or the
other. In fact, many of the earlier proponents of
unbundling have now taken a more conservative
position that the virtues of unbundling depend
upon numerous factors such as the size of the
market, the availability of substitutes, the cost
production and the overall structure and position
of the sector within the economy. Simply put,
when a country or market are small, unbundling
may not achieve the results it will in larger, more
mature markets. Afghanistan’s market is quite
small and immature. Ownership unbundling is
the last stage of a four step process. At this time
it is not possible because the other steps have not
yet begun.
To be sure, the commercialization of DABM
and other SOEs will require some unbundling.
7KH ÀUVW VWHS LV DFFRXQWLQJ XQEXQGOLQJ RU WKH
separation of accounts of different functions.
Functional unbundling will follow. This is the
separation of functions within the company and
the imposition of restrictions on activities such as
physical separation of people, of management,
separation of information that competitors
may need separation of services that should be
regulated from those that are competitive in nature,
etc. Functional unbundling can either take place
within the same company or be unbundled into
DQDIÀOLDWHFRPSDQ\)XQFWLRQDOXQEXQGOLQJDOVR
means accounting unbundling. Then there is legal
unbundling but this “does not imply a change of
ownership of assets and nothing prevents similar
or identical employment conditions applying
throughout the whole of the vertically integrated
undertakings. However, a non-discriminatory
decision-making process should be ensured
through organizational measures regarding
the independence of the decision-makers
responsible.” Legal unbundling will of necessity
include accounting and functional unbundling.
The strategy envisions that with time DABM and
other energy sector SOEs will go step by step to
legal unbundling. Some non-core functions will
either be outsourced or completely divested,
reaching the last step of ownership unbundling.
The outcome of this strategy exercise is that there
are more fundamental reforms required in the
laws, rules and regulations and at DABM before
large scale ownership unbundling should be
considered.
Afghanistan National Development Strategy (ANDS)
CHALLENGES, RISKS AND CONSTRAINTS
A number of challenges, constraints and risks,
both real and perceived, associated with the
ability of the IROA to develop and implement a
comprehensive Energy Sector Strategy need to be
addressed. These include the following.
A. Private Sector Provision
The single most important challenge facing energy
is attracting the private sector in a meaningful
ZD\  7KH VHFWRU LV SODJXHG E\ LQHIÀFLHQF\ DQG
under investment. While second best measures
can be put in place, such as the commercialization
of DABM, the optimal solution is eventual private
sector provision throughout the sector. Private
sector participation in Afghanistan’s energy sector
is crucial to achieving the long term objectives of
the sector. Efforts to attract private investment are
incorporated within IROA programs and projects,
but there is no coordinated approach to achieving
this goal. In particular, options for private
participation beyond equipment and supplies and
management contracts need to be explored, and
effective policies put into place. The IROA and
donors, through the “one-stop shop” at the MEW,
the Afghanistan Investment Support Agency, or
other mechanisms need to address this issue and
increase opportunities for local and international
investors in the energy sector The constraints
facing greater private sector involvement include
legal protection for private sector investors, lack
of a regulatory environment, credit worthiness of
a potential buyer, and general security.
B. Capacity
Perhaps the single biggest constraint in the sector
is the very limited capacity given the tasks that
need to be accomplished. Both the Ministries and
the SOEs are characterized by limited capacity and
few trained/skilled personnel below the senior
levels. It is imperative that basic managerial skills
be developed and that training in accounting and
ÀQDQFH DOVR WDNH SODFH  $GGLWLRQDOO\ ZKLOH D
sector PMU is recommended, it is also important
that project management, and monitoring and
evaluation skills be upgraded at the Ministries
and SOEs.
27
A lot of resources have gone into capacity building
and the concern is how to make delivery more
HIIHFWLYH  )LUVW JHQHUDO PDQDJHPHQW ÀQDQFH
and accounting training are needed and this can
take place as part of larger training programs not
VSHFLÀFDOO\IRFXVHGRQWKHHQHUJ\VHFWRUVHFRQG
training efforts at the Ministries and SOE’s need
to be elevated. Third, for technical training,
it is recommended to use developing country
training venues, for example, in India there are
the National Thermal Power Corporation and
IREDA; ICIMOD in Nepal; TNB in Malaysia and
the Egyptian Electricity Holding Company in
Cairo. In petroleum, there are excellent training
venues in the Gulf countries. Donors have helped
to establish impressive institutionalized training
programs in countries throughout the region
and relying on these reduces cost and increases
effectiveness.
C. Information and Planning
As mentioned in several places in this report,
the lack of information severely hampers both
analysis of current and historical information and
planning. While the IROA and Donor strategy
has out of necessity focused on immediate needs,
the long run health of the sector and the economy
depend critically on the collection, dissemination
and evaluation of energy information and its use
in planning.
' (IÀFLHQF\
The second most important challenge facing the
HQHUJ\ VHFWRU LV WKH HIÀFLHQW RSHUDWLRQ RI 62(V
and heavy reliance on subsidies to support these
SOEs. Focus has been on expanding supply and
major rehabilitation of generation and NEPS. The
two principal constraints here are (1) the lack of
complete and effective commercialization of SOEs
such as DABM and (2) lack of priority given to
funding these efforts. This is also the result of
LQVXIÀFLHQWFDSDFLW\
E. Fuel
The cost of fuel to support electricity generation,
especially for Kabul and until NEPS is completed,
28୳ Afghanistan National Development Strategy (ANDS)
will be about $100 million/year and another $25
million/year for SEPS. Funding and procurement
mechanisms to obtain this fuel are not yet
established and need to be addressed.
F. Imports
Prices and availability of power from other CAR
countries also are uncertain. Imported power
costs will probably be as much, if not more, than
4 cents/kWh or more in 2010 requiring an annual
hard currency requirement of $160 million and
SRWHQWLDOO\ SODFLQJ D VLJQLÀFDQW EXUGHQ RQ WKH
IROA. However, this is still much cheaper than
diesel generation.
G. Cost Recovery
The average cost of power to residential customers
currently is about 3.8 Afs/kWh. However to cover
costs of supply, it would need to increase to 7 Afs/
kWh or more12 . The IROA‘s goal is to raise tariffs
to cover 75% of DABM’s costs, thus rising to at
least 5.3 Afs/kWh or 28% by 2010. This will place
DVLJQLÀFDQWEXUGHQRQKRXVHKROGVDQGUHSUHVHQWV
a political risk for the Government, especially
LI VHUYLFH TXDOLW\ LVQ·W LPSURYHG VLJQLÀFDQWO\
commensurate with tariff increases. To help offset
this revenue shortage, efforts at DABM to improve
billing and revenue collection and reduce losses
(currently estimated at a minimum of 40%) need
to be a primary focus.
H. Rural Energy
Addressing rural energy needs and expanding
access to commercial supplies of energy is a
daunting task, requiring a long-term commitment
RI UHVRXUFHV ERWK ÀQDQFLDO DQG LQVWLWXWLRQDO
and a coordinated approach to addressing this
issue through regional and local organizations.
Moreover, an evaluation and prioritization of
rural energy resource and delivery options is
needed to ensure the effectiveness of programs
and projects, and a comprehensive monitoring
and evaluation process is needed. The GOA, with
the support of donors needs to review, evaluate
and revise its rural energy programs to effectively
address these needs.
12 MEW puts the cost of power generation at US
$0.123 per kWh.
The biggest challenge in addressing effective rural
HQHUJ\ QHHGV ZLOO EH WR ÀQG LQQRYDWLYH ZD\V WR
couple energy service delivery with economic
activities. Constraints are the low levels of income
and lack of access to micro credit and the political
inertia of providing rural, grid based electricity.
Added to this is the need to rationalize rural
HOHFWULÀFDWLRQ EHWZHHQ 0(: DQG 055' VR WKDW
each can best address the problems with their
VSHFLÀFUHVRXUFHV
Afghanistan National Development Strategy (ANDS)
Additionally, as households transition from
biomass to other fuels for cooking, heating and
lighting, efforts need to be made to consider
the differential impacts and uses between
women, children and men. These differences
DUHVLJQLÀFDQWDQGDGRSWLRQDQGXVHRIGLIIHUHQW
energy sources depends on addressing the needs
of these different groups.
29

ENERGY SECTOR STRATEGY
ENERGY STRATEGIC VISION
“An Energy sector that provides citizens of
Afghanistan and drivers of growth in the economy
with long-term reliable, affordable energy access
based on market-based private sector investment
and public sector oversight.”
Overall Energy Sector Goals
‡ Restructured sector governance and cost-
recoverable operations
‡ Rehabilitation and expansion of the public
power grid
‡ The attraction of private investment in the
energy sector
‡ Improved rural energy access
‡ Development of indigenous resources for
power and energy use
There is a time in Afghanistan’s future when
energy will be abundant, blackouts will be a thing
of the past, and most of its energy needs will be
provided directly by the private sector. Private
investors will develop power plants, operate
and own distribution systems and develop in
situ resources, just as they have begun to do in
many countries. But that is the distant future.
For now, Afghanistan must work hard to increase
HQHUJ\ SURGXFWLRQ GRLQJ VR HIÀFLHQWO\ DQG LQ D
cost effective manner. It can do this by building
QHZFDSDFLW\DQGE\LPSURYLQJWKHHIÀFLHQF\RI
existing infrastructure, building capacity in its
workforce, and reorganizing its energy operations
to make them more transparent, increase operating
HIÀFLHQF\ DQG SUHSDUH WKHP IRU HYHQWXDO HQWU\
into the private sector. At the same time though,
it must begin laying the ground-work for the
eventual large-scale participation of the private
sector.
Above all, this means that development of the
electricity sector and the fuels that feed it are
Afghanistan National Development Strategy (ANDS)
CHAPTER 2
the single most important priority in the energy
sector!
India, a country with far greater security, more
resources, a larger and better trained technical
cadre and a much better established framework
for energy and commercial ventures, began
VHULRXVHPEDUNLQJRQ,33VLQ7KHÀUVW,33
a gas combined cycle by a local company, was
commissioned in late 1996. Many foreign IPP
developers such as Enron, Congentrix and AES
all started the IPP process but only a handful
ÀQLVKHG7KHERWWRPOLQHLVWKDWWRGD\\HDUV
after the IPP program started, most generation is
still Government owned and most IPPs are Indian
RZQHGDQGÀQDQFHG$IJKDQLVWDQFDQOHDUQIURP
India’s mistake and their success but can’t expect
to have large IPP projects in less time than they
did. This is not to say that we can’t and won’t
have private sector involvement; we must and
we will. And the time to begin preparing for the
private sector is now.
Afghanistan must not only focus on the immediate
energy needs but turn attention to the longer
run. It knows where it is going and but not
necessarily how to get there. This strategy will
address the questions of where we are going and
how we get there. What this means for energy is
that as we continue to focus our efforts on short
run options to increase supply1 , one must begin
developing the foundation that will support long
run sustainable growth. It means stemming the
losses at SOEs like DABM, reorganizing them
and commercializing them. It means investing
in repair and maintenance and in loss reduction.
,WPHDQVPDNLQJGLIÀFXOWFKRLFHVDPRQJYDULRXV
projects of the different Government entities
IRUWKHQH[WWZRWRÀYH\HDUV,WPHDQVLQVRPH
1 Increasing supply can come about through building new capac-
ity, increasing imports or reducing technical losses.
31
cases organizing other Ministries’ projects around
electricity supply because this is what will drive
the economy. It is imperative that in the near
future more electricity be provided to more people
in the most expeditious manner possible while
being mindful of the long run economic impact.
At the same time, Afghanistan must be laying the
legal, regulatory, commercial and institutional
foundations to unleash the power of the private
sector when conditions are appropriate.
Afghanistan does not have an integrated energy
strategy. Rather, it has a coal strategy, an electric
power strategy, and a hydrocarbons strategy. In
SDUW WKLV UHÁHFWV WKH JRYHUQPHQW·V WUHDWPHQW RI
energy as separate institutional and sector silos
DQG LQ SDUW LW UHÁHFWV WKH ODFN RI LQVWLWXWLRQDO
depth to see that energy markets and, perhaps,
more importantly, that electricity supply projects
are highly intertwined with other sub-sectors. In
SDUW LW UHÁHFWV WKH QDWXUH RI DVVLVWDQFH DFWLYLWLHV
that focused on keeping the lights on and the
vehicles rolling.
Integrated energy planning and policy
development are key to a well functioning energy
sector. But the IROA is not yet equipped to
develop an integrated strategy, plans or policy
analysis because the basic energy sector data is
missing or rudimentary; energy-economic models
do not exist; mechanisms for sharing information
and collaborating are not in place. In short,
work must begin on all of these so that better sub
sector and integrated energy planning and policy
analysis/formulation can take place. For example,
fundamental gaps in data on energy supply and
consumption and the developable resource base
coupled with uncertainties in forecasts of key
developmental indicators (economic growth,
income, level and structure of energy demand,
rates of population growth and urbanization)
have made development of an effective sector
strategy, including determining the effectiveness
of short-term assistance activities, all the more
GLIÀFXOW
To date, the primary focus has been short-term,
the rehabilitation of generation and expansion
of energy services using high cost resources
such as diesel. Long-term sustainability requires
32୳ Afghanistan National Development Strategy (ANDS)
promoting development of energy resources on a
least-cost2 basis in an environmentally sound and
socially acceptable way. Now is the time to begin
developing the tools that will help Afghanistan
take a broader more long-term approach, to review
options, and to look at developing least-cost energy
resources for meeting Afghanistan Compact goals
and objectives. This strategy incorporates projects
that are already in the pipeline but also considers
what policies, programs, and projects could be re-
evaluated and given a new priority (e.g., sector
governance) to ensure that they provide results
at lowest cost and maximize impacts for a given
level of assistance.
The broad goals for the energy sector are:
ƒ Increased Private Sector Provision of
Energy
ƒ Better Sector Governance
ƒ Increased trade with neighboring
countries, focusing on the transmission
of energy;
ƒ Expand the availability of electric
power;
ƒ Develop a Master Plan for Rural Energy;
and,
ƒ Establish market-based tariffs with a
clear timetable to phase out subsidies.
The best strategy at this time is a four paralleled
SURQJ DSSURDFK  7KH ÀUVW SURQJ LV WR LPSURYH
WKH HIÀFLHQF\ RI H[LVWLQJ RSHUDWLRQV  7KLV ZLOO
be accomplished by physical investments such
as the repair and renovation of existing energy
infrastructure and the procurement of spares. It
will involve changes in the operations of energy
sector SOEs. The most important of these is
DABM. Commercialization of DABM must be fast
tracked. It must operate on a commercial basis
ZLWK FOHDU WDUJHWV IRU ORVV UHGXFWLRQ DQG RIÀFHUV
and employees need to be rewarded for increasing
HIÀFLHQF\DQGFXWWLQJORVVHVDQGKHOGDFFRXQWDEOH
for performance.
2 $FRUUHFWOHDVWFRVWSURJUDPZRXOGGHÀQHFRVWLQWKHHFRQRPLF
GHÀQLWLRQRIFRVWDQGQRWWKHÀQDQFLDOGHÀQLWLRQ7KXVLWZRXOG
LQFOXGHWKHHQYLURQPHQWDOEHQHÀWVRUFRVWVDQGSULFHH[WHUQDOLWLHV
In this manner, the least-cost method would produce an economi-
cally optimal solution. However, this is rarely ever done and cost
WDNHVRQDSXUHO\SULYDWHGHÀQLWLRQZLWKWKHUHVXOWWKDWWRRPXFK
fossil fuel energy is consumed and produced relative to other forms
of energy and, in general, too much energy is used in the economy.
$VLGHIURPWKHÀQDQFLDOLPSOLFDWLRQRIFRQWLQXHG
losses, there are other sound reasons for focusing
on this area. Adding a megawatt of power
through repair and renovation is usually quicker
and certainly cheaper than building new capacity.
Progress is being made on building new capacity
but repair and renovation is slower than it should
be. For example, it is only now, in September
2007, that DABM has begun a limited campaign to
identify losses. Training is urgently required in all
areas from general accounting to advanced power
system controls. he second prong must be to
VLJQLÀFDQWO\LPSURYHVHFWRUJRYHUQDQFHDQGEHJLQ
involving the private sector in various aspects of
energy until the legal, commercial and security
climate is conducive to transfer most aspects of
the energy sector to the private sector3. The single
most important governance measure will be the
establishment of a multi-sector regulator under the
Ministry of Economy. Arguments are frequently
made that the private sector won’t participate
or that it should not participate until and unless
VLJQLÀFDQW UHIRUP DQG LPSURYHPHQWV KDYH EHHQ
made. The reality is different. Afghanistan can
begin now by introducing management contracts
for some aspects, outsourcing others and in the
case of peripheral operations such as construction,
they can be spun off. Small as these measures
may be, they will invigorate the sector by tapping
private sector resources and management. They
will allow Government entities to focus on core
activities and build a successful track record
in private sector involvement. At the same
time though, every effort must be made to lay
the foundation of enabling laws, policies and
regulations that unleash the full potential of
private sector investment and operation of large
scale energy facilities.
3 Clearly there is overlap between prongs 1 and 2. In-
FUHDVHGHIÀFLHQF\ZLOOLQVRPHSDUWQHFHVVLWDWHLPSURYHG
*RYHUQDQFHDQGWKHXOWLPDWHHIÀFLHQF\JDLQVZLOOEHSRVVLEOH
only with private provision. These commonalities notwith-
standing, these two areas are different in their major focus.
Afghanistan National Development Strategy (ANDS)
THE THIRD PRONG IS RURAL ENERGY INSTEAD OF
RURAL ELECTRIFICATION.
A. Rural Energy in the Vision
Mpirical evidence from the developing world
clearly indicates that household’s transition to
different forms of energy based on complex
economic, cultural, technical and social
relationships. People do not just go from
FRRNLQJ RQ ÀUHZRRG WR FRRNLQJ RQ HOHFWULFLW\
Additionally, if they used a certain amount of
lumens or btus in, for example, lighting, they do
not use the same amount when moving up from
candles to kerosene or from kerosene to electricity.
7KHÀQGLQJVGLVFXVVHGHDUOLHUOHDGWRVHYHUDOPDMRU
conclusions that have profound implications for
rural energy.
First, given these income levels, some electricity
services will need to be subsidized. As shown
above, if rural households were putting all their
energy expenditures into electricity, this would
mean consumption of 13.5 kWh per month or
enough to run two 60 W electric light bulbs for
about 4 hours per day.
Second, residential energy use will be very limited
DQG WKHUH LV D GHÀQLWH WUDQVLWLRQLQJ LQ HQHUJ\
use that takes place. The order of use will most
likely be lighting, radio, fan, TV, and then an iron
or some other small appliance. It will be a long
time before electricity takes on uses for cooking
and heating in rural areas. This means that, until
LQFRPHVULVHVLJQLÀFDQWO\RQO\DVPDOOSRUWLRQRI
energy expenditures will be directed to electricity.
Rural residential consumers will consume very
small amounts of electricity for the foreseeable
future. Income generating activities WILL require
other forms of energy as well as electricity.
Third, another problem exists because of low
income levels and imperfect markets. Even if
consumers were willing and able to afford the full
cost electricity per kilowatt hour, they certainly
could not afford the connection costs. This is
FDOOHGWKHÀUVWFRVWSUREOHP)RUH[DPSOHLWKDV
been estimated that the cost of purchasing a small
solar home system (SHS) would be 61% of a typical
33
rural Pakistani household’s annual income. In
essence, it means that even if consumers would
EHQHÀW RU VDYH PRQH\ E\ SD\LQJ WKHLU PRQWKO\
HOHFWULFLW\ ELOO WKH\ FRXOG QRW DIIRUG WKH ´ÀUVW
cost” of adopting a more electricity intensive
consumption pattern. With rural Afghanis
spending the bulk of their income on food, they
would be unable without some form of subsidy
to purchase a SHS. This leads many countries to
subsidize connection costs even if they do not
subsidize consumption or to provide other forms
RIFRQFHVVLRQDOÀQDQFLQJ
)RXUWK HYHQ ZKHQ WKH ÀUVW FRVW SUREOHP LV
overcome, the low population density coupled
with the low income and low demand, will mean
that either: (a) the consumption will need to be
met by small modular units like solar; or (b) that
DEDVHORDGQHHGVWREHLGHQWLÀHGDQGGHYHORSHG
such as a school or clinic or a larger scale economic
use such as milling or irrigation.
Fifth, where incomes and consumption are unlikely
WR VXSSRUW HOHFWULFLW\ WKHQ UXUDO HOHFWULÀFDWLRQ
PD\ QHHG WR IRFXV RQ ÀQGLQJ RU FUHDWLQJ D
customer that can act as the base load as well
as subsidize the other users4. Then, productive
uses of electricity that will reduce costs, increase
incomes or both. This must be the cornerstone for
PRVWUXUDOHOHFWULÀFDWLRQDFWLYLWLHV,WDOVRPHDQV
that this productive use will subsidize other
FRQVXPHUV3URGXFWLYHXVHKHUHFDQEHGHÀQHGDV
either income generating activities such as milling
or irrigation or end use in clinics or schools.
There is an important difference between these
WZR W\SHV RI SURGXFWLYH XVHV  ,Q WKH ÀUVW FDVH
the productive uses are those that have economic
impacts in the near term and those act to increase
consumption and ability to pay because the
demand for electricity grows as income increases.
7KLV ÀUVW FDVH LPSDFWV UXUDO HOHFWULÀFDWLRQ LQ
two ways. First, it acts as a base load with the
consequent reductions in the cost of supply.
Second, in the near term it increases economic
4 This subsidization can be indirect in that the
increase consumption allows economies of scale in supply and
ORZHUFRVWV)RUH[DPSOHWKHSURMHFWVSRQVRULGHQWLÀHVWKHXVH
of electricity for a grain mill and then uses mini hydro instead
of solar. This will result in lower costs of production for all
users. The subsidization can be direct when the base load use
pays more than its marginal supply costs, thereby lowering the
amount needed to be covered from other users.
34୳ Afghanistan National Development Strategy (ANDS)
activity in the area and increases demand due to
the positive spillover effects. In the second case,
those that consume education and health services
will see an economic impact but it is usually in
WKH GLVWDQW IXWXUH  7KH VHFRQG XVH FDQ EHQHÀW
UXUDO HOHFWULÀFDWLRQ E\ DFWLQJ DV D EDVH ORDG DQG
reducing costs in that manner. All of this leads to
some important implications for the third prong
of the energy strategy. One, focus on income
generating activities, Two, determine the type
of energy and amount of energy best suited for
WKDW VSHFLÀF LQFRPH JHQHUDWLQJ DFWLYLW\  7KUHH
follow an integrated model that combines energy
provision with that of other services. The Global
Village Energy Partnership provides an excellent
platform for sharing experiences and lessons
learned.
Finally, and most importantly, Afghanistan needs
a program focused on rural energy needs as
RSSRVHG WR IRFXVLQJ RQ UXUDO HOHFWULÀFDWLRQ DQG
one that is focused on appropriate technology
The fourth prong is new supply of energy such
as new investment in transmission, generation
or distribution assets. It is principally concerned
with the grid connected systems – generation,
transmission and distribution assets. Priority
activities here remain the NEPS and SEPS and the
activities in other energy sub sectors that support
them.
The overall policy framework for the sector is:
1. Restructured energy sector governance and
commercialized operations
2. Rehabilitation and expansion of the Afghan
public power grid
3. Expansion of rural energy and electricity
services
4. Promotion of private investment to develop
indigenous energy resources (including
renewable, natural gas, coal and oil)
1 Public Power Grid. Emphasis on
improved distribution and transmission of power
will require funding from international donors
and provides opportunity for private investment.
Capacity building of Afghan staff to operate and
maintain the system is essential.
2 Oil, Natural Gas, Coal. Immediate call
for tenders to explore and develop known coal/
natural gas reserves, noticeably for power, may be
conducted..
3 Liquid Fuels. There is no plan to divest
or assess the Liquid Fuels Enterprise under the
Ministry of Commerce and Industries. Operating
some 1600 gas pump stations and 1300 fuel trucks
should provide considerable opportunity for
private investment, improved quality of product
and competitive pricing.
Renewable Energy. There is not a coordinated
approach in place to support the development
of renewable energy sources. A number of small
renewable projects are underway, many are
DIÀOLDWHV RI ODUJHU SURJUDPV ² LH DOWHUQDWLYH
livelihood programs in poppy growing regions.
Use of solar water heating and lighting, water
pumping and micro-hydro can be expanded and
privately operated. In rural locations, communities
have gathered resources to construct small hydro
and limited solar facilities that support minimal
but important light and small power supply. More
emphasis required.
NEEDS ASSESSMENT
Several needs assessments have been carried out.
7KH\ IDOO LQWR WZR EURDG FDWHJRULHV  7KH ÀUVW
category projects demand and supply or given an
assumption about economic growth, investigates
how demand and supply will respond. The
second category is prescriptive in nature that is
it is based upon some policy variables and sets
targets about how the sector should respond. For
example, it sets a rate of household connections as
a target and then uses Government policies and
control of the sector to move towards that target.
Each of these is useful but one major drawback is
that ALL have been at the sub-sector level. “These
studies have primarily focused on individual
energy sub-sectors such as power or oil and gas,
LQVRPHVSHFLÀFLQVWDQFHVLOOXPLQDWLQJLPSRUWDQW
aspects of the strategic development of the energy
sector in the overall context of Afghanistan’s
development agenda. At the same time, the
sub-sector-based approach, while necessary to
adequately address the technical complexities of
the energy sector, has not captured the inter-related
nature of energy sector developmental issues and,
consequently, the trade-offs that may be entailed
in the strategic decision-making process.”5 This
is a consequence of the fragmenting of energy
5 World Bank Afghanistan Energy Sector Strategy
2005
Afghanistan National Development Strategy (ANDS)
across institutions and the lack of comprehensive,
integrated planning policies and procedures. In
reality, no energy sub-sector can stand on its own
but is highly dependent upon what transpires in
the other sub-sectors. For example, a forecast of
the demand and supply of hydrocarbons that does
not at the least consider the demand and supply
of electricity, a major consumer of hydrocarbons,
will surely miss the mark. While as an academic
exercise this may have little consequence, nothing
can be further from reality when scarce human,
LQVWLWXWLRQDODQGÀQDQFLDOUHVRXUFHVDUHUHTXLUHG
to develop an optimal mix. In short, the failure to
forecast and analyze on an integrated sectoral basis
means suboptimal investment plans and operating
conditions, and a lower rate of economic growth
than would otherwise have happened. Thus, an
Overall Energy Sector Needs Assessment does not
exist and at this will be simply an aggregate of the
individual sub-sector needs assessments.
ELECTRICITY
The Afghanistan Compact developed at the
/RQGRQ &RQIHUHQFH LQ -DQ)HE  GHÀQHG
energy benchmarks for Afghanistan:
“By end-2010: electricity will reach at least 65% of
households and 90% of non-residential establishments in
major urban areas and at least 25% of households in rural
areas; at least 75% of the costs will be recovered from
users connected to the national power grid. A strategy for
the development and use of renewable energies will be
developed by end-2007.”
“By end-2010: electricity will reach at least
65% of households and 90% of non-residential
establishments in major urban areas and at least
25% of households in rural areas; at least 75% of
the costs will be recovered from users connected
to the national power grid. A strategy for the
development and use of renewable energies will
be developed by end-2007.”
To achieve these goals, IROA and donor
assistance has focused on actions to rehabilitate
hydro and thermal generating facilities; increase
power imports and develop PPAs with Central
Asian countries; purchase small diesel generating
sets for supplementing power supply in selected
urban areas; develop selected transmission lines to
maximize deliverability from domestic generation
35
sources and increase use of imported power;
and develop micro-hydro and other energy
resources in rural and remote areas. Through
these combined efforts, the supply of electricity
throughout Afghanistan has increased by 66%
albeit from a very low base. A key objective of
these initiatives is to increase the number of
Table 8. Afghanistan Compact Goals
Number of Customers
Year
Residential Nonresidential
2006 365,221 38,868
2007 485,058 51,621
2008 644,216 68,560
2009 855,598 91,056
2010 1,136,339 120,933
Total
Notes: 33% annual growth in customers; $1,000 cost per customer connection;800 watts peak demand
per customer.
The estimated cost of increasing customer access
to electric power to meet Afghanistan Compact
goals is $853 million for the period 2006 to 2010. In
addition, the cost of expanding generating supplies
(domestic and imported) is approximately $400
million. Therefore, on this basis the funding
needed to meet Afghanistan Compact goals
would be about $1.2 billion for the period 2006-
20101, excluding the costs of developing the energy
supplies when indigenous resources are used.
Meeting these goals in relation to existing budget
constraints necessitates developing an overall
Energy Sector Strategy that will identify least-
cost options to meeting sector requirements in the
ORQJHUWHUP PD[LPL]H WKH EHQHÀWV RI ,52$ DQG
donor initiatives; and increase participation and
investment by the private sector. Information on
Afghanistan’s energy situation is constrained by
a serious lack of good quality data. This hampers
efforts to develop and implement a clear sector
strategy. For example, ANDS goals are clear in the
benchmarks that are to be met by 2010, including
the percentage of urban and rural households
1 Ministry Strategy (With Focus on Prioritization); Ministry of
Energy and Water, September 30, 2006.
36୳ Afghanistan National Development Strategy (ANDS)
connections, adding about 850,000 residential and
non-residential connections by 2010 to increase
access in urban areas from an estimated 27%
currently to 65% by 2010 ; and, country-wide from
6% currently to almost 25 % by 2010. By 2015 the
goal is to increase urban access to 90% and achieve
an overall national access rate of 33%.
Customer Capital Cost ($
Peak MW Supply
Additions mm)
323
132,591 132.5 429
176,096 176.1 570
233,878 233.9 757
310,618 310.7 1,006
853,182 853.2
and non-residential establishments with access to
electricity and 75% of the cost of power recovered
through tariffs. However, data on the number
of households in Afghanistan, on their income
and consumption patterns and overall energy
demand generally is not available or is of very
poor quality. The same situation exists for non-
residential establishments; for the cost of power
delivered by DABM; and the cost of improving
revenue collection in order to recover costs from
customers. Until data collection and analysis
capabilities are improved, the costs of meeting
the ANDS benchmarks cannot be known with
any certainty. Given this gap, the Energy Sector
Strategy proposes to develop better quality and
more complete data and modeling capabilities
that are crucial to effective planning and to
achievement of Afghanistan’s overall national
economic and energy sector goals. In this regard,
a recent report prepared for USAID estimated
electricity demand for Afghanistan for the period
2010-1020 needed to meet ANDS objectives2.
2 Needs Assessment Infrastructure Report: Energy and Transport
Sector; Infrastructure and Rehabilitation Program (IRP); Contract
No. 306-I-00-09-00517-00; prepared for USAID, 2007.
Table 9 on the next page: East Electricity Demand for Afg 2010-2020

Required Generation (MW) (including losses)

NEPS System Area
Year 2010 Year 2015 Year 2020
Kabul System 671.6 1,066.9 1,206.8
Balance of Planned NEPS 272.2 405.0 473.4
Subtotal 943.8 1,472.0 1,760.2

Aybak 16.1 25.4 30.0

Khulm 20.0 31.8 37.6
Doshi 6.5 8.8 10.4
Charikar 10.5 20.9 34.1
Subtotal 60.1 94.9 112.1

NEPS with Intermediate Loads 1,003.9 1,566.9 1,872.3

Planned SEPS 160.4 251.3 296.3

Girishk 11.5 18.4 22.3
Qalat 77.9 123.7 146.5
Subtotal 249.8 393.4 465.1

Other Major Load Centers

Jahalabad 86.2 103.1 121.8

Ghazni 44.9 71.4 84.5
Gardez 32.2 51.2 60.6
Heart 102.1 150.0 164.9
Subtotal 265.4 375.7 431.8
TOTAL ESTIMATED DEMAND 1,519.1 2,436.0 2,769.2
Source: Needs Assessment Infrastructure Report: Energy and Transport Sector; USAID, 2007

Afghanistan National Development Strategy (ANDS) 37

Based on available data and information, the ƒ 5HGXFLQJGHPDQGWKURXJKHQGXVHHIÀFLHQF\
results of this analysis are shown in Table 8. This such as CFLs.
analysis indicates that total electricity generation
ƒ Metering of existing cross border
needed in 2010 is 1,519.1 MW, while MEW
transmission.
estimates that available generating capacity in
2010 will be about 1,200 MW. This indicates a ƒ Expanding transmission capacity to
potential shortage of supply of about 320 MW. neighboring countries.
The data also show a need for an additional 917
MW by 2015. ƒ 5HKDELOLWDWLQJWKH6KHEHUJKDQJDVÀHOGVDQG
construction of its solar power plant.

ƒ Develop New Hydro capacity.

PRIORITY POLICIES AND OBJECTIVES
Following from the broad objectives above
and using the four prong strategy approach,
priority policies to support implementation of
the Sector Vision have been put forward. This
section provide more detail on elements for an
Afghanistan Energy Sector Strategy, including
those that address overall energy sector needs
HJSULRULWL]LQJSURMHFWVEDVHGRQDFRVWEHQHÀW
ƒ And investment in oil, natural gas and
coal infrastructure based on tenders using
performance contracts and a permitting
system.
(Greater detail on these and other priority
programs are presented in detail in the sub-sector
strategy areas.)
DQDO\VLVDVZHOODVVHFWRUVSHFLÀFHOHPHQWVHJ
2. Energy Sector Governance is the single
electricity tariff reform and completion of the
most important issue for the long run health
6KHEHUJKDQJDVÀHOGGHYHORSPHQW7KHLQWHQWLV
for this Strategy to provide overall guidance on
achieving Afghanistan’s energy sector goals in a
timely and cost-effective manner and to address
ÀYHSULPDU\DUHDV
Adopt policy that:
1. Recognizes the priority of electricity
supply projects and develop the mechanism to
ensure coordination among the other Government
entities as required. This means viewing
electricity supply projects on an integrated basis
so that development of fuel supply and other
required infrastructure is an integral part of the
electricity project.
prioritizes projects on the basis of their time and
cost focusing on:
ƒ Reducing technical losses in transmission
and distribution.
38୳ Afghanistan National Development Strategy (ANDS)
of the sector. The enabling frameworks and
implementing rules and regulations need to
be established along best practice guidelines.
Activities include:
3. Develop and adopt a modern,
comprehensive energy law and then separate laws
for electricity, oil and natural gas. Concurrently
develop the implementing rules and regulations.
4. Adopt in policy and embody in law, the
principle of private sector provision of energy.
The overarching energy law should explicitly
address the role of the private sector which role is
further developed in sub-sector law.
5. Establish a Multi-Sector Regulator
for electricity, coal, Petroleum and Petroleum
Products and Water.
6. Develop an Energy Policy that establish
guidelines for energy production and consumption
WKDWLVFURVVVHFWRULQQDWXUHHJHQHUJ\HIÀFLHQF\
cost recovery, environmental issues. The National
Energy Policy should provide guidance on the
role of energy in the Nation’s economy and set
guidelines for how energy will be used.
7. Establish procedures to ensure effective
coordination among the different sector
Government entities and sharing of data by these
institutions.
8. Ensure that Government energy entities
are effective by implementing capacity building
programs and reorganizing these entities as and
when their roles change.1
9. Improve the production and delivery
of rural energy by clarifying the roles of MEW
and MRRD and evaluating options for project
development and ownership, technical support
and pilot projects based on international
best practices and attraction of private sector
participation.
10. Enhance policy and planning and the
effectiveness of donor support by strengthening
Inter-agency cooperation and adopting tools that
will allow integrated planning and analysis.
11. Develop and deploy tools to evaluate and
prioritize options such as a least-cost plan.
12. Improve data collection and analysis.
13.Establish a comprehensive monitoring and
evaluation program, and
14. Improving assistance coordination.
15. Accelerate private sector provision while
an effective supporting framework is being put
into place by such measures as:
1 As the private sector takes on increasingly more aspects
of energy, Government’s role will change to one of planning,
policy and regulation.
Afghanistan National Development Strategy (ANDS)
16. Making an unequivocal commitment
to involving the private sector including an
aggressive time-table for action.
17. Recognizing that in the long run diesel
power is too expensive but, in short run, it may
serve as a stop gap measure. Explore a limited
WHUP ,33 IRU GLHVHO VD\ ÀYH \HDUV  7KLV PHHWV
the immediate objective of getting power while
developing some expertise in negotiation and
power contractual instruments. It also has the
advantage of restricting diesel power to a limited
time period, time in which lower cost power can
come on line.
18. Issuing tenders for private investment in
IPPs based on a ceiling bulk power tariff (avoided
cost) or some other method that might promote
more competition in cost, and a “one-stop shop”
window at the MEW.
19. Using “regulation by contract,”
management performance contracts and “light
handed regulation” concepts2;
20. Issuing tenders for coal sector
development based on a permitting system.
21. Expediting the commercialization of
Stated owned Enterprises such as DABM; and,
22. Outsourcing activities now that can
LPPHGLDWHO\ EHQHÀW IURP SULYDWH VHFWRU
involvement such as meter reading and billing
(VWDEOLVK D FRPPHUFLDOO\ RULHQWHG ÀQDQFLDO
environment by:
ƒ Increasing tariffs (while maintain a life line
rate or mechanism)
2 Light-handed regulation is based on the Threat of Regulation
SURYLGLQJDQLQFHQWLYHRQFRPSDQLHVZLWKPDUNHWSRZHUWRH[HUFLVH
self-regulation. Regulatory approval of rate levels resulting from
arm's length negotiations, rather than calculated on a cost of service
basis, and subject to challenge only under a complaint proceeding.
39
ƒ Public awareness programs providing
information about the link between the cost
of energy and its availability.
ƒ GoA to pay subsidy directly to the Utility
ƒ Establish subsidized tariffs for the poor and
ensure that they are targeted
ƒ Require both Governments to pay the utility
for all power that is has purchased and
require the utility to settle its accounts with
other Government entities. Given the initial
hardship that this could impose, reconcile
the accounts up to the value of accounts
receivable from other Government entities.
Similar treatment to other SOE in the energy
sector.
A. Objectives
1 Reform of Sector Governance. This
strategy supports the consolidation of energy
planning and policy-making functions through
the Inter-ministerial Commission for Energy (ICE)
as well as improved line ministry staff capacity to
plan and budget. The law of hydrocarbons was
referred to the Parliament for probe into and
approval while its regulations are still underway
in MoJ that upon its enforcement, appropriate
ground will be prepared for participation of
private sector in this section.
2 Institutional Reforms, A new market
paradigm is being supported for Afghan energy;
VLJQLÀFDQWLQVWLWXWLRQDOFKDQJHVDQGUHOHYDQWVWDII
capacity is required.
ƒ Inter-Ministerial Commission for Energy
(ICE). Support of the government sponsored
institution brings together the seven energy-
relevant ministries, donors and private sector
to review priority energy development
DVSHFWV2IÀFHVIRU,&(DUHHVWDEOLVKHG
40୳ Afghanistan National Development Strategy (ANDS)
ƒ Sector Regulation. 6LJQLÀFDQW FKDQJH LQ
how the sector is regulated is required. Steps
are underway in hydrocarbons and more is
required in electricity and liquid fuels.
ƒ Line Ministries. As the energy line ministries
shift from operating as production based to
become policy-making regulatory agencies,
staff capacity and in-house functions will
need to be reoriented to market practices.
ƒ Ministry of Finance. In order to ensure that
the introduction of market-based contracting,
a predictable royalty regime and tax
payments are inherent to the hydrocarbons
sector. Liquid fuel and petroleum product
import aspects as well as tariffs for power all
need to be considered. This strategy supports
the establishment of a working group (likely
under ICE) that will operate for 5 years to
monitor and evaluate the performance of the
sector vis-à-vis government return.
3 Legal and Regulatory reform and
standards. Finalization of primary legislative and
regulatory tools is essential. These include mining
and hydrocarbons as well as drafting legislation
for the electricity sector. There are no meaningful
technical standards for operation are in place;
these need to be urgently developed as well as
staff capacity to implement them.
B. Commercialization and/or divestiture of
state and “quasi-state” assets, Development of a
plan that includes promotion of private operations
will support a new operational market paradigm
for the sector. Government will immediately
assess its sector assets and a plan for liquidation,
restructuring and commercialization or sale. In
particular Government will provide more support
for the corporation and commercialization of
national power operations.
DESIRED OUTCOMES
1 Restructured energy sector governance/
commercialized operations. Improved
governance can mobilize investment, mitigate
corrupt practices and improve technical quality
of energy supply. This strategy supports the
4 An effective enabling environment for
private sector investment.
A market-friendly enabling environment to
facilitate private investment will be created. Key
areas for investment in the near term: (1) power
generation that includes new hydro power,
shifting of government as energy producer to
energy regulator with viable legal and regulatory
frameworks that include the development of
market-based power purchase and production
sharing agreements. Market-based enterprise
operations will support loss reduction, improved
billing and collection, market procurements and
HIÀFLHQW HQHUJ\ SUDFWLFHV WKDW UHVXOW LQ PRUH
energy supply and cost savings.
2 Expanded Public Power Grid.
Government has committed to improved energy
access for the population. Through a series of
large and small infrastructure improvements in
the generation, transmission and distribution of
electricity throughout the country, this objective
is becoming a reality. The strategy supports the (1)
rehabilitation and upgrading of Kabul and other
key infrastructure areas (i.e., distribution – lines,
substations, and meters); (2) development of the
North East Power System (NEPS); to be followed
by the South East Power System (SEPS), Western
and Eastern Power Systems; (3) construction of
new transmission and related distribution for
Uzbek, Tajik and Turkmen power imports. The
installation of a Dispatch and Control system as
well as Reactive Power system will be under way
in 2008.
3 Increased Access to Rural energy
services.
Micro-hydro, solar, waste and even small diesel
power and energy generating sources will be
promoted to improve rural access. Commercial
operation of these services and technical standards
will be encouraged to ensure cost-recoverability,
sustainability and safety.
Afghanistan National Development Strategy (ANDS)
QDWXUDO JDV DQG FRDOÀUHG SRZHU  SRZHU
distribution including lines, substations and
metering; (3) power construction and services
(i.e., outsourcing); (4) exploration and exploitation
of coal, natural gas and oil; (5) installation and
operation of rural energy services. Commercial
contracts in the areas of accounting, project
ÀQDQFH OHJDO DQG LQWHJUDWHG UHVRXUFH SODQQLQJ
will also be considered.
5 Reduced Poverty:
Provide essential energy supply services that will
help private sector development, job creation
and poverty reduction. Investments in Energy
sector will by itself create direct employment
in the development of power plants, oil, gas
DQG FRDO ÀHOGV WKH FRQVWUXFWLRQ RI JULG V\VWHPV
and the commercial operations of the sector.
Develop small energy installations that are highly
successful in cost-recovery, and contribute to local
economic development. Increase mobilization of
the domestic revenues by improving governance
in the energy sector, and stimulating private
sector development. Improve public service
delivery by providing greater access to electricity
for urban and rural communities, and especially
for the schools and health institutions. Maintain
the subsidies for electricity cost for the poorest
households. For details refer to Annex I (Action
Plan)
41
Table 10. Desired short and intermediate term targets

