Afghanistan to Receive $341.5 Million for Road and Power Projects

 

The Asian Development Bank (ADB) will provide $341.5 million in grants and technical assistance to Afghanistan for the completion of the country’s vital Ring Road and improvement of its power sector. A grant amounting to $340 million will fund the construction of the 233-kilometer (km) section of the Ring Road to connect the towns of Qaisar, Bala Murghab, and Laman in northwestern Afghanistan. This is the last section of the 2,700 km Ring Road that will link Afghanistan’s major cities. The grant is in addition to the $450 million ADB has already committed or spent on the Ring Road, bringing ADB’s total assistance to Afghanistan’s roads, railways, and airports to more than $1.07 billion.

“This investment into the last section of the Ring Road will foster greater regional cooperation, linking Afghanistan with itself and with Central Asia, South Asia, and the Middle East,” said ADB Director General for Central and West Asia Juan Miranda. “This road makes Afghanistan a transit rather than a cushion country, and will create jobs, improve trade, and bring greater security.”

A $1.5 million technical assistance project will also be provided for the development of a power sector master plan. The assistance, financed on a grant basis by the Japan Fund for Poverty Reduction, will help pinpoint deficiencies in Afghanistan’s power sector, prioritize rehabilitation needs, and identify major potential load centers.

ADB has approximately $700 million worth of committed and planned loans and grants to rebuild Afghanistan’s power networks. These include $36 million to construct a 420 km portion of the North East Power System which connects the power grids of Afghanistan with Uzbekistan, and $35 million for a similar transmission line now under construction to link Afghanistan’s power grid with Tajikistan.

News Release: ADB Provides $340 Million to Complete Afghan Ring Road