Announcement of Afghanistan Receives Ten Million Dollars IDA Credit for Thermal Power Project on May 6, 1976

.World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 76/19 MAY 6, 1976 AFGHANISTAN RECEIVES $10 MILLION IDA CREDIT FOR THERMAL POWER PROJECT The International Development Association, an affiliate of the World Bank, will provide Afghanistan with a $10 million credit for the de- velopment of an urgently needed thermal power station. Estimates are that the Kabul system will need an additional energy source, no later than October 1977, in order to avoid power shortages du- ring dry years. The 40 megawatts (MW) st~tion, to be installed by October 1977, will help meet the energy needs of the Kabul area, pending the im- plementation of additional power projects. Kabul currently services 50,000 of the country's 70,000 electricity users, by means of three hydroelectric • stations with a total capacity of 178 MW . The project will provide for the purchase and installation, in the Kabul area, of a gas turbine power station, consisting of two units of about 20 MW each, equipped for burning crude oil and lighter fractions, with provisions for gas firing. The project will also provide for the training of personnel for the operation and maintenance of the power station. In connection with the project, the Government of Afghanistan is preparing a power development plan which would establish priorities for meeting future energy demands. As part of this work, the Food and Agri- culture Organization (FAO) is preparing a study on development of the Kabul river basin, and the USSR is preparing a report on the electrification, through 1985, of northern and central Afghanistan, inc'uding the Kabul area. The IDA credit to Afghanistan is for 50 years, including 10 years of grace. It will be free of interest, except for a service charge of 3/4 of 1% to meet IDA's administrative costs. The Government wi 11 re-lend the proceeds of the credit to Da Afghanistan Breshna Moassessa, the country's power authority . • NOTE: Money figures are expressed in U.S. dollar equivalents. Form No. 1121 (9-75) T E CHNI CAL DAT A PROJECT~ COUNTRY: Kabul Thermal Power Development Afghanistan • TOTAL COST: $11 million I DA FINANCING: $10 mill ion, standard IDA terms OTHER FINANCING: Da Afghanistan Breshna Moassessa (DABM) IMPLEMENTING ORGANIZATION: Da Afghanistan Breshna Moassessa (DABM), Kabul, Afghanistan. PROJECT DESCRIPTION: It includes: Purchase and installation of a gas turbine power station of the package type, with two units of • about 20 MW each; personnel training for operation and maintenance of the power station fac i 1 it i es. PROCUREMENT: All contracts under the IDA credit will be awarded on the basis of international competitive bidding in accordance with IDA's guidelines except the small amount of civil works which wou 1d be executed under for,ce account. CONSULTANTS: Harza Engineering Company International ECONOMIC RATE OF RETIJRN: 7. 