Industry Sector Short-Term (2-to-5 years) Intermediate-Term (5 to 10 years)

Cross-Sector Issues
Sector Governance Modern Energy Law
Modern Electricity Law
Modern Hydrocarbon Law
Sector Governance Enabling Rules and Regulations in Support of new
Energy Legislation
Sector Governance Review and reform sector governance to support 6LJQLÀFDQWLQYROYHPHQWRIWKH
restructuring and private investment private sector
Improve GOA/ Through ICE improve coordination to increase Monitor and improve as needed
Donor/ effectiveness of assistance efforts
NGO coordination
Sector Governance Functioning Sector Regulator Fully Functional Regulator
Capacity Building Sector capacity enhanced through training Monitor and evaluate program;
up-date as needed
Least-Cost Expansion Least Cost Expansion Plan for the sector through Up-date models& expansion plan
Plan ICE on a regular basis
Needs Assessment Needs Assessment & data base at the Afghanistan Up-dated assessment and data
and Data Base Energy Information Center base and modeling & assessment
capabilities developed
Sector Governance Integrated Energy Planning &
Policy Analysis
Monitoring & Incorporate an M&E plan for all assistance efforts Evaluate and update as needed
Evaluation Plan

Electricity Sector
Corporate DABM operating on commercial basis Management Contract for DABM (in
Governance whole or in parts)
Some areas in private hands
Technical Losses 27.5% 20%
Collections 70% collection to billed 85% collection to billed
Private Sector Issue tenders based on ceiling bulk power Implement regulatory reform &
Investment tariff; “one-stop shop” for project approval; institutionalize regulatory process;
regulation by contract; & performance unbundled & privatize electricity
incentive contracts sector
DAMB Complete commercialization; improve Unbundle & Privatize
Commercialization metering, billing & collection; implement
management performance contract
Tariff Reform Complete tariff reform for DABM Modify tariff structure & rates as
needed
Power Imports Complete PPAs to support expanded Develop in accordance with least-cost
imports from CAR expansion plan
Installed Capacity 850 MW (2011) 1,019 MW (2013)

42୳ Afghanistan National Development Strategy (ANDS)

 Industry Sector Short-Term (2-to-5 years) Intermediate-Term (5 to 10 years)
New Connections 730,000

Dehsabz 1.4 million connections by 2025

Oil & Gas Sector

Rehabilitation of &RPSOHWHDVVHVVPHQWRIÀHOGVDQGLVVXH
6KHEHUJKDQJDVÀHOGV PSA; rehabilitate infrastructure; issue
, construction of & tender for IPP; consider bundling with gas
power plant processing & fertilizer plant
Indigenous Fuels Feasibility Study for CNG
Development including stations and vehicle conversion
Complete feasibility &RPSOHWHIHDVLELOLW\VWXG\IRURLOUHÀQHU\DV
VWXG\IRURLOUHÀQHU\ part of least cost energy sector plan
Complete Tariff Complete tariff reform for gas sector based
Reform on economic costs of service
Regulatory Reform Establish National Energy Regulatory
Commission
Modify Modify Hydrocarbons law to clarify roles &
Hydrocarbons Law responsibilities of IROA and developers for
oil and gas development
Private Sector Call tenders for instant services of
Investment exploration and exploitation of recognized
areas of gas/coal aiming at attracting
investments in the form of product
division(PSA ) in the sections of energy
production, construction of plants , gas/
fertilizer process
Petroleum Imports Improve control of imports and collection
of import duties; enforce quality standards;
increase storage capacity
Revise procedures as needed & issue
new tenders for development of sector
Develop CNG Infrastructure if cost-
effective.
'HYHORSUHÀQHU\LIFRVWHIIHFWLYH
Modify tariff structure & rates as
needed
Capacity building and institutional
strengthening as needed
Develop rules & Regulations
to complete implementation of
Hydrocarbons Law
Complete sector restructuring and
implementation of Hydrocarbons Law
Expand role of the private sector

Coal Sector
Issue Tenders for Issue tenders for private sector development Evaluate and up-date process as
exploration and based on a Permit System with independent needed; issue new tenders
exploitation of coal evaluation team
reserves
Approval of minerals Implementing rules and regulations
law by the parliament

Rural & Renewable Energy Sector

Sector Reform Consolidate all authority for rural energy
development within the MRRD
Develop Rural Develop “light-handed regulation” and as a
Energy Policy policy for rural energy projects
Renewable Energy Deploy 10 MW of Wind Power
Renewable Energy Geothermal Prospecting at 1 site
Rural Energy Rural Energy Master Plan and Rural
(OHFWULÀFDWLRQ0DVWHU3ODQ
Develop programs consistent with
expanded role of the private sector
Monitor and up-date as needed
Deploy 50 MW of Wind Power
Geothermal Feasibility Study
Updated as necessary

Afghanistan National Development Strategy (ANDS) 43

 Industry Sector Short-Term (2-to-5 years) Intermediate-Term (5 to 10 years)
Assess rural Develop methodology to assess and deploy Develop methodology and develop
renewable energy renewable energy technologies pilot projects based on assessment
technologies
Assess models for Assess and develop models for project Assess and develop models based on
project ownership ownership, including coops, franchises, PD[LPXPEHQHÀWV
provincial or district entities
Assess models for Assess models for technical support, Assess and develop models based on
technical support including university outreach; MRRD/ PD[LPXPEHQHÀWV
'$%0GLVWULFWRIÀFHVIUDQFKLVHVGLVWULFW
provincial government
Pilot Projects Develop & implement pilot projects to test Assess and develop projects and
best practices LPSOHPHQWEDVHVRQPD[LPXPEHQHÀWV

INPUTS & OUTPUTS and projects is part of the Sector Investment

ƒPolicy actions: important policy actions in
terms of institutional and capacity development,
regulation and legislative activities and policy
measures to support implementation of the
energy sector’s overall goals and priorities
and achievement of the desired outcomes are:
(i) integrated energy policy; (ii) overarching
energy law and redrafting of the electricity
sub-sector law along with the implementing
rules and regulations; (iii) commercialization
of DABM and operation on a commercial basis;
(iv) institutional reform, including creation of
a National Utility Regulatory Commission;
(v)accelerate private sector provision through
explicit policy and legislative cover for the
private sector; (vi) service delivery standards
and options; (vii) refocus policy to stress
repair and maintenance, loss reduction and
commercial operation equally with new
investment; and, (viii) tariff reform with a slow
but deliberate phase out.
ƒPrograms: Key programs to support
implementation of the energy sector’s goals
and priorities and achievement of the desired
RXWFRPHV DUH GLVFXVVHG EULHÁ\ EHORZ DQG LQ
greater detail in Section V. The overall public
LQYHVWPHQW QHHG IRU WKH QH[W ÀYH \HDUV LV """
7KHÀQDQFLQJJDSWKDWZLOOQHHGWREHFRYHUHG
externally (donors and private investments) is.
A detailed list of programs, sub-programmes
Program (Annex II).
ƒIndicative costs
ƒThe energy sector program is projected to cost
USD billion, or about USD m per year over.
Funding is committed Leaving a balance
This section presents Major Programs and Projects
by prong or focus area.
PRONG ONE – EFFICIENT OPERATION OF
INFRASTRUCTURE
‡ Fast Track Commercialization of DABM.
Work here will also provide a model for
commercialization of other SOEs in the
energy sector. Begin loss reduction programs
including metering of retail customers.
‡ Procure spare parts and fuel
‡ Repair existing transmission and distribution
systems including rehabilitating and/or
upgrading substations and distribution
networks for towns under NEPS main
transmission lines (estimated cost, US $120
M), Kabul distribution grid reconstruction
and extension (estimated cost, US $ 250-300
M)
‡ Install meters for cross border transmission
‡ Repair existing thermal plants

44୳ Afghanistan National Development Strategy (ANDS)

‡ National Energy Conservation Program
(NECP),1 and (iv) implement complementary
activities to achieve its targets which may
include such measures as demand side
management and other best practice energy
HIÀFLHQF\ PHDVXUHV )RU GHWDLOV RI SURMHFWV
refer to annex III.
PRONG TWO – SECTOR GOVERNANCE
ƒ Improved GOA, Donor & NGO Coordination.
Effective assistance and achievement of long-
term sector goals and sustainability require
effective coordination and cooperation
among all stakeholders. Donor planning
on an individual basis is well developed;
however, integration of donor plans with
ÀUP FRPPLWPHQWV IRU IXQGLQJ DQG ZHOO
GHÀQHG LQWHJUDWLRQ ZLWK HQHUJ\ VHFWRU
ministries and other stakeholders needs to be
LPSURYHG6SHFLÀFDWWHQWLRQQHHGVWREHSDLG
to these issues within the ICE to ensure that
$1'6JRDOVDUHPHWHIÀFLHQWO\DQGRQWLPH
ƒ Reduce Subsidies and cross-subsidies in
both power and fuel. This will be done so
in a way that matches improvements in
the sector and recognizes the hardships
that quick withdrawal of the subsidy could
have. Universal service obligations should
be directly funded through Government
payments to the utility.
Subsidies are an important and integral tool
of Government policy. Energy subsidies that
provide a basic level of energy services to the
poor exist in almost every country. So the issue it
not whether there should be subsidies but rather
who gets the subsidy and the how the subsidy
LV SURYLGHG 6XEVLGLHV QHHG WR EH LGHQWLÀHG
1 To economize for cost-savings, people in Kabul have
and made transparent during the restructuring
process and removed.
In 2004/05, the average tariff collected by DABM
ZDVRQO\ÀYHFHQWVN:KFRPSDUHGWRDQDYHUDJH
unit cost of power production of about 12 cents/
kWh. Currently, power subsidies cost the
government $56 M/year, which is unsustainable
and undesirable.
Assistance is required to review the existing
tariffs and develop a targeted subsidy plan and a
phase-in plan for subsidy reduction. Assistance
will need to include a public outreach program.
7KLVFRXOGEHRQHRIWKHÀUVWWDVNVRIWKHUHJXODWRU
(See below). Capacity Building. Current efforts to
train IROA energy personnel lack coordination
and effectiveness. A comprehensive vocational
training program to ensure future human
resources adequate for the energy sector and to
demonstrate evidence of a comprehensive, multi-
disciplinary and multi-ministry approach by the
IROA is required. Development of an Afghanistan
Vocational Training Center is needed. The recently
established National Capacity Building Program
may be the proper entity to accomplish this task.
Training will also support the commercialization
of DABM and other energy sector SOEs.
Additionally, all SOEs need training in basic
PDQDJHPHQWDFFRXQWLQJDQGÀQDQFH
ƒ Improved Sector Governance. Currently,
energy sector governance is spread among
numerous IROA Ministries, agencies,
and SOEs where effective coordination
often is lacking. Moreover, the roles and
responsibilities of IROA entities will
change as sector restructuring and private
participation advances and the role of the
Government evolves from direct sector
intervention to oversight and regulatory
functions. Actions to privatize SOEs need
VWDUWHGXVLQJÁXRUHVFHQWEXOEVDOVRFDOOHGZKLWHEXOEV
to be completed and the IROA needs to
and 18 watts; these produce as much light as 60-100 watts
(regular) bulbs. White bulbs also do not produce heat and review the roles and responsibilities of
have a longer life, 6 months or more. However, white bulbs Ministries and other IROA entities in light
are expensive; 18 watts costs 120 Afs, as compared to 20 Afs
for a regular 100 watt bulb. of the structure and expanding private

Afghanistan National Development Strategy (ANDS) 45

 sector role within the sector. Consolidation
RI IXQFWLRQV DQG UHGHÀQHPHQW RI UROHV DQG
responsibilities among IROA entities needs to
be addressed. Improved governance is more
than just properly aligning Ministries and
IROA entities. It includes the establishment
of sector regulation, the increased role of
the private sector, and integrated policy and
planning. Almost all major reviews of the
energy sector or sub-sectors conclude that
it would be best to consolidate all energy
operations under one Ministry, a Ministry of
Energy. This is something that needs to be
considered in the intermediate term.
A. Legal and Regulatory Reform Program.
Currently, there is only an embryonic legal
and regulatory framework for the Afghanistan
HQHUJ\ VHFWRU ZKLFK LV LQVXIÀFLHQW WR VXSSRUW
restructuring and private investment. The laws
are silent with regard to private provision of
energy. This lack of explicit basis for the private
sector will serve to increase risk and cost and delay
the entrance of the private sector in a meaningful
way. Norway is providing assistance to redraft
the hydrocarbons law and it will be completed
soon. Drafting of an overarching energy law and
the electricity sector law is a top priority.
Government needs to make an unequivocal commitment
to involving the private sector including an aggressive
timetable for action. Amend the law to restructure
WKHHQHUJ\VHFWRUZLWKDVWULFWWLPHWDEOHVSHFLÀFDOO\
mentioning (a) sector restructuring, and (b) private
provision of energy.1
Establish a multi-sector regulatory body (water,
electricity, coal, and petroleum) independent
of the energy related ministries. This program
would support the creation and ongoing
operation of a new Government Entity to regulate
the sector. To jump start the process, a shadow
regulator would be created composed of expect
staff in key positions to actually perform day-to-
day functions and train local staff on both on-the-
job training and formal training. As local staff is
trained, expert assistance would be reduced. This
46୳ Afghanistan National Development Strategy (ANDS)
serves the purpose of immediately providing
regulatory assistance in country to establish the
necessary frameworks and provide “guidance”
so as to create a favorable environment for the
private sector.
The lack of a regulator, independent from the
Ministries that deal with energy, is an obstacle
WR HIÀFLHQW RSHUDWLRQ RI WKH VHFWRU HYHQ LI WKH
operations are under Government control.
Because of the importance of catalyzing private
sector provision of these services (water,
electricity and natural gas), the regulator needs
to begin using a more French/Arabic model of
regulation and evolve with the sector over time.
Emphasis needs to be on acting as a watchdog
of SOE commercialization and performance
improvement, and providing the early technical
input into the contracts used with private sector
HQWLWLHV  2QH RI WKH ÀUVW DFWLYLWLHV FRXOG EH WR
develop modern production sharing agreements.
Develop and implement the organizational
VWUXFWXUHDQGVWDIÀQJSODQIRU185&
Recognizing the time to enact legislation and establish an
effective regulatory authority, it may be appropriate to
accelerate the process through a Presidential Decree that
would establish the regulatory authority while legal and
administrative issues are being resolved.
B. Private Sector Provision Program.
As mentioned earlier, the country can no longer
wait to actively begin attracting the private sector
to the energy sector. The enabling legislation,
policy and regulation will addressed through
other efforts. This program is to establish a Public-
3ULYDWH 3DUWQHUVKLS 2IÀFH WR IDFLOLWDWH LQFUHDVHG
private sector involvement in the infrastructure
DUHDV EHJLQQLQJ ÀUVW ZLWK WKH HQHUJ\ VHFWRU $W
a later date, it could focus on non-infrastructure
reas. It would be housed in the Ministry of?
And be responsible for developing the laws and
implementing rules and regulations that are not
VSHFLÀF WR DQ\ VHFWRU EXW UDWKHU FURVV FXWWLQJ
such as concession law or a BOT law. The PPP
RIÀFH ZRXOG DOVR GHYHORS SURWRW\SH FRPPHUFLDO
instruments such as contracts, developing a
tendering system that would be run by the PPP
RIÀFHRQEHKDOIRIFOLHQW0LQLVWULHVRU62(V
Develop and implement the organizational
VWUXFWXUH DQG VWDIÀQJ SODQ IRU 333 2IÀFH  7KLV
needs to be accompanied by a shadow expat staff
to provide additional resources and critical on-
the-job training.
Reforms that lead to transparency, fair
competition, a functioning legal framework, and
rule-of-law can meaningfully bring private sector
participation. For electricity, private sector can be
mobilized through the use of: Independent Power
Producers (IPP’s), Management and Maintenance
Contracts, Concessions, Build, Operate, Transfer
(BOT) and Full Privatization of Assets, the highest
extent of privatization.
As a start, DABM will outsource Works and
Services and Billing/Meter reading. In the works
and services area, the utility will no longer
undertake construction and rehabilitation but
for the privatization of power. While a great
deal of success has been achieved in the telecom
sector, a key difference is the public’s perception
that providing power is the government’s
responsibility, and also much higher costs of
power infrastructure as compared to telecom.
Nevertheless, areas such as concessions and
licenses can be looked into for potential use.
Some of the privatization areas that will be
investigated are: (i) Equipment and human
resource supply to power construction and
rehabilitation projects, (ii) Owning and operating
small and medium sized stand-alone grids,3 (iii)
Management/maintenance contracts for regional
power programs and major power plants, (iv) The
installation and operation of alternative energy
sources (solar and wind installations), potentially
with subsidies in the short- and medium-terms,
(v) For the longer term, through unbundling and
divestiture of power generation plants which
could operate as stand alone units that sell power
to the grid, and (vi) over the longer term (2015 or
will give them under tender to the private sector.
Other areas that will be encouraged include O&M
contracts. Moreover, when commercialization
is complete and distribution unbundled in an
accounting sense, DABM will seek a performance
based management contract for distribution.
In the regulatory arena, our strategy includes:
establishing enabling environment including
FRPPHUFLDO DQG SRZHUVHFWRU VSHFLÀF FRQWUDFW
laws such as for dispute resolution. Moreover,
functioning courts can be an important enabler to
attract private sector investments. It is proposed to
create a Minimum Infrastructure Platform (MIP)2
for private sector led growth.
Given the on-going power infrastructure
activities, including those planned, under proper
regulatory environment and security conditions,
over time, selectively, there is a good potential
2 Proposed MIP is a comination of elements including:
(i) business environment; (ii) investment facilitation; (iii)
EH\RQG VXEVLGL]HG GHYHORSPHQW RI FRDO ÀUHG
power plants to support major industry such as
mining.
Security remains an important issue including
for private sector participation and operation. To
reduce security-related risks, the Government is
increasingly implementing corrective measures
including increased security, creating employment
opportunities and apprehending criminals.
Additional regulatory improvements are also
underway to lower risks to the private sector.
Also, the public will be educated to help accept
privatization, as it is gradually phased in. MEW
will work towards improving the regulatory
framework to reduce risks and costs. IROA is
committed to encouraging and increasing private
sector role in power.
3 The Omary Electric Company in Ghazni serves 8,500
KXPDQFDSLWDOLYÀQDQFLDOVHUYLFHVY3RZHUVHFWRUVSHFLÀF customers with 24 hour electricity and only 42 staff (compared
laws including dispute resolution, and (vi) Physical and to DABM in Ghazni who serve 1,460 customers with 5 hours of
support infrastructure. supply from 29 staff).

Afghanistan National Development Strategy (ANDS) 47

C. Integrated Policy and Planning.
It is imperative that the energy sector be seen from
an integrated point of view and that the Ministries
and Agencies involved in energy coordinate their
policy and planning exercises so that the complex
interactions among sub-sectors are adequately
considered. This will result in a more optimal
allocation of resources and a more effective
capital investment planning process. ICE needs
to be strengthened both institutionally and from a
capacity point of view for this critical work.
D. Least-Cost Expansion Plan
EDVHG RQ D ULJRURXV FRVWEHQHÀW DQDO\VLV  $V
the coordinating institution for the energy
sector, it is recommended that ICE undertake
development of a Least-Cost Expansion Plan to
achieve IROA objectives for the sector over the
next 2-to-10-year period within overall budget
constraints. This plan would utilize and expand
upon current economic models developed
through USAID-funded assistance to evaluate
current and proposed projects and be updated
on a regular basis. Based on this analysis, a
comprehensive expansion plan for Afghanistan’s
energy resources—including electricity, natural
gas, oil, coal and renewables—would be drafted,
vetted and put into place; and would include a
detailed monitoring and evaluation program,
indicating objectives, benchmarks, and reporting
requirements. This plan would include capacity
building; regulatory, legal and legislative reforms;
private sector initiatives, and other programs
needed to achieve ANDS objectives, in addition
WR VSHFLÀF SURMHFWV WR UHKDELOLWDWH DQG H[SDQG
energy sector infrastructure. It would prioritize
projects and programs according to short-term (2-
to-5 years) and intermediate-term (5-to-10 years)
requirements given overall IROA and donor
budget constraints.
As the implementing and coordinating entity,
ICE could assign VSHFLÀF SURMHFWV DQG SURJUDPV
to individual ministries and entities. This Plan
should review:
48୳ Afghanistan National Development Strategy (ANDS)
‡ What is the optimal balance over time of
domestic energy production from hydro,
natural gas, oil, coal, renewable resources
and energy conservation?
‡ What is the least-cost balance over time
between domestic versus imported energy?
‡ What is the optimal balance over time of
energy resource use for rural energy
services?
‡ Given resource constraints, what is the
optimal balance over time of IROA versus
private sector involvement in the energy
sector, including rural energy?
‡ What policy, institutional, legal and
legislative reforms are needed to develop a
sustainable energy sector with private sector
participation?
‡ What studies and data and informational
UHVRXUFHV DUH QHHGHG WR ÀOO JDSV LQ
understanding and knowledge of the sector
and to support development of an effective
energy sector strategy?
‡ What is an effective strategy to increase
participation, build support, and maintain
realistic expectations among sector
stakeholders with regard to assistance
efforts?
E. Needs Assessment and Data Base.
The IROA should undertake a detailed needs
assessment and develop a comprehensive data
base for the Afghanistan energy sector, including
information on energy use by various categories
of consumers (households, commercial, small
and large industry, transportation); options
for meeting sector demand; rural and urban
household information, economic growth,
level and structure of energy demand, rates of
population growth and urbanization; energy
cost and availability; etc. This information would
be used to create a comprehensive data base to
support achievement of Afghanistan’s long-term
energy sector objectives located at the Afghanistan
Energy Information Center (AEIC).
‡ Project Management Unit. These energy projects
and programs are so large and institutional
capacity at implementing entities so thin that
is it imperative that a Project Management
Unit be established to handle all project
management aspects including monitoring
and evaluation. The PMU would work with
ICE and the implementing entities to develop
a comprehensive project management program
that would be applied to the largest and most
critical projects. At the time, the capability to
monitor and evaluate would be strengthened at
the ICE and implementing entities addressing
all other assistance efforts not brought under
the PMU. It is critical that efforts to rebuild
and expand Afghanistan’s energy sector, to
strengthen energy sector institutions and to
attract private sector investment be as effective
DQG HIÀFLHQW DV SRVVLEOH &XUUHQW HIIRUWV KDYH
produced some important results, but efforts
need to be strengthened, particularly with
regard to rural energy programs, to ensure
that projects are completed on time, that they
produce the desired results and that they
contribute to Afghanistan’s sustainable energy
future. For details of projects refer to annex III.
PRONG THREE – RURAL AND RENEWABLE
ENERGY
Amend electricity law to clearly demarcate the
boundaries between MEW and MRRD with
respect to rural energy; concentrate rural-remote
energy activities within the Rural Livelihoods and
Energy Department (RLED). It is important to
PRUH FOHDUO\ GHÀQH WKH DUHDV RI FRQWURO EHWZHHQ
the MRRD and MEW in providing energy
services. MEW is principally concerned with
providing electricity services to: (1) urban and
Afghanistan National Development Strategy (ANDS)
peri-urban areas; (2) secondary towns and cities
of 5,000 persons or more; and, (3) large industrial,
mining, commercial or agro-industries. To more
DFFXUDWHO\UHÁHFWWKHVHGLIIHUHQFHVWKHGLVWLQFWLRQ
between rural energy and rural-remote will be
made following the Bangladesh experience.
Rural-remote energy is energy that serves remote
communities of a village or village and where
the settlement is less than 5,000 persons that is
a reasonable distance from a transmission line,
or an urban or peri-urban area or any other area
that would be covered by MEW. This is the
clear domain of MRRD and this may include
conventional energy such as diesel, liquid fuels,
and coal and it may include small scale renewable
such as biogas and micro or mini hydro.
While demarcating clearer lines of authority for
energy services, this does not reduce the need
for the two ministries to collaborate. The need to
collaborate arises for many reasons such as: The
MEW will have expertise in renewable energy,
albeit large scale, that may be of use to MRRD;
Eventually, some of the MRRD areas will connect
to the grid and so a common understanding of
the requirements for grid connection is require;
and, there is a need to collaborate on technical
VWDQGDUGVIRUUXUDOHOHFWULÀFDWLRQ
Coordinate donor assistance activities for rural-
remote energy through RLED.
‡ In collaboration with NURC, develop Rural-
remote Energy Policy and include Light
+DQGHG 5HJXODWLRQ DV DQ RIÀFLDO SROLF\ WR
promote development of stand-alone rural
energy systems. Policy and regulation must
set guidelines for cost-recovery. In essence
projects need to be able to recover operation
and maintenance costs and set aside a sinking
fund for capital replacement.
‡ Undertake a Rural Energy Master Plan for
rural-remote and develop criteria for project
49
 selection based on the policy of income
generation and cost recovery and on the master
plan and do so in coordination with MEW as
WKHLUUXUDOHOHFWULÀFDWLRQSODQLVGHYHORSHG
‡ Develop and implement the organizational
VWUXFWXUH DQG VWDIÀQJ SODQ IRU 5/('  7KLV
needs to be accompanied by a shadow ex pat
staff to do the heavy lifting and provide critical
on-the-job training.
‡ Establish the Rural Energy Fund administered
by RLED and allocated on the basis criteria
developed above.
0(: WR GHYHORS D UXUDO HOHFWULÀFDWLRQ PDVWHU
plan to cover their area of control and coordinate
it with the MRRD. For details of projects refer to
annex III.
PRONG FOUR - EXPAND SUPPLY
Imports from neighboring countries expanded
Establishment of a Dispatch and Control Center
(US $25 M)
Power Purchase Agreements for Power Imports
– Strengthening Power Purchase Agreements
(PPA’s) with Afghanistan’s suppliers to assure
guaranteed supplies at agreed upon costs and
quality4. This is a top priority activity that cuts
across several MEW projects and is critical to
additional power needs. It is currently covered
under an existing USAID project. Focus needs to
be on non-western style PPAs that are consistent
with the Central-South Asia way of doing
business.
(1) NORTH EAST POWER SYSTEM (NEPS)
NEPS is the most important supply effort
consisting of generation, transmission and
distribution. It includes a 100 MW power plant
4 Currently, PPAs are skeletal and include no terms
concerning technical quality, quality of service, or metering. In
DGGLWLRQ028ZLWK7DMLNLVWDQKDVQRWEHHQÀQDOL]HG
50୳ Afghanistan National Development Strategy (ANDS)
based on indigenous natural gas5 and power
imports. . NEPS’s primary objective is to serve
urban centers in Kabul, Nangarhar, Parwan,
Balkh, Jawzjan, Kunduz and Baghlan. The
transmission lines to transmit imported power
from Uzbekistan, Turkmenistan, and Tajikistan
to major urban centers in the North and East, in
particular Kabul are being completed on a priority
basis. The completion will help meet the existing
shortfall on quicker basis.
,Q DGGLWLRQ WR WKH  0: JDV ÀUHG JHQHUDWLRQ
NEPS will also include the rehabilitation of
Hydropower plants (HPPs) in Pul-i-Chumri and
Khanabad in the North, and Naghlu, Saurobi and
Mahipar in the east. The generated power will
feed through the NEPS. For the long-term, 15
years and beyond, it is proposed to establish new
hydro power plants in Baghdara and a second
plant in Saurobi; pre-feasibility studies for these
hydro plants have been completed. In addition,
a transmission line will also be extended from
Kabul to Logar and Gardez
(2) REHABILITATION OF SHEBERGHAN
GAS FIELDS AND POWER PLANT.
Afghanistan needs to develop indigenous energy
resources, including natural gas reserves in the
Sheberghan area. Data on gas reserves indicate
WKDW WKHUH LV VXIÀFLHQW ORZFRVW JDV UHVHUYHV
available to operate a combined cycle turbine
plant at Sheberghan for 25 years and that the cost
per kWh of power generated would be in the 2.8 to
3.5 cent range. While this is more expensive than
the cost of imported power, which currently is in
the 2.0 to 2.5 cents/kWh range, future prices are
expected to be 4.0 cents/kWh or more. Also, it is
LPSRUWDQWWRQRWHWKHGRPHVWLFEHQHÀWVUHVXOWLQJ
IURP GHYHORSLQJ WKH JDV ÀHOGV DQG JDVÀUHG
power plant.
5 Estimated gas reserves available as of 2006: 1197.17
billion, current demand including for the 100 MW power plant
is estimated at 21.09 billion ft3; Expected life of gas reserves, 56
years. Plant operational target date: late 2008
A major part of the IROA ‘s efforts to increase
supply of electric power needs to be development
of an effective policy to attract private investment
to the sector, Here, lessons learned from other
countries in the region may be helpful.
A. One-Stop Shop- The Private Public
3DUWQHUVKLS2IÀFH
In 1987, Pakistan requested assistance from the
Plan, with major elements to: (1) develop policies
to support investment; (2) create a vehicle for long-
WHUP ÀQDQFLQJ IRU SULYDWH SRZHU SURMHFWV DQG
(3) establish a new entity to evaluate, negotiate
and approve private power project investments.
This new entity was a “one-stop shop” within the
power utility in charge of evaluating proposals
and negotiating agreements between the
Government and the project developer necessary
to bring the project to market (e.g., PPAs, FPAs,
World Bank to increase private sector participation
in the electricity sector2. An initial framework of
incentives to attract private investment was put in
place in 1988 to address the following constraints:
ƒ Absence of a comprehensive policy
IUDPHZRUN FRQFHUQLQJ LQFHQWLYHV ÀVFDO
WUHDWPHQW UHSDUDWLRQ RI SURÀWV DYDLODELOLW\
of foreign exchange and pricing.
ƒ /DFNRIORQJWHUPÀQDQFLQJIRUSURMHFWV
ƒ Inadequacy of institutional arrangements
for the review, negotiation and approval of
projects.
In 2002 the Government adopted a Strategic Plan
for power sector privatization, which included
commercialization and unbundling and eventual
privatization of the electric utility; establishing an
independent regulator for the sector; and issuing
tenders for private sector development of power
projects based on two important elements:
ƒ A “one-stop shop” to address all issues
relating to development of an IPP.
ƒ A ceiling bulk power tariff against which
potential developers would bid.
SULFLQJÀQDQFLQJHWF
This policy and institutional framework proved
to be very successful in bring to market 20 IPPs
with a total capacity of 4,500 MW, with an average
closing time of 2 years.
This process can be utilized while other activities
to commercialize and privatize the government-
owned utility, establish an independent regulator
and complete tariff reform are ongoing, thereby
shortening the time for private sector project
development. Major elements of this policy to
ensure success include the following (some of
these elements were missing from the Pakistan
program, but are based on lessons learned from
that process)3.
ƒ A clear policy and package of incentives to
promote private investment.
ƒ A “one-stop shop” to address all issues related
WR DSSURYDO ÀQDQFLQJ DQG GHYHORSPHQW RI
projects.
ƒ Establish a bulk power tariff ceiling price
LQGH[HG WR LQÁDWLRQ WKDW GHYHORSHUV ELG
against to accelerate project development,
rather than a using a competitive bidding
process (the tariff needs to be evaluated and
altered over time in successive tenders to
The World Bank provided assistance to the Power
Ministry to develop procedures to implement this
2 Lack of Access to Energy; The Enabling
Environment Conference: Effective Private Sector Contribution
to Development in Afghanistan; The World Bank Group, June
2007.
56୳ Afghanistan National Development Strategy (ANDS)
UHÁHFWPDUNHWFRQGLWLRQV
ƒ Standardized security package (including
3 ´/HVVRQVIURPWKH,QGHSHQGHQW3RZHU([SHULHQFHLQ3DNLVWDQµ
by Julia M. Fraser; Energy and Mining Sector Board Discussion
Paper No. 14; The World Bank Group, May 2005.
 Government and Donor guarantees) to
reduce country and project risk.
ƒ A standardized and transparent review and
approval process (with a dispute resolution
procedure) so that the best (most economical)
projects are selected and review criteria are
known and fairly applied.
This type of procedure could be adapted to
Afghanistan as it is designed to address very
similar conditions that currently exist in its electric
power sector. In addition, this procedure could
accelerate development of IPPs in Afghanistan
while current efforts at regulatory and tariff reform
and commercialization of DABM are ongoing.
B. Multi-sector Regulator & Regulation by
Contract
Regulation by contract is a mechanism that
VSHFLÀHVWKHUROHVUHVSRQVLELOLWLHVDQGREOLJDWLRQV
of the electricity distribution company and the
regulator in providing electric power service to
retail customers4. This contract is similar to, but
more detailed than a Power Purchase Agreement,
ZKLFK GHÀQHV WKH WHUPV DQG FRQGLWLRQV IRU WKH
sale of power from a generator to a distribution
company. Also management contracts are a
type of regulation by contract, in that they
specify certain performance requirements for
the contractor tied to rewards and penalties in
exchange for a commitment by the government to
SURYLGHUHYHQXHWRFRYHUFRVWVLQFOXGLQJSURÀW
Recently established regulatory commissions in
developing countries often do not have adequate
experience or expertise in effectively regulating
power providers and also are often not truly
´LQGHSHQGHQWµIURPSROLWLFDOLQÁXHQFH,QDGGLWLRQ
regulatory procedures and mechanisms, including
dispute resolution procedures, generally are not
well established. Therefore, developers may be
reluctant to invest in distribution facilities as the
4 Regulation by Contract: A New Way to Privatize
Electricity Distribution?; World Bank Working Paper No. 14,
September 2003.
Afghanistan National Development Strategy (ANDS)
SHUFHSWLRQ RI UHJXODWRU\ ÀQDQFLDO DQG SROLWLFDO
risk remains too high in relation to expended
EHQHÀWV IURP WKH LQYHVWPHQW 7R DGGUHVV WKLV
situation, and also to speed up the development
process while the necessary conditions are being
put into place to establish an effective regulatory
commission, the concept of “Regulation by
Contract” may be usefully applied.
Regulation by contract does not specify prices. It
SUHVSHFLÀHVDUHJXODWRU\WUHDWPHQWIRULQGLYLGXDO
cost elements, which taken together determine the
prices charged for electric service. The contract is
a detailed tariff-setting agreement between the
service provider and the regulator that forces the
UHJXODWRU WR VHW WDULIIV EDVHG RQ D VHW RI VSHFLÀF
formulas and procedures. In this way it limits the
discretion of the regulator and reduces the risks
associated with investing in a power distribution
company. In exchange, it establishes certain
service and performance obligations on the
distribution company to ensure that customers
receive adequate service. The key component
of the regulatory contract is a performance-
based, multi-year tariff setting system. This type
of mechanism has been used for a number of
years with success in a number of developing
and developed countries, including the US, UK,
France, India, Brazil, Chile, Peru, Colombia, and
Bolivia.
The agreement or contract contains a formula
ZLWK SUHVSHFLÀHG SDUDPHWHUV WKDW GHWHUPLQH
how annual total revenue or average tariffs levels
will be established by the regulator. The formulas
generally distinguish between controllable and
non-controllable costs. Controllable costs are
tied to external indexes or benchmarks with
performance targets and associated rewards or
penalties. Non-controllable costs are allowed
to be passed through to customers on a regular
basis. There also is usually a mechanism to
deal with unforeseen events, such as natural
disaster that might affect the company’s costs or
revenues and a dispute resolution mechanism
to address disagreements between the company
57
and the regulator. The purpose of this regulatory
contract is to reduce the risks associated with
investment in distribution assets so as to promote
private investment while also ensuring adequate
protection of customers by supporting adequate,
VDIHHIÀFLHQWDQGHFRQRPLFDOO\SULFHGVHUYLFH
Elements of a regulatory or performance-based
contract typically include:
‡ Pass through of power purchase
Recovery of distribution costs
‡ Loss reduction and other quality of service
requirements for the distribution company
‡ Obligation to provide service by
distribution company
‡ Performance requirements on behalf of the
distribution company, such as minimum
HIÀFLHQF\ VWDQGDUG QXPEHU RI QHZ KRRN
ups, revenue collection targets, etc.
‡ Distribute resolution mechanism
‡ Mechanisms to reduce foreign exchange risk
PROJECTS
To ensure that ongoing activities to expand
electricity supply mesh effectively with the IROA‘s
longer-term objectives for the electricity sector and
produce cost-effective results, it is recommended
that the following activities be undertaken as part
of an overall Afghanistan Energy Sector Strategy:
1. DABM Commercialization and Capacity
Building. It is critical that DABM be placed
RQ D VRXQG ÀQDQFLDO EDVLV 6RPH SURJUHVV
has been made to commercialize DABM and
improve its operational management and
HIÀFLHQF\WKHVHHIIRUWVQHHGWREHFRPSOHWHG
Emphasis on improving, metering, billing
and collections is needed; consideration
also should be given to implementing a
management contract to the private sector for
these functions.
58୳ Afghanistan National Development Strategy (ANDS)
Support for full-scale COMMERCIAL AUDIT
‡ Audit to be performed by one of the three
PDMRU LQWHUQDWLRQDO DXGLW ÀUPV GRLQJ
business in Kabul.
‡ Capacity building within the power utility
to deal with outside auditors and respond to
AUDITOR’S COMMENTS.
costs
‡ Pre-audit training, or audit preparations,
to help DABM become ready to be audited.
This would be a major piece of work, given
WKH JHQHUDO FRQGLWLRQ RI ÀQDQFLDO UHSRUWLQJ
the in DABM over the past (say) 30 years,
because of the war, etc.
Capacity building for Accounting Systems and
Software Implementation
‡ DABM will begin Implementing Microsoft
“Great Plains” Accounting Software.
Comprehensive integrated package.
‡ 6LJQLÀFDQWWUDLQLQJZLOOEHUHTXLUHGWR
‡ Modernize and standardize all accounting
SURFHGXUHVDWDOOSURYLQFLDORIÀFHVUHSRUWLQJ
WRFHQWUDOÀQDQFHGHSDUWPHQW
‡ 6\VWHPDWL]HSUHSDUDWLRQRIDOOÀQDQFLDOUHSRUWV
and statements and develop meaningful
ÀQDQFLDO PDQDJHPHQW UHSRUWV DQG DQQXDO
report that allow decision makers to prioritize
activities and focus producing optimal value
for money at each decision point
‡ Design and implement budget planning and
control systems
‡ Systemize cost accounting and resource
management to optimize decisions involving
outsourcing, management contracting, etc.
‡ 3URYLGH UHTXLUHG ÀQDQFLDO GDWD LQSXWV IRU
tariff models and projection of subsidy
requirements.
 ANNEX I. ENERGY SECTOR STRATEGY

