The World Bank has announced a $52.5 million grant towards the implementation of the Afghanistan Gas project.
The World Bank will also provide technical assistance to the project to ensure a sustainable supply of natural gas to independent power producers in Northern Afghanistan.
The project will be led by the Ministry of Mines and Petroleum and other government agencies including the Afghanistan Gas Enterprise, and the Afghanistan Oil and Gas Regulatory Authority.
The project will leverage the grant to:
- Construct, operate and maintain a gas pipeline from Sheberghan to Mazar-e-Sharif and a new natural gas desulfurisation amine plant
- Establish a strong institutional, regulatory and contract management framework based on the principles of good governance in the gas sector.
The project is expected to increase the number of consumers connected to the main grid as well as diversify the energy mix for clean and affordable energy supply to Afghans.
“By investing in critical gas infrastructure and developing a strong foundation for good governance in the gas sector, the project will improve Afghanistan’s energy supply, which is currently critically low, and contribute to poverty reduction,” said Henry Kerali, World Bank Country Director for Afghanistan.