86୳
ACTION PLAN
PILLAR : INFRASTRUCTURE
SECTOR : ENERGY
Outcomes Policy Actions or Activities Category Time frame Responsible Agency

An enabling Issuance of tenders for exploration and exploitation in Development 1387-1388 (2008-2009) MoM, MEW,MoF
environment for northern country notably for power
private sector
investment in
energy sector
created

Develop private sector opportunities to take on long-term Development 1388-1389 (2009-2010) MoM, MEW, MoCI
production, transport, supply of CNG
Outsourcing operations at DABM (audit, billing) Development 1386-1388 (2007-2009) MEW
Implement Private distribution projects Development 1387-1389 (2008-2010) MEW, MoM
Private sector promotion in renewable energy Development 1387-1388 (2008-2009) MRRD, MEW, AISA

Afghanistan National Development Strategy (ANDS)

Divestiture of the Liquid Fuels Enterprise Development 1387-1388 (2008-2009) MoF
$VVHVVDQGUHYLWDOL]HRLOUHÀQHU\ Development 1387-1389 (2008-2010) MoCI, MoM
Development of Sheberghan Gas Fields and Power Plant Development 1387-1388 (2008-2009) MoM
Promotion of regional cooperation to facilitate various Institution Building 1387-1389 (2008-2010) MEW, MoFA
projects under the energy sector / RC Cross Cutting
Issues
To mainstream into all administrative reform programs Institution Building/ 1387-1388 (2008-2009) MEW, MoM
measures required to address the systems and incentives AC Cross Cutting
promoting anti-corruption within the public administration Issues
system and Development Activities.
To maintain the highest level of transparency, accountability Institution Building/ 1387-1388 (2008-2009) MEW
and integrity in the relationship between the public and AC Cross Cutting
private sector. Issues
Gender mainstreaming in the policies in the energy sector. Development / Continue MEW, MoWA
Gender Cross Cutting
Issues
Encouragement to Community Based Natural Resource Institution Building 1388-1389 (2009-2010) MoM, MEW
Management for meeting energy needs of the people. / Env. Cross Cutting
Issues
Awareness generation of policy makers on the Institution Building Continue MEW, MoM
environmental issues so that they are taken care of in all / Env. Cross Cutting
projects in the energy sector. Issues
 PILLAR : INFRASTRUCTURE
SECTOR : ENERGY
Outcomes Policy Actions or Activities Category Time frame Responsible Agency

Leveraging available donor assistance, pilot CNG for public Development 1388-1391 (2009-2012) MEW, MoCI, MoM
YHKLFOHVLHEXVHVDQGWD[LVFRQYHUVLRQRIHQJLQHVÀWWLQJ
gas pump stations.
Establishment and operation of a regulatory authority Legislation 1388-1390 (2009-2011) Energy Sector
Ministries and
Institutions
Independent Power Producers (IPP) – agreement and Development Continue MEW, MRRD
incentives
Expanded public Procure spare parts and fuel for thermal generation Development 1387-1388 (2008-2009) MEW
power grid
Repair existing transmission and distribution systems Development 1387-1389 (2008-2010) MEW
including rehabilitating and/or upgrading substations and
distribution networks
Install meters for cross border transmission Development 1387-1389 (2008-2010) MEW
Repair existing thermal plants Development 1387-1388 (2008-2009) MEW
Starting National Energy Conservation Program (NECP) Development 1388-1389 (2009-2010) MEW
Implement ICE technical assistance (ADB) Development Commenced, ongoing MEW, MoM, MoCI,
through 1388 (2009) MoF, MRRD, MoEc
Take appropriate measures to reduce electricity loss Development DABM/S, MEW,
1387-1389 (2008-2010)
MoF
3URPRWLRQRIHQHUJ\HIÀFLHQF\ Development 1387-1388 (2008-2009) MEW DABM
Kabul distribution procurement Development MEW, MoF,
1387-1388 (2008-2009)
DABM/S
Completion of NEPS transmission Development 1387-1388 (2008-2009) MEW, MoF
Complete Turkmen assessment Development 1387-1388 (2008-2009) DABM/S
Assessments of South, East and West Transmission needs Development 1387-1388 (2008-2009) MEW
Procurement for meters Development 1387-1388 (2008-2009) MEW, MoF, DABM
Installation of Dispatch and Control System Development 1387-1388 (2008-2009) MEW, DABM
Motion detectors Development 1387-1388 (2008-2009) DABM/S
Line inspections (regular protocols) Development 1387-1388 (2008-2009) MEW

Afghanistan National Development Strategy (ANDS)

Health & Safety protocols Development 1387-1388 (2008-2009) MEW,MoM
Operation & Maintenance protocols Development 1387-1389 (2008-2010) MEW
Priority to providing energy in areas having substantial Development/ CN Continue MEW
narcotics cultivation to promote economic activity to Cross Cutting Issues

87
generate alternate livelihoods
 PILLAR : INFRASTRUCTURE

88୳
SECTOR : ENERGY
Outcomes Policy Actions or Activities Category Time frame Responsible Agency

Repair and rehabilitation of hydropower generation projects Development Continue MEW

Independent Power Producers (IPP) – agreement and Development Continue MEW, MRRD
incentives
Increased Access /LQNUXUDOHQHUJ\ZLWKPLFURDQGVPDOOÀQDQFHSURJUDPV Development 1387-1388 (2008-2009) MRRD
to Rural Energy Develop a comprehensive and appropriate rural energy Development MEW, MRRD
Services 1387-1388 (2008-2009)
program
3XEOLFDZDUHQHVVRQUXUDOHQHUJ\RSSRUWXQLWLHVEHQHÀWV Development MEW, MRRD
1387-1388 (2008-2009)
funding
Assessment of priority areas based on income-generation Development MEW, MRRD
1387-1388 (2008-2009)
opportunities
Special attention to gender issues in providing energy for Development MEW, MRRD,
Continue
rural areas. MoWA
Promotion of Private Sector promotion in close as formalization of existing Legislation MoM, MEW, MoF
Private sector operator rights; tender for new rights (i.e., to support power 1387-1388 (2008-2009)

Afghanistan National Development Strategy (ANDS)

generation)
Private power generation policy Legislation 1387-1388 (2008-2009) DABM/S
In collaboration with National Regulation Utility Legislation MRRD, MEW
1387-1388 (2008-2009)
Commission (NURC), develop Rural-remote Energy Policy
Power Purchase Agreements for Power Imports Legislation 1387-1388 (2008-2009) MEW
Establishment and operation of a legal/regulatory authority Legislation Energy Sector
1388-1390 (2009-2011) Ministries and
Institutions
Restructured Revise 2 laws and 2 regulations related to Hydrocarbons, Legislation MoM
Energy Sector minerals and Market Cadastre & Inspectorate
Governance and 1387-1389 (2008-2010)
Commercialized
operations
Corporatization and ongoing commercialization of DABS Legislation 1387-1388 (2008-2009) MEW, MoF
Power tariff reform Legislation 1387-1388 (2008-2009) MoJ, MEW
Establishment of viable ICE working groups Institution Building 1387-1388 (2008-2009) MoE MEW
Improved GoA, Donor & NGO Coordination Institution Building Energy Sector
1387-1388 (2008-2009) Ministries and
Institutions
Build Afghan capacity to operate and maintain system Institution Building Energy Sector
1387-1389 (2008-2010) Ministries and
Institutions
 PILLAR : INFRASTRUCTURE
SECTOR : ENERGY
Outcomes Policy Actions or Activities Category Time frame Responsible Agency

Needs Assessment and Data Base Institution Building Energy Sector

1388-1389 (2009-2010) Ministries and
Institutions
Establish Project Management Unit Institution Building Exist MEW
Establish Pricing regime for natural gas Institution Building 1387-1388 (2008-2009) MoM, MoF
'HÀQH*RYHUQPHQWUROHVLQFOHDUO\GHÀQLQJ725VIRU055' Institution Building MRRD, MEW
1387-1388 (2008-2009)
and MEW on rural energy aspects
Development of basic technical standards based on MRRD Institution Building MRRD
1387-1388 (2008-2009)
materials
Annual audit of all operations Institution Building 1388-1389 (2009-2010) MoM,MEW,MRRD
Develop and implement the organizational structure and Institution Building MRRD, MEW
VWDIÀQJSODQIRU5XUDO/LYHOLKRRGVDQG(QHUJ\'HSDUWPHQW 1387-1388 (2008-2009)
(RLED)

Afghanistan National Development Strategy (ANDS)

89
 ‫ضمیمه شماره ‪2‬‬
‫خالصه گزارش کار بخش انرژی‬
‫برنامه ملی انکشاف منطقوی از‬
‫‪ 2008‬تا پایان سال ‪2014‬‬
 ‫بخش انرژي برنامه ملي انكشاف منطقوي‬

‫‪Energy for Rural Development, Afghanistan‬‬

‫تاسيس‪ :‬سال ‪٢٠٠٨‬‬ ‫‪‬‬

‫نياز به ايجاد اين بخش در سال آخر فاز دوم برنامه ملي انكشاف منطقوي مشاهده شد‪ ،‬اين بخش در شروع فاز سوم اين‬ ‫‪o‬‬
‫‪١‬‬
‫برنامه به طور رسمي كار خود را آغاز كرد‬
‫در پايان اولين سال)‪ ،(٢٠٠٨‬اين بخش توانست‪:‬‬ ‫‪‬‬

‫راهنماي عملياتي پروژه هاي انرژي را تهيه نمايد‬ ‫‪o‬‬

‫اسناد و فرم هاي ﻻزم براي مطالعات ايجاد كند‬ ‫‪o‬‬
‫‪ ١٠‬پروژه برق آبي را از طريق حمايت شورا هاي انكشافي در وﻻيت هاي بدخشان و باميان اجرا كند‪ ،‬مطالعات اوليه را‬ ‫‪o‬‬
‫‪٢‬‬
‫براي پروژه هاي برق آبي در وﻻيت هاي بغﻼن‪ ،‬غور‪ ،‬ننگرهار و كابل انجام دهد‪.‬‬
‫پيش نويس پاليسي انرژي هاي تجديد پذير را آماده كند‪ .‬اين پيش نويس قرار بود به امضاي وزراي احيا و انكشاف دهات‬ ‫‪o‬‬
‫و انرژي آب برسد‪ ،‬اين دو وزارت خانه به عنوان متوليان برق رساني در دهات كشور مسئول اجراي اين پاليسي بودند‪ ،‬اما‬
‫به دليل برخي اختﻼف نظر ها ميان اين دو وزارت خانه اين پاليسي هنوز به امضا نرسيده است‪ .‬وزارت انرژي آب پيش‬
‫نويس پاليسي ديگري را روي دست گرفته است‪.‬‬
‫در پايان سال دوم)‪:(٢٠٠٩‬‬ ‫‪‬‬
‫تحت پوشش قرار دادن ‪ ١٢٨٤‬خانوار در دهات كشور براي دسترسي به برق‬ ‫‪o‬‬
‫حمايت از ده شوراي انكشافي در ننگرهار براي استفاده از انرژي بايوگاز‬ ‫‪o‬‬
‫عضويت در گروه كاري انرژي)‪ ،(Energy Working Group‬كه تحت نظارت كميته مشرك بين الوزارتي )‪ (ICE‬عمل‬ ‫‪o‬‬
‫مي كرد و مهم ترين مركز تصميم گيري در مورد انرژي روستايي در افغانستان بود‬
‫مشاركت در انجام مطالعات اوليه براي تاسيس پارك تكنولوژي هاي انرژي دهات ‪ RTP‬در همكاري با انستيوت انكشاف‬ ‫‪o‬‬
‫‪٣‬‬
‫دهات افغانستان )‪(AIRD‬‬
‫در پايان سال سوم)‪:(٢٠١٠‬‬ ‫‪‬‬
‫سروي و مطالعات اوليه براي ‪ ٧٠‬پروژه برق آبي و طراحي و ديزاين ‪ ٥٠‬پروژه برق آبي كوچك‬ ‫‪o‬‬
‫همكاري فني و تخنيكي با برنامه ‪ DIAG‬براي طراحي پروژه ‪٤٠٠‬كيلووات فرخار‬ ‫‪o‬‬
‫حمايت از ‪ ٢٢‬پروژه بايوگاز براي تحت پوشش قرار دادن ‪ ١٩٥‬فاميل در ننگرهار‬ ‫‪o‬‬
‫اعﻼم آمادگي براي توزيع ‪ ٢٣٢٧‬سيستم سولر خانگي در وﻻيت بادغيس )اين طرح به دليل تغيير پاليسي و نگراني هاي‬ ‫‪o‬‬
‫مربوط به كنترل كيفيت در اين پروژه ها متوقف گرديد‪(.‬‬
‫تهيه راهنماي كنترل كيفيت محصوﻻت سولر در همكاري با اداره نورم و استاندارد افغانستان ‪ANSA‬‬ ‫‪o‬‬
‫تهيه راهنماي طراحي‪ ،‬اجرا و مديريت پروژه هاي برق آبي‬ ‫‪o‬‬
‫اجباري اعﻼم كردن آموزش دو نفر از اهالي قريه توسط شركت هاي توليد كننده تجهيزات الكترومكانيك‬ ‫‪o‬‬

‫‪1‬‬
‫‪-http://www.mrrd-nabdp.org/index.php?option=com_content&view=article&id=120&Itemid=105‬‬
‫‪2‬‬
‫‪ERDA Annual Report 2008‬‬
‫‪3‬‬
‫‪ERDA Annual Report 200٩‬‬
 ‫‪٤‬‬
‫در نظر گرفتن بخشي از بودجه براي پروژه هاي كاربرد نهايي )‪(END USE‬‬ ‫‪o‬‬
‫برگزاري وركشاپ هاي آموزشي براي شوراهاي انكشافي ولسوالي ها و قريه ها در شش زون كشور‬ ‫‪o‬‬
‫برگزاري دوره آموزشي "مطالعات اوليه و طراحي پروژه هاي برق آبي كوچك" براي آموزش كارمندان برنامه و وزارت احيا‬ ‫‪o‬‬
‫و انكشاف دهات‬
‫تاييد شدن پاليسي انرژي هاي قابل تجديد در كميته بين والوزازتي )‪(ICE‬‬ ‫‪o‬‬
‫به رسميت شناخته شده بخش ‪ ERDA‬به عنوان يك برنامه قابل تمويل و داراي اولويت ملي در كنفرانس كابل‬ ‫‪o‬‬
‫تهيه پروپوزال براي تبديل شدن اين بخش به برنامه تحت كﻼستر زراعت و انكشاف دهات‬ ‫‪o‬‬

‫در پايان سال سوم)‪:(٢٠١١‬‬ ‫‪‬‬

‫تكميل ‪ ١٦‬پروژه برق آبي كوچك‬ ‫‪o‬‬
‫امضاي قرارداد با شوراها براي اجراي ‪ ١١٣‬پروژه برق آبي كوچك‬ ‫‪o‬‬
‫تكميل پروژه آزمايشي بايوگاز در ننگرها‪ ،‬ايجاد پروژه هاي مشابه در لغمان‬ ‫‪o‬‬
‫انجام مطالعات اوليه براي پروژه هاي برق رساني تعمير هاي عام المنفعه‬ ‫‪o‬‬
‫تامين برق دو مسجد در ننگرهار و بغﻼن از طريق سولر‬ ‫‪o‬‬
‫انجام مطالعات اوليه براي امكان سنجي پروژه هاي برق بادي‪ ،‬اين پروژه ها به دليل نبود امكانات فني در كشور متوقف‬ ‫‪o‬‬
‫گرديد‬
‫امضاي تفاهم نامه با انستيوت انرژي و منابع هندوستان )‪ (TERI‬براي تهيه پﻼن انكشاف سازماني ) ‪Institutional‬‬ ‫‪o‬‬
‫‪ (Development Plan‬براي زمينه سازي ارتقاء ‪ ERDA‬از يك بخش برنامه ملي انكشاف منطقوي به برنامه اي مستقل‬
‫و ملي )اين تفاهم نامه بعد ها به دليل مشكﻼتي در تهيه امكانات و ويزاي مشاوران اين موسسه به وجود آمد به حالت تعليق‬
‫در آمد‪ ،‬بعد ها برنامه انكشافي ملل متحد ‪ UNDP‬مشاور ديگري را براي اين كار استخدام كرد(‬
‫تاييد راهنماي تخنيكي تهيه شده در بخش انرژي برنامه ملي انكشاف منطقوي توسط اعضاي كميته بين الوزارتي انرژي‬ ‫‪o‬‬
‫‪ICE‬‬
‫برگزاري دوره هاي آموزشي ارتقاء ظرفيت براي ‪ ٣٥‬نفر از كارمندان برنامه و وزارت‬ ‫‪o‬‬
‫اعزام ‪ ١٢‬نفر از كارمندان بخش انرژي برنامه ملي انكشاف منطقوي به كشور نپال براي آموزش‬ ‫‪o‬‬

‫در پايان سال چهارم)‪) :(٢٠١٢‬گزارش هاي رسمي در مورد مشكﻼت ناشي از تغيير كادر رهبري وزارت و همين طور برنامه و تعديل‬ ‫‪‬‬
‫تعداد كارمندان در اين سال سكوت كرده اند‪ ،‬پيشرفت امور پروژه در اين سال بسيار كند و محدود بود(‬
‫تكميل ‪ ٧٠‬پروژه برق آبي كوچك در ‪ ١٤‬وﻻيت‬ ‫‪o‬‬
‫تكميل ‪ ٢٣‬پروژه بايوگاز در سه وﻻيت ننگرهار‪ ،‬لغمان و قندهار‬ ‫‪o‬‬

‫در پايان سال پنجم )‪:(٢٠١٣‬‬ ‫‪‬‬

‫تكميل ‪ ٣٥‬پروژه برق آبي كوچك‬ ‫‪o‬‬
‫تكميل ‪ ٩‬پروژه بايوگاز‬ ‫‪o‬‬
‫توزيع ‪ ٢٥٠‬سيستم سولر خانگي براي كوچي هاي كابل و قندهار )اين اولين پروژه در نوع خود در افغانستان بود(‬ ‫‪o‬‬
‫ادامه همكاري ها با ‪ICE‬‬ ‫‪o‬‬
‫همكاري با مشاور استخدام شده ‪ UNDP‬براي تهيه پروپوزال برنامه ‪ASERD‬‬ ‫‪o‬‬

‫‪4‬‬
‫‪ERDA Annual Report 2010‬‬
 ‫در پايان سال ششم )‪:(٢٠١٤‬‬ ‫‪‬‬
‫ارايه سند برنامه ‪ ASERD‬به عنوان توسعه ‪ ERDA‬به يك برنامه ملي در جلسه ‪ UNDP‬براي اخذ نظرات ارگان هاي‬ ‫‪o‬‬
‫مرتبط‪ ،‬پس از اين جلسه اعﻼم شد اين برنامه ملي به زودي شروع خواهد شد‬
‫ادامه همكاري ها با ‪ ،ICE‬و اعﻼم ‪ ERDA‬به عنوان برنامه فعال در جهت اهداف برنامه جهاني انرژي پايدار براي همه‬ ‫‪o‬‬
‫‪SE4ALL‬‬
‫تهيه گزارش ارزيابي سريع و تحليل موانع )‪ (RAGA‬با همكاري برنامه انكشافي ملل متحد ‪UNDP‬‬ ‫‪o‬‬
‫تكميل مطالعات اوليه و امكان سنجي دو پروژه در وﻻيت تخار‪ ،‬به عنوان بخشي از همكاري هاي برنامه ملي انكشاف‬ ‫‪o‬‬
‫منطقوي با برنامه بهبود معيشت نواحي مرزي افغانستان و تاجيكستان ‪LITACA‬‬
 ‫ضمیمه شماره ‪3‬‬
‫گزارش بانک جهانی در مورد‬
‫مرحله اول برنامه همبستگی ملی‬
Public Disclosure Authorized

Document of
The World Bank

Report No: ICR0000524

Public Disclosure Authorized

IMPLEMENTATION COMPLETION AND RESULTS REPORT

(IDA-H0720 IDA-H1740 IDA-H2090 JPN-54367 MULT-53939)

ON A

GRANT

IN THE AMOUNT OF SDR 66.1 MILLION

(US$95 MILLION EQUIVALENT)
Public Disclosure Authorized

TO THE

ISLAMIC REPUBLIC OF AFGHANISTAN

FOR AN

EMERGENCY NATIONAL SOLIDARITY PROJECT

October 24, 2007

Public Disclosure Authorized

Sustainable Development Sector Unit

Afghanistan
South Asia Region
 AFGHANISTAN
Emergency National Solidarity Project

CONTENTS

Page

1. Project Context, Development Objectives and Design............................................... 1

2. Key Factors Affecting Implementation and Outcomes .............................................. 3
3. Assessment of Outcomes .......................................................................................... 10
4. Assessment of Risk to Development Outcome......................................................... 15
5. Assessment of Bank and Borrower Performance ..................................................... 17
6. Lessons Learned ....................................................................................................... 18
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 20
Annex 1. Project Costs and Financing.......................................................................... 21
Annex 2. Outputs by Component ................................................................................. 23
Annex 3. Economic and Financial Analysis................................................................. 24
Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 28
Annex 5. Beneficiary Survey Results ........................................................................... 30
Annex 6. Stakeholder Workshop Report and Results................................................... 32
Annex 7. Summary of Borrower's ICR and Comments on Draft ICR ......................... 32
Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders....................... 43
Annex 9. List of Supporting Documents ...................................................................... 48
MAP
F. Results Framework Analysis

Project Development Objectives (from Project Appraisal Document)

The objectives of the project are (i) to lay the foundations for a strengthening of
community level governance, and (ii) to support community-managed sub-projects
comprising reconstruction and development that improve access of rural communities to
social and productive infrastructure and services. The outcomes will be (i) the
establishment of a framework for village level consultative decision making and
representative local leadership as a basis for interaction within and between communities
on the one hand, and with the administration and aid agencies on the other, and (ii) local
level reconstruction, development, and capacity building which will lead to a decrease in
poverty levels.

Revised Project Development Objectives (as approved by original approving authority)

(a) PDO Indicator(s)

Original Target Formally Actual Value

Values (from Revised Achieved at
Indicator Baseline Value
approval Target Completion or
documents) Values Target Years
Indicator 1 : Number of Community Development Councils (CDCs) elected.
8,334 (ie 80% of
Value 6,181 (Baseline is output
total number of
quantitative or achieved by the ECEPWP 16,502
target villages,
Qualitative) by Dec. 31 2004)
which is 10,417).
Date achieved 12/31/2004 03/31/2007 03/31/2007
Comments
Within the project period from 01/01/2005 till 03/31/2007, 10,321 CDCs were
(incl. %
elected representing 124% achievement of the target of 8,334 for the period
achievement)
Number of villages with community development plans.
Indicator 2 :
Value 6,181 (Baseline is output
quantitative or achieved by the ECEPWP 8,000 16,263
Qualitative) by Dec. 31 2004)
Date achieved 12/31/2004 03/31/2007 03/31/2007
Comments Within the project period from 01/01/2005 till 03/31/2007, 10,082 CDPs were
(incl. % developed representing a 126% achievement of the target of 8,000 for the
achievement) period.
Indicator 3 : Percentage of women who participate in CDC elections.
Value >90% (Baseline is output
quantitative or achieved by the ECEPWP 40% >50%
Qualitative) by Dec. 31 2004)
Date achieved 12/31/2004 03/31/2007 03/31/2007

iii
The NSP is a critical vehicle for delivery of the benchmarks of the Agriculture and Rural
Development pillar of the Interim Afghan National Development Strategy (the basis for an
Afghanistan Poverty Reduction Strategy). In the I-ANDS, the NSP alone is tasked with delivery
of the community development benchmark (outreach to all the country’s villages by the end of
2010), and is also expected to play a central role with regard to delivery on rural infrastructure,
empowerment of women, and good governance.

The overall theme for the Bank’s Interim Strategy Note (ISN) for the Islamic Republic of
Afghanistan for the period FY 07 to FY 08 is state-building, and the focus is on assistance to
achieve results with regard to three strategic pillars aligned with the I-ANDS. One of these is
promoting growth of the rural economy and improving rural livelihood, and to this end, the CDCs
established under NSP would play a central role in the development of a new model for demand
driven rural development, and would at the same time, by increasing legitimate government
interaction, reduce the role of groups that have become used to usurping local power. The
benchmark for progress under the ISN pillar would be that NSP by FY 08 reaches 80 percent of
the rural population.

3.2 Achievement of Project Development Objectives

Local governance: Between the start of field implementation in the summer of 2003 and March
31, 2007, 16,502 Community Development Councils (CDCs) had been elected through secret
ballot by men and women establishing the outreach of NSP to two thirds of Afghanistan’s
estimated 24,000 villages (10,321 CDCs were elected during the ICR period). A total of 22,458
sub-projects submitted by 12,270 CDCs and meeting appraisal criteria were being funded with
aggregate block grant disbursements amounting to US$283.7 million (US$224.4 m disbursed for
16,496 sub-projects during the ICR period). The main findings of the midterm evaluation
undertaken for MRRD in 2005-06 were, that in communities reached by NSP there is significant
evidence of:

• Empowerment of CDCs,
• Improved community relations,
• Increased public faith in the system of government.

Case studies conducted as part of the mid-term evaluation of 18 CDCs in different parts of the
country found that, while their composition and functions did vary between communities, the
CDCs were emerging as legitimate local governance institutions. The mid-term evaluation also
found that “NSP communities have far more tools than non-NSP communities for envisaging
problems, linking priorities, and planning. NSP communities are therefore less reactive and more
proactive, and have a significantly more favorable opinion of the government that non-NSP
communities do not share. The non-NSP communities have a strong distrust of government and
little faith in its ability to address their problems”. This finding is paralleled by a survey from
from February 2007 by the Center for Strategic and International Studies, which states that “the
CDCs and tribal shuras are seen as more responsive to Afghan needs than provincial
governments and provincial councils, and in many cases are the only sign of improvement
villagers have seen in the past five years”.

Poverty reduction: Of Afghanistan’s rural population, 52.8% have incomes below the poverty
threshold. In 2003, the poverty threshold was estimated at Afs 4,621 per capita per year, which

11
Box.2 Water supply sub-project producing spin-off effects: The Baba Qushqar village in Kabul
province has given top priority to solve the acute drinking water supply problem faced by its 459 families.
Hence, about 50% of the allocated block grant was used for installing 26 hand pumps in the village
providing efficient access to safe drinking water. Prior to this, the community was suffering from distantly
located and poor quality drinking water, and also faced a conflict situation with the private owned natural
spring that a nearby village used mainly for irrigating private agricultural land. Thus, this sub-project has
improved both drinking water quality and access, while at the same time preventing that the social conflict
over water sharing intensified.

Women and children report significant savings in the time spent for fetching drinking water. Prior to the
project, each family used to travel 3 to 4 km and spend a total of four hours daily to get water. Now hand
pumps are easily accessible for clusters of 18 families. More importantly, health related problems caused
by water borne diseases have decreased substantially after the project.

The community efforts in planning and managing community driven projects have also involved broader
initiatives to improve health conditions. One example of such a spin off from this new culture of community
driven development is that 37 CDCs have come together in Kabul province to contribute 17% from their
individual block grants for a jointly planned and managed maternity clinic.

The beneficial impacts of the NSP initiated CDD approach need to be sustained both at the
institutional and governance levels, and with regard to the infrastructure created in order to
maximize the societal benefits. Adequate design and construction quality of sub-project
infrastructure is as important as ensuring financial sustainability to meet the annual operation and
maintenance costs. On both the fronts, the ICR mission observed ample scope for improvement
during the field visits (Box.3).

Box.3 Sustainability of a micro hydropower sub-project: The Deh Pashyan village in Parwan province
has spent about 3/4th of its allocated block grant for constructing a retaining wall (to prevent flooding of
village) and a micro hydro power plant (10 Kw capacity). The work is nearing completion and there is lack
of clarity regarding the technical design and planned utilization once this facility is commissioned. In the
original plan, only the retaining wall was planned, and a decision was later made to extend the wall to
enable installation of a micro hydro power plant. The current proposal is to provide power for lighting 600
bulbs in 200 homes. The water flow is stated to be perennial, but there is no plan as to how power will be
used in the day time, nor how the operation and maintenance of the plant will be managed. Substantial
savings in expenditure for lighting by each family is expected. The CDC has decided to charge 90 Afs per
family per month for the hydro-power supplied. Since the project is in the final stages of completion, only
projected benefits are discussed. While the threat of floods to the lands and village inhabitants is recognized
by the community, the threat of floods to the installed MHP is not factored in. While the priority of the
community is rightly identified, the planning, implementation and management of this type of sub-projects
need to be strengthened with adequate facilitation support.

27
6. Lessons Learned
6.1 Lessons learned and recommendations at framework level (“upstream”)
No. Lessons learned
1. The most significant delays of the NSP
are not caused by the difficult working
environment but by factors related to the
overall framework at government and
donor level and therefore are beyond the
authority of the NSP management.
2. The insufficient replenishment of Block
Grant funds is the single most significant
bottleneck of the program; hindering all
implementation levels and threatens the
acceptance of the NSP as a whole.
3. Drastic changes in expectations of the
political level and the donor framework
(e.g. nation-wide roll-out) affect the
direction and effectiveness of the NSP.
4. Delivery of immediate results for
communities and the sustainable building
of capacity are conflicting elements,
which need to be balanced carefully.
5. Key program targets (BG disbursement,
roll-out) should reflect the actual time
required for community mobilization and
sub-project implementation.
6. Long delays in the approval of contracts
for FPs cause dramatic limitations
throughout the implementation
framework.
7. Long delays in the procurement process
for critical goods hamper the working
conditions of the delivery structure.
Recommendations/ Possible Changes for NSP II
ƒ The strong commitment of World Bank and donors to
the NSP should be matched by a timely fulfillment of
agreed obligations with regard to funding.
ƒ The strong commitment of the GoA should be matched
by more coordination between Ministries and more
consistent expectations.
ƒ Responsibility for tracking the overall program budget,
donor commitments, and disbursements should be
consolidated with the NSP management.
ƒ All NSP planning efforts are void without a timely
replenishment of BG funds, which should be guaranteed
by upfront fulfillment of donors’ commitments. Fund
raising should be professionalized and consolidated in a
single office.
ƒ Program objectives should be defined in a clear and
unequivocal way and should be maintained in the
medium-term.
ƒ The incentive to provide rapid results on the ground
should not take precedence over the capacity building.
ƒ In the medium and longer term capacities at community
level are the condition for sustainable and cost-effective
delivery of development interventions.
ƒ NSP performance targets need to take into consideration
a feasible and more realistic implementation period.
ƒ Targets should be specified in ranges rather than
absolute numbers.
ƒ The roll-out plan needs to adhere more consistently to
agreed selection criteria and should provide alternatives
in case of non-accessibility of specific regions (e.g. for
security considerations).
ƒ FP contracts should be set for a period of at least two
years with safeguards in case of non- performance.
ƒ Procedures for processing contracts should be less
bureaucratic avoid duplicated evaluations and clearly
define responsibilities.
ƒ The NSP management should have the authority in
approving at least contract amendments.
ƒ NSP procurement responsibility and authority should be
integrated into the NSP management with frequent
external supervision.
ƒ In issuing NOLs, the WB procurement department
should better utilize its “institutional memory” and make
filing systems more efficient.
38
 No. Lessons learned
8. The choice of institutional arrangements
featuring performance based contracting
of service providers for implementation
(FPs) and management (OC/MSC) has
enabled a rapid start and high level of
NSP activities.
6.2 Lessons learned and recommendations at the program management level
Nr. Lessons learned
9. The decentralized approach for
appraising and approving subprojects at
PO level is functioning well and has
achieved clear vertical lines of
accountability.
10. Slow transfers of BG funds from the
DAB to provincial CDC bank accounts
have been speeded up by obtaining a
MoU from DAB on transfers within 2
weeks.
11. The web-based proposal tracking
system allows HQ and provincial staff
to track proposal status and address
delays in a timely manner.
12. The capability of the NSP MIS to
produce reports for monitoring and for
management decisions has not been
fully utilized.
13. Frequent ad hoc requests of MRRD and
donors on the MIS distract the
department from its core tasks.
14. The MIS can be further focused on its
core tasks by allowing more data entry
by Provincial Offices.
15. Insufficient use of management and
planning instruments hampers
management decisions and
communication with the
implementation framework.
16. Program delivery costs relative to total
costs and in relation to BG funds were
Recommendations/ Possible Changes for NSP II
ƒ It should be more considered that the establishment of
such arrangements takes time, and expectations
regarding how quickly operations can begin on the
ground need to be realistic.
Recommendations/ Possible Changes for NSP II
ƒ Any further decentralization of responsibilities should
consider how the NSP/MSC’s experience and expertise
can be utilized, and how such changes affect
accountability.
ƒ The agreement with DAB needs to be monitored and
enforced. If DAB performance remains weak in certain
provinces, alternative approaches should be identified.
ƒ DAB should recognize that CDCS are public entities and
allow the unlimited maintenance of CDC bank accounts at
DAB branches.
ƒ The system should be decentralized further through entry
of key proposal documents in the MIS by the POs in order
to eliminate the transfer of “hard copies” to HQ and thus
reduce disbursement times/delays.
ƒ The MIS and tracking system should be extended to cover
the complete service delivery chain (from CDC
mobilization to BG disbursement).
ƒ More standard MIS report templates should be developed
to support management decisions and inform stakeholders
on key performance indicators.
ƒ The MIS should be expanded in order to produce data
with regard to the relevant I-ANDS benchmarks.
ƒ The ToRs of the MIS and reporting requirements should
be defined more precisely and adhered to.
ƒ Ad hoc requests on specific reports should be reduced to
the minimum.
ƒ Expanding the data entry at PO level allows MIS at HQ
better response to the immediate needs of NSP
management reduces over all MIS costs, strengthens the
NSP ownership at provincial level.
ƒ Existing planning instruments need to be expanded (work
plan, disbursement plan, procurement plan) and new ones
be introduced.
ƒ The costs of NSP management can be reduced by either
adjusting the provided capacity of the sub-project pipeline
to the expected BG flow or by ensuring the replenishment
39
 Nr. Lessons learned
slightly higher than expected.
17. The complicated monitoring of FP
contracts distracts FP management from
direct communication with FPs.
18. Complicated procurement rules of
goods and services for sub-projects
represent a high burden for CDCs and
FPs.
19. The banking system continues to be a
bottleneck for BG transfers to
communities.
20. The insufficient engineering capacity in
terms of quality and quantity has been a
major bottleneck for planning and
monitoring sub-projects.
21. The M&E function of NSP has been too
much focused on monitoring and
neglected evaluation.
22. It has been difficult to sufficiently
provide capacity building alongside
NSP implementation.
6.3 Lessons learned and recommendations at Facilitating Partner and CDC level
(“downstream”)
Nr. Lessons learned
23. Initially the periods of time between
selection of communities and election of
CDCs were underestimated.
24. The initial project design did not
anticipate the interest of communities to
propose more than one sub-project. The
higher number of proposals (average 1.7)
increased the workload for approval and
BG disbursement as well as the program
delivery costs.
25. The initial policy requiring three
installments per sub-project delayed BG
disbursement and sub-project
Recommendations/ Possible Changes for NSP II
of BG funds at the intended level.
ƒ FP contract monitoring should be simplified further by
restricting it to monitoring of outputs (milestones) and
introduction of certification of FPs.
ƒ Sub-project goods procurement should be simplified by
not tying it on World Bank procurement procedures,
allowing simplified procurement on the basis of standard
prices, more simple and standardized contracts for
suppliers, training for CDCs and FPs.
ƒ Specific projects to improve the efficiency of DAB and to
establish private banks are necessary.
ƒ Engineering capacities should be further improved and
supported by decentralizing engineering checks further,
developing instructions for engineering checks of complex
projects, introducing certification of contractors, more
standard sub-projects, improving the construction cost
data base, standard contracts.
ƒ The structure and mandate of the M&E department should
be re-designed; monitoring should be decentralized as
much as possible, broader evaluation studies to be
outsourced and M&E at HQ to increase its coordination
function.
ƒ The NSP training function should be further strengthened
by replacing the cascade system with training modules,
focusing the training department on facilitating of
contracted training providers and by decentralizing
training to the regional level.
Recommendations
ƒ It is essential that adequate time is anticipated and
reserved for mobilizing communities. This ensures that
program targets are based on a feasible timeframe.
ƒ The interest of the communities in several but smaller
sub-projects should be accepted. A minimum value for
each sub-project (e.g. USD 2,000) and/or a simplified
approval process for small and standardized sub-
projects should be considered. It should be analyzed
whether multiple sub-projects reflect mature decision-
making within the community or the failure to reach
consensus on community priorities.
ƒ The reduction to two installments in the OM version of
Jan 2006 should be continued and the results be
evaluated.
40
 Nr. Lessons learned
implementation.
26. It proved to be difficult fully utilizing the
expertise accumulated within communities
and FPs.
27. It remained a challenge for FPs to balance
the need for high engineering quality of
sub-projects with the need for rapid
achievement of outputs.
28. Involvement of women in decision-taking
needs to be strengthened in ways which
are not threatening cultural values on
gender relations.
29. The NSP alone cannot guarantee the
institutional sustainability of the elected
CDCs as local level governance bodies.
Recommendations
ƒ In NSP II, a more systematic identification and
documentation of experience and of best practices as
well as a regular exchange between FPs and between
CDCs are necessary.
ƒ Engineering capacities of FPs should be further
improved and supported by providing training,
providing more technical manuals, further
standardization of sub-projects.
ƒ The project should draw still more on experiences by
FPs to refine its facilitation techniques for the
promotion of women's participation
ƒ To ensure the sustainability of CDCs beyond the project
period the roles of CDCs should be strengthened: as
entry-point for other line ministries and development
interventions for communities (health, education etc.),
linkages with local and regional administrations,
involvement in government services provision.

7. Conclusion

In conclusion, the MRRD would like to restate that it considers NSP I a success in its design,
objective and implementation, considering the framework conditions in which it worked. The
MRRD is thankful to the donors (the World Bank, the contributions through the ARTF and bi-
lateral donors) and the GoA for their support in financing the program and/or providing oversight
through the Inter-Ministerial and (later) the NSP Steering Committee. MRRD also acknowledges
that a considerable portion of the achievements of NSP Phase I must be attributed to the German
Technical Cooperation International Services (GTZ-IS) that formed the NSP OC, and a further
acknowledgement to the 24 NSP Facilitating Partners over this period. Shortly after the NSP I
period, the NSP received a nomination for the IBM Innovations Award for transforming
Government. While the nomination was received just when NSP II started, it speaks volumes of
the success and recognition of NSP I in reaching its governance objectives.

In spite of its achievements, the MRRD still recognizes that NSP I was plagued by a number of
problems in its operations and implementation. The Ministry is committed to taking measures to
correct or minimize these problems during NSP II. However, it should be noted that almost all of
the problems faced in NSP I will require joint efforts from the donors, the MRRD, the MSC, the
FPs, and other NSP stake-holders to resolve. The MRRD seeks more coordinated efforts from all
stake holders in this regard.

41
MRRD Comments on Draft ICR

NSP has noted with great concern that the risks to its development objectives has been rated as
significant. NSP agrees that a lot more action and coordination needs to be undertaken to reduce
these risks.

The NSP has noted that the Bank believes that the NSP MIS has not been an effective tool to
provide inputs for an assessment of the achievement of the project outcomes. This has been
because no clear framework was provided during the MIS set-up, and hence it evolved based on
reporting demands at that time (which were so focused on block grant disbursements and
subprojects, rather than larger outcomes). NSP commits to working more closely with the World
Bank’s M&E and MIS experts to ensure that our MIS and M&E systems/departments are more
effective in future.

As recommended in the ICR, NSP will be focusing on more external assessments to provide the
program expert opinion on focused areas.

The recommendation (# 7) of a more operational forum to define practical coordination of rural

development on an ongoing basis is indeed welcome (p. 18). It would be important to have the
“buy-in” of all the TTLs of the relevant Bank-financed programs in such a forum. MRRD
requests the Bank’s NSP team to advice on how this may be realized.

When reviewing the outputs by components (Annex 2), it is obvious that the only two targets that
were not met (i.e. number of subprojects completed and total block grant commitments) were
primarily due to lack of continuous and adequate financing. NSP is acutely aware of this problem
and is seeking donor support even at this juncture when funding is temporarily adequate.

NSP especially appreciates the economic and financial analysis (Annex 3) undertaken as part of
the ICR. The estimated average ERR is impressive, and it is important for us to have this kind of
data, compiled by experts outside of NSP, to relay to potential donors and critics.

The NSP also takes this opportunity to thank the Bank for acknowledging MRRD’s continued
commitment to the NSP and the corrective measures already taken to improve program
implementation.

42
The major strengths of the program design are the transfer of funds directly to communities,
enabling a strong sense of ownership of the program, and the democratic elections through secret
ballots which ensure that poor and marginalized peoples are included in decision-making
processes. However, a major weakness of the program remains the failure to develop
mechanisms to adequately incorporate the significant influx of returnees (both internally
displaced people and returning refugees).

The most significant flaw with the program design is the failure to ensure recognition of the
CDCs by other donors and government ministries, which significantly affects the sustainability of
the program. Another problem with the design is the indicators, which remain focused on
infrastructure development rather than achievement of governance objectives. Limited tools exist
to assess the quality of training or the actual capacity of CDCs, which should be addressed as a
priority in the next phase of the NSP.

Assessment of implementation and operational experience

Implementation of the NSP has been enormously successful, with rapid expansion enabling it to
reach more than 17,000 communities by 31st March 2007. Despite significant problems (detailed
below) and the urgent need for consolidation of existing CDCs, the FPs in general remain
committed to the program and to supporting the CDCs through additional complementary
programming.
Delayed transfer of block grant funds: The major problem with implementation has been the
enormous delays in transferring block grant funds to communities, which undermined the
credibility of all stakeholders in the program, particularly government, facilitating partners and
CDC members. The delay in funds transfer also increased program costs by extending the time
required for CDCs to utilize their block grants.
Delayed payment of FP invoices: The quality of the facilitation also suffered due to continual
delays in payment of FP invoices, which prevented FPs completing recruitment of essential staff.
For smaller agencies, particularly national NGOs, this resulted in FP staff working without
salaries or sufficient resources (such as vehicles and computers) demonstrating considerable
commitment to the NSP and to rural communities. But the situation undermined morale and
contributed to the loss of experienced staff from the NSP.
Overly complex operational procedures: Despite extremely low literacy levels amongst the rural
population, NSP procedures require a high number of complex forms to be completed for CDCs
to receive and account for block grant funds. Despite recognizing the need to simplify forms and
procedures, the World Bank recently requested increased CDC reporting requirements and the
provision of bank statements (wherever possible) to validate CDC expenditure, which will create
further delays in the utilization of block grants by CDCs. The complicated forms and procedures
of the NSP also limits the participation of poorer and marginalized groups, as they are less likely
to have the necessary literacy skills.
Poor quality of projects: Communities generally lack the technical skills to adequately
implement and/or select contractors for the projects of their choice, leading to significant
problems with construction quality. This needs to be addressed through more intensive training,
supervision and monitoring, but the shortage of experienced, qualified engineers in Afghanistan
and restrictive budgets makes this difficult for FPs to address. The MRRD/NSP technical teams
need to conduct additional monitoring of projects during implementation rather than simply
focusing on monitoring after projects are completed.
Consultation with FPs: The original program design was developed through extensive
consultation with a range of NGOs with experience in Afghanistan. However, the level of

44
Proposed arrangements for future operations of the project
At the national level, MRRD is progressively taking greater responsibility for overall program
management but this transition needs to be carefully managed to ensure the effective transfer of
knowledge and capacity to local staff.

Due to World Bank restrictions on the overall NSP 2 budget, facilitation of the program will be
limited to a two-year period for all new communities, despite evidence that this is insufficient.
Continuing limitations on FP budgets are also problematic as quality facilitation requires an
intense engagement with communities. FPs have repeatedly stressed the need for greater
flexibility in the allocation of budgets to recognize the higher costs required to facilitate the
program in remote or high-risk areas, but the MRRD/NSP continues to apply a rigid cap on FP
costs regardless of location or other factors.

The planned expansion of the NSP to all remaining communities in the southern provinces will be
extremely difficult with the current operational model. In order to achieve full coverage of the
southern provinces, the MRRD/NSP, World Bank,and FPs should again consult and agree
alternative models of program delivery to ensure coverage can be met. It should also be noted
that consultation on future priorities for the program would be strengthened through effective
consultation with all stakeholders, with FPs particularly concerned that full coverage become a
priority for all rural districts, not just those in the southern provinces.

Proposed arrangements for the sustainability of the major outcomes of the project
As of 31st March 2007, the proposed arrangements for ongoing support to the CDCs are
inadequate to ensure their sustainability. The NSP Transition Strategy outlines how FPs will
cease facilitation at the end of their current contracts, although 80% of the original CDCs have
not fully utilized their block grant entitlements after three years of support. After the withdrawal
of the FPs, the MRRD/NSP will provide limited support (not including technical design or
training) to CDCs to complete their block grant entitlements. Although not satisfactory for the
sustainability of CDCs, the strategy was developed due to communication from the World Bank
that no additional funding could be provided for longer facilitation periods with communities. For
all new communities to be covered in the NSP 2, facilitation will be limited to a two-year period
despite evidence that the majority of CDCs will be unable to complete their block grant
entitlements in that period.

The most effective method to contribute to CDC sustainability would be ongoing financial and
capacity-building support, and agreed mechanisms for coordination with other donors (both
government and non-government). To date, MRRD/NSP and FPs are the main development
actors that recognize and support the CDCs, while all other ministries’ engagement at the district
level is through traditional shura, which undermines the credibility and effective functioning of
the CDCs. As the sustainability of CDCs relies on their recognition by and genuine engagement
with other government actors, the support of the NSP Steering Committee should be translated
into agreed practical mechanisms for coordination at the provincial, district and community level.
In addition, there needs to be established mechanisms for CDC’s engagement in development
planning and implementation at the district level and provincial levels. More effective
coordination with the MRRD implemented National Area Based Development Program is
necessary to ensure that the process incorporates existing CDCs and enhances the introduction of
the NSP in areas where it has not yet reached.

47
Other documents:

Interim Strategy Note for the Islamic Republic of Afghanistan for the Period FY 07-FY 08, World
Bank, 2006.

Assessment of Microfinance and Income Generating Schemes as an Option for Community Sub-
Projects under the Emergency National Solidarity Project. Kabul, NSP, January 2004.

Assessment of NSP Facilitating Partners: Common Final Report (including appendices on

Lessons Learned and Key Recommendations), Altai Consulting, Kabul, August 2004.

Mid-term Evaluation of the National Solidarity Program, May 2006 (Final Draft Report, pp 337)
by the Post-War Reconstruction & Development Unit, University of York.

From Subjects to Citizens: Local Participation in the National Solidarity Program.

Afghanistan Research & Evaluation Unit (AREU) Working Papers, Kabul, August 2004, by Inger
Boesen.

Afghanistan Poverty, Vulnerability and Social Protection: An Initial Assessment, WB Report No.
29694-AF, March 7, 2005).

Fine-tuning the NSP: Discussions of problems and solutions with Facilitating Partners, AREU
Working Papers, Kabul, November 2005, by Palwasha Kakar.

Breaking Point – Measuring Progress in Afghanistan, Center for Strategic and International
Studies, Washington DC, February 23, 2007.

The Role of Culture, Islam and Tradition in Community Driven reconstruction – A Study on the
International Rescue Committee’s Approach to NSP by Kimberly A. Maynard, IRC, March 2007.

Assessing the NSP: The Role of Accountability in Reconstruction by Yama Torabi, Integrity
Watch for Afghanistan, 2007 (www.tiri.org)

Aiding the State? International Assistance and the Statebuilding Paradox in Afghanistan. AREU
Briefing Papers, April 2007, by Hamish Nixon

Lessons in Terror. Attacks on Education in Afghanistan. Human Rights Watch report (vol. 18,
Number 6 C):

“The Future of CDCs”, Declaration of CDC Members from 33 Provinces in Afghanistan. Herat
Solidarity Exchange, 9-12 May, 2005.

Afghanistan – Assessment of the scope for strengthening the role of NSP Community
Development Councils in local governance. Report for the World Bank TA on Public
Administration Reform, June 2007, by Asta Olesen & Asger Christensen.

Afghanistan: NSP Assessment of District School Construction and Rehabilitation Window.

Report for the World Bank, September 2007, by Sippi Azerbaijani-Moghaddam

49
Public Disclosure Authorized

Document o f
The World Bank
FOR OFFICIAL USE ONLY

Report No. 48224-AF

Public Disclosure Authorized

EMERGENCY PROJECT PAPER

ON A

PROPOSED ADDITIONAL GRANT

IN THE AMOUNT OF SDR 50.9 MILLION

(US$75.0 MILLION EQUIVALENT)
Public Disclosure Authorized

TO

THE ISLAMIC REPUBLIC OF AFGHANISTAN

FOR

SECOND EMERGENCY NATIONAL SOLIDARITY PROJECT

April 14,2009
Public Disclosure Authorized

Sustainable DevelopmentDepartment
Agriculture and Rural Development Sector
Afghanistan Country Management Unit
South Asia Region

This document has a restricted distribution and may be used by recipients only in the performance o f their
official duties. Its contents m a y n o t be otherwise disclosed without W o r l d Bank authorization.
 CURRENCY EQUIVALENTS

(Exchange rate i s Kabul based open market buying rate effective April 9,2009)

Currency Unit = Afghani

Afghani 1.00 = US$0.019
US$1.OO = Afghani 5 1.O

GOVERNMENT FISCAL YEAR

March 21 -- March 20

ABBREVIATIONS AND ACRONYMS

Afn Afghanis GOA Government o f Afghanistan

ANDs Afghanistan National Development HCD Human Capital Development
Strategy
ARTF Afghanistan Reconstruction Trust Fund IDA International Development
Association
BG Block Grant ISN Interim Strategy Note
CAO Control and Audit Office NSP National Solidarity Program
CDC Community Development Council M&E Monitoring and Evaluation
CDP Community Development Plan MIS Management Information System
DAB D a Afghanistan Bank MRRD Ministry o f Rural Rehabilitation
and Development
ERR Economic Rate o f Return
ESSMF Environmental and Social Safeguard MSC Management Support Consultant
Management Framework
FM Financial Management MTR Mid- Term Review
FP Facilitating Partner PDO Project Development Objective

Vice President Isabel M. Guerrero

Country Director Nicholas J. Krafft
Sector Director John H. Stein
Sector Manager Adolfo Brizzi
Task Team Leader Qazi Azmat IsdSusanne Holste

..
11
 FOR OFFICIAL USE ONLY

TABLEOF CONTENTS

PROJECT PAPER DATA SHEET1

I. INTRODUCTION ............................................................................................................ 1
11. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING................1

111. PROPOSED CHANGES.................................................................................................. 5

N. IMPLEMENTATION ARRANGEMENTS................................................................... 5

V. CONSISTENCY WITH THE INTERIM STRATEGY NOTE.................................... 7

VI. UPDATE OF THE ECONOMIC ANALYSIS ............................................................... 7

VII. FINANCIAL TERMS AND CONDITIONS FOR THE ADDITIONAL

FINANCING .................................................................................................................................. 8
A N N E X E S ......................................................................................................9

This document has a restricted distribution and may be used by recipients only in the performance o f
their official duties. I t s contents may not be otherwise disclosed without W o r l d Bank authorization.

...
111
 Project Paper Data Sheet

Date: April 14,2009 Team Leader: Qazi Azmat Isa/Susanne Holste

Country: Afghanistan
Project Name: Second Emergency
National Solidarity Project
Additional Financing
Project ID: P112869
Sector Managermirector:Adolfo Brizzi/John H. Stein
Country Director:Nicholas J. Krafft
EnvironmentalCategory: B

Recipient: Islamic Republic o f Afghanistan

Responsible agency: Ministry o f Rural Rehabilitation and Development

Current closing date: September 30, 2009

Revised closing date: SeDtember 30.201 1
s from Bank policies? ,

Revised project development objective/outcome

The project development objective remains the same: to strengthen community level
governance in Afghanistan and to improve the access of rural communities to social and
productive infrastructure and services by supporting certain components of the Recipient’s
National Solidarity Program.

Does the scaled-up or restructured project trigger any new safeguard policies? N/A
P

For Additional Financing

[ ] Loan [ICredit [X ] Grant
For Loans/Credits/Grants:
Total Bank financing SDR 50.9 million (US$75 million)
Proposed terms: Standard IDA Grant terms.

Financing Plan (US$ million)

Source I Local 1 Foreign
- I Total
Recipient 0.0 0.0 0.0
IDA 70.0 5 .O 75.0
Others 0.0 0.0 0.0
Total 70.0 5.0 75.0
I. Introduction

1. This Project Paper seeks approval o f the Executive Directors to provide an additional grant in an
amount o f SDR 50.9 million’ (US$ 75.0 million equivalent) for the Afghanistan Second Emergency
National Solidarity Project (NSP 11) (P102288), which i s currently supported by IDA Grant H261-AF
(US$ 120 million equivalent). Upon the Board’s approval o f the additional grant, the closing date o f
Grant H261-AF would be extended by two years.

2. The proposed additional financing would help finance a funding gap and enable completion o f
original project activities. There would be no changes to the project’s development objectives, results
framework and key outcome indicators, and implementation arrangements. As the project i s to reach
more rural communities than originally envisaged, the project’s impact will be enhanced. This project i s
co-financed by the Afghanistan Reconstruction Trust Fund (TF90205) and bi-lateral funding from ten
donor countries.

11. Background and Rationale for Additional Financing

Background

3. The National Solidarity Program (NSP), one o f the most successful priority programs, was
launched by the Government o f Afghanistan (GOA) to support governance building and rural
infrastructure rehabilitation. The project development objective i s to strengthen community level
governance in Afghanistan and to improve the access o f rural communities t o social and productive
infrastructure and services by supporting certain components o f the Recipient’s National Solidarity
Program. The program finances: (i)community mobilization, empowerment and capacity building; (ii)
block grants to communities to implement sub-projects for reconstruction and development; and (iii)
program implementation management support, including program monitoring and evaluation.

4. The program was first piloted as a component under the Emergency Community Empowerment
and Public Works Project funded by IDA grant H009 (closed on December 3 1, 2004) and subsequently
received funding support o f three IDA grants (H072, H174, H209), an ARTF grant (TF 53939) and a
JSDF grant (TF 54367); the five grants closed on March 31, 2007, with total disbursement o f US$ 388
million.

5. On account o f the satisfactory performance o f the program in achieving i t s development

objectives and the critical need to r o l l out the program to all rural communities, a second phase o f the
program for a three-year implementation period, i.e., NSP 11, was prepared in 2006 with support o f the
GOA and the donor community. The development objectives and program content o f NSP I1 remain the
same as those for the first phase. NSP I1 i s to reach an estimated additional 4,318 villages and provide
continued support to the 17,222 communities mobilized in the first phase, with an estimated program cost
o f U S $ 526 million. To support the NSP 11, an IDA Grant o f SDR 81.2 million (US$120 million
equivalent) was approved on December 7, 2006 and became effective M a y 15, 2007. Donor support for
NSP I1 has been largely channeled through the ARTF with some additional bi-lateral funding. On M a y
27, 2007, ARTF grant TF 90205 for NSP I1 was approved, signed and became effective; since then,
cumulative funding allocations to TF 90205 totaled US$ 3 11.5 million as o f December 3 1, 2008. Both
IDA grant H 261 and TF 90205 have a current closing date o f September 30,2009.

To be calculated using the SDR rate as o f the last day o f the month preceding negotiations

1
Program Performance

6. Since the start o f the NSP 11, it’s Project Development Objective (PDO) and Implementation
Progress (IP) ratings have consistently been Satisfactory.

7. The second phase o f the program has brought the following achievements: 4,864 additional
communities mobilized and 4, 448 additional Community Development Councils (CDCs) have been
democratically elected and 4,242 Community Development Plans (CDPs) have been prepared; 22,84 1
sub-projects have been approved and 15,761 sub-projects have been completed. The majority o f the sub-
projects are for drinking water supplies, village roads, and irrigation infrastructure. U S $ 272.7 million
has been disbursed as block grants directly to the communities. About 11,738 CDCs mobilized in the
first phase o f the program continue to receive support in the current phase while 6,715 CDCs have
completely utilized their block grant allocations. The program i s now running in 359 districts out o f a
total 398 in all 34 provinces in the country and has reached over 17 million rural people.

8. To date, the program has seen the formation o f 22,618 CDCs, exceeding the target o f 21,600.
The reason i s the strong demand from remaining communities in districts which were already mobilized
during the first phase o f the program and a more active engagement in the less secure areas o f the country.

9. NSP I1has made important contributions to the formation o f social capital and governance in the
communities. The CDCs are elected through secret ballots and are generally made up o f a broader
representation o f the village constituencies than the traditional shuras. 3 5% o f all CDC representatives
are women and 47% o f women confirm their participation in decision making. Moreover, 2 1% o f women
are active in development activities outside the NSP. The participation o f women in village l i f e
represents an important transformation in a society where women are largely absent from public fora.
89% o f men and 77% o f women rated CDCs as being the main decision making bodies that address
critical development needs. CDC representatives receive training in office bearer duties, book keeping,
and accounting. Most Facilitating Partners (FPs) focus on conflict resolution and prevention skills during
the early phase o f community mobilization and many villagers have attested to the importance o f such
activities in the war torn communities. Facilitating partners are national and international NGOs which
are very important for the successful implementation o f the NSP. The partners have often worked under
difficult conditions, including operational bottlenecks, which will have to be overcome as the program
moves forward.

10. Legal compliance. The project i s in substantial compliance with legal covenants. As o f the last
Implementation Status and Results Report in September 2008, the project was in partial compliance with
several legal covenants but significant progress has been made towards full compliance since then. The
contract performance assessments o f the Facilitating Partners and the Management Support Consultant
are near completion and the draft reports were received in March 2009. An action plan to ensure full
compliance o f legal covenants has been developed and i s attached in Annex 1. The evaluation o f the
Facilitating Partners assessed the relevance, effectiveness, and efficiency o f the FPs in implementingthe
NSP program. The evaluation found that the majority o f FPs have a satisfactory financial management
system in place to ensure that the funds are used for the purposes intended. The NSP has been important
in social transformation in the communities but increased participation by women was seen as the most
difficult issue. The FPs can help achieve this but would require further resources. The assessment
recommended amongst other points a better documentation and knowledge sharing o f the wide ranging
innovations the FPs have introduced.

11. Fiduciary compliance. The November 2008 supervision mission noted improvements in the
project’s fiduciary compliance. The project has an overdue audit report for Afghan solar year 1386
(ending on March 20 2008) due for submission to IDA by September 22 2008. The annual external audits

2
for all IDA and ARTF funded operations in Afghanistan are carried out by the Auditor General (Control
and Audit office) with the support o f a firm o f public accountants selected through international
competitive bidding for a period o f 3 years at a time. Selection o f the audit firm for the period o f SY
1386- 1388 encountered considerable delays, causing a shift o f the timetable for completing all project
audits for SY 1386 by June 30, 2009. On account o f the concrete arrangement and timetable in place for
completing the audits for SY 1386, IDA granted on December 19, 2008 a waiver o f B P 10.02 remedies in
regard to delaying the presentation o f new operations and extending closing dates for ongoing operations.
There are no other unresolved major financial management issues.

12. The recent Financial Management (FM) review concluded that the project’s current FM
arrangements are considered adequate. Procurement and safeguards management have improved and the
current arrangements are also considered adequate. Steps have been taken recently to strengthen FM
including budgeting, reconciliation o f block grant disbursement to CDCs, and the recruitment o f a
professionally qualified accountant in the NSP Finance team, creation o f an Audit unit within the MRRD
to carry out independent internal audits and facilitate external audits. MRRD i s implementing an action
plan to bring financial and procurement management performance to fully satisfactory level. This action
plan i s attached in Annex 2.

Rationalefor Additional Financing

13. The November 2008 IDA supervision mission reviewed the overall implementation progress o f
the program and the pending program activities and commitments, and re-assessed the NSP I1 financing
requirements v i s - h i s the amounts o f funding support secured to date. Compared to the original NSP I1
program costs estimate o f US$526 million when the IDA grant H 261 was approved, the revised program
costs are estimated to be about US$ 704 million. The difference comprises (a) an increase o f US$ 110
million under the block grants component; (b) an increase o f

Project Cost Table by Component

A. Block grants Original cost NSP I1revised Difference In % o f original

estimates

B. FP community
facilitation & CDC
capacity development

*The school window sub-component financed the constructiono f schools at the district level. These activities are being handed
over to the Ministry o f Education.

3
**It i s proposed to combine original component B “FP Community Facilitation” and Component C “CDCs Capacity
Development” because the activities are interwoven and supported by the same FPs.
***The institute has been established in MRRD but it was decided to seek financing outside the NSP.

U S $ 61 million under the community facilitation and capacity building component; (c) an increase o f
US$ 10 million under the program management component; and (d) a decrease o f US$ 3 million under
the Afghanistan Institute for Rural Development component. The table below shows the revised costs by
component and the original costs estimates (in US$million).

14. The original funding requirements for block grants to communities turned out to be considerably
underestimated due to (i) the equity considerations (outreach to the entire country) as well as demand o f
rural communities for a rapid roll-out o f the program; and (ii) an increase in the average amount o f block
grant per community from US$26,000 to US$32,800 due to increased number o f households as displaced
people returned to their villages and number o f families were better established. The cost increase for the
community facilitation and capacity building component are attributable to: (i)greater community
facilitatiodcapacity building efforts required than originally budgeted for, and (ii)unpredictable and
delayed releases o f funds from ARTF precipitated by the actual flow o f donor contributions paid into the
ARTF and bilateral donors for NSP I1 slowed the pace o f facilitation and subproject implementation and
increased the costs o f contracts for Facilitating Partners (FPs) as they are unable to adjust their staffing
strengths in the field. Finally, the deteriorating security situation has resulted in more frequent
suspensions o f program activities in certain areas where the program i s operating, thereby increasing the
program delivery costs.

15. Based on the revised program costs and the actual funding support secured to date, there i s a
funding gap o f approximately U S $ 264 million, o f which US$ 138 million i s being sought from ARTF.
The proposed additional IDA financing o f US$ 75 million will help close the funding gap while funding
from bilateral donors will be sought to meet the remaining balance. This, together with the proposed two
year extension o f the grant closing date for H 261 and TF 90205 will enable the completion o f NSP I1
activities.

16. The proposed additional financing i s crucial to enable a well-performing national priority
program to continue i t s implementation and achieve its development objectives and outcomes. Presently,
24 percent o f the total number o f communities contracted have fully utilized their block grant allocations.
While this achievement i s lower than could have been anticipated at this point, this i s not due t o lack o f
interest by the communities but rather due to delays in payment o f block grants. The reasons for this
include unavailability o f donor funding and operational delays. Preparation for the third phase o f the
program (NSP 111) i s expected to begin soon and would focus i.a. on completing the roll-out o f the
program to all accessible communities and on recurrent block grants to and consolidation o f existing
Community Development Councils. Preparation o f the third phase will also include a review on the
sustainability o f the CDCs and their role in the sub-national governance agenda o f Afghanistan. The task
team, in consultation with the Client felt that it would make more sense to develop a new operation for
this next stage rather than for completing current commitments. The proposed additional financing will
enable the GOA to fulfill commitments made to the communities. In many villages, NSP i s the only
government program delivering results on the ground.

17. Additional financing i s considered to be the most suitable instrument to help close the identified
funding gap based on the projections o f further ARTF funding support for NSP I1in the coming years and
difficulties in securing sizable bi-lateral donor support outside the ARTF for NSP 11. As part o f the
review o f the NSP I1 implementation, discussions with MRRD and donors are ongoing to examine how
community level governance structure as developed under the NSP can be sustained and strengthened to
enable CDCs to play a central role in demand-driven rural development and poverty reduction in

4
Afghanistan. Moving forward in that direction would likely call for a re-calibration o f program’s
development objectives, program contents, results framework and implementation arrangements. For this
reason, there i s a shared view with MRRD that future support would be most suitably delivered through a
new lending operation.

18. The Project’s development objective, program design, results framework and outcome indicators,
as well as implementation arrangements remain the same.

111. Proposed Changes

19. This project paper seeks approval for an additional financing o f U S $ 75 million. Upon the
Board’s approval o f the additional grant, the closing date o f Grant H261-AF would be extended by two
years. The project’s development objectives, program design, results framework and outcome indicators,
and implementation arrangements remain the same. Project activities pertaining to Community
Facilitation (Component B) and Capacity Building o f CDCs (Component C) will be merged because their
implementation i s interwoven and supported by the same FPs. As the program i s rolled out to more rural
communities than originally envisaged, the program’s impact will be enhanced and the target o f
formation o f CDCs at the end o f NSP I1implementation i s revised from 21,600 to 22, 6 18.

20. Allocation o f the proceeds o f the proposed additional funding i s as follows:

Component Amount o f the Grant % of Grant

Allocated (US$ million)
I. Grants for communitv sub-moiects 52.1 69.5%
2. Community facilitation & sub-project 17.6 23.5%
preparation and capacity building o f
community development councils
3. Implementation and management support 7%
Total 75 100%

21. Disbursement from the proposed additional grant would be from a single disbursement category
covering goods, works, consultants’ services, training, Block Grants and Incremental Operating Costs*
for the Project. “Incremental Operating Costs” means the incremental expenses incurred on account o f
Project implementation and management, including the operation and maintenance o f vehicles, office
supplies, communication charges, insurance costs, office administration costs, banking charges, utility
charges, domestic travel and per diem allowances, but excluding salaries o f the officials o f the Recipient’s
civil service.

IV. ImplementationArrangements

22. Activities under the proposed additional financing would be carried out using the existing
implementation arrangements. MRRD would continue to have the overall responsibility for program
implementation. The NSP management under MRRD guidance would continue to carry out core
functions for policy and strategy development and application, coordination with other ministries,
resource mobilization, management o f relations with FPs, appraisal, approval and processing o f

5
 ‫ضمیمه شماره ‪4‬‬
‫گزارش برنامه ملی انکشاف‬
‫منطقوی در سال ‪2008‬‬
 ENERGY FOR RURAL DEVELOPMENT IN
AFGHANISTAN
ANNUAL REPORT 2008

ENERGY FOR RURAL DEVELOPMENT IN AFGHANISTAN (ERDA)

NATIONAL AREA BASED DEVELOPMENT PROGRAM (NABDP) UNDP

MINISTRY OF RURAL AND REHABILITATION DEVELOPMENT (MRRD)

AFGHANISTAN
ERDA Annual Report 2008 Main Report

Table of Contents
1 Background ...................................................................................................................... 4
2 Project Strategy................................................................................................................ 6
3 Expected Project Outputs .............................................................................................. 6
4 ERDA Activities.................................................................................................................. 7
4.1 Pilot Energy Projects................................................................................................. 7
4.2 Capacity Development.......................................................................................... 9
4.3 Policy Support......................................................................................................... 10
5 Lessons Learnt ............................................................................................................ 11
Annexes ................................................................................................................................. 13
Annex 1- Pre-feasibility of Micro Hydro Power Projects................................................ 13
Annex 2 Detail Feasibility of Micro Hydro Power Projects............................................ 15
Annex 3 Prefeasibility of Mini Hydro Power Project ................................................... 17
Annex 4 Status of ERDA Supported Micro Hydro Power Projects ............................... 18
Annex 5- Identification Study Format for Micro Hydro Power Projects...................... 19
Annex 6 : Feasibility Study format for Micro Hydro Power Projects ............................ 22
Annex 7 : Technical Guidelines for Feasibility Study and Design of MHP Projects .. 30
Annex 8. ERDA Implementation Guidelines .................................................................. 60
Annex 9 Operation and Maintenance plan for MHP Projects .................................. 77
Annex 10 Price Collection Sheets for MHP Electromechanical Components ....... 87
Annex 11 MHP Power Output Verfication
Tool…………………………………………………………………………….94

Annex 12 Design Aspects of Solar Water Pumping System...................................... 106

Annex 13 Format for Feasibility study of Solar Pumping Schemes ......................... 114
Annex 14 Feasibility Survey Form for Household Biogas Plant................................. 120

Annex 15 Capacity Development Activities

…………………………………………………………………………… 117

Annex 16 RET Information Material (Dari

Version)…………………………………………………………………….119

Annex 17 MRRD Micro Hydro Policy (Draft)................................................................ 134

2
ERDA Annual Report 2008 Main Report

operation of generation and distribution services and productive uses of

electricity.

In this context, providing access to electricity to 25% of the rural

population by 2010 as envisaged by the Afghanistan Compact is a big
challenge. Furthermore, the Afghanistan National Development Strategy
(ANDS) sees rural energy development as a means for poverty reduction and
improvement of livelihoods in the rural areas of the country, which requires
reorientation in project formulation and implementation. Remoteness,
dispersed settlement patterns, lack of institutions and resources required
make it a daunting task. ANDS foresees the biggest challenge in addressing
effective rural energy needs is to find innovative ways to couple energy
service delivery with economic activities.

To help realize the priority of the Government of Afghanistan, MRRD

with UNDP’s supported launched Energy for Rural Development for
Afghanistan (ERDA) project to contribute to the strategic energy benchmark
set by Afghanistan Compact and ANDS. It was envisaged that ERDA would
contribute to sustainable livelihoods and management of the environment
and natural resources.

2 Project Strategy
The main strategy of ERDA is to:

a) Demonstrate successful community based models for energy supply in rural

Afghanistan at different levels of governance.
b) Build capacity for operation and management of rural energy systems at the
community level; decentralized planning, and implementation monitoring of
sustainable energy projects at the district level and planning, survey, design
and policy formulation related to rural energy in MRRD.
c) Expand the technological options in Afghanistan for rural energy services.
d) Prepare a platform for MRRD/Government of Afghanistan to scale these
models up to the national level in other provinces in Afghanistan.

Pilot energy projects are implemented in districts which have identified energy
projects as a priority. The capacity of the DDA and relevant departments within
MRRD are built up in the process of carrying out the pilot projects. The models
demonstrated by the pilot projects will be scaled up in a subsequent follow up
project to cover multiple provinces and districts to increase access to energy
services and improve linkages to achieve wider MDG outcomes (productive
employment, health, education, gender, maternal and child health, etc).

3 Expected Project Outputs

Main project outputs in 18 months (as given in the project document):

6
ERDA Annual Report 2008 Main Report

is on technical capability to survey and design rural energy projects.

RITS engineers have been working closely with ERDA professionals in this
regards. ERDA is supporting REED to assess the performance of micro
hydropower plants installed with MRRD’s support. ERDA helped
prepare the questionnaires, trained technicians on power
measurement and performance assessment of plants and consumer
satisfaction. ERDA and REED technicians are surveying power plants in
different provinces.

4.3 Policy Support

ERDA is supporting MRRD in formulating rural energy policies. ERDA
provided comments on the draft of Afghanistan National
Development Strategy (ANDS), Energy Sector Strategy, particularly on
issues related to rural energy. ERDA has also prepared the draft of
Micro Hydropower Development Policy for MRRD. See Annex 17 for the
draft Micro Hydropower Policy document.

ERDA is working as the focal agency within MRRD and is supporting it

for active participation on Inter Ministerial Commission on Energy (ICE)
and ICE Sub-Committee for Renewable Energy and Rural
Electrification. ICE is the highest authority in Afghanistan for energy
policies and coordinating activities of all actors involved in the sector.

ERDA has also been playing critical role in mobilizing resources on

behalf of MRRD. ERDA has actively participated in Inter Ministerial
Committee on Hydropower coordinated by Ministry of Finance and
with representation from MRRD, MEW and Asian Development Bank.

As ERDA does not have earmarked budget to implement energy

projects in its programme areas, proposals were prepared and
submitted to Korean government (KICA), JICA, Government of Japan,
Spanish Government, Ministry of Finance,
ADB,UNDP/UNAMA,UNDP/MDG Project.

ERDA is supporting MRRD to consolidate rural energy activities

undertaken by various departments and programs within the ministry.
External consultants were hired to recommend organizational structure
and implementation modalities for rural energy development.
Recommendations include consolidation of energy activities under a
national rural energy development program that will not only
implement rural energy projects but also develop and implement a
quality control mechanism, support in developing capacities at all

10
ERDA Annual Report 2008 Technical Guidelines for Feasibility Study of MHP Projects Annex 7

Annex 7 : Technical Guidelines for Feasibility Study and Design of MHP

Projects

TECHNICAL GUIDELINES FOR FEASIBILITY

STUDY AND DESIGN
OF
MICRO-HYDROPOWER PROJECTS

DRAFT DOCUMENT

ENERGY FOR RURAL DEVELOPMENT IN AFGHANISTAN (ERDA)

NATIONAL AREA BASED DEVELOPMENT PROGRAM (NABDP) UNDP

MINISTRY OF RURAL AND REHABILITATION DEVELOPMENT (MRRD)

AFGHANISTAN

30
ERDA Annual Report 2008 Technical Guidelines for Feasibility Study of MHP Projects Annex 7

2. THE GUIDING PRINCIPLES

The Operational Guidelines of NABDP is based on certain principles that are
equally applicable for ERDA. It is expected that the user(s) of this Guidelines
will adhere to these principles in order to increase the efficacy and efficiency
of their implementation works.

The principles are as follows socialisation, Simplicity, Community

Empowerment, Accountability, Transparency, Adherence to Quality,
Ownership and Stakeholders involvement.

3. MICRO HYDROPOWER PROJECT SELECTION CRITERION

Micro Hydropower is defined as those hydropower plants with the installed capacity
of less than 100 kW.

3.1 Project Identification

The basis of identifying micro hydropower projects for implementation is the District
Development Plans (DDP). Projects might be identified by the communities
(Community Development Councils or a cluster of councils, traditional organizations,
government officials, non-governmental organizations (NGO) or individual
entrepreneurs but have to be endorsed by the respective Community Development
Council/s and District Development Authority and incorporated in DDP.

3.2 Pre and Detailed Feasibility Study

ERDA will provide technical assistance to undertake pre-feasibility and detailed

study of the projects. The pre-feasibility will consider the following factors to prioritize
the potential MHP. The format for Pre-feasibility Study is attached in Annex

i. Geophysical Conditions: There should be adequate flow in the river,

adequate head at the site and stable terrain. Normally, a MHP is a run-off
the river type scheme, so there will be no reservoir. The installed capacity
of the plant is calculated on the basis of the minimum flow available all
year around.. The site should be close to the load center and benefit
maximum number of households.

ii. Distance from Electricity Grid: The national electricity grid is unlikely to
reach the proposed MH site within the next five years.

iii. Commitment of the community: The community should be willing to

provide voluntary labor for construction of the scheme, transportation of
construction material and electromechanical equipment from nearest

32
ERDA Annual Report 2008 Technical Guidelines for Feasibility Study of MHP Projects Annex 7

road head as well as collection of locally available materials like sand,

stone, aggregate and timber and contribute cash or take loan, if needed.
The community has to contribute at least 10% of the total project cost.
NABDP Operational Guidelines emphasizes on selecting beneficiary
community based on the size (percentage) of their contribution to the
total project cost.

Besides, each household should be willing to pay for consumption of

electricity and the community should establish a Micro-hydro Operation
Fund (MOF) to operate and maintain the plant once it is operational.

iv. Productive Use of Electricity: There should be possibilities of using electricity

for various productive-uses like enhancing agricultural production (e.g. lift
irrigation), agro-processing (e.g. milling), electric cooking and off-farm
enterprises (e.g. saw-mill, bakery, stone-crushing, etc.)

v. Multiple Use of Water: In addition to producing electricity, there should be

possibilities of using the water for other purposes, namely irrigation and
drinking water.

vi. No other MHP: To avoid duplication, there should be no other MHP in the
CDC. If there is another MHP providing electricity to a small percentage of
population, an Memorandum of Understanding clearly outlining the area
of operation of each MHP has to be signed by all the parties including
CDC and DDA involved.

vii. No Water Right Conflicts : There should be no conflict on the water use right
in the source stream/river. The community is solely responsible to resolve
conflicts, if any, before implementation. The community has to provide an
evidence in writing either from local Mirab (Water Headman) or DDA, in
case there is no Mirab, stating their rights for water-use.

In this analysis, geophysical stability and absence of water rights conflicts are
taken as preconditions. Geophysical stability ensures stable civil structures
without incurring excessive costs. It has to be ensured that there is no water
rights conflicts, or even if there is, it should be resolvable.

Viii Security Situation: Local security to implement the project is a precondition.

ERDA will assess the security situation and only support projects in areas it finds
secured enough. Besides, the CDC and DDA have to provide written
assurance of providing security to all ERDA personnel, consultants and
supplier/installer before a project is taken up for development. DDA also has to
guarantee of safe access to all project personnel to and from the project site. If
ERDA feels that the security situation is not good enough at any point in time it
will withdraw all its personnel and halt its activities. However, if the project is in

33
ERDA Annual Report 2008 ERDA Implementation Guideline Annex 8

projects must be answerable to the beneficiaries for their

decisions, actions and behaviours. Beneficiaries, including
women, must be satisfied with the project processes, progress
and expenses. They have the right to ask and should get clear
answer from DDAs, CDCs and contractors.
5. Transparency: All decisions and actions related to the projects
should be transparent. The DDAs and the CDCs should readily
make information available to the general public and the
funding agencies on all aspects of the project implementation -
for instance, the decision process, criteria used, rules and
procedures, expenditures, performance vis-à-vis plan etc.
Transparency reduces uncertainty related to the project
implementation, and also helps inhibit corruption.

6. Adherence to Quality: All NABDP projects will be implemented as

per the approved criteria and specification. Quality works
provide the expected benefits and become more durable.
ERDA in coordination with the DDAs, will take al responsibility to
ensure that the works have been done as per the norms and
standard it has developed.

7. Ownership: Ownership is a process in which the beneficiary

community takes initiative to implement the project in the
beginning and responsibility to sustain the project. In order to
raise the feeling of ownership, communities are required to
contribute to the project. This contribution may be in cash or kind
or both, in the form of labor contribution or through the
configuration of a maintenance system. This is important for
sustainability of the project as well.

8. Stakeholders involvement: Successful Integrated Comprehensive

Rural Development can only be achieved by joining hands
with other national and international partners, ministries, UN
agencies, donors, NGOs, private sector, universities, etc.

1. Definition of Micro Hydropower

Micro Hydropower is defined as those hydropower plants with the installed

capacity of less than 100 kW.

62
ERDA Annual Report 2008 ERDA Implementation Guideline Annex 8

• Implementation modalities
• Community’s contribution
• MRRD/NABDP support
• Roles and Responsibilities of all parties involved
• Establishment of Micro Hydro Functional Group (MHFG) and Micro-
Hydro Operational Fund (MOF)
• Roles and Responsibilities of Operators and Manager
• Emphasis on revenue generation for sustainable operation and
management
• Other issues of concern for community, DDA, ERDA

6. Micro Hydro Functional Group (MHFG)

ERDA considers enhancing the capability of the rural communities to plan,

implement and manage rural energy systems in particular and rural
development activities in general an essential vehicle for sustainable
development . Emphasis is given to self-governance and ‘genuine’
participation of local people from planning to successful operation of micro
hydro and other rural energy schemes.

The community should form a Micro Hydropower Functional Group (MHFG)

with representation from all the Community Development Councils (CDC)
benefitting from a MHP. The number of executive members will depend on
the size of the plant, number of households served and the spatial distribution
of the village. Efforts should be made to have representation from women as
well as all ethnic and economic groups and geographic locations within the
community. MHFG will have a chair, secretary, treasurers, etc.

MHFG will be responsible for all activities related to the installation and
operation of the MHP. It will be responsible for resource mobilization,
construction planning, construction of the civil works and pole erection. It will
also be responsible for identifying potential manufacturers/suppliers for
electro-mechanical equipment, evaluation of their proposals and identifying
the best options, contracting and supervising and closely working with the
contractor to smoothly install the system. After completion and commissioning
of the project, MHFG will be responsible for sustainable operation and
management of the plant.

Besides, MHFG will also be responsible for formulating rules, setting tariff,
sanctioning non-payment and informing the users on the general condition of
the plant. MHP operators and managers will be hired and supervised by the
MHFG.

The community is the owner of the MHP and the MHFG on behalf of the
community has to undertake all the necessary activities required of a owner.
ERDA’s role will be advisory and facilitating the MHFG in achieving its goals.

66
ERDA Annual Report 2008 ERDA Implementation Guideline Annex 8

mobilized through voluntary labor. MHFG is responsible for managing

the installation with technical support from ERDA.

ERDA/MRRD, CDC and DDA will sign a Tripartite Agreement that

mentions ERDA’s support to CDC and DDA and the roles and
responsibilities of each party. ERDA’s financial support will be
transferred to the CDC as per the Agreement. (See Annex …… for the
Agreement format)

10. Micro-Hydro Operation Fund (MOF)

The CDC will establish a separate bank account for the purpose of
installation and operation of the MHP. The account will be called
Micro-hydro Operation Fund (MOF) and will be used only for the above
mentioned purposes. ERDA’s financial support will be channeled to this
account and MHFG will pay for all MHP related activities through it.
After the commissioning of the plant, revenue generated will be
deposited in this account and the fund will be used for operation and
maintenance.

11. Land Acquisition

The community is solely responsible for acquiring land for the canal,
powerhouse and other civil structures, penstock, erection of poles, etc.
The CDC/MHFG and the land owner/s sign MOU so that conflicts do
not arise in future. The ownership has to be transferred to the CDC
wherever possible.

12. Quotation Collection and Identification of Supplier/Installer

MHFG calls for quotations for supply and installation of electro-

mechanical parts as per the Bill of Quantities (BOQ) in the DPR. Only
manufacturers/installers pre-qualified by National Solidarity Program
(MRRD/NSP) are eligible to fabricate, supply and install
electromechanical equipment.

MHFG has to negotiate with supplier/installer for the best 'offer' – cost
reduction, quality products, on-time delivery and installation, etc. All
the collected quotations are analyzed and discussed in the MHFG.
Besides costs, past performance of the supplier/installer, qualification of
installation team, quality of equipment offered, supply and installation
time, etc. have to be analyzed. The community identifies, in consensus,
the best supplier/installer and directs the MHFG to sign the Contract for
supply and installation of electro-mechanical equipment on turnkey
68
ERDA Annual Report 2008 ERDA Implementation Guideline Annex 8

13.7 Participatory Evaluation: One year after the completion of the

project, a participatory evaluation will be undertaken in the
village by all the stakeholders – all beneficiaries, MHFG, CDC,
DDA and MRRD/ERDA. The evaluation will focus on whether the
project has achieved its objectives, major issues, mitigation
measures, etc.

15. Operation and Management

In small plants the operator and manager is usually the same person;
or, the manager also assists in operation and maintenance. For plants
larger than 50 kW, there should be two different positions; both for a
manager and operator; but this again depends on the level of
management skill of the operator and also the interest and
commitment of the manager. In short, the decision on the number of
operators and whether or not to have a manager should be guided by
the revenue generation. A MHP should be able to generate enough
revenue to pay for the services of the hired personnel.

The operator is responsible for not just running the plant but also for
maintenance and occasional repair. Therefore, he must understand
the location and functions of each machine and components. He
should be continually listening, testing and checking for malfunctions
and problems. He needs to keep uppermost in mind that prevention is
always better than cure. His responsibility will normally be for all
equipment and structures from source to distribution including routine
inspections, operation, loading of the system, distribution and good
condition of equipment.

The manager is responsible for overall management of the plant

including organization, planning, management, budgeting, tariff
setting, keeping of books, etc.

Reporting: The Manager and the Operator report to MHFG every

month. They report on the state of the scheme and difficulties, revenue
collected and the names of the defaulters which are announced in
the meeting. It is the responsibility of the MHFG and the concerned
CDC members to ensure timely payment of the electricity bills by all
members. The incomes and expenditures statement is presented at the
monthly mass meeting by the manager.

Safety Measures: As most of the villagers are using electricity for the first
time, a number of "Safety Classes" are conducted for creating
awareness among consumers. MHFG and ERDA are responsible for
72
 ERDA Annual Report 2008 ERDA Implementation Guideline Annex 8

organizing such classes in all schemes. All the beneficiaries, including

women and children are sensitized on the hazards of electricity and
the proper way to use it. ERDA will provide a “Safety Manual” to MHFG.

16. Rules and Regulations Regarding the use of Electricity

General rules and regulations regarding supply and consumption of

electricity are given below.

i. Every beneficiary household should provide voluntary

labor or equivalent in cash for the installation of the MHP.
ii. Each household should pay a fixed charge for
connection.
iii. The household is responsible for the service wire, cutout
and house wiring.
iv. MHFG has the right to accept or reject the request for
the power subscription/demand.
v. Household is connected to the system only after ensuring
the quality of house wiring.
vi. MHFG has the right to fix the tariff for domestic, industrial
or other consumers. The rates may be changed
periodically with consensus decision.
vii. A customer should pay the monthly bill by the date fixed
by the MHFG. Delay fine, which is determined by MHFG,
is applied then after.
viii. In case the monthly fee is not paid on time, MHFG has
the right to levy fines.
ix. In case a consumer is found to indulge in pilferage –
consuming more power than subscribe – MHFG has the
right to levy fine.
x. In case of repeated offense regarding the above points,
MHFG has the right to disconnect service to the
customer. Clearance of dues, delay fine and connection
charge are necessary for re-connection.
xi. MHFG is not responsible for any damage due to electric
faults beyond its control.
17. Productive-use of Electricity
Not only to increase the load of the micro hydro plant and ensure
financial viability of the system but also to realize ERDA's goal of
enhanced rural livelihood emphasis is given on utilizing the electricity
for various productive uses. End-uses are both domestic appliances
and electricity based micro enterprises. Promotion of end-use
technologies would support in improvement of quality of life through
drudgery reduction and improvement of health conditions, economic
development through value addition in local products and
employment generation and environment protection through
73
ERDA Annual Report 2008 ERDA Implementation Guideline Annex 8

reduction/replacement of fuelwood and fossil fuels. Table 1 below

outlines the ways and available technologies to achieve this stated
goal.

MHFG, with support from ERDA prepares a comprehensive end-use

promotion package. ERDA supports the prospective entrepreneurs in
adapting technologies to local conditions and establishing the
enterprises through MHFG/CDC. ERDA also supports the MHFG in end-
use and electricity based enterprise promotion.
Besides, ERDA also emphasizes that other income generating activities
are promoted so that even the poorest community members have
enough additional income to pay for their lighting needs. ERDA
supports mainly through linking community needs to the programs of
provincial/district level government line agencies and other
donors/NGOs involved in the field. Based on the needs of the
communities, ERDA coordinates with line agencies to identify training
and other supports.
ERDA provides limited financial support through CDC for the
development of end-uses and electricity based micro enterprises. The
support is provided to interested entrepreneurs in terms of soft loans or
venture capitals. CDC/MHFG decides the enterprise and amount of
support for the applications received from the community members. In
this context, ERDA provides one time support as endowment fund for
end-use promotion at the rate of 10,000 Afghanis per kilowatt installed
capacity.

Interested entrepreneurs have to submit a ‘business plan’ outlining the

type of enterprise, energy requirement, source of raw material,
expected market, process, equipment and machinery required,
capital required, etc. The entrepreneur has to bear the cost of land,
building, etc. and ERDA support will be used mainly for acquiring and
installing machinery. CDC/MHFG decides on the proposals and
forwards the selected ones to ERDA for verification and final approval.
The fund is then transferred to CDC for the establishment of the
enterprise. ERDA encourages the communities in identifying and
adopting appropriate end-use technologies based on local resource
and opportunities. If the concerned CDC/MHFG does not submit any
proposal to ERDA within six months’ of commissioning of MH scheme, it
automatically forfeits the financial support allocated to it by ERDA for
end-use promotion.

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 ERDA Annual Report 2008 ERDA Implementation Guideline Annex 8

Besides lighting, the most common end-use of MHP are agro-

processing such as grinding corn or wheat and oil expelling. Broiler
farming is another popular activity in the rural communities which could
be undertaken with the access to electric lighting. Other common
end-uses include stone crushing, sawmill, rural bakery, etc.

TABLE 1: PROMOTION OF END USES FOR ENHANCE RURAL

LIVELIHOODS
FOR TH EOUGH WI TH /SUCH AS

1) Reduction in fuelwood collection time * Electric cookers

IMPROVED QUALITY OF LIFE 2) Reduction in drinking water collection time * Water Pump
a) Drudgery Reduction 3) Mechanization of Milling process * Huller, Grinder, Expeller
4) Mechanization of transport sector * Ropeways

1) Better Lighting * Electric bullbs/tubes

2) Elimination of smoke * Electric cookers and bullbs
b) Health Improvement
3) Life saving mecidine * Refrigeration
4) Biomedical equipment * X - ray machine

c) Recreation 1) Establishment of recreation center * TV/ Video/High Vision Hall

* Saw Mills, Weaving, Bamboo Plywood Manufacture,

ECONOMIC DEVELOPMENT
a) Value addition
Paper Making, Food Processing (juice and jam) making,
1) Establishment of cottage and small industries
fruit and vegetables drying, cold stroage bakery, auto, and
2) Production of high value cash crops
mechanical workshops and furniture making
* Lift irrigation

1) Establishment of cottage and small industries

b) Employment Generation * Above nationed industries
2) Improved Irrigation

ENVIRONMENT PROTECTION
1) Reduction of fuelwood consumption * Bijuli Dekchis, Heat Stroage Cookers
a) Forest Management

1) Replacement of kerosene for lighting * Electric Lamps

2) Replacement of kerosene for cooking * Bijuli Dekchis, Heat Stroage Cookers
b) Replacement of fossil fuel
3) Replacement of diesel for motive power * Electricity operated mills
4) Replacement of kerosene in refrigeator * Electric refrigerator, cold store

1) Computers * Internet/email
Information and Communication
2) News * TV/Radio

Change/add end-uses for Afghanistan

18. Cooperative

For the sustainable operation of micro hydro schemes, MHFG could be

registered as a company or a cooperative. However the process for
registration should begin only after the successful operation of MH scheme for
at least six months. The members of the MHFG, CDC, DDA and ERDA
representative should discuss this issue extensive before any decisions are
made.

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 ERDA Annual Report 2008 ERDA Implementation Guideline Annex 8

19. Entrepreneurs

ERDA also encourages involvement of private companies or individual

entrepreneurs in development and management of MHP. However, ERDA’s
financial support is channeled through the CDC. Any domiciled entrepreneur
or group of entrepreneur can develop and manage MHP with the written
authorization of CDC and approval of DDA and ERDA. The interested
entrepreneur has to sign a written contract with the CDC on transferring fund
as soft loan, interest rate, payment schedule, etc. The contract should also
include management plans that includes tariff fixing procedures, rules and
regulations regarding electricity uses, etc. ERDA reserves the right to approve
or disapprove such projects.

20. Monitoring & Evaluation

ERDA emphasizes on project monitoring, reporting and evaluation. Monitoring

is integrated within the implementation modality in such way that problems
are identified are various levels and mitigated. The beneficiary community
monitors the activities of each other regarding labor contribution and rules-
following, it also monitors the activities of the MHFG and CDC personnel. DDA
monitors and supervises MHP implementation and ERDA provides technical
backstopping and monitors activities related to rural energy promotion.

Monitoring and reporting is an ongoing, regular process during

implementation; evaluation occurs periodically and when a project has been
completed. The bases for project monitoring are the project proposal and the
agreements, with anticipated details on activity and budget planning,
community contribution, plans and designs.

Specifically, the followings have to be looked at:

• Are activities taking place as scheduled?

• Is the quality of work as planned?
• Are outputs being achieved as planned?
• How have the beneficiaries responded/reacted to the project?
• Has there been any unplanned input required to achieve output?
• Any need for revision of current implementation plan or part of it?
• Likelihood of achieving the target?
• What are the recommendations to improve upon the current situation?
• Were the intended impacts achieved

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ERDA Annual Report 2008 Operation and Maintenance Plan for MHP Projects Annex 9

Regulations and rules for payments

• Committee to decide and change the regulation time to time if

required
• Final date for paying earlier month’s bill (second of the next
month)
• All beneficiaries have to receive the second page format
• Penalty for late payment (10% per month)
• Disconnection for non-payment for longer time (2 months)
• Client’s are responsibility for safe use of electricity
• Client’s responsibility for cost of replacement MCB/meter + service
charge
• No connection of one house from another unless approved by the
executive group
• Manager authority to inspect subscriber’s premise
• Salaries and wages and operators arrange by executive group
• Office expenses (meetings, rent, stationary) organize by executive
group
• Electric energy charge per each 20 watt tub lamp 30 Afs/ month
• Electric energy charge for small end uses and government offices
per each unit 5 Afs/Kwh
Maintenance and Operations regulations

•Maintenance and repair fund monthly (4 to 5%, bank deposit)

•Replacement and depreciation fund monthly (7%, bank deposit)
•The operators salary have to be paid after tariff collection monthly
•The bill and revenue have to collect by operators and executive
group representative
• Operator is responsible for damages beyond him
• The technical and electrical problem repaired, removing the light
and other explanation is the responsibility of operators
• Updating tariff (inflation, new situation / requirement
• Training during construction and implementation to contractors,
Basic skill training and on job training by equipment installer,
• operator turnover, the operator have to train one person and
make him ready before to leave
• scheduling maintenance works by manager
General responsibilities

• Do not allow unauthorized access to plant(power house)

• Maintain plant keep clean the equipment, waterway and around
as well
• Maintain safety in powerhouse and along the transmission and
distribution lines
83
ERDA Annual Report 2008 Design Aspects of Solar Water System Annex 12

Annex 12 Design Aspects of Solar Water Pumping System

Water Pumping System Configurations

There is a range of possible components and configurations for photovoltaic

water pumping systems which is shown in figure below. Selection of the most
suitable components and configurations for each specific application and site is
critical to the economic viability and the long-term performance of the system.

Pum Volumetric Centrifuga

l

Synchronou Asynchrono Separate Series Shunt

ly excited

Moto
AC
DC

Inverte Battery
bank
Power r Converter Switching Direct
DC – DC coupling
conditione controller Battery
Battery or charger
SMPS

Non Tracking
tracking

Solar
generator
PV
Generator

Photovoltaic Water Pumping System Components and Configurations

106
ERDA Annual Report 2008 Capacity Development Activities Annex 15

Annex 15 Capacity Development Activities

Institution Roles & Responsibilities Capacity Dev. Activities

Central Level

MRRD, MEW, Ministry of Energy & Environment • Orientation on

Planning, Ministry of Policy renewable energy,
Finance, Ministry of environment, Climate
Change, Kyoto
Industry, Directorate of
Protocol, CDM
Environmental Protection

MRRD/RLED Energy Planning & Policy • Orientation on

renewable energy,
energy planning,
environment, gender
sensitization.
• Orientation on Climate
Change, Kyoto
Protocol, CDM
• Exposure visit to Nepal
RITS Engineering • Technical Training
Services/Standardization • EIA
• Gender sensitization
• Exposure visit to Nepal
Private Sector Survey, Design, Supply, • Training on
Installation, After-sales Manufacturing,
Services Installation, Feasibility
Studies
• EIA
• Follow-up training
Financial Institutions Loan/Subsidy Channeling • Orientation
• Exposure Visits
Provincial Level

Provincial Government Coordination/Monitoring • Orientation on

renewable energy,
Energy Planning energy planning,
gender sensitization,
environment
• Exposure visit
PRRD Energy Planning • Technical Training
• Energy planning
Survey/Monitoring • EIA
• Gender sensitization
• Exposure visit

127
 ‫ضمیمه شماره ‪5‬‬
‫سند برنامه انرژی پایدار برای‬
‫انکشاف دهات افغانستان ‪ASERD‬‬
United Nations Development Programme
Afghanistan Country Office

United Nations Development Programme

Afghanistan Country Office
Project Document
Afghanistan - Sustainable Energy for Rural
Project Title:
Development (ASERD)

UNDAF
Outcome 1: Equitable Economic Growth: Support
Outcome(s):
Economic Growth to reduce vulnerabilities and poverty,
strengthen the resilience of the licit economy and
support the government to reduce the illicit economy.

Expected CP
Outcome(s):
Same as above

(Those linked to the project and extracted from the CPAP)

Expected
Output(s):
Benefits to rural communities and enterprises through
clean and safe energy sources
(Those that will result from the project and extracted from
the CPAP)

Ministry of Rural Rehabilitation and Development

Implementing Partner: (MRRD) through National Implementation (NIM)
modality

Responsible Parties: MRRD; UNDP (support to NIM)

Brief Description

The project will contribute significantly to increasing the access to modern thermal energy and electricity through
a technology neutral approach, in 110,502 households in 1100 rural communities in Afghanistan. This will result in
doubling the access to clean cooking and heating options and will make a tangible reduction in the pre-mature
deaths of women and children due to indoor air pollution. The project will also put in place mechanisms for
sustained delivery and use of energy in rural areas and utilise energy for productive and social uses. The project
will also increase the engagement of the private sector, financiers and civil society and transform the role of the
government to oversight and policy-making. Alongside the establishment of village level grids and thermal
energy services, the project will pilot seven innovative financing and delivery models which once successful will
be mainstreamed. The project will also establish conducive policy and regulatory frameworks and capacity

1
 International
Development Agencies/
Donors (UNDP, WB,
MEW MRRD
ADB, FAO, GIZ,
EU.KOICA, JICA, DfID
etc.)

Bilateral Initiatives and

Private initiatives National Programmes Local and International
(NZAid Finland DfID DABS (NSP, NABDP, NESP) NGOs (Mercy Corps, AK)
etc)

CDCs, Shuras

Un-electrified
Village Communities

Electricity Coordination/Control Finance

As can be seen in the institutional arrangements the MEW is responsible for the energy sector
including renewable energy and energy efficiency. DABS is the major electricity sector entity
which is responsible for electrification. However since the reach of DABS, does not extend beyond
urban areas, several initiatives including multi-lateral and bilateral initiatives, government
programmes, and NGO programme are playing a role in rural energy service provision. This
remains a crowded space with a large number of players, initiatives and programmes often
uncoordinated. MRRD and its programmes National Solidarity Programme (NSP) and National
Area Based Development Programme (NABDP) are the major actors and operate electrification
programmes through the CDCs. The CDCs play a central role in these rural energy programmes.

2.0 SITUATION ANALYSIS

The Afghanistan National Development Strategy (ANDS) approved in 2008 is a framework which
is based on Millennium Development Goals (MDG) which guides the developmental efforts of the
government. The ANDS visualises energy sector as a driver of growth, providing long term
reliable, and affordable energy supply, founded on market-based private sector investment and
public sector oversight5 . Subsequently the Kabul 4Process in 2010 resulted in an agreement on 22

5 4
Government of Islamic Republic of Afghanistan, 2009, Afghanistan National Development Strategy: First
Annual Report 1387

17
National Priority Programmes (NPPs) grouped into 6 clusters5 . The NPPs represent a major
5 step
forward in implementing the ANDS framework. The National Energy Supply Programme (NESP)
and the National Water and Natural Resources Development (NWNRD) Programme are two of
the NPPs that deal with rural energy issues. Energy for Rural Development in Afghanistan (ERDA)
focussing on rural energy issues is included as one of the components of NWNR an NPP under the
Agriculture and Rural Development (ARD) cluster.

MRRD and MEW has jointly developed the Afghanistan Rural Renewable Energy Policy (RREP)5 ,
which provides the policy framework for rural renewable energy activities. The policy document
envisages establishing a legal and regulatory framework, establishing technical standards for
equipment, sets out financial incentives and actively engaging the private sector in rural energy
projects. The policy also sets a limit of 100 kW on the electrical capacity of the projects that MRRD
is responsible for. While MRRD is not prevented from implementing rural energy projects that
are larger than 100 kW capacities, these need to be coordinated with MEW and vice-versa. A Rural
Energy Coordination Committee (RECC) has been established under the policy co-chaired by the
deputy ministers of MEW and MRRD. MEW is also in the process of developing an electricity law
which will allow private sector electricity system operators offering electricity services in the
country including rural areas.

2.2 WOMEN AND NOMADIC COMMUNITIES

Afghanistan is estimated to have 13.2 million women representing about 49% of the population5 .
The role of women in Afghanistan has traditionally been determined by tribal, religious and social
norms. These traditional norms meant that women were generally confined to their household
with limited participation in economic activities. Most women are expected to wear a Chhadori
when they are outside their homes, are usually accompanied by a male member of their family
and opportunities for education for women were also limited 5 . Concerted efforts by 8the
government of Afghanistan since 2001 have encouraged education of women and also an active
role of women in economic activities and politics. However Afghanistan Gender Inequality Index
(GII) score is 0.712 placing it at 147th place among 148 countries ranked for GII5 . The education 9

levels of Afghan women are very low with only 6% of women aged 15 and above have attended
any type of formal education6 . Female illiteracy rate is0 88% compared to male illiteracy rate of

5 Security, Human Resource 5Development, Infrastructure Development, Private Sector Development,

Agriculture and Rural Development and Governance.
5 6
MRRD/MEW, 2013, Afghanistan Rural Renewable Energy Policy.

5 7
Government of Afghanistan/European Union, 2008, National Risk and Vulnerability Assessment
2007/08 : A Profile of Afghanistan
5 8 Economic Empowerment in Afghanistan – 2002-2012: Information
AREU/UNW, 2013, Women’s
Mapping and Situational Analysis
5 9
UNDP, 2013, Human Development Report 2013

6 0
Government of Afghanistan/European Union, 2008, National Risk and Vulnerability Assessment
2007/08 : A Profile of Afghanistan

18
MW is Photovoltaics and 200 kW wind electricity. MEW also estimates that 496 renewable energy
projects totalling 7.6 MW is currently under construction.

The table 2 below compares these existing and planned rural energy programmes and projects
explained above:

Table 2: Rural Energy Programmes and Projects

Programme Technology/ Energy Use Implementation Service

Resource
NSP Energy Micro-hydro, Household Facilitating CDC – Operation,
Component grid extension Electrical – Partners – maintenance,
Diesels and PV primarily NGOs/Private revenue collection,
discontinued lighting sector repairs and
Private sector replacements
manufacturers
ERDA Micro-hydro, Household -Project facilitation; CDC – Operation,
grid extension Electrical – Private sector maintenance,
PV and biogas primarily manufacturers revenue collection,
discontinued. lighting repairs and
Biogas replacements
digesters -
thermal
NESP Grid extension Household -Utility – DABS Utility –DABS -
and electricity Electrical Operation,
supply maintenance,
augmentation revenue collection,
repairs and
replacements
ESRA Micro-hydro and Household – -Project facilitation Lease to local
PV mini-grids electrical and businessmen,
Commercial implementation – DABS - Operation,
-Electrical imported maintenance,
equipment revenue collection,
repairs and
replacements
FAO Micro-hydro Household – By FAO Communities -
electrical – Operation,
Agriculture maintenance,
and agro- revenue collection,
processing - repairs and
Electrical replacements
NZAID Solar-diesel Household – -Project facilitation DABS - Operation,
Bamyan hybrids electrical and maintenance, pre-
Commercial implementation by paid revenue
– Electrical sub-contractor collection, repairs
Public and replacements
service -
Electrical

28
 Programme Technology/ Energy Use Implementation Service
Resource
COAM Efficient Household – -Design, End-user –
Women and biomass cook Thermal- manufacture, operation
natural stove/ tandoor Heating & financing by project Repairs and
resources and space Cooking replacement by
heater/ Bukhari project
Biomass, Biogas
and Solar cooker
Geres Solar Passive Household – Design & Passive
Architecture and energy construction by architecture – so
Insulation savings; project only building
Public maintenance
Service –
energy
savings
Helmand Biomass – Electricity – Project, design and Private operator –
Biomass thermo- IPP installation by energy sales to
Power chemical Mercy Corps DABS
conversion
Other RE Hydro and PV. Electricity – Project –design; Unclear operation,
projects Limited wind. Household, private sector service,
public manufacturers maintenance,
services repair and
replacement
arrangements.
Usually with
beneficiary.

A number of technologies have been used in rural energy efforts in Afghanistan, the key
technologies that have been used are presented in table 3 below.

Table 3: Key Rural Energy Technologies deployed in Afghanistan

Technology Features Programme/ Advantages Disadvantages

Projects
Hydro Villages close to NSP, ERDA,  High plant load  Competition for
streams/water ESRA, FAO factor; irrigation &
falls construct  Local agriculture;
structures to technology for  Lack of local
divert water, hydro- capabilities for
use hydro- mechanical electro-
electric components; mechanical and
technology to  Hilly parts of control systems;
generate Afghan has  Site-specific
electricity. reasonable limitations of
hydro- power that can
resources be generated;
 Not feasible in
the plains;

29
 Technology Features Programme/ Advantages Disadvantages
Projects
Photovoltaics Photovoltaic ERDA, NZAID,  Long life (20-  Batteries to be
arrays installed ESRA, NSP 25 yrs.) of replaced 7-
on each generator; 8/years;
household or  All parts of  No local
centrally. Afghanistan industry/ only
Electricity has solar traders;
supplied insolation;
directly for day-  Low-
time use and maintenance;
stored in  Lower
batteries for investment
night-time use costs;
 No power
capacity
limitations
 No local
resource
conflicts
Grid Extending the NSP, ERDA,  Simple and  Initial costs can
extension electrical NESP straight- be high
transmission forward; depending upon
and distribution  Low- terrain;
network to the maintenance;  Still need to
villages  Local industry generate or buy
exists electricity;
 Cannot reach
remote
communities in
complex terrain
Biogas Animal dung ERDA  Meets thermal  Requires daily
digesters being digested and electrical household level
through a needs; operation;
biological  Simple  Need to engage
process to technology women
produce and local skills effectively;
methane gas. can be  Not suitable for
developed colder areas;
easily;

Diesel An internal NSP  Low initial High cost of

generators combustion costs; electricity;
engine coupled  Technological Recurring diesel
to an electric capability supply and cost
generator exists; issues;

Since 2003, MRRD and its programmes have electrified 8005 village communities providing
electricity to an estimated 30% of the rural population of Afghanistan. At the current
electrification rate it is projected that all rural villages in Afghanistan will be electrified by 2042,
missing the universal electrification goal by 2030 under the Sustainable Energy for All (SE4All)
initiative by 12 years. Also a major challenge is the non-solid fuel access which in the absence of
any major coordinated effort will not improve much from the current levels of 15%.

30
 Efforts to develop in-country institutional capacity with national institutions active in
rural energy were not observed;

 The feasibility investigation of the electrification projects focus on the technical feasibility
and do not evaluate the financial feasibility. The available guidelines cover mostly
technical aspects and do not place enough emphasis on cost-recovery, productive
use/economic activities, tariff-setting, depreciation, maintenance costs etc.

 Quality of renewable energy equipment has been poor in some cases and the programmes
haven’t developed an effective quality assurance system backed by standards and testing.
The quality compromises have been precipitated by a procurement system based only on
price. There is no framework for evaluating, rating and excluding technology/equipment
suppliers and equipment based on quality;

 The programme management while following the NIM is often not well integrated with
the MRRD structure and has significant operational autonomy. The role of the programme
and the internalised skillsets goes beyond the management and coordination role into
implementation. The only two stakeholders involved in the project cycle are the CDC
which represents the beneficiary and the private sector manufacturer/supplier.

2.7 CHALLENGES TO BE ADDRESSED

Over 10 years of rural electrification efforts in Afghanistan has provided an evidence-base on

which a new programme can be developed taking the efforts to a new level. The key problems
and challenges to be addressed by the new programme are:

 There is a need to go beyond household electrification for lighting by addressing the

household thermal energy needs and engaging as anchor customers productive use
opportunities in the commercial sector and public service opportunities in the rural
government institutions;

 There is a need to establish sustainable energy service model which creates a viable utility
business model with appropriate institutional arrangements to ensure that the power
generating assets continue to provide rural energy services;

 There is a need to move to a technology-neutral approach which can utilise all available
renewable energy resources – solar, hydro, wind, biomass as well as grid network
extension and hybrid options to provide lowest cost electrical and thermal energy to rural
areas;

 It will be important to create rural energy service delivery models that engage the private
sector and financial institutions and leverage donor and government resources to create
scalable and replicable models;

 There is a need to evolve programme management approaches towards sustainability by

engaging and building capacity of local stakeholders to provide technical services and
through active and progressive integration with the MRRD. Facilitate project cycle and
process improvements that will improve the feasibility evaluations, improve equipment
quality and develop local institutions;

33
  Increase the socio-economic impacts of the programmes by empowering women through
economic activities, developing rural economies by providing energy for productive use
and providing energy for education, health and other public services.

 Establish a progressive policy and regulatory framework and legal instruments for rural
electricity and thermal energy that facilitates optimal utilisation of financial and energy
resources to meet socio-economic and commercial needs in rural areas of Afghanistan.
The policy and regulations should encourage and incentivise participation from
communities, private sector and financiers through Pro-Poor Public Private Partnerships
(PPPPPs or 5Ps) in rural energy services.

3.0 PROGRAMMING STRATEGY AND MODEL

3.1 STRATEGY

Based on the existing experience in Afghanistan and the challenges and problems identified, the
programme will have a three pronged strategy:

 Graduate from the current approach of commissioning electricity generating

infrastructure in rural communities to establishing a technology-neutral sustainable
energy service delivery arrangements. Integrate thermal energy services provided
through appropriate technologies into this proposition;

 Expand the energy coverage in rural areas to support existing economic activities that can
improve their productivity and also expand to public service institutions in rural areas
such as schools and hospitals who could act as anchor customers. Strengthen the rural
energy and renewable energy policy and regulatory framework to ensure sustainability
of the delivery models;

 Pilot innovative implementation and delivery models for rural energy that leverage
skillsets and resources from communities, private sector and financial institutions with a
view to mainstreaming successful ones. These delivery models should be consistent with
the financing principles of global financing mechanisms for climate change and energy.

The above strategy is being proposed based on the following foundations:

 The current implementation leaves a gap in terms of operation & maintenance, finance
and business management of commissioned power plants, which is resulting in a
significant number of power plants being defunct before their normal lifetime;

 The current approach of donors and government financing the full capital cost1 and the
facilitation costs acts as a disincentive against sense of ownership of the systems.
Communities often expect and await the government or donor to repair the systems in
the event of a break-down;

 Absence of thermal energy solutions as part of village energy programmes only solves
part of the energy problem in rural areas and does not address the health problems
caused by traditional baseline energy use;

1 Communities are expected1 to pay 10% of costs which is9 often in kind and not cash.

34
  Currently evaluation of anchor customer possibilities through analysis of existing
businesses and government institutions and development of a tariff structure which
ensures full cost recovery is not carried out as part of the existing programmes;

 Current policy and regulations do not allow for operation of rural energy utilities by
private or institutional entities. Current regulations also do not address the technical and
business aspects of inter-connecting village grids to national grids;

 Innovation in the rural energy space in Afghanistan in terms of technology, business

models and financing mechanisms is rather low. Rural energy users may be able to benefit
from better service-finance offerings through innovation;

 The current NIM model followed by ERDA forms limited partnerships with local private
sector, financiers and facilitators which will seriously affect the sustainability in the post-
programme phase when government takes over;

 The current village energy project implementation can only be sustained with donor or
government grants that cover the cost of the infrastructure and there is a need to move
towards an approach which can work with partial grants and possibly also loans;

 Afghanistan has the opportunity to align the programme principles to global financing
mechanisms for energy and climate change that are output oriented and will finance
energy delivery and emission reductions ex poste. This may also justify a change to a
service delivery model as opposed to merely commissioning energy infrastructure.

 The programme has the potential to make transformational change in the way rural
energy projects are implemented in Afghanistan. There can be a change from delivering
hardware and infrastructure to rural areas to providing infrastructure services and
energy services. Another transformation that the programme can bring about is the
emphasis on thermal energy which has largely been neglected in the rural energy
programmes in Afghanistan. Inclusion of thermal energy as part of future rural energy
programmes can bring health related benefits as well as savings in time and money to
rural population in Afghanistan, especially women and youth.

 Another opportunity being explored by the programme is to transform the financing of

rural energy in Afghanistan to be less dependent on aid financing and to make it
increasingly financed by local financial resources. Such a transformation will also increase
the sustainability of the programme.

3.2 POLICY LINKAGES

The proposed programme is directly integrated into MRRD’s core mandate and responsibilities
of promoting responsible social and financial growth in rural areas, primarily in the non-farm
sector. The availability of energy will result in rural development and responsible social and
financial growth and development. The programme is also part of the National Priority
Programme (NPP) 1 – National Water and Natural Resources Development (NWNRD) of the
Agriculture and Rural Development (ARD) Cluster which was approved by the Joint Coordination
and Monitoring Board (JCMB). The NPPs respond to the national development priorities
articulated in the Afghanistan National Development Strategy (ANDS) and achievement of the
Millennium Development Goals (MDGs). One of the three objectives of the NPP 1: NWNRD is
‘Enhancing access to rural energy will improve rural livelihoods and allow opportunities for new

35
agribusiness to create sustainable jobs’. The objective of the sub-component 2 of the component
2 of NPP1 that will be directly addressed by the proposed programme is ‘To increase access to
modern forms of efficient and environment friendly energy services in the rural areas of
Afghanistan’. Therefore the proposed programme will be directly addressing the energy objective
of component 2 of NPP1 – NWNRD1 . The programme is also2 consistent with MRRD’s Strategic
0

Intent 2010-2014, which encourages the use of renewable energy and encourages partnerships
with the private sector1 . The programme also meets
2 1
the objectives of the RREP such as providing
electricity, displacing solid fuels, supporting rural livelihoods and social services as well as
facilitation of private sector participation as rural energy service providers1 . The programme 2

will also link activities to poverty eradication in rural areas through economic activities and
income generation. The programme will also seek to empower women through elements which
have been included as part of various outcomes. The programme will also seek to build capacity
with the government at national and local levels.

The programme is also addressing two UNDAF Outcomes, Outcome 1: Equitable Economic
Growth: Support economic growth to reduce vulnerabilities and poverty, strengthen the
resilience of the licit economy and support the government to reduce the illicit economy and
UNDAF Outcome 3: Social Equity, Accountability and Investment in Human Capital. All project
activities will also be implemented in compliance with Afghan Law. The provision of energy
services to households and enterprises in rural areas will catalyse economic growth in rural areas
reducing poverty and contributing to the MDGs. The project is also addressing UNDP’s key result
area ‘expanding access to environmental and energy services for the poor’ through provision of
energy services in rural areas of Afghanistan where the incidence of poverty is high. The
programme also supports the goal 7 – ‘Ensure access to affordable, reliable, sustainable, and
modern energy for all’ of the Sustainable Development Goals contained in the Outcome Document
- Open Working Group on Sustainable Development Goals as on July 2014. The project is also
aligned with UNDP’s 2014-17 strategic plan as it will provide sustainable access to energy. The
programme has also been aligned with the poverty environment strategy, gender equality and
empowerment strategy and the sub-national governance strategy of UNDP Afghanistan.

Afghanistan has made a commitment to United Nations Secretary General (UNSG) Sustainable
Energy for All (SE4All) initiative. UNDP is supporting Afghanistan Government for carrying out a
Rapid Assessment and Gap Analysis (RAGA) for SE4All. The ASERD program outputs will
contribute to the Afghanistan’s SE4All goals, as major components of the programme are focused
on enhancing energy access and promotion of renewable energy. The ASERD program is
conceived as a national program on renewable energy promotion by Government, and the
resultant donor support on rural energy promotion will be channelled through the program. The
outputs and outcomes of the program will contribute to achieving the targets of SE4All for
Afghanistan. The ASERD programme will be part of all consultations, discussions under SE4All
initiative for Afghanistan.

1 GoA, 2012, Agriculture and2 Rural Development Cluster,0National Priority Programme 1: National
Water and Natural Resources Development
1 2
MRRD, 2010, Strategic Intent 1393-1398 1

1 2
MRRD/MEW, 2013, Afghanistan 2 Policy.
Rural Renewable Energy

36
ASERD will help government to develop policy and strategy for PPPs so as to attract private sector
investments for rural energy promotion. ASERD will also create a centralised database of
interventions that can be used for reporting SE4All achievements under the SE4All Global
Tracking Framework. The program will coordinate with other stakeholders including MEW,
DABS, private sector, NGOs active in the energy sector to bring rural renewable energy efforts
under the framework

3.3 PARTNERSHIP STRATEGY

The programme will be implemented using the NIM modality by MRRD and the programme
management and operational arrangements will be established by MRRD and UNDP. The
programme will have the following strategy to engage the government agencies, private sector,
NGOs and other institutions:

 Engage Facilitating Partners (FP) from the NGOs and private sector in a similar manner
as the NSP, to mobilise communities and get their commitment. The FPs should also carry
out a techno-economic feasibility investigation of the proposed community(s) based on
tools and standardised templates prescribed by the programme. The selection process of
the FPs should be meritocratic and preference should be given to local firms subject to
meeting the selection criteria;

 The DABS and the private sector should be the preferred candidates to operate the village
energy services and can be engaged in a Build-Own-Operate (BOO) mode or a Lease-
Operation (LO) mode. Scope for Public-Private-Partnerships (PPP) should also be
explored.

 Private sector and financial institutions could also be engaged through the innovative
pilots that will be implemented which will incentivise engagement through cost-sharing
and risk mitigation measures. Capacity building efforts will also cover the private sector
and financial institutions as part of the strategy to engage them;

 Engagement of the Ministry of Education (MoE) and Ministry of Health (MOH) will be
made by MRRD and MEW to develop a governmental strategy and policy to ensure
integration of the energy needs of rural public institutions with planned village energy
projects;

 Institutional capacity will be built with national education, research and training
institutions to progressively carry out capacity development programme on rural
renewable energy in the country;

3.4 INNOVATION

The rural energy programme will bring in a number of innovations which are aimed at increasing
the scale of impacts, engaging new partners’ viz. private sector and financial institutions,
innovating on energy service delivery and process innovation. The key elements in the innovation
that is being employed in the programme are:

 Technology neutrality which will extend coverage beyond villages close to hydro sites to
allow utilisation of renewable energy resources such as solar, biomass, wind and hybrid

37
 systems and grid extensions. Increase the scale of the electricity systems, where possible
to mini-grids and provide services to a cluster of villages;

 Thermal energy services provided through renewable energy and energy efficiency
systems to rural households in Afghanistan at a programmatic scale 1 . Provision of 2

portable lighting and cooking systems to the nomadic Kuchi community;

 Use of private sector for facilitation and village energy service provision, use of DABS for
village energy service provision and use of NGOs for facilitation;

 Building in-country institutional capacity with education, research and capacity building
organisations for capacity and human resource development;

 Innovation in village service delivery models which will include innovations such as
Public-Private-Partnerships (PPPs), de-risking mechanism for private investments,
utilisation of migrant remittances, women enterprises that are linked to carbon finance,
rural economic zone with active participation from women, energisation systems based
on portable systems for Nomadic communities and a ‘pay-as-you-go’ energy service
model linked to mobile telephones;

3.5 SUSTAINABILITY

Sustainability of the village energy services as well as sustainability of the national efforts in
Afghanistan to provide modern energy to all rural village communities is important. The elements
of the sustainability strategy for the programme are as follows:

 Build an ecosystem of local facilitating agencies which will retain the skillsets for
mobilising communities, carrying out techno-economic feasibility studies and supervise
implementation and service provision;

 Progressively build capacity of the REED at MRRD to plan, oversee implementation and
monitor rural energy projects;

 Build capacity with national education, research and training institutions for human
resource development and capacity development in rural energy within the country;

 Build the capacity of private sector to manufacture and integrate rural energy systems
and devices and also to run energy utility operations in rural areas;

 Engage the financial institutions to finance rural energy investments by using donor and
government funds to de-risk and leverage commercial finance investments;

 Engage DABS into the programme and ensure that DABS owns and operates a significant
share of the rural energy systems;

 Progressively reduce the grant component of the rural energy infrastructure and devices
investments and replace these with local finance;

1 2
With a role for women as consumers, 3
producers and entrepreneurs

38
  Put in place the policy and incentive framework to incentivise and protect private sector
participation and investments in rural energy;

 Establish linkages between the rural energy programme and global financing
mechanisms for energy and climate which will facilitate international finance flows and
ensure sustained operation of systems;

3.6 EXIT STRATEGY

The exit strategy is linked to the sustainability strategy and will enable UNDP and its donors to
reduce their role and involvement to enable the government to take over the strategic,
operational and financing responsibilities of the rural energy programme. Decreasing the role of
UNDP without material impact on the rural energy efforts will depend on the following elements:

 The capacity of the local stakeholders – FPs, private sector, financiers, research, education
and training institutions, CDCs and government at national and sub-national levels are
developed to create an ecosystem to implement rural energy services in Afghanistan;

 Progressively reduce the roles, responsibilities and numbers of the programme staff and
increase the roles, responsibilities and numbers of REED, MRRD staff. Efforts should be
made to convert national programme staff as Tashkil employees of MRRD. The
operational processes will be institutionalised within MRRD at the national and sub-
national governance levels.

 The policy and incentive framework able to ensure active private sector and DABS
participation in rural energy services supplemented by community management to meet
the periodic implementation targets;

 Financing mechanisms that combine government resources, cross-subsidies within the

energy system, private investments, commercial finance and linked to international
financing mechanisms for energy and climate established.

 Enhance the capacity of REED, MRRD to plan national programmes, develop strategies
and develop appropriate policies and regulations to respond to the needs and
requirements of rural energy programmes.

As is clear from the above, the key requirements for UNDP to reduce involvement and exit the
programme would be capacity development of key stakeholders – primarily the government, a
functional rural energy implementation mechanism and increased reliance on local sources of
finance. At an appropriate advance stage of the programme, the status of achievement of the
above elements should be evaluated and a timetable for exit preferably for 5 years should be
prepared by UNDP.

3.7 WOMEN AND EXCLUDED GROUPS

The programme will have a specific focus and target on women and the excluded group of
nomadic Kuchi communities. This approach is consistent with GoA strategy and is also aligned
with UNDP’s 2014-17 strategic plan of targeting women and excluded groups and is also
consistent with gender equality and empowerment strategy of UNDP Afghanistan.

39
  For biogas digesters and solar crop dryers which need to be constructed and/or
assembled on site. The financing should cover the material and skilled labour costs and
should have similar payment options as above with different frequency, time period and
quantum. The biogas digesters may be relevant in south-west Afghanistan primarily and
solar dryers may be primarily relevant for commercial enterprises.

 It is important that the sales-purchase coordinator of thermal energy devices and systems
at the village community level be women, as women are also the users of these systems
in rural areas and it is important to have proper user training as well as monitoring,
service and follow-up;

4.0 PROGRAMME

4.1 PROGRAMME OBJECTIVES

The Afghanistan Sustainable Energy for Rural Development (ASERD) programme has three
objectives which are as follows:

 Make available to rural communities in Afghanistan, modern and safe energy services
providing, health, economic and social benefits and developing rural areas and increasing
community resilience;

 Establish a scalable, sustainable multi-stakeholder rural energy service model for

Afghanistan that is demand-driven;

 Develop local capacities and progressive policy and regulatory frameworks to scale-up
the rural energy service efforts and make it increasingly self-sustaining;

4.2 PROGRAMME OUTCOMES

The ASERD programme will consist of the following outcomes:

Rural Energy Services Outcome: This outcome will seek to provide rural energy services – both
electrical and thermal energy to 1100 rural village communities/CDC1 . The outcome will involve
2

providing electricity using mini and micro-grids with a clear preference for larger mini-grids and
will provide thermal energy services through renewable energy and energy efficient systems and
devices through a finance-service arrangement.

Rural energy policy and regulation Outcome: This outcome will create a favourable policy
environment for rural energy efforts. The outcome will support the development of technical and
environmental protection standards and a quality assurance framework for rural energy
equipment, specific legal and policy instruments to implement and enforce the RREP; regulations
for governing interface between mini-grids and the national grid and creating a fiscal and
financial incentive framework

Innovative pilot delivery models outcome: This outcome will involve the piloting of seven pilot
rural energy service delivery models such as a 5P model, a rural economic zone, a private

1 At an average annual rate 2of 220 villages/year compared

7 to 711/Year by NSP and 36/year by ERDA.

44
investment de-risking mechanism, migrant remittances linked rural energy service model,
women’s thermal energy service linked to carbon finance. Kuchi women’s portable energy pilot
and a mobile telephony linked rural energy service model;

Capacity Development and Outreach Outcome: This outcome will support the institutional
capacity development of REED, MRRD, training and capacity building of banks/FIs; build
capabilities of research, education and training institutions; carry out generic promotion and
outreach; establishment and maintenance of a website; establish an MIS for the programme; carry
out analytical and policy research and publication of key reports;

In addition the establishment and operation of the programme management office following the
NIM by MRRD will be carried out in coordination with the UNDP. The programme management
will oversee the implementation of the village energy service efforts.

These outcomes and outputs are explained in detail below.

4.2.1 OUTCOME 1: RURAL ENERGY SERVICES

BASELINE SITUATION
Currently NSP and ERDA under the aegis of MRRD carry out village electrification projects based
on a selection process prone to political interference. Most of the projects are skewed in terms of
technology towards micro-hydro-electricity using cross-flow turbines. DABS also carries out grid
extensions to rural areas under the NESP of MEW. Apart from the MRRD and MEW programmes,
there are efforts by FAO, NZAID and ESRA at a smaller scale which are also supporting village
electrification. There are also small-scale efforts by NGOs such as COAM and Geres targeting
thermal energy issues. However the thermal energy needs are not being addressed in any
significant scale by existing programmes and indoor air pollution and resultant lower respiratory
illnesses is the biggest cause of pre-mature deaths in Afghanistan. The major programmes NSP
and ERDA pass on the ownership and operational responsibility of the village energy services to
CDCs. A significant share of the CDCs have struggled to manage the technical, financial and
business management of the village energy utilities resulting in several village power plants being
defunct before their useful lifetime. The rural electrification efforts have mostly been driven by
fairly autonomous programmes under the aegis of MRRD and have not engaged the financial
sector at all and have only had a limited engagement with the private sector.

45
 IMPLEMENTATION
The outcome will support the implementation of rural energy service models covering 1100 CDCs
in rural Afghanistan. The outcome will take a regional and cluster approach and plans to cover all
the 34 provinces subject to the security situation. All the CDCs covered will be offered electricity
and thermal energy devices and systems on a service basis and progressive purchase basis
respectively. The commercial and enterprise energy requirements and the public service energy
requirements will be serviced by the rural utility. It is expected that more than 50% of the energy
will be supplied at a higher tariff to these commercial and government anchor customers. The
private sector and DABS will be invited to make offers to develop and commission these plants
on the basis of a BOO arrangement. Where a BOO arrangement cannot be established, a Lease-
Operation (LO) arrangement will be established with back-up support from
manufacturer/suppliers. In all cases, the CDC will be involved in coordinating and ensuring the
interest of household user groups. An operational manual for the programme processes will also
be developed. The following activities will be carried out under the outcome on rural energy
services:

 Activity 1: Selection of the Village Energy Service Providers: The programme will
invite the private sector and DABS to bid for the operation of the mini-grids and
micro-grids. Individual villages evaluated as separate micro-grids in nearby
geographies should be possible to be bid as a group under same service provider. Bids
should cover the cost of engineering, construction, equipment, maintenance and
specify the final tariff to be charged to consumers. The bidders should also specify the
thermal energy systems they are willing to offer and the financing arrangements. All
the bidders should be evaluated by the PSC first for their technical and management
capabilities, followed by their respective bids. The bidders who provide a better value
for money in terms of the initial investments, the tariffs charged, initial price and
contribution by the users for the thermal energy systems will be selected. Preference
should be given to bidders who offer both the thermal energy systems and electricity.
Where there are no capable bidders for a CDC or if the costs are significantly higher
that estimated costs at the feasibility evaluation stage and if the annual targets are not
met, these CDCs should be set aside for additional consideration. Additional
investigations should be carried out by FPs in the CDCs without responsive bids to
identify community based enterprises & businesses who will have the ability to
operate, manage payments and coordinate repairs and maintenance. Else the ability
of a village community to operate the energy utility based on the available skillsets
should be evaluated. The programme should develop an evaluation criteria based on
community coherence, income levels, education and capability levels, access to back-
up support services etc. for this secondary evaluation. Where there are capable
community based enterprises or communities themselves who can operate the village
energy service, a second round of bids will be invited to supply the equipment and
provide back-up operational and maintenance support from manufacturers and
suppliers. In such cases the programme will select the technically qualified suppliers,
who can offer the equipment and backup support. If none of these options are feasible
and if the community does not appear to have the capabilities for long-term operation
and management of the mini-grid, the programme should not implement the energy
service infrastructure and another village should be considered instead.

46
 4.2.2 OUTCOME 2: POLICY AND REGULATION

BASELINE SITUATION
The RREP has been developed jointly by MRRD and MEW and it is expected that the final draft of
the policy will be approved in 20141 . The policy has highlighted
2 8
a number of issues that are
relevant to the ASERD like private sector participation as rural energy service providers,
displacing solid fuels, provision of electricity, use of renewable energy etc. However a number of
legal instruments need to be developed to enable the objectives of the RREP. Some electricity
standards and renewable energy standards are under development by the Afghan National
Standards Authority (ANSA), but there are other International Electro-technical Commission
(IEC) renewable energy standards that need to be harmonised into Afghan standards. There is
also a need for establishing a quality assurance and testing framework for equipment used to be
verified for compliance with the applicable standards. There is also a need to formulate
environmental protection requirements for rural renewable energy technologies 1 in
collaboration with the National Environmental Protection Agency (NEPA). There are currently no
regulations that deal with issues of interface between mini-grids and the national grid. Some
village micro-grids implemented by UN agencies are already facing such challenges as the
national grid network extension is undermining the micro-hydro project implementation. Finally
to encourage participation and investments by the private sector and financial institutions in
rural energy service provision an incentive framework is needed which is absent today.

IMPLEMENTATION
The outcome will create legal instruments that are relevant to ASERD programme that will
provide the legal basis for village energy service provision. Additional renewable energy
standards and a quality assurance framework will be developed to improve the quality and
technical performance of rural energy – both thermal and electricity systems. Regulations will
also be developed to support the technical and business interface issues relating to mini-grids
and the national network. A framework of fiscal and financial regulations will be established to
encourage investments by the private sector in rural village energy services and financing and
investments by banks and financial institutions. The activities that will be needed to accomplish
a supportive policy and regulatory environment for rural energy services in Afghanistan are:

 Activity 1: Policy and regulatory instruments for rural energy: Based on the
RREP, a legal instrument which legalises the BOO arrangement for village mini-grids
and integration of the thermal energy devices into the electricity supply model will be
developed and issued. An examination of the 100 kW thresholds for division of
responsibilities between MEW and MRRD will be analysed and option to increase to
a higher level or an appropriate technical division will be considered. A regulatory
instrument which safeguards and balances the interests of the village energy users
and the rural energy service provider will be developed and promulgated. This
regulation should lay out the principles which encourage long term service delivery
and specify mechanisms to resolve and redress conflicts. MRRD and MEW should also
work with the Ministry of Health (MoH) and the Ministry of Education (MoE) and the

1 2
On a date to be mutually agreed 8
between MRRD and MEW

1 2
Such as effects on silt, aquatic 9
ecosystems by hydro power, biomass storage and emission controls for
biomass power plants, disposal of lead-acid batteries for solar power, safe disposal of mercury in
florescent lamps etc.

47
 Ministry of Interior (MoI) to create a legal requirement that all health centres and
posts, schools, police stations and outposts and street lights in rural areas where rural
energy service operations will be put in place should purchase electricity and thermal
energy devices from these service providers.

 Activity 2: Technical Standards and Quality Assurance. ANSA will be supported

to harmonise more standards that are relevant to rural energy – especially thermal
energy systems and devices. Since Afghanistan is an affiliate of the IEC, ANSA should
be able to receive these ISO/IEC standards free of cost. These IEC or ANSA standards
will be integrated into the equipment specifications under the ASERD programme and
compliance to standards will be mandated. Note that till the ANSA
standardisation/harmonisation process is completed the relevant IEC standards will
be used by the programme. A framework for testing compliance of the rural energy
equipment against the ANSA or IEC will be established. For local and some of the
imported systems and components, testing at the KURE lab will be explored. For
imported equipment, accredited national labs1 in the country of origin of
3 equipment 0

authorised to test. For imported equipment compliance with quality standards would
be made mandatory and training should be given to border/ customs officials to allow
import of only equipment that are compliant with national standards. The
manufacturers and suppliers will also be required under ASERD programme to show
documentation on compliance and test certificates and the equipment which will be
installed will also be inspected for compliance. Guidelines for environmental
protection will be developed by MRRD in collaboration with NEPA for all rural energy
service operations and relevant provisions of the guidelines relating to minimisations
and management of environmental and social impacts and management of wastes etc.
will be passed on to the service providers.

 Activity 3: Regulation for village grid-national grid interface: MRRD and MEW
will develop a regulation which seeks to ensure continued utilisation of the village
energy service infrastructure and safeguards the investments when national grid can
be connected to the village. The regulation should provide that the rural energy
service provider will continue to service the rural areas and will continue to own and
operate the low-voltage grid and the thermal energy devices. The regulation should
allow the village energy service operator to act as a bulk consumer to buy electricity
from the DABS network when needed and as an energy supplier who will supply the
grid when the generation is more than the village demand. The consumption and
supply will be netted off and the rural energy service provider will pay DABS tariffs in
the event of net consumption and DABS will pay the rural energy service provider for
electricity exports based on a PPA in the event of net supply. The regulation should
also provide an option for transfer of the rural energy supply system assets to DABS
subject to agreement by the service provider and the CDC.

 Activity 4: Incentives framework for rural energy service infrastructure: MRRD,

DAB and Ministry of Finance (MoF) should develop an incentive framework
consisting of fiscal and financial incentives for the private sector for investments in
rural energy system manufacturing, rural energy consultancy services, rural energy
service operations and rural energy project facilitation. Suggested incentives include

1 3
As per ISO/IEC 17025: General 0
Requirements for the Competence of Testing and Calibration
Laboratories

48
 tax holidays, accelerated depreciation for investments in manufacturing facilities and
power generating infrastructure, zero import duties for import of renewable energy
manufacturing equipment and for renewable energy systems, components and
testing equipment. For the finance and banking institutions, rural energy should be
classified as a priority sector and DAB should consider issuing directed lending
policies1 . Banks could also be offered
3 lower taxes on profits1 from lending to private

manufacturers of renewable energy equipment and rural energy service providers.

4.2.3 OUTCOME 3: INNOVATIVE DELIVERY MODELS

BASELINE SITUATION
Currently NSP and NABDP/ERDA implements projects where the programme facilitates and
coordinates the rural energy project implementation, the CDC oversees the construction and
commissioning and assumes operational responsibility once the project is completed. The donors
provide the grant funding for the programme coordination and facilitation and the cost of the
system. Such an arrangement places incentives on the programme to complete and commission
the project and not to continue operating the project and provide the energy services – the real
problem the project is trying to address! The current efforts also leverage little or no resources
from stakeholders. The current delivery models also do not address and integrate the thermal
energy needs of the rural households in any significant scale. The current delivery models by
MRRD also do not attempt the opportunities presented by enterprises, shops and establishments
and government institutions as anchor customers in any significant way, the exception being the
NZAID project. The current mechanisms are also not compatible with development finance in the
form of loans or performance based incentives which are output oriented.

IMPLEMENTATION
The outcome will implement 7 pilot projects which are relatively more innovative and
progressive than the implementation models in vogue in Afghanistan. The proposed pilots are
also more innovative than the proposed implementation models of the ASERD programme. These
pilots will be facilitated and coordinated by the programme and aims to test and pilot models
which are linked to alternate and sustainable sources of finance. Application for support may also
be made to UNDP’s Regional Bureau for Asia Pacific (RBAP) Innovation Fund1 to support one or 3

more of the innovative pilots proposed. It is planned that an evaluation of the experience with the
pilots will be made after 3 years of implementation and elements of the successful models will be
mainstreamed into the programme implementation to improve the model proposed initially:

 Activity 1: Pilot on Pro-Poor Public Private Partnership (5P). This model would
be fairly similar to the main ASERD implementation model in terms of operation and
service delivery of electricity and thermal energy devices. However the major
difference would be in terms of how the investment costs of the energy infrastructure
would be funded. In this model it is expected that the private sector will make a
significant share of the initial investment leveraging the government/donor

1 3
Which require a certain percentage 1
of the Bank’s loan portfolio to be in the specified priority sector.

1 3 at http://www.worldwewant2015.org/node/401849
More information available 2 UNDP Afghanistan’s
Law and Order Trust Fund (LOTFA) project has won one of 16 innovation fund grants in 2014;

49
 investments. The MRRD and the CDC will also be given a management position1 in
the entity which operates the rural energy service operation. This pilot could be on
the basis of a PPP proposal already received by MRRD and MEW1 or one of the mini- 3

grid sites put out to tender to private sector through a reverse bidding process1 . The
operation of the model is illustrated in fig 5.

Fig 5: Pilot of Pro-Poor Public Private Partnership (5P)

ASERD Private Business

Households

Productive use
Mini-Grid/Thermal
CDC energy

Public Services

Energy Service Finance Management/Coordination

 Activity 2: Pilot a financial sector de-risking mechanism: Support the

implementation of a pilot where the commercial banks are supporting the
establishment of a mini-grid by a private rural energy service provider. The de-risking
mechanism can be structured in one of two ways – either as an interest subsidy
scheme – where the commercial interest rate of 15-17%/Year charged by Commercial
banks in Afghanistan is bought down to say 10%/year which improves the returns to

1 Similar to a non-executive3board member position 3

1 3 received a mini-hydro PPP

MRRD and MEW has already 4 proposal from a private firm to be

implemented in Kunar.
1 In this process the private3sector bidder who bids for the
5 lowest government contribution will win the

tender.

50
 the private investor. The second option is to establish a guarantee fund which as a
guarantee for the commercial bank’s loan to the private rural energy service provider.
In this case if and when the loan repayments are defaulted on by the private sector
and when the loan is classified as a Non-Performing Asset (NPA) or ‘bad-debt’ as per
DAB norms, the guarantee fund will pay to the bank a pre-determined share of the
NPA. Both these approaches should result in the banking system getting engaged in
financing private sector efforts in rural energy. This pilot project is illustrated in fig 6
below:

Fig 6: Pilot De-risking Mechanism for Rural Energy Financing

Financial
Mechanism –
ASERD
guarantee or
interest buy-down

Private Business
Households Bank/FIs

Productive use Mini-Grid/Thermal

CDC energy

Public Services

Energy Service Finance Management/Coordination

 Activity 3: Pilot project on rural energy services with migrant remittances:

Afghanistan received $ 445 million in 2012 as remittances from Afghan diaspora

51
 and have a higher incidence of poverty than the national average and rural areas. The
access to energy for Kuchi communities is only 6%, significantly below the national
average. The Kuchi communities are nomadic and the vast majority1 of Kuchis live 4

in tents and relocate seasonally. It is proposed to establish a women managed energy

service operation consisting entirely of portable lighting and cooking devices.
Countries with large share of nomadic population of herders like Mongolia have
electrified 70% of population with portable solar systems 1 . The progressive 4

purchase approach for Kuchi communities described under outcome 1 will be

employed where the solar portable lighting systems and cook stove users will pay an
upfront share of price and the reminder over monthly/periodic instalments. The
women who operate the services will be identified through a community
consultation/facilitation process coordinated by Gender Equality Project (GEP) and
will be trained in technical and small business management skills. The women will
also be trained to repair the devices and will be paid for their services. The periodic
payments and the fee for repairs would provide the women remunerated work at
village level. A variant of the model where the charging and the PV array is centralised
and the women would rent out fully charged solar lanterns every day, could also be
considered for implementation. This model is illustrated in fig 10.

Fig 10: Pilot Kuchi Women Energy Enterprise

Portable lights and

Portable Cookstoves

Kuchi Women’s Rural Energy

Kuchi Service Enterprise
Households
CDC/Shura

Systems and devices Finance Management/Coordination

 Activity 7: Pilot ‘Pay-as-you-Go’ Mobile Telephony linked Rural Electrification:

In this model, solar portable or fixed systems which can provide lighting and mobile

1 4
65% of the Kuchis live in tents 1

1 4 2
http://www.worldbank.org/en/news/feature/2012/09/20/solar-power-lights-up-future-for-
mongolian-herders

56
 phone charging will be provided to communities by mobile phone companies. Linking
to mobile telephony operators is an important approach as the country has 19.56
million1 mobile phones or 72% 4of population coverage, with
3 almost all households
having mobile phones compared to 41% electricity access rate. The user will make an
initial payment and will then pay on a daily basis for use of the solar system to the
Mobile telecom service provider using mobile money/eWallet. It is important to peg
the daily payments at a level comparable to current expenditure on kerosene by the
households. The average daily expenditure on kerosene by rural un-electrified
households is 30 Afs or about 60 US cents. The programme will work with one or more
of the telecom service providers and solar portable system manufacturer with good
quality products in Afghanistan to pilot this model. This model is also very relevant to
provide energy services to the nomadic Kuchi communities. This model is illustrated
in Fig 11.

Fig 11: ‘Pay-As-You-Go’ Rural Lighting Pilot

Mobile Service
Households Provider

ASERD

Communication and
Productive use Electricity &
CDC lighting/charging
devices

Communication andEnergy Service Finance Management/Coordination

 Activity 8: Evaluation and Mainstreaming: Once the initial operationalisation

issues have been sorted out and the pilots have been operational for a reasonable
amount of time, an objective and independent evaluation of the experience of the
pilots will be carried out to identify the ones which have been proven and can be
mainstreamed into the outcome 1 of ASERD. It is suggested that this evaluation be
carried out at the end of year 3 with the most promising models mainstreamed,
replacing the initial models proposed under outcome 1: Rural Energy Services. It is
envisaged that the project management team will develop mechanisms to implement
the mainstreaming based on the evaluation recommendations.

4.2.4 OUTCOME 4: CAPACITY DEVELOPMENT AND OUTREACH

BASELINE SITUATION

1 4
Central Statistics Organisation, 3
2013, Afghanistan Statistical Yearbook-2012-13

57
The capacity of the government establishment, especially REED, MRRD is inadequate and is
unable to effectively coordinate the current efforts such as AREDP and ERDA. REED lacks a critical
mass of qualified staff with the right skills. REED and other government agencies such as MEW,
DABS, ANSA etc. also lack international exposure to best practices in rural energy and renewable
energy. Similarly the private sector in general is in a nascent state with only very few established
long term players. Most of the industry players have regional exposure to countries in south Asia
but lack exposure in other Asian, European and North American markets and their best practices.
Similarly the financial sector in Afghanistan has little or no exposure to financing renewable
energy or rural energy projects or the supply chain. Current capacity building efforts have focused
on training and capacity building of project and government staff using international training
programmes, visits and also international trainers visiting Afghanistan. While this has helped
build human capacity and skills, this capacity has not been institutionalised. There are very few
efforts currently in Afghanistan for training and capacity building and creating engineers and
technicians to support rural energy efforts. Similarly the communication efforts by the
programmes in the past have generally been generic and not targeted. REED also does not have
in house research and policy development capacities.

IMPLEMENTATION
The outcome will support the institutional development of REED to make strategic decisions
about the programme and also to develop and implement relevant rural energy policies. A
capacity and institutional development plan for REED will be prepared by an international
adviser with policy development and capacity building experience. This institutional
development plan of REED will be implemented during the course of the project. In addition to
REED other governmental agencies such as MEW – the energy regulator, MoH, MoE, ANSA etc.
should also be involved in government capacity building programmes. The financial sector i.e. the
banks and financial institutions should also be engaged in the programme and exposure to
financing opportunities and capacity building should be carried out. The capacity of the teaching
faculty members of TVET, AIRD and KURE Lab should be strengthened and support should be
provided for curriculum development. The outcome will build some analytical and research
capability linked to REED so that the programme and the government policies will benefit. The
generic promotion through the media and website should be supplemented by one-to-one
meetings with key stakeholders in the private sector, financial sector etc. A programme
information and reporting system should be established to automate the programme processes,
facilitate better reporting and help research and analysis. The website should also be used for
improving the transparency of the programme and for publishing project related progress and
analytical reports. The following set of activities is needed to achieve the outcome:

 Activity 1: Institutional Development and Capacity Development of government

agencies: This activity will primarily focus of MRRD’s REED aiming at institutional
development of the division. An international adviser with rural energy policy
development and capacity development expertise will be positioned at REED. The
adviser will in consultation with MRRD make an institutional development plan and
oversee its implementation. The plan will ensure effective and sustainable capacity
building of national and local systems. It is envisaged that REED staff need
training/short term courses on electrical and thermal energy technologies, policies
and regulation, rural energy financing, gender mainstreaming, exposure visits1 etc.
The focus of the capacity development plan will be in capacity development of

1 4
Possibly to neighbouring countries 4
where sustainable mini-grid models exist like Pakistan and India

58
 Tashkeel staff. The use of National Technical Assistance (NTA) advisers will be
explored in contributing to the capacity development of MRRD and REED. In addition
to MRRD capacity building needs of MEW, ANSA, DABS, MoH, MoE, DAB, MoF etc.,
should also be considered during exposure visits. A sufficient number of women
government officials should be included in the training. The international adviser will
also oversee the development of a gender mainstreaming strategy for the programme.

 Activity 2: Capacity Development of Financiers, Private Industry and

Communities: capacity should be built with the financial sector in Afghanistan on the
characteristics, economics, business models and financial instruments used for rural
and renewable energy. Capacity of the private sector should be built on electrical and
thermal energy technologies, quality standards, testing & compliance, financing
models and technology roadmaps. Women who are involved in the Kuchi pilot project
as well as implementers of other pilot projects should also be provided capacity
building support and included along with the industry or financiers. It should be
ensured that a significant number of women from financial and private sector should
receive capacity building and this should be articulated in the gender mainstreaming
strategy. Participation in bilateral and multi-lateral platforms and expositions which
facilitate technology collaboration and transfer should also be encouraged. The
capacity building of the private sector will also ensure that at least one private
enterprise at the provincial level in all provinces where the ASERD programme is
operating will be trained to act as a service centre for the province to provide back-
up support to the mini and micro-grid systems and the end-use equipment in
supported by ASERD and other programmes in the province concerned. These private
service centres would be established with existing enterprises1 who can be trained 4

to carry out repairs and maintenance of relevant energy conversion technologies,

end-use applications and metering technologies and linkages established with
national level technology suppliers and manufacturers. Capacity building at the
community level for operation and maintenance of system and increase in resilience
should be provided wherever relevant and possible. This is considered quite relevant
for the marginalised communities such as Kuchis.

 Activity 3: Strengthening Education, Training and Research Capacities: capacity

of the teaching faculty at TVET institutions, Kabul University’s KURE Lab and AIRD
should be developed through short-term programmes. It should be ensured that an
adequate number of women faculty members should also be trained. Support should
also be provided for curriculum development at TVET and possibly KURE. Suggested
subjects include electrical and thermal energy technologies, scientific principles of
systems, design and engineering, operation and maintenance practices etc.

 Activity 4: Awareness Creation and Engagement: Generic promotion of The ASERD

programme activities, directed at all stakeholders will be made through the radio and
print media. Visual media and short films can also be made for use by PRRDs, DDCs
and also by FPs, private sector and financiers. Important that the languages of
promotion be Dari and/or Pashto. There will also be targeted engagement of the
private sector and the financiers in the programme through print media campaigns,
direct mailers and business meetings with the respective constituencies. The

1 4
There exist 10,886 enterprises 5
involved in energy and water related service issues in rural areas of
Afghanistan of which 52% are in the private sector (CSO/ADB, 2009)

59
 objective would be to engage the maximum number of private sector and finance and
banking sector entities with the ASERD programme.

 Activity 5: Research and Analytical Capability: Ability to carry out research on

programme trends, costs, technologies is currently missing although there is a
monitoring & evaluation function. What is important is to carry out internal analysis
identify trends and deviations and advice corrective action. Some of the actual
research can be outsourced to external national experts and institutions such as AIRD,
KURE etc. It is proposed that the research and analytical capacity be associated with
REED.

 Activity 6: Programme Information System and Reporting: The programme

should develop a Management Information System (MIS) which captures all the
programme related information such as applications, community mobilisation &
evaluations, selection, implementation and operation. This information should be
updated and published on a monthly basis. Also information about the FPs,
Manufacturers and products empanelled, progress with pilot projects etc. should be
published periodically. NSP is a good model for ASERD programme in this regard.

 Activity 7: ASERD website and information dissemination: A programme web-site

should be established in English, Dari and Pashtho and all the programme related
information should be updated regularly. All the programme publications, progress
reports, panels of FPs, suppliers, products, copies of promotional materials, including
digital multi-media, tenders, reports etc. should also be made available through the
programme website.

The cost break-down of the all the programme outcomes and specific activities are given at
Annexes 4 and 5. The total resources required for management of the programme over 5 years
will be $ 191.16 million. The Results & Resources Framework at annex 2 also gives further details
such as targets and responsible parties.

5.0 MANAGEMENT ARRANGEMENTS

Traditionally projects and programmes are managed by a project management office established
by UNDP and MRRD. Project management and REED currently do not coordinate effectively on
strategic issues. Traditionally the share of women staff as part of programme management is
rather low. Project management approaches currently internalise the facilitation and
implementation functions. Private manufacturers are involved only during implementation with
operational responsibilities after project commissioning being entrusted to CDCs.

The ASERD programme will be implemented by the MRRD as the Implementing Partner under
the NIM mechanism with the overall coordination of a Project Board and in-line with UNDP’s
Results-Based Management (RBM) approach. MRRD will take direct responsibility for
implementation of the programme activities. This will involve the establishment and operation
of a programme management office by UNDP and MRRD. The programme management will use
external and preferably local agencies for facilitation, equipment, supply and operation of the
systems. More women staff will be recruited. Effective coordination will be established with REED
on strategic and policy issues. The programme management will also carry out technical
assistance, capacity building and outreach activities. The key groups of activities that are needed
to accomplish this outcome are:

60
  Programme Management Office Establishment of the ASERD programme
management office with an executive director and professional staff. The programme
office will consist of technical, financial, management and support staff on finance,
legal and administration. It is important for the programme to recruit women staff
especially to oversee the implementation of the thermal energy devices. The office
will be hosted by the MRRD allowing for day-to-day coordination;

 Project management and technical assistance: The main function of the

programme office will be to manage the rural energy service delivery in the 1100
communities that are being targeted and managing and coordinating the projects
cycles specified under outcome 1. The programme office will also oversee and
facilitate the implementation of the 7 innovative pilots under outcome 3, evaluate
results and mainstream successful models into the programme. The programme
office will also implement the technical assistance activities – outcome 2 policy and
regulation and outcome 4: capacity development and outreach. In addition the
programme should publish on a monthly basis the statistics of the village energy
project implementation such as the list of applicants, selected CDCs for survey, the
final list of selected villages, and the selected entities for serving the villages, the cost
of energy services in the location, the financial operations summary and audits, panels
of FPs, manufacturers and products etc.

The management of allocated funds, procurement and recruitments will be carried out by the
programme management team according to open and transparant financial rules and regulations
and based on a five-year work plan (2014-19). MRRD will procure goods and services through
transparent procedures and may enter into sub-contracts for implementation with government
agencies, private sector, financial sector, NGOs and communities ensuring maximum value for
UNDP and donor contributions.

5.1 PROJECT BOARD

The Project Board will be chaired by the MRRD and will consist of the following persons:

 MRRD Deputy Minister (Chair);

 UNDP representative;
 Representative(s) of the donors ;
 Private sector/Finance and Banking representative1 ; 4 6

 Beneficiary representative;

The structure of the programme showing the role of the Project Board is shown in Fig 12.

1 The private sector and the4finance and banking sector representative

6 should not have any conflict of
interests by virtue of participation in the programme. Appropriate rules of procedures including
disclosures and declarations should be implemented.

61
 ANNEXES

ANNEX I: ASERD RISK MANAGEMENT MATRIX

Impact (I) – 6 highest, 1 lowest

Probability (P) – 6 highest, 1 lowest
MRRD – Ministry for Rural Rehabilitation and Development
UNDP – United Nations Development Programme
PM- Programme Management

Description Category Impact & Probability Countermeasures / Management Owner Date Last Status
response Identified Update

Political influence in Political Ability of the Transparent selection MRRD Inception

the selection of programme to create procedures/processes and engagement
community the planned impacts of facilitating agencies who will
beneficiaries for will be compromised independently carry out feasibility
village energy evaluations. Meritocratic selection
projects I = 5; P = 5 process through ranking of sites based
on feasibility by FPs.

Government not able Political Serious effect on the UNDP and Programme to actively PM Inception
to pass the necessary ability of the engage with MRRD and other
rural energy policies programme to carry government agencies, provide advice
and regulation on out all activities and support and facilitate legislation.
time. successfully and
achieve the planned
impacts.

I = 5; P = 3

71
The security situation Political Direct impact on the Withdraw from operating in rural areas MRRD Inception
in the country geographical coverage where the insecurity and insurgency
deteriorates of the programme and exists;
on programme
Scale down the programme and make UNDP
implementation
contingency plans
I=5; P=2

Availability of Financial Direct impact on scale Direct engagement and meetings to UNDP Inception
adequate resources and scope of gain donor commitment during the
from donors. programme and the initiation and before the programme is
ability of programme to launched.
create planned impacts
Tap into global financing mechanisms
UNDP
I = 5, P= 3 for energy & environment like GEF and
SE4All in addition to traditional UNDP
Afghanistan donors.

Design the programme in flexible

manner to tailor (step-up/down) to UNDP
available resources.

Commitment and Operational Direct impact on the Create awareness on partnership PM Inception
participation by the programme activity opportunities and direct engagement of
private sector and completion and the prospective partners by the programme
finance and banking programme objective team.
organisations in
energy service I = 6; P = 3 Provide policy, regulatory and financial
PM
operations. support to mitigate operational and
business risks;

72
Capacity of Operational Direct impact on A human and institutional development MRRD Inception
government at sustenance of the plan for REED/MRRD at national and
national and sub- village energy services, sub-national levels developed and
national levels policy-making and the implemented with support of an
ability of programme to adviser.
upscale.

I = 5, P= 4

Energy industry in Operational Direct impact on the Establishment of technical standards PM Inception
Afghanistan unable to completion of the and implementation of a quality and
support quality programme activities cost based procurement system.
equipment to support relating to village Implementation of a supplier rating
programme needs. energy services system

I = 3, P= 2

Inability of the Operational Direct adverse impact Take a cluster approach to redesign and PM Inception
programme to find on the completion of scale-up to a mini-grid to find operating
operating agents for the programme agents.
some micro-grid activities relating to
village energy service village energy services Implementation of a fall-back
operations implementation arrangement involving
PM
I = 4, P= 4 lease to village entrepreneur and CDC
management.

Find alternative locations for PM

implementation if feasible, else scale
down programme targets by
withdrawing from communities where
an operating agent cannot be found.

73
Subnational/commun Operational Direct adverse impact
ity level operational
challenges viz
corruption, diversion
of funds, limited
community buy-in,
social friction
74
Use of facilitating agencies and PM Inception
on the completion and facilitating processes to ensure
operation of the community buy-in and reduce social
programme activities frictions.
relating to village
energy services Establishment of a regional level
PM
coordination group consisting of
I = 4, P= 4 government, private, community, law-
enforcement. Facilitating agencies and
programme staff to manage such
community level challenges.
BOO model does not necessitate the
management of finances by the PM
community avoiding diversion and
corruption in managing resources
 ANNEX 2: ASERD PROGRAMME RESULTS AND RESOURCES FRAMEWORK (2014-19)

Intended Outcome as stated in the Country Programme Results and Resource Framework:

Outcome 1: Equitable Economic Growth: Support Economic Growth to reduce vulnerabilities and poverty, strengthen the resilience of the licit economy and support the government
to reduce the illicit economy

Outcome indicators as stated in the Country Programme Results and Resources Framework, including baseline and targets:

Benefits to rural communities and enterprises through clean and safe energy sources

Applicable Key Result Area (from 2008-11 Strategic Plan): 4.4 Expanding Access to Environmental and Energy Services for the Poor

Partnership Strategy: Implemented through National Implementation (NIM) by Ministry of Rural Rehabilitation and Development (MRRD)

Project title and ID (ATLAS Award ID):

PROJECT OUTCOMES PERFRMANCE INDICATORS INDICATIVE ACTIVITIES RESPONSIBLE PARTIES INPUTS

(Baselines) ( Benchmarks)

Outcome 1: Rural Energy  1100 village communities 1 Bidding process and selection of village MRRD, CDCs, Facilitating $180,441,818.15
Services covered by rural energy energy service providers from DABS Agencies. Manufacturers,
service arrangements; and private sector on BOO basis; Private sector, DABS
Baseline:  892 mini and micro grids 2 Financing, completion of installations
implemented using hydro, and delivery of village energy services.
 Nil or very little electrification or solar, biomass, hybrid
thermal energy services in target energy technologies and
villages; grid extensions;
 Projects implemented by  110500 improved cook
programme and donors without stoves/tandoors
O&M arrangements and are implemented;
unsustainable;

75

Outcome 2: Rural Energy Policy
and Regulation
Baseline:
 Draft rural renewable energy
policy under finalisation
 No regulation on rural energy, &
isolated mini-grids operation.
 Some technical standards for
clean energy under development
and standardisation mechanism.
 Nil or limited incentives for
renewable energy/rural energy
investments and financing
Outcome 3 : Innovative
Finance/Business Pilot
Projects
76
 22100 efficient bukharis
implemented;
 11050 solar water heaters
and solar dryers
implemented;
 11050 biogas digesters
constructed;
 Enactment of legal 1 Development of a national policy and MRRD, MEW ANSA, $2,552,111.12
instruments for rural legal instruments for rural energy DABS, DAB, NEPA, MoF
energy service delivery supply covering both electrical and
under RREP. thermal energy under the umbrella of
 Technical standards RREP;
available adopted, 2 Development and harmonisation of
rural renewable energy standards for
 Testing and quality
assurance system for rural Afghanistan;
energy equipment in place; 3 Definition of a testing and quality
assurance system for domestic and
 Environmental protection
imported equipment;
guidelines and standards
for rural energy in place; 4 Environmental protection and
management guidelines for rural
 Regulation for isolated
energy projects promulgated;
grid/national grid
interface promulgated; 5 Development of regulations governing
technical and business interface
 Incentive framework for
between mini/micro-grids and national
investments in place; grid extension;
6 Development of fiscal and financial
incentives regime for rural/renewable
energy investments by private sector
and banks/FIs
 7 pilot initiatives 1 Pilot a PPP mode of village mini-grid MRRD, MEW, DAB, NEPA, $3,062,538.35
implemented successfully implementation ABA, MoF.
and establish proof of Roshan/Telecom Service
concept Providers
 Baseline:  Successful models 2 Establish a pilot de-risking mechanism
mainstreamed into for financing the village energy service
 Projects implemented by programme delivery enterprises/business;
donors/projects with limited model; 3 Implement a pilot where migrant
chance of long term  A strategy developed to remittances are linked to a village
sustainability; mainstream pilot models energy business;
 Limited or no leverage of third- into the programme and 4 Implement a thermal energy service
party financing for rural energy; implemented. pilot linked to global carbon finance
mechanisms;
5 Implement a pilot economic activity
hub/zone as an anchor consumer in a
village energy service business;
6 Implement a village energy model for
Kuchi communities operated by women
7 Implementing a rural energy service
model through mobile telecom service
providers
8 Evaluation of the experience and
relevance of the pilot models and
identification of successful models to be
integrated;
9 Programme delivery model updated
and modified to include successful
models

Outcome 4: Capacity  REED staff trained and 1 Human and Institutional development MRRD, MEW, ANSA, $5,104,232.24
Development and Outreach capacity developed; for REED/MRRD and government NEPA, DABS, DAB, ABA,
 50 officials from agencies and regulators; Banks TEVT, KU, AIRD,
Baseline: government agencies 2 Training and capacity building radio stations and media
trained with a 30% share programme for banks, financial companies
 Limited capacity with key of women; institutions and pilot project
stakeholder segments – participants;;
 100 private sector,
government, private sector, 3 Strengthen capabilities of TEVT, KURE,
financial sector and
financiers. AIRD in curriculum development, and
innovate pilot
staff/participants trained Training of trainers to enable quality

77
  Absence of adequate technical with a 30% share of
education, training and human women;
resource development capacity  50 teaching faculty
in the country. members of TVET, AIRD
 Generic communication efforts and KURE trained with a
that are not targeted; 30% share of women;
 Little or non-existent  Rural energy curricula at
analytical/policy research TVET developed and AIRD
capacity with government; and KURE curricula
updated;
 Functional MIS developed
for process management
and reporting;
 Website developed, videos
and brochures produced,
analytical reports
developed,, all information
disseminated in Dari,
Pashto and English,
Total
78
output of rural energy technicians and
engineers;
4 Generic promotion through radio, print
and visual media. One-to-one business
meets with facilitating agencies, banks,
private sector etc.
5 Carry out research on programme
implementation to develop analytical
reports and policy changes/corrections.
6 Develop and publish information on
programme implementation and
publish analytical reports
7 Establish and regularly update a
programme website. Information on
community requests, site evaluations,
bidding process, selection and
operational details of all village energy
services should be updated on website.
$191,160,700
 ‫ضمیمه شماره ‪6‬‬
‫گزارش کنفرانس کابل‪ ،‬اولویت‬
‫بندی و پالن اجرایی برنامه تحت‬
‫استراتژی ملی انکشاف افغانستان‪،‬‬
‫جلد دوم‬
AFGHANISTAN NATIONAL DEVELOPMENT STRATEGY

PRIORITIZATION
AND IMPLEMENTATION
PLAN
MID 2010 – MID 2013

Volume II

0
AFGHANISTAN NATIONAL DEVELOPMENT STRATEGY

PRIORITIZATION
AND IMPLEMENTATION
PLAN
MID 2010 – MID 2013

Volume II

2
 ‫ﺑﺴﻢ اﷲ اﻟﺮﺣﻤﻦ اﻟﺮﺣﻴﻢ‬
In the Name of Allah, the Most Compassionate, the Most Merciful

‫ﺎ ﺑِﺄَﻧْﻔُﺴِﻬِﻢ‬‫ﺮُواْ ﻣ‬‫ﻐَﻴ‬‫ﺘﱠﻰ ﻳ‬‫مٍ ﺣ‬‫ﺎ ﺑِﻘَﻮ‬‫ﺮُ ﻣ‬‫ﻐَﻴ‬‫ ﻻَ ﻳ‬‫إِنﱠ اﻟﻠّﻪ‬

Verily, never will Allah change the condition of people unless they change
it themselves (013,011)

VISION FOR AFGHANISTAN

By the solar year 1400 (2020), Afghanistan will be:
ƒ A stable Islamic constitutional democracy at peace with itself and its neighbors, standing with full
dignity in the international family.

ƒ A tolerant, united, and pluralistic nation that honors its Islamic heritage and the deep seated
aspirations toward participation, justice, and equal rights for all.

ƒ A society of hope and prosperity based on a strong, private-sector led market economy, social
equity, and environmental sustainability.

OUR GOALS
The Afghanistan National Development Strategy (ANDS) serves as Afghanistan’s Poverty Reduction
Strategy Paper (PRSP) and uses the pillars, principles and benchmarks of the Afghanistan Compact as a
foundation. The pillars and goals of the ANDS are:

1. Security: Achieve nationwide stabilization, strengthen law enforcement, and improve personal
security for every Afghan.

2. Governance, Rule of Law and Human Rights: Strengthen democratic processes and institutions,
human rights, the rule of law, delivery of public services and government accountability.

3. Economic and Social Development: Reduce poverty, ensure sustainable development through a
private-sector-led market economy, improve human development indicators, and make significant progress
towards the Millennium Development Goals (MDGs).

A further vital and cross-cutting area of work is eliminating the narcotics industry, which remains a
formidable threat to the people and state of Afghanistan, the region and beyond.

1
 In the name of Allah, the most merciful, the most compassionate

The Kabul International Conference on Afghanistan represents a turning point in my country’s transition
to an era of Afghan-led peace, justice, and more equitable development. Expanding the day-to-day choices
and capabilities of the Afghan people, and ensuring their fundamental rights, remain the cornerstones of
my Government’s approach to peacebuilding and comprehensive recovery. In spite of remarkable progress
over the course of nearly a decade – particularly in the areas of health coverage, improved access to
education, better infrastructure, as well as institutional governance and human capacity development –
Afghanistan continues to face obstacles towards continued progress, including the need to improve
regional and trade relations and introduce timely governance reforms.
To overcome these challenges, I am pleased to present the Afghanistan National Development Strategy
Prioritization and Implementation Plan. With the introduction of National Priority Programs, this
ambitious action plan symbolizes my Government’s renewed commitment to a secure, prosperous, and
democratic future. It also marks an important step in the Kabul Process; a final transition through
increased international alignment behind national priorities towards our common goal of full Afghan
ownership, responsibility, and sovereignty.
I am heartened by my new leadership team, organized around clusters of associated ministries, which has
demonstrated convincingly that teamwork can effectively engage our partners in Parliament, civil society,
and the private sector; facilitate tough policy choices and rigorous program development; and emphasize
results to benefit ordinary Afghan citizens. We will continue to value the tremendous sacrifices of our
international friends. Finally, I thank all of our Afghan and international partners – across and beyond
Government – for their valued contributions in the preparation of this shared action plan.

Hamid Karzai
President of the Islamic Republic of Afghanistan

5
 NATIONAL PRIORITY PROGRAM ONE

COMPONENT D:

ENERGY FOR RURAL DEVELOPMENT IN AFGHANISTAN (ERDA)

1. Overall Program Objective

The Energy for Rural Development in Afghanistan (ERDA) was initiated to contribute to the strategic
energy benchmark set at the London Conference and under the Afghanistan National Development
Strategy (ANDS). It was envisaged that ERDA would contribute to sustainable natural resources
development and management, under the overall ARD cluster vision to build prosperous rural and pastoral
communities. This national component will permit private sector growth, job creation and social
improvement in rural communities.

2. Brief Description of Activities and Results to be Achieved

This component will: (a) demonstrate successful community based models for energy supply in rural
Afghanistan; (b) build capacity for planning, implementation and monitoring of sustainable energy
projects at district and provincial levels; (c) expand the technology options for rural energy services; and
(d) Prepare a platform to scale up these models to cover all provinces.

ERDA aims to support rural communities not only to install energy systems, such as micro hydropower
plants, but also to make productive use of electricity for generating employment in rural areas. ERDA will
support the communities in the installation and operation of micro industries, such as agro processing
mills. Linking up with productive infrastructure services, it will both help in identifying potential
productive uses as well as accessing financial resources for rural entrepreneurs to establish and operate
enterprises.

Main activities will be to expand the access to rural development and technology options in Afghanistan
for rural energy services by demonstrating successful community-based models. Through the
implementation of Energy for Rural Development in Afghanistan (ERDA) projects, the program will
expand its activities to cover different forms of renewable energy and include more regions and provinces
depending on the availability of budget. Besides micro hydro power and Biogas that has been promoted,
improved Water Mills to replace traditional water mills (Ashiab e Abi) which are less efficient, Solar
Photovoltaic and Thermal systems, such as pumping and water heating, Wind Pump and Electricity
Generation, etc. will also be included.

For further dissemination of lessons and sharing of knowledge, the training activities related to rural
energy undertaken earlier need to be institutionalized. In lieu with this, the cluster members need to work

206
together in the establishment of training centers, as well as partaking in the Rural Technology Park project
in Kabul to demonstrate different appropriate technologies for the policy makers and the general people.

Project activities will be carried out to demonstrate a range of technologies and suitable management
modalities appropriate for the Afghanistan context. ERDA will help increase the rural energy options in
Afghanistan to include: (i) Micro-hydro (< 100 kW); (ii) Mini-hydro (100 -1,000 kW); (iii) Improved
Water Mills; (iv) Solar PV and Thermal; (v) Wind Energy (electricity and water pumping); (vi) Biomass
(biogas, Improved Cooking Stoves); and (vii) Solar/wind/diesel/bio fuels hybrid.

As ERDA plans to upscale its activities both in terms of quantity, technology and geographic outreach, it
will focus on in-house capacity development. Capacity of Afghan engineers and other professions will be
built up to undertake survey, design, implementation support, construction supervision, monitoring,
training, planning, etc. for all renewable energy technologies it will promote. A lot of these capacity
development activities will be on-the-job training and International Consultants and experienced Afghan
professionals working with ERDA will provide their services. Besides, short term courses provided by
other organizations, both in-country and abroad, will be another opportunity to help build the capacity of
Afghan nationals.

3. Scale and Scope of Program

ERDA has the mandate to expand national rural energy services throughout Afghanistan. For 2010,
activities are planned in the following areas, particularly in Badakhshan, Takhar, Ghor, Samangan and
Panjsher. The provinces of Kunduz, Jawzjan, Faryab, Herat, Bamiyan, and Daikundi are scheduled for
2011 subject to funding availability while further expansion will be made in Farah, Paktia and Khost.

4. Assessment of Main Constraints and How They Will be Overcome

Regulatory Constraints
At sectoral level includes better coordination and communication mechanisms, the technological base for
equipment supply and manufacturing, designing of energy systems, and field implementation; Clean
Development Mechanism, and Donor coordination on rural energy investments.

Level includes the size of the energy projects which should be determined by the actual demand for
electricity; Micro-hydropower systems that are limited to the community level and which do not currently
include larger projects to meet the needs of bigger communities and limited energy options available to
rural communities.

5. Strengthening the Organization

ERDA works in partnership with government institutions and energy projects being supported by other
donors. This component looks for opportunities for coordinating investment with other infrastructure such
as irrigation, drinking water or roads to generate synergy at the community level by bringing on line
critical infrastructure concurrently. ERDA has mobilized resources for investments for its seven pilot
projects from among donors already supporting NABDP in years 2008/2009. ERDA will support the
implementation of 30+ MHP in Ghor, Bamiyan, and Panjsher in 2010. ERDA works in close partnership
207
with MRRD to build the capacity of the newly formed Rural Enterprise and Energy Department (REED),
as well as that of the Rural Infrastructure Technical Services (RITS) Department energy cell.

6. Technical Assistance Requirements

The respective Programs have all evolved over the years and taken action as a result of lessons learned.
Room to improve especially within forecasting, both financially and construction outputs, staff strategies
so that the component can ultimately be handed over to the communities and construction industry ability
to complete contracts on time and within budget. In order to accomplish these outcomes it is foreseen that
Implementing Consultant (s) will be required for the foreseeable future especially in management,
technical capacity such as Rural Energy engineering, MIS, Contract management, and support services
(HR, asset management, administration, etc). There is also the need to improve the focus on probity
policies and modalities, especially related to financial issues, and Procurement and Contract Management.

7. Estimated Budget
Based on the proposed activities, a total budget of USD 119,110,000 is envisaged for the period 2011 –
2013, of which none has been committed. Management of component totaling less than 15% of the total
budget has been included.

8. Timetable
The prioritization process has ensured that all sub-projects to be undertaken will show an impact within
the first 3 years

9. Managing Information
While monitoring, evaluation and impact assessment will gradually shift to the community-based and
participatory approach, the management of information system will be mainly in central level. Therefore a
large sub-component is planned for data handling.

The compiled project database will be a valuable shared resource for DDAs, district, provincial and
national line department offices, as well as other development actors in the country through information-
sharing for and on the website (www.mrrd.gov.af). At the end of each activity, evaluation and impact
assessments will be done to measure achievements against planned results. The CDC and DDA facilitate
this process, allowing a simultaneous and continuous evaluation, particularly in geographically remote
areas.

10. Financial Management Action Plan

ERDA will work with communities to identify appropriate rural energy projects. The community will be
responsible for implementation of the projects and DDA for mobilizing the communities and monitoring
project implementation. Communities will sub-contract fabrication and installation of energy systems to
private sector companies. ERDA will provide technical as well as financial assistance covering non-local
costs. Communities will receive technical training and support on issues such as technical and financial
viability, community ownership, improved social economic condition and technical services systems.

208
11. Goods and Services to be Procured
As an ongoing program, ERDA has built investment in equipment to start up rural energy project
activities. Additional needs include office equipment and technical equipment per region consisting of:
flow meter, monometer, total station, and theodolites.

_________________________________________________________________________________

12. Executing Ministry : Ministry of Rural Rehabilitation and Development (MRRD)

Ministry of Energy and Water (MEW)

209
 ‫ضمیمه شماره ‪7‬‬
‫صورت جلسه ارایه مدل های‬
‫کسب و کار مرتبط با پروژه های‬
‫انرژی‬
 Minutes of meeting on Appropriate Business Models for Renewable Energy Projects for

Afghanistan - Sustainable Energy for Rural Development (ASERD)

MRRD

11, May, 2016

1. Project summary:

The project will contribute significantly to increasing the access to thermal energy and electricity through
a technology neutral approach, in rural communities in Afghanistan. This will result in increasing the
access to electricity, clean cooking and heating options and will contribute to a tangible reduction in the
pre-mature deaths of women and children due to indoor air pollution. The project will pilot innovative
financing models which once successful will be mainstreamed. The project will also establish conducive
policy and regulatory frameworks and capacity development of key stakeholders. It is envisaged that,
the project will establish a sustainable rural energy supply approach which can be scaled up beyond the
project period.

The ASERD programme will consist of the following Outputs:

Output 1: Rural Energy Services increased in targeted areas (Atlas Output# 00097828)
Output 2: Rural energy policy and regulations in place (Atlas Output#00097829)
Output 3: Innovative approaches to delivering rural energy piloted in target areas (Atlas
Output#00097848)
Output 4: Capacity of rural communities and relevant institutions developed inclusive of a
community outreach programme. (Atlas Output#00097849)

Project Budget and Modality:

1. Estimated Project Budget: $50,000,000.00 USD
2. Planned project duration: Five Years ( 2016 –2019)
3. Implementing Partner: MRRD
4. Suggested Project Implementation Modality: NIM

2. Summary of meeting participants comments

2.1. Opening

Mr. Shaheer Shahriar, Deputy Minister MRRD the Chair of the meeting welcomed the meeting
participants to the meeting on Appropriate Business Models for Renewable Energy Projects for
Afghanistan - Sustainable Energy for Rural Development (ASERD). He briefly explained the main
objectives of the meeting, he mentioned that the main purpose of the meeting is to have a common
agreement between the relevant stakeholders to introduce an appropriate operating business model
customized for ASERD Renewable Energy projects that will be aligned with the country (government)
existing policies and frameworks.
 Further Mr. Aman Ghalib, Deputy Minister MoEW emphasized the importance of the ASERD initiative
which will support in expanding access to environmental and energy services for the poor.

Mr. Shaheer Shahriar invited UNDP to present the possible appropriate business models for Renewable
Energy Projects for ASERD.

2.2. Presentation

Ms. Akanksha Chaury the lead consultant presented the possible Appropriate Business Models for
Renewable Energy Projects customized for ASERD. The presentation included:

1- Relevant Business models

• Renewable Energy Service Company (RESCO)
• Distribution Franchisee

Ms. Akanksha defined the RESCO will be an entity who provides energy services to consumers in a
particular area by setting up a mini-utility, usually in an off-grid location. RESCO combines both
generation (optional) and distribution functions. RESCO could be formed by an individual or a small/
medium/ big enterprise, cooperatives, associations, self-help-groups etc. that may be legally or
informally bound.

RESCO Salient Features:

1. RESCO business model is built on enhancing community level incomes through reliable and
affordable energy access. These incomes pay for energy consumed, sustaining the micro-utility
function
2. The RESCO utilises available renewable energy resources (i.e. solar, SHP, hybrids) for generation
of power optimally
3. Power is sold by RESCO to consumers across all load categories, viz. household, commercial
(shops) and enterprises at same or different pre-agreed tariffs
4. The RESCO mirrors a utility on the ground. Typically the RESCO sets up a cluster of projects in a
district to reduce management overheads and ensure viability
5. RESCO undertakes several pre-project activities such as district and site selection, load and
enterprise development, feasibility study preparation and engineering design
6. RESCOs are assisted by local organisations such as CSOs and other community based
organisations in pre-project activities mentioned above, as well as tariff fixation. Presence of
CSO builds trust bridges between RESCO and community
7. Security and other administrative support relevant in the local context are managed by the
RESCO with the support of CSO / local partner
8. RESCOs are often implemented as public-private partnerships with the government (MEW or
MRRD) providing investment support to RESCOs to lower project capital costs and other project
operational expenses
9. To ensure long-term sustainability of operations, RESCOs build in complementarities in power
interface with the utility (DABS) grid, so that there is integration with the national grid if and
when power reaches in the future
10. Significant benefits to the community (as consumers) accrue through a RESCO project through
sustainable energy access, especially for enterprise development. This also leads to economic
growth in the greater region
11. RESCO benefits from revenues earned by selling electricity to various loads in the area under its
command. It also forges a long-term relationship with communities in the region, which will help
 the RESCO to scale up its business to other locations. It also gains knowledge of various aspects
of an energy-based business
12. There are also benefits to the government through environmentally sustainable provision of
energy in un-electrified areas

Proposed RESCO Model – Customized for ASERD

Fund Transfer (100%)

Fund Manager (100%) ASERD -
PMO 100% Capital
EPC
Competitive Bidding

Construction
One time guarantee
deposit + % of fee Option 1 – Same
received Option 2 – tie up

Mini
RESCO
Grid
O&M

Fee for
Service Electricity
Supply

Consumers

CDC NGO
SHG Co-operatives s

"Engineering, Procurement, and Construction" (EPC) is a particular form of contracting arrangement

used in some industries where the EPC Contractor is made responsible for all the activities from design,
procurement, construction, to commissioning and handover of the project to the End-User or Owner.

Distribution Franchisee

• An entity authorized by the Distribution Utility (DABS) to distribute electricity on its behalf, in a
particular area within the utility’s area of supply

• Distribution Franchisee (may) invests in improvements in the existing distribution network to

improve technical and commercial losses, better power quality and improved overall service
delivery
3. Questions and Comments:

The meeting chair opened the floor for comments and requested the participants to provide
suggestions for Appropriate Business Models for Renewable Energy projects of ASERD. The
participants provided the comments as below.

Mr. Amanullah Ghalib, Deputy Minister MoEW

1- The RESCO model seems a good model for ASERD to involve private sector in RE field in the
country. However, he suggested that the private sectors should have license for RE generation,
transmission and distribution.
2- MRRD can obtain generation and distribution license from MEW and hand over the projects to
RESCOs, this way MRRD can legally collect the revenue and make an agreement with MOF to
earmark the income for MRRD, he added. Additionally he mentioned, use DABS as RESCO and
sign a contract with DABS shareholders to allocate all infrastructure’s price as MRRD share in
DABS or have special agreement to partnering with DABS in MRRD funded projects in terms of
business and revenue collection.
3- Added that, one of MRRD niche is its presence and coordination at the community level
therefore, he suggested to involve CDCs to support during RE projects implementation such as
involving their labour force during constructions, provision of land, monitoring and Tariff
collection.
4- In response to H.E. Shaheer Shahriar DM MRRD to have a simple and tested approach for the
first phase of ASERD projects, Mr. Ghalib added, In order to start few projects of ASERD below
options seems more feasible.
a) First option: ASERD/MRRD to initiate bidding process and implement the EPC model to
procure, construct and install the mini grid. After projects installed hand over to DABS (the
government owned national utility electricity provider) to function as RESCO. DABS will be
responsible for its operation and maintenance, Tariff collection and sustaining the project.
b) Second option: ASERD/MRRD to initiate bidding process and contract the EPC contractor to
procure and install the mini grid. Once completed hand over the project to MoEW, MoEW
will further handover it to DABS for O&M, Tariff collection and sustaining the project.

He further added, MRRD to sign a MoU with DABS to support ASERD RE projects
implementation. He said, one of the prerequisites to handover the RE projects of ASERD to DABS
should be to involve them even before the technical design stage and obtain their approval with
the established standards before the bidding process.

He emphasized to make sure to have compatibility of mini grid projects design with DABS norms
so that can connect to national grid properly in future when national grid extend from those areas.

He highlighted the importance of having good coordination with DABS in the project
implementation will make it smoother at hand over stage.
Mr. Shaheer Shahriar, Deputy Minister MRRD

1- ASERD programme will involve private sector during the implementation and also has dedicated
activities to build capacity of private sector. However, considering the fact that currently we have
limited private sector in the field with good capacity and deteriorating security situation,
therefore, he suggested to have phase wise approach for ASERD RE projects implementation.

1st phase: To adopt simple and Afghanistan customized approach for the first few RE projects at
bigger scale where DABS to be involved for distribution, transmission and O&M.
2nd phase: To develop capacity of private sector and implement the introduced RESCO model
with involvement of private sector.

Mr. Nangialai Miakhail, DABS

He added that, DABS has wide coverage in the country for power distribution and transmission
however, there are few areas such as Nuristan that DABS does not have any office so far. He
mentioned that, DABS can take over those RE projects that will be more than 100 KW in Capacity,
existing in the areas where DABS has presence and which are installed based on DABS and MEW
established technical standards.

Mr. Lutfullah Saadat from Ministry of Finance

He mentioned that, the ownership of the project power plant should be government and revenue
generated from the operation of the project to be credited to government through already
established mechanisms. He added that, for this purpose a Memorandum of Understanding
should be signed between MRRD, MoEW and DABs.

Mr. Fazlullah Fazli from ADB

He said that, the government commitment towards supporting local private sectors in the RE
field should be materialized. ASERD programme is a good platform for local private sector
involvement in RE project implementation.

Action point of the meeting

Meeting chair closed the meeting with thanking all the participants for their valuable comments and
consensus on below action points.

1- ASERD first phase RE projects to be implemented through EPC model and handover the projects
after completion to DABS for O&M and running the project. For which ASERD team was
requested to draft MoU to be signed between MRRD and DABS.
2- ASERD team was requested to develop technical design and documentation of the selected sites
for RE generation and facilitate the bidding process to involve the EPC Contractor which will be
responsible for all the activities from detailed design, procurement, construction and handover
of the project to ASERD after completion.
3- It was also decided to involve DABS in all stages of RE projects implementation.
 ‫ضمیمه شماره ‪8‬‬
‫صورت جلسه برنامه انرژی پایدار‬
‫برای انکشاف دهات افغانستان با‬
‫واحد مرکزی مشارکت‪ ،‬وزارت‬
‫مالیه‬
Ahmad Rasooli

From: Ahmad Rasooli <a.rasuly@mrrd.gov.af>

Sent: Sunday, April 16, 2017 3:41 PM
To: 'aserd@mrrd.gov.af'; 'Anders Cajus Pedersen'; 'Ajmal Humraaz Shinwari'; 'Ajmal Khan'; 'Muhammad Saleem Saleemi'
Subject: draft minutes of meeting with MOF, central PPP authority

Dear Ajmal Khan, Dear Saleem, Dear Anders

Please review this draft minutes of meeting with MOF, central PPP authority, please fill free to add what may I have missed.

Greetings from ASERD/MRRD

On 8th April 2017, PPP central authority of MOF, hosted a meeting with ASERD officials and ICE representative, meeting agenda was to discuss on prospect of using PPP
delivery modality in rural energy projects, the discussion was based on PPP in Rural Energy Projects, general concept and justifications document which was drafted in
ASERD and submitted to PPP central unit (attached).

the summary of central PPP authority raised points on PPP in Rural Energy Projects, general concept and justifications document drafted by ASERD.

PPP approach formalization:

 MRRD needs proper project identification mechanism

 Identified projects should be organized as a five year sub program, and should be submitted to high economic council (HEC)

MRRD is encouraged to host a steering committee in DM level consisting MOJ, MEW, MRRD, MOF,MOEC, Land Authority and IDLG to control and mange application of
the PPP approach in rural energy sector.
This steering committee will be in charge for facilitating and paving the road for implementation of the rural energy projects under PPP delivery method.

ASERD needs to rewrite the PPP in Rural Energy Projects, general concept and justifications to make it fit for presenting to the steering committee and submission to High
Economic Council, HEC for approval and process initiation

1
Financial arrangements:

 Financial management for needs special considerations:

o All the payments should be made through “Project company” which acts as “Special Purpose Vehicle, SPV”
o Letter of credit (LC) can be used to secure government financial commitments to the project company/SPV
o Fund injection mechanism in SPV should be in accordance to result based financing
o Revenues (tariffs) can be collected by Private sector and deposited in private banks
o Rural Energy projects should be considered as public assets that belongs to sectoral ministries.
 It would be better to manage the proposed grant portion of the projects under “financial viability Gap Fund”.

MRRD is encouraged NOT to use the GRANT word for its contribution to the projects, for making private sector more accountable it would be better to refer to this
investment as “MRRD contribution”.
using “state owned enterprises” in initial phase of the projects will lead management of the projects to the complexity and excessive paper works. It is recommended to
involve the state owned companies in final stages, ie after expiry of the concession agreement and during decommissioning the projects from private sector to the sectoral
ministries.

Procurment approaches:

 Overall scope of the projects, evaluation criteria, selection of the best bid, quality measures, payment approaches, contract terms should be included RFP
 Procurment of PPP projects has different rules and regulations and central PPP authority will provide the draft rules of procedures for small scale projects

ASERD has received the draft rules of procedures of procurement for small scale PPP projects and will contribute to the document development.

Regards,

Ahmad Rasooli
Program Development Specialist
Afghanistan Sustainable Energy for Rural Development (ASERD)
Ministry of Rural Rehabilitation & Development
MRRD Compound, NilaBagh Street, Dar-Ul-Aman Road, Kabul,
Afghanistan
a.rasuly@mrrd.gov.af
+93773892035
www.aserd.gov.af

2
 ‫ضمیمه شماره ‪9‬‬
‫سند رهنمود عملیاتی برنامه‬
‫میثاق شهروندی‬
 (GOIRA LOGO)

OPERATIONAL MANUAL FOR THE FIELD IMPLEMENTATION OF THE

FIRST PHASE OF THE

CITIZENS’ CHARTER NATIONAL PRIORITY PROGRAM (CCNPP)
AND THE CITIZENS’ CHARTER AFGHANISTAN PROJECT (CCAP)

FOR RURAL COMMUNITIES BY THE MINISTRY OF RURAL REHABILITATION AND

DEVELOPMENT (MRRD) AND FOR URBAN COMMUNITIES BY THE INDEPENDENT
DIRECTORATE OF LOCAL GOVERNANCE (IDLG)

DECEMBER 2016

CCNPP/ CCAP Operations Manual Page 1

The sub-committees include a broad range of actors from the community, including non-CCDC/GA
members: CDC members, experts (teachers, lead farmers, Mirabs etc.), and people representing key
interest / self-help groups (farmers, water users, illiterate parents, land-poor and landless men and
women, disabled persons, etc.). At a minimum, there needs to be sub-committees at this level for
education, public health, and agriculture/ irrigation.

 Create awareness strategies (for their particular area of work) – coordinate with respective
CDC sub-committee.
 Generate demand for services (for their particular area of work) – coordinate with respective
CDC sub-committee.
 Monitor facility based services.
 manage natural resources and advocate for and monitor equitable allocation of these resources
(water, pasture, forests).
 Support interest / self-help groups in the community (for their particular area of work) linking
them to experts, lobbying for resources, advocate for them to the Cluster CDC.

II.6. Facilitating Partners (FPs)

 Raise awareness within communities about the Citizens’ Charter.

 Facilitate elections to establish newly elected CDCs and the formation of sub-committees as
per the CDC and CCDC/GA ToRs.
 Facilitate clustering the newly elected CDCs into Cluster CDCs/GAs under the oversight of
the District Governors/ Municipal Mayors and Nahia Managers and in consultation with all
Citizens’ Charter Line Ministries and IDLG.
 Work with communities to create basic community profiles that establish number of families;
location, type and number of public resources; basic multi-hazard risk assessment3; socio-
economic groupings. These will be based on participatory methods in rural communities, and
updating/improving existing and available information in urban communities.
 Establish and train Participatory Community Monitoring Teams.
 Facilitate key participatory methodologies and ensure the application of the findings in
planning to address key issues.
 Actively work towards youth involvement, participation and inclusion in data collection,
analysis, action planning and monitoring of community activities.
 Actively work towards women’s empowerment, participation and inclusion. This will include
facilitating specific exercises with women from different socio-economic backgrounds to help
women to collectively identify their needs and strategize how to increase their involvement in
CDCs and CCDCs and their sub-committees.
 Support women’s committees, if they are separate from men’s, to prioritize their needs and
assist them in representing their interests to the CDC so that they are considered in the
decisions that are made.
 Facilitate development of Community/Cluster and GA Development Plans through
community resources and poverty analysis.
 Ensure labeling, safe storage, and periodic updating of planning outputs (maps, calendars,
matrices, as well as the CDPs).
 Capacity building of CDCs and Cluster CDCs/GAs and their thematic male and female (or
gender-combined) sub-committees to work as whole-of-government platforms. Key training
topics will include their Roles and Responsibilities, Linkages with key Development Actors
(Government, Private Sector, and NGOs), Disaster Risk Reduction and Management,
Grievances, Score Cards, as well as capacity building of the CPM Committee (social audits,
monitoring).
 Support CDCs/ Cluster CDCs/GAs to establish bank accounts when required.
 Support CDCs and sub-committees (initially with relatively intense engagement that reduces
over time) to run these local bodies and establish key practices (periodic meetings, rotating
chairmanship, public awareness campaigns, mobilization of human, physical and financial

3
Basic multi-hazard risk assessment includes identification of main hazard risks of any particular area and a
multi-hazard vulnerability/exposure map. Please refer to the Social Training Manual for more detail on existing
risk assessment maps and a step-by step basic guide to incorporate vulnerability assessment into project
planning and design.
CCNPP/ CCAP Operations Manual Page 16
  Support the inter-ministerial team responsible for the preparation of the various CCAP
manuals in the design phase, and later in its elaboration and modification for urban
communities.
 Support the DMM office for discussions on Citizens’ Charter related policies and future
directions, and documenting agreed strategies and plans.
 Support the DMM Office for functional procurement and financial system for CCNPP.
 Development of Operation manuals, training manuals (technical and social including ESS,
DRM, Gender) for CCNPP and train PIU, PMU, and FPs staff.
 Train the IDLG and FP key staff on the operation and other manuals of the CCAP.
 Support the DMM for establishment of national and provincial offices for the CCAP.
 Support the DMM PIU for CC overall budgets including budget preparation, expenditure and
monitoring.
 Support the DMM PIU for maintaining and development of inter-ministerial relationships for
the Program, including dialogue on the future of CDCs / Gozar Assembly and local
governance institutions and structures in Afghanistan.
 Support the PIU on procurement, approval and processing of contracts for CC FPs through
the DMM, MoF and other government departments.
 Support the PIU/ PMU for, Management of CDCs and community grievances.
 Elaborate and update the CC Operational Manual sections for urban communities.
 Support the PIU/ PMU for approving community subproject proposals.
 Support the PIU/ PMU Take-over of mature CDCs from FPs.
 Support the PIU/ PMU for Financial management of CC (including Block Grants to
communities and GAs).
 Support the PIU for adapting NSP MIS system for CC and maintaining an MIS to manage
program information.
 Train the PIU / PMU and FPs and core staff to handle facilitation and other CCNPP functions.
 Support the PIU for Public communications/ relations for the CCNPP.
 Organize, conduct and/or oversee monitoring and evaluation on various aspects of the
program/ operations.
 Document best practices and lessons learned.
 Produce consolidated progress reports and other ad-hoc reports as requested by donors and/or
the government.
 Train City leaders on CCNPP and other urban related issues
 Support DMM office for submitting required report to donors and other related government
offices
 Oversee the work of the IDLG CCAP FPs in the field
 Periodically compile and record lessons learned from field implementation and include in the
design for the next round of implementation.

II.8. MRRD General Directorate for CC and IDLG’s PIU director CC

The MRRD will have a dedicated General Directorate for the CCNPP. A Director General, reporting
directly to the Deputy Minister of Programs, will head the MRRD Citizens’ Charter Directorate. The
Directorate will include five Sub-Directorates as follows:
 Sub-Directorate for Small Rural Irrigation and Flood Control;
 Sub-Directorate for Rural Water Supply and Sanitation;
 Sub-Directorate for Rural Access;
 Sub-Directorate for Rural Energy Development; and
 Sub-Directorate for Operations.
The IDLG’s PIU director will report to the Director of the Governance Directorate and will be
responsible for the overall oversight and execution of the CCAP in urban communities.
Together these two directorates (MRRD/IDLG) will handle the following key roles for their portions
of the CCNPP:

 Donor, government, media and key stakeholder liaison for the respective line ministries
 Manage the entire CC portfolio for the respective line ministries
 Procure and manage FPs for the wider CCNPP work for all line ministries for the rural and
urban community facilitation respectively
CCNPP/ CCAP Operations Manual Page 20
 (f) Community contribution plan
(g) Time-bound work plan
(h) O&M plan

The MRRD and IDLG FP engineers must work closely with the CDC/CCDC/GA and their selected
project management committees in the preparation of the proposals. Supported by these engineers, the
CDCs/ GAs are required to hold community wide meetings informing the community of the details of
the proposal, with special focus on environmental and social safeguard requirements, the minimum
mandatory community contribution requirements and how they propose these are met, and the
operations and maintenance (O&M) plans and the community’s responsibilities with regard to the
same. The final estimated budget and the portion to be filled as community contribution are
communicated to the community.

Community contribution in CCAP for urban areas will amount to a minimum of 25% of the total costs
of the selected subprojects for regular communities. This can be paid in cash, kind or voluntary labor.
Care must be taken that the burden for the contribution is equally shared by all the households to the
extent feasible. For GAs and urban communities with a significant percentage of IDPs/ recent
returnees/ nomadic populations, the mandatory community contribution requirement is waived.

Where there is more than 1 subproject in a given community/ cluster/ Gozar, the administrative costs
need to be divided among them proportionate to the subproject costs. It is recognized that most
administrative costs apply for the community/Gozar and not the individual subprojects, but this
breakdown is mainly to ensure that these costs are included in the estimate. An overall list of
administrative costs for the community/ Gozar needs to be prepared first and then broken up
proportionately into the 2 subprojects. For both urban/rural CDCs and urban GAs/rural CCDCs,
administrative costs cannot exceed AFA 15,000 or 5% of the total grant for the CDC/GA/CCDC,
whichever is lower.

The engineering and technical survey and design must specifically follow the standard designs in the
CCAP Engineering/ Technical Manuals and all of the applicable building, zoning, energy and
environmental protection codes for resilient construction and must be based on resilient infrastructure
design training module provided by World Bank Group to the CCAP engineers. The subproject must
also account for possible mitigation and adaptation measures to reduce existing and potential disaster
risk based on multi-hazard risk assessment. Where updated provincial/ city project cost databases
(PCDB) exist, the bill of quantities should reflect the costs stated in the PCDB.

Special care needs to be paid for land obtained for a given subproject whether through voluntary
contribution, use of public/ community land, and/or land purchased for the same. It should be noted
that the CCAP funds cannot be utilized in any part or whole for land purchase, or for compensation
for land.

The proposal needs to include a sum of Afghanis _______________________________________

(AFA _______) for a sign board in the standard format and size prescribed in subsequent sections to
be prepared on completion of the infrastructure subproject and fixed in a visible location in front of
the subproject site.

One Form 7 is required to be completed for each subproject proposal. Thus a community/ cluster/
Gozar will have a maximum of two Form 7s.

Important Note:
a. For rural communities, the total subproject costs in its 1 or 2 Form 7s should total the amount
pre-determined by the district engineers as the maximum RASS grants for that community
b. For urban communities, the total subproject costs in its 1 or 2 Form 7s should total a sum of the
applicable Afghani equivalent of US$ 70,000/ community or US$ 200,000/ Gozar.
c. The entire set of Form 7s for a given community must be submitted together to the PMU. Where
the total value stated in the proposals submitted as Form 7s of a given community does not total
the amounts stated above, the Form 7s will be returned for corrections.

CCNPP/ CCAP Operations Manual Page 45

 CHAPTER EIGHT: LINKAGES

VIII.1 What is Linkages and what does it Serve?

“Linkages” in the context of this OM deals with the formal process of linking CDCs to the district,
provincial and central government actors and to other development actors in an organized systematic
manner, such that it contributes to the stated objective of strengthening CDCs for delivery of core
infrastructure and social services. While linkages involve multiple stakeholders, the primary
responsibility for organizing and implementing the following lies with the contracted FP.

The Government recognizes that ‘Linkages’ between Government and CDCs and Cluster CDCs/
Gozars can only take place if there are platforms/ spaces through which interaction can occur. The
Citizens’ Charter Program will have a District Citizens’ Charter Management Committees (DCCMC)
in rural areas and Municipal Citizens’ Charter Management Committees (MCCMC) in urban areas.
These Management Committees that include all CC line ministries will not only coordinate line
ministry services provision, but will also be responsible for the interface between communities elected
representatives’ and government staff.

The periodic meetings will enable elected representatives to:

 Provide feedback and discussion to improve services (focusing on the Minimum Services
Standards, outlined by Government)
 Request support from DG and Line Ministries to resolve lack or quality of services issues
 Share and discuss development activities and support needed by various actors, such as NGOs
or private sector
 Share best practices
 Address Grievances that are not resolved at the community level and channel these to higher
levels, if needed
 Advocate and raise support for key activities, e.g. to address food security for the most needy
(such as women-headed families, or families headed by disabled persons or children)
 Discuss and consider management of Natural / Common Property Resources in the district
 Raise awareness on key development issues
 Provide input for District level Planning
 Illustrate equitable development such as equitable distribution of benefits from CCAP
subprojects, site selection of subprojects such that even the most vulnerable groups can
benefit from them, etc
 Provide input for District level Planning and discuss how Citizens’ Charter sub-projects tie
into the overall district level development planning
 Discuss safety of development staff
 Raise issue and seek inputs and support in conflict / dispute resolution, and
 Coordinate Disaster Risk Reduction and Disaster Management

VIII.2 Time frame of Meetings and Key Actors

Sub-district Level:

At this level, linkages include intra-community and inter-community linkages. Within a given
community, the FP social organizers must ensure that CDC members from each neighborhood are
introduced and familiar with all the other neighborhood in that community. Once all planned CDCs
are established, the FP must conduct cross-visits between neighboring communities at the sub-district
level. This could be done either by hosting one or two day sessions where CDC members from the
sub-district visit each of the communities in that sub-district. Alternatively, all of them could be
brought to a central location in the sub-district where they can meet and learn more about each other’s
communities. The primary output here is that the CDCs get a perspective of the common development
related issues and challenges between these communities and what can be done via the CCAP and by
their own joint efforts to address them.

As and when CCDCs and GAs are also formed, the linkages between these institutions and the wider
CDCs among the participating communities need to be well-established such that the development
CCNPP/ CCAP Operations Manual Page 51
communities will comprise between 15 and 25 households. Especially in urban communities, female-
headed households may receive dedicated grants or part of the grants under the CCAP.

Instalment: Each disbursement (transfer of funds) to a community is termed an instalment. The number
and percentages of each instalment is determined by the total grant to the community from the MRRD/
IDLG and is detailed elsewhere in this Manual.
Jirga/Shura: This refers to a traditional Afghan village council comprised of elders. Under CCAP,
communities are free to elect community members of their choosing to their Community Development
Council (CDC), which may or may not include members of existing jirgas or shuras, provided they meet
the criteria required for CDC membership.
National Policy for Improving Local Governance: On 30th December 2013, the Cabinet has passed a new
national policy for improving governance at the village and district levels. The Policy recognizes CDCs as
interim village councils responsible for both governance and development at village level. The Policy
recognizes Cluster CDCs as councils responsible for the implementation of development projects that
span several villages.
Public Notice Board: A report on subproject status, proposed budget, and actual expenditures, posted by
the CDC in a public place(s) accessible to both men and women to promote transparency. At a minimum,
it is required to be on regular poster-sized paper and should be displayed in a prominent and easily
accessible location. This is a crucial instrument in terms of social audit, promoted by CCAP and its
donors as an important part of all community-led development initiatives.
Resilience: The ability of a system, community or society exposed to natural hazards to resist, absorb,
accommodate and recover from the effects of a hazard in a timely and efficient manner, including through
the preservation and restoration of its essential basic structures and functions. 7

Rural Community: In districts previously covered by the NSP, the same communities for which CDCs
were elected will form the communities under the CCAP. (Note: The MRRD is aware that certain
communities have split into smaller artificial units under the NSP to avail of higher block grant
entitlement ceilings than if they had remained a single community with more than 300 families. In such
communities, it is strongly recommended that such sub-units rejoin as a single community under the
CCAP, given that the size of the community and number of families/ households will not affect the size of
the grants involved and for the purposes of unity.) In districts to be covered by CCAP but have never been
covered by the NSP, a rural community (in CCAP) must have a minimum of 25 households (with no
upper limit in household numbers defined), must have at least 1 Jummah mosque and must be attested by
the district governor’s office as an independent community. (Note: Communities earlier covered by the
NSP but now within municipality boundaries will not be eligible for coverage by MRRD under the CCAP
but may be covered by IDLG if within the IDLG’s CCAP coverage area).

Rural Areas Service Standard Grant under MRRD (RASS grants): This grant provided under the CCAP is
not an entitlement per community or cluster of communities, nor is it determined on the basis of the
number of households/ families as it was under the NSP. Instead, the grant will be determined on the
basis of the gap analysis (community need) and the minimum services standards defined for rural
communities under the CCAP. Under the MRRD, all households in the around 12,000 communities
covered under the CCAP will be entitled to safe drinking water, and one of three other sectors (i.e. one
from rural renewable energy, rural access and small scale irrigation and flood protection). The grant
amount is then defined by the selection of which of the sectors the community prioritized for the use of
the investment grant and the estimated costs for the provision of the selected infrastructure. It is expected

7
United Nations. 2009. “Global Assessment Report on Disaster Risk Reduction: Risk and Poverty in a Changing
Climate.” ISDR, United Nations, Geneva, 207.

CCNPP/ CCAP Operations Manual Page 83

 10 ‫ضمیمه شماره‬
‫چهارچوب صلح و انکشاف ملی‬
Afghanistan National
Peace and Development
Framework, ANPDF
 Islamic Republic of Afghanistan

AFGHANISTAN NATIONAL PEACE AND

DEVELOPMENT FRAMEWORK
(ANPDF)
2017 to 2021
Islamic Republic of Afghanistan

AFGHANISTAN
NATIONAL
PEACE AND
DEVELOPMENT
FRAMEWORK
(ANPDF)
2017 to 2021
Contents
Vision 1

1. Introduction 3

2. Political, Security, Economic, and Socioeconomic Outlook 4

2.1 The Geo-economic Location of Afghanistan 4
2.2 The National Unity Government – The First Two-Years 4
2.3 Political and Security Outlook 5
2.4 Economic Outlook 5
2.5 Socioeconomic Outlook 6
2.6 Women and Socio-economic Development 8

3. Fiscal Forecast 10

4. Fiscal Strategy 12
4.1 Economic and Fiscal Goals 12
4.2 Fiscal Framework and Budget Reform 12

5. Development Strategy 14
5.1 The New Development Planning System 14
5.2 Development Priorities 14
5.3 Governance and State Effectiveness 14
5.4 Social Capital and Nation Building 16
5.5 Economic Growth and Job Creation 18
5.6 Poverty Reduction and Social Inclusion 26

6. Development Partnerships 30

7. Development Financing 34
7.1 Revenues and Expenditures Projections (base case) 34
7.2 ANDPF Scenario Assumptions Table 35
7.3 ANDPF Projections Chart
+
36
7.4 ANDPF Scenario Assumptions Table
+
37

8. Conclusion 38

Annex 1: List of National Priority Programs and Development Councils 40

 Afghanistan National Peace and Development Framework (ANPDF) 2017 to 2021

Vision
The Afghanistan National Peace and Development Framework is our plan to achieve self-reliance and
increase the welfare of our people. We will build a productive and broad-based economy that creates
jobs. We will establish the rule of law and put an end to corruption, criminality, and violence. Justice and
the rule of law require that we step up the fight against corruption, reform our courts, and make sure
that ordinary citizens can exert their constitutional rights with confidence. We will change the structure
of our economy from one of import and distribution to one where a thriving private sector — from
small farmers and urban businesses to large manufacturers — can successfully export Afghan products to
regional and global markets. We will make strategic investments in infrastructure, human capital, quality
service delivery, and technology; backed by a robust and well-regulated financial sector that can channel
money to where it can best be spent. Growth will be inclusive and balanced. As the economy grows,
Afghanistan will be able to expand investments in the health and education of our people. Achieving these
goals requires a collective effort to overcome fragmentation, increase accountability, and introduce proper
policies for sustainable growth.

1
1. Introduction
The Afghanistan National Peace and Development Framework (ANPDF) is a five-year strategic plan for achieving self-reliance.
The sustainable development that will help Afghanistan meet its many challenges, bring an end to poverty, and ensure security
and stability for our country will take longer than a single generation to realize. We must plan to move our country beyond its
history of war and poverty and begin the long journey to prosperity.
The Framework presents a long-term development narrative for Afghanistan by providing consistent high-level guidance to
government, and other, stakeholders. It articulates our immediate and long term development priorities, highlights key reforms,
and outlines priority investments needed to achieve development goals in these critical areas. It sets the economic, political
and security context for our approach to development, which is built around agriculture, extractive industries and trade.
This context leads to a fiscal strategy that will guide budgetary allocations to support policy goals and ensure the sustainable
management of public investment.
A credible national budget with the ability to improve government performance is the key mechanism for turning policy into
tangible outcomes. Making the budget a driver for reform requires complementary improvements not only in governance
and citizen engagement, but also significant advances in the rule of law. Finally, the ANPDF provides a framework for our
international partners to have confidence that more flexible support to the budget will be matched by increased accountability
and improved performance.
Afghanistan’s economic and development forecast is informed by the prospects for achieving peace and reconciliation. The
government is deeply invested in the peace process and stands firm on the need to find political solutions to the conflict.While
we remain committed to peace, continued expenditures are required to maintain national security, strengthen government
control over territory, and combat the spread of terrorism. As part of our national security strategy, we will continue to invest
in professionalizing and increasing the effectiveness of the armed services.
Building the people’s trust that their government can provide a better future for them and their families is central to our
national development plan. Our people must have confidence in a state that is well-governed through laws and institutions,
provides a voice for the people to hold their government accountable, and delivers quality services. Our government is aware
that we must secure the nation’s future by conscientiously stewarding natural resources and investing in our children’s health
and education.
The ANPDF will help overcome the legacy of fragmentation and distortion that has stunted institutional development in
Afghanistan. Improved governance, anti-corruption, and organizational reforms are woven into every section of this document.
We will increase accountability and make sure that the fruits of our economic strategy are shared equitably.
We believe that with focused and sustained commitments, our approach to policy formulation and management can deliver
results. But we also draw attention to the risks associated with overly rapid reductions in external support for the reform
agenda. It will take time for the reforms and investments that will put Afghanistan on the path to sustainable growth to produce
results. Carefully calibrated bridge support is needed to make the transition to sustainability a smooth glide rather than a series
of fitful and disruptive shocks. Sustaining partnerships to embed reforms and follow them through to fruition are pre-conditions
for success.
The overarching goals of our government are to reduce poverty and improve the welfare of our people. In an underdeveloped
country, compromises must be made between short-term and long-term investments. This strategy highlights the means for
making those trade-offs. It will allow our elected representatives to set priorities, make choices, devise appropriate programs
and deliver concrete outcomes. It details standards on inclusion, gender equity, regional balance, and other development goals
that provide a basis for making decisions and assessing results.
Our aim is to be transparent about the challenges ahead. There are no low-hanging fruit that could trigger rapid growth and
foster self-sustaining development. As a political community, we should be clear about our choices. We must build a national
consensus in support of the reforms presented in this framework. Afghanistan is a nation that understands hardship. But we are
confident that hope, handwork, and staying true to our values will make our country succeed.
The ANPDF was developed through consultations between the government and our partners, including civil society, private
sector, and international partners. Our aim is to continue this national dialogue.This document will be available in Dari and Pashto.

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 Creating Jobs by developing our private sector
Our goals for promoting private sector development are:
▪▪ Building efficient and competitive markets;
▪▪ Enabling SMEs, particularly export-focused Afghan-owned firms; and
▪▪ Encouraging domestic and international investment.
Our tools for creating an enabling environment for the private sector include:
▪▪ Assisting Afghan firms to comply with ISO standards;
▪▪ Making trade support services relevant and accessible;
▪▪ Advancing customs-to-customs agreements with neighboring countries;
▪▪ Strengthening commercial attachés in Afghan embassies;
▪▪ Advancing bilateral and multilateral trade agreements;
▪▪ Strengthening the transport and logistics sector, including the implementation of the Customs Convention on International
Transport of Goods Under Cover of TIR Carnets (TIR Convention);
▪▪ Promoting local procurement and allowable import substitution;
▪▪ Improving and systematizing private sector survey instruments;
▪▪ Supporting and building industrial parks and special economic zones;
▪▪ Reviewing licensing requirements with the goal of eliminating unnecessary ones;
▪▪ Providing tax incentives and legal protections of investments and assets to investors; and
▪▪ Establishing one-stop shops offering streamlined electronic business administration services (registration, licensing, customs
payments) in Kabul and seven hubs.

Financial Sector Reform: Successful development of any type requires a stable, efficient financial sector. We have a two-pronged strategy
for financial sector reform. First, it must consolidate financial stability by addressing sectoral weaknesses, and provide a credible system
for banking regulation and oversight to rebuild public confidence. These actions will advance the banking sector and provide incentives
for growth-friendly initiatives. We will focus on improving sustainability, increasing efficiency and facilitating access to financial services by:
Enhancing regulatory and monitoring frameworks to bring stability to the financial sector;
▪▪ Increasing the use of risk-based audit and review models;
▪▪ Establishing a unit to monitor risks from state-owned banks;
▪▪ Reviewing oversight regulations to eliminate duplication and make sure that they are fit for purpose;
▪▪ Completing the DAB safeguards review by 2017;
▪▪ Providing incentives for private banks to lend to private enterprises; and
▪▪ Preparing a national financial inclusion strategy, to allow citizens better access to banking services, by December 2017.

c) Mineral and Resource Development Program

Extractive industries such as mining and hydrocarbon development will play an increasingly important role as drivers of economic growth.
Their sustainable development through transparent tendering and effective monitoring is of particular importance to us. Recent reports
highlight the urgency of a strong state presence in this sector to stop smuggling and other forms of illicit expansion. For this reason, our
strategic plans call for aligning extractives development with full EITI compliance and ensuring that activities in and around Afghanistan’s
heritage sites adhere to global best practices for conservation. As governance improves, we will open up mining to international investors
who can provide the capital and management skills needed to help this sector realize its full potential.

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 Afghanistan National Peace and Development Framework (ANPDF) 2017 to 2021

The mining sector has vast potentials to generate revenue. However, a weak regulatory environment, slow investment approvals, and
corruption have thus far impeded development in this sector and have prevented ongoing exploitation of smaller and medium-sized mines
from delivering significant revenues. We will accelerate progress on the legislative and regulatory framework to encourage private sector
investment. Significant investments in critical infrastructure, particularly in railroads linking major mining projects to port facilities, and an
enhanced national energy grid are needed to help realize mining’s potential.
Transparency and accountability will be priorities for the sustainable development of this sector.We estimate that illicit mining is resulting in
losses of about $300 million annually, fueling the insurgency, and driving criminality. We will introduce new requirements for the disclosure
of beneficial ownership and ensure that revenues from licensed exploitation are collected. Hydrocarbon mapping and exploration are also
underway although any significant commercial development will have to await global price increases for oil and gas.

Strengthening the extractives sector for a better economy

Our goals for the mining and minerals sector are:
▪▪ Maximizing revenue from mineral exploitation;
▪▪ Increasing the sustainability and predictability of mining revenues;
▪▪ Expanding oil and gas exploration; and
▪▪ Addressing illegal mining.
Our priorities for the sector are:
▪▪ Reforming contracting and professionalizing internal governance;
▪▪ Establishing full government control over mining areas;
▪▪ Making the mining law EITI compliant;
▪▪ Inviting international partnerships to develop large mines; and
▪▪ Building new freight rail links to regional networks in Turkmenistan and Iran.

d) Energy and Infrastructure Development

Our growth strategy relies on improving the ability of producers to reach urban and international markets. The development of transport
corridors has been affected by the conflict. Poor designs (often done using Google maps) and weak contractor management have been
equally challenging, resulting in very high costs for poor quality construction. To avoid these issues in the future, we will commence a
process of pre-qualifying certified firms to build roads. Work is underway to improve transportation authorities by establishing systems
that would allow them to harmonize responses to the country’s expanding transport needs. This includes the establishment of a Road
Authority, a Road Fund, and a Transport Institute.
Afghanistan has launched a long-term program for electricity generation and transmission. Projects such as CASA-1000 and the Turkmenistan
500 KV power line could eventually carry up to 4000 MW of power.The TAPI natural gas pipeline is making progress toward delivering gas
from Turkmenistan to South Asia.The inauguration of the Salma multipurpose dam is a major achievement and could provide revenue from
transmission sales and increase the availability of commercial and private electricity in Afghanistan.
Domestic power generation is on the rise, with a masterplan to produce 2,300 MW from internal sources within five years, including four
large hydroelectric projects developed as public-private partnerships (PPPs) and 600MW from solar, wind, and natural gas, also through
PPPs. By the end of 2018, Afghanistan will be generating more electricity from new domestic sources than has been produced domestically
during the previous 40 years. Priority will be to continue to invest in the national grid, which is a fundamental prerequisite for commercial
or industrial development, while making increasing investments in renewables for residential and isolated areas.

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 An NPP for developing infrastructure and energy
Our objectives for the electricity and energy sectors are to:
▪▪ Reduce transport costs to expand rural-urban trade;
▪▪ Complete the 500kv national grid and become energy self-sufficient within 15 years; and
▪▪ Gain revenue from energy arbitrage between central and south Asia.
To get there Afghanistan will:
▪▪ Encourage private sector infrastructure development;
▪▪ Where possible, provide cleared government-owned land to accelerate strategically important infrastructure;
▪▪ Consolidate design and adopt innovative procurement to reduce tender and completion times;
▪▪ Train a cadre of infrastructure engineers and project managers;
▪▪ Increase domestic generation to 2,300 MW, using natural gas, renewable energy, and hydro-electricity;
▪▪ Develop domestic energy supplies and transmission, especially through renewables; and
▪▪ Normalize the pricing and subsidy regime.

e) Advancing Regional Integration

Afghanistan’s location as a transit hub between East, South, Central and West Asia could be a major economic resource; provided conflict
risks are reduced to manageable levels. We have made initial investments in cross-border energy transmission and dry ports for long-
distance trans-shipment. Afghanistan’s recent accession to the WTO will facilitate more cross-border projects and policy reforms to
promote regional trade, provided sufficient financing can be identified. We are working with the IMF, ADB, and the World Bank to develop
models that can attract not only global investments but also domestic and regional private sector financing.
Regional economic cooperation has the potential to be an important driver of growth for Afghanistan. Innovative areas of regional
cooperation will be investments in the Central Asian digital highway, regional energy projects to augment the ones discussed earlier,
and regional railways and roads. The Afghanistan Railway Authority has prepared a commercial freight and mineral-focused development
masterplan for establishing a northern link to Central Asia, a southwestern link to Iran, and six logistics hubs to provide export access to
each of Afghanistan’s major regions, of which approximately 350 KMs is at a stage of advanced design.
We will also step up our engagement with neighboring partners, South Asia Co-operative Environment Programme (SACEP), and The
International Centre for Integrated Mountain Development (ICIMOD), on cooperation to mitigate the adverse effects of climate change
across the trans-Himalayan region.

Growth and security through regional cooperation

Our goals for regional cooperation development are:
▪▪ Making Afghanistan an attractive trans-Asia shipment hub;
▪▪ Diversifying our export routes; and
▪▪ Improving security by enhancing confidence and mutual benefit from stable trade.
To expand benefits from regional trade infrastructure we will:
▪▪ Join regional projects such as One Belt, One Road (OBOR);
▪▪ Encourage PPPs and private sector infrastructure development;
▪▪ Ensure regional energy projects, including CASA 1000 and TAPI, receive funding and administrative support;
▪▪ Enhance engagement with regional organizations; and
▪▪ Strengthen our embassies and trade missions.

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 Vibrant and habitable cities
Our Main Goals for the sector are:
▪▪ Creating a network of dynamic, safe, livable urban centers;
▪▪ Turning urban centers into economic growth hubs, cultural centers, and social inclusion arenas; and
▪▪ Decentralizing urban planning and establishing participatory urban governance mechanisms.
The Urban NPP will:
▪▪ Improve the legal and regulatory framework, implement devolution of power, and strengthen the rule of law in cities;
▪▪ Build urban infrastructure – principally transport and drainage;
▪▪ Integrate cultural heritage into urban development plans;
▪▪ Upgrade urban neighborhoods, provide and enforce zoning rules, and promote affordable housing;
▪▪ Certify and secure land tenure rights, improve urban services to the poor, and increase access to employment; and
▪▪ Promote mass economies,establish urban economic zones,and integrate urban hinterlands into metropolitan development planning.

5.6 Poverty Reduction and Social Inclusion

Our strategy for poverty reduction combines investments to improve growth and productivity with targeted programs to help the poor
improve their skills and access opportunities. There has been an absence of poverty-focused investments over the long years of conflict.
Corruption hampers the ability of the poor and vulnerable groups, including persons with disability, to access services and opportunities.
Social factors such as localized violence and criminality, land tenure insecurity, illegal land seizures, gender mores, discrimination, and poor
service delivery, lock entire populations into inescapable poverty traps. We are committed to tackling these challenges by ensuring that
provisions for helping our most vulnerable citizens are mainstreamed into our activities.
Improved security and better policing are the bottom-line pre-conditions for successful poverty reduction. It is no surprise that improved
security tops the list of concerns for the poor.
A central pillar of our anti-poverty approach is ARAZI’s planned National Priority Program on land administration. This NPP will
incorporate ongoing multi-agency urban land certification programs that are providing legally recognized occupancy certificates to
irregular urban settlements.

a) The Citizens’ Charter

Afghanistan has concentrated on expanding access to health and education. This focus will continue with financing already secured for
basic health and education services through 2020. We envisage three modifications to our current strategy. First, health and education
must now focus on improving quality, not just expanding coverage. Second, current financing models are not sustainable, particularly for
health services. Both ministries are preparing reform plans to address these challenges, including improvements to the basic package
of health services and programs to increase literacy in remote areas. Third, the disjuncture between the education curriculum and the
needs of Afghanistan’s job market means that nearly two-thirds of recent college graduates are unemployed.
The Citizens’ Charter National Priority Program will improve mechanisms for service delivery in education, health, basic rural
infrastructure, and agriculture services. The aim of the Charter is to reduce poverty and break the cycle of fragility and violence, using
Community Development Councils (CDCs) as the entry point for both governance and development activities at the micro-level.
The Citizens’ Charter is key to our development vision. It is a whole-of-government effort that will link rural communities, districts,
provinces, and the central level, to promote inclusive development and help overcome the fragmented development approaches of
the past. The Charter will put communities at the center of the development process, provide them with the tools and mechanisms
to monitor service delivery and decide on development priorities. Communities will play an integral role in beneficiary identification,
demand creation, as well as operation and maintenance. The Citizens’ Charter will build the capacity of CDCs and put in place
necessary downward-accountability measures to help ensure that vulnerable groups, such as women, returnees, IDPs, widows, and
persons with disabilities are included in the development process.

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 Afghanistan National Peace and Development Framework (ANPDF) 2017 to 2021

The Citizens’ Charter will deliver minimum service standards

The Citizens’ Charter will ensure the delivery of a basic package of services for all communities by 2026. Over the next four years,
the program will provide 12,000 communities across all 34 provinces with:
▪▪ Universal access to clean water, providing nearly 20,000 water points;
▪▪ Quality education in government schools, ensuring teacher attendance and minimum learning hours for students; and
▪▪ The Basic Package of Health Services, including mandated services at all clinics, minimum hours of operation, and basic staffing requirements.
Based on community-led prioritization and gap analysis, communities will have at least one of the following:
▪▪ Basic electricity from renewable sources in remote areas which cannot be reached by the grid system;
▪▪ Basic all-year roads to increase village to market access; or
▪▪ Small-scale irrigation and drainage infrastructure.

b) Women’s Empowerment
We are committed to ensuring the full political, social, and economic participation of Afghan women in national development.
Government budgets have factored in the costs of implementing UN Resolution 1325 and the National Priority Program for the
Economic Empowerment of Women.
In keeping with our commitment to reduce poverty, over the next fifteen years, we will invest as much as USD250 million in the
women’s economic empowerment program. We will enact a reform agenda to increase women’s mobility, improve the quality of gender
statistics, and reduce or eliminate regulations that block women’s access to credit and markets.

Afghanistan’s gender strategy

Our Constitution guarantees equal citizenship rights for women. But we must help lift them out of the cycle of poverty by ensuring
their socio-economic inclusion and increasing their engagement with markets.
Our gender strategy rests on five pillars, each grounded in a cross-government action program:
▪▪ Implementing our global commitments on human rights, security, and freedom from domestic violence for Afghan women;
▪▪ Ensuring full access to education and health services, including higher education;
▪▪ Launching the Women’s Economic Empowerment National Priority Program;
▪▪ Securing the constitutional rights for women through the full execution of our laws; and
▪▪ Advancing women in government and business.

c) Social Protection
Afghanistan cannot yet afford large-scale national safety nets or tax-based transfer programs. But pro-poor spending can be significantly
increased and made more efficient.We will reduce poverty primarily by helping the poor increase their skills, productivity, and access labor-
intensive paid employment through the Jobs for Peace program. The Program was launched in 2016 and has already provided over two
million paid days of work to repair and maintain village infrastructure.
While investing in more opportunities for young people is the central focus of our poverty strategy, there is still a substantial population
of vulnerable, disabled, widowed, and elderly citizens who will need carefully targeted and professionally managed assistance. We must
progressively improve safety net operations such as pensions, entitlements, and other forms of transfer. Weak targeting systems, deeply
embedded corruption, and poor management structures are first-order challenges. To improve their efficiency and reduce corruption,
the Ministry of Labor, Martyrs and the Disabled will establish an agency to manage cash transfers for pensions, disability, and other social
protection entitlements.

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8. Conclusion
Afghanistan is entering a new era. The shock of transition is giving way to a visionary and forward-looking strategy for self-reliance. This
framework focuses on a reformed development architecture anchored in a budget process that demands discipline, focus, realism, and a
pragmatic approach to solving problems.
Success lies in striking the right balance between advancing reforms and reducing development assistance. Development partners re-
assessing their assistance to Afghanistan must be careful. Afghanistan is a country at war. Conflict not only imposes enormous costs on the
country but also carries the risks that additional shocks will plunge the country back into chaos. While we are confident that Afghanistan
will succeed, the risks of failure are all too real. Too sharp a cut in levels of aid will stoke further unrest and violence. Afghanistan’s
longstanding conflicts are not of its own making; there is a shared obligation to see the transition through in a responsible way.
Over the past year, we laid the foundations that will make this framework succeed. The reforms to our security forces are slowly reducing
citizen insecurity and our country’s vulnerability to attacks. As we re-assert and sustain control over the whole of the national territory,
the process of rebuilding can begin. Comprehensive reforms are underway to reduce corruption and build a legal system that can enforce
the law. Planning for parliamentary and national elections is advancing. Public financial reform is re-building a budget process that reflects
the cost of policy decisions and provides the means for the government to take responsibility for oversight on expenditure. Our fiscal
projections are credible and realistic. We have launched an ambitious program of growth-generating investments that will create jobs and
reduce our dependence on aid. Dialogue with our private sector continues to improve.
This framework began with a wish for peace. But peace is not just a matter of signing agreements to end the fighting, important though
such agreements are – Peace must be sustained. Our people must have confidence that their government can give them better life chances
than a return to insurgency will, that their children will be healthy and educated, that they can trust in the law. They must have faith that
their government will be able to match its promises with real actions that inspire hope and improve their lives.
The Afghanistan National Peace and Development Framework will not solve all of our country’s problems. But it does provide the means
for our leaders to guide our march towards self-reliance.

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Annex 1: List of National Priority Programs and
Development Councils
NPP Desired outcomes Investment priorities

High Economic Council

Ministry of Finance, Ministry of Commerce and Industries, Ministry of Economy, Central Statistics Office, Da Afghanistan Bank, Afghanistan Chamber of
Commerce and Industries

Private Sector Increased foreign investment, growth in SMEs and export

Banking oversight, industrial energy, land administration,
1 Development production, public-private partnerships, financial sector
export promotion
Program privatizations

All rural and urban communities benefit from basic The basic package for health, education, clean water, energy,
2 The Citizens’ Charter
development services. Increased trust in the state irrigation, and farm-to-market roads

High Council for Rule of Law and Anti-Corruption

Ministry of Finance, Ministry of Justice, Attorney General’s Office, Supreme Court, Independent Directorate of Local Governance, Ministry of Rural
Rehabilitation and Development, Independent Administrative Reform and Civil Service Commission

Professionally staffed and managed ministries, consolidated

Effective
budget and PFM reform process, capable provincial and Capacity building for results, PFMR3, municipal development
3 Governance
municipal subnational governments, electoral reform, citizen fund, capacity building for results, e-tazkeera
Program
identity register

Extending court presence to all provinces, justice ministry

restructuring, expanding citizen access to the court, and
Justice Sector Reform Courts neutrally apply the law, are trusted and used by the
4 information technology to improve case handling. A national
Program population, and court decisions are enforced
program for land administration (ARAZI) is also included in
this NPP

High Council on Reforms

Ministry of Finance, Ministry of Economy, Ministry of Health, Ministry of Justice, Ministry of Commerce and Industries, Ministry of Agriculture, Irrigation and
Livestock, Ministry of Labor, Social Affair, Martyrs and disabled, Ministry of Mines and Petroleum, Independent, Independent Civil Service Commission
This council will concentrate on reforms to the civil service, including devising appropriate rule and regulations; ensuring nationwide rollout of civil service management
systems. establish a transparent system to process complaints made by members of the civil service, and the implementation of the CCR Capacity Building for Results (CBR)
program

High Council for Land and Water

Ministry of Finance, Ministry of Energy and Water, Ministry of Agriculture, Irrigation and Livestock, Ministry of Rural Rehabilitation and Development, Water
Management Cooperation, ARAZI (Afghanistan Land Authority)

Comprehensive
Rising productivity and HH incomes in rural areas; National Irrigation Plan, national wheat sector plan, national
Agricultural
5 agricultural import substitution and agro-industry; improved horticulture plan, national livestock development policy,
Development
exports livestock development, women in agriculture
Program

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 Afghanistan National Peace and Development Framework (ANPDF) 2017 to 2021

Infrastructure Development Council

Ministry of Finance, Ministry of Urban Development, Ministry of Energy and Water, Ministry of Mines and Petroleum, Ministry of Rural Rehabilitation and
Development, Ministry of Public Works, Ministry of Communication and Information Technology, Kabul Municipality, National Environment Protection Agency

Infrastructure Cross-border water, energy, digital and transport

Increases in transit and connectivity, including
6 and Connectivity infrastructure, Airports, telecoms, roads, rail, fiber-optic,
telecommunications
Program logistics reform

Strengthened urban governance, improved urban economy,

Urban Development National urban priority program, urban land administration,
7 environment, and infrastructure, adequate housing, and
Program municipal development authorities
improved urban-rural linkages

National energy plan proposes a three-tiered investment

Energy self-sufficiency, coordinated energy investment
8 Energy
budgeting, and ensuring balanced regional access to energy
strategy focusing on energy supply, institutional
development, and regional trade, partnerships, and climate
change mitigation. Approx. 2,300 MW from new domestic
generation. Int’l projects include CASA 1000,TAPI,TUTAP, oil
and gas exploration

National Mineral
and Resource Afghanistan’s natural resources are sustainably developed
9 Ministry reform, exploration
Development (EITI compliant) and public revenue collected in full
Program

Human Development Council

Ministry of Finance, Ministry of Public Health, Ministry of Education, Ministry of Higher Education, Ministry of Labor, Social Affairs, Martyrs and Disabled, Ministry
of Women’s Affairs, Ministry of Economy, Central Statistics Office

Afghanistan’s labor force is equipped with skills needed National programs for health, education, vocational
Human capital
10 for jobs. Social protection prevents impoverishment of education, women’s economic empowerment, pension
development
vulnerable groups reform, and social safety nets

Women’s Economic
Large number of poor women gain agency and improve 6 component areas: financial literacy and inclusion, market
11 Empowerment
family welfare agriculture, legal reform, gender statistics, SME access
Program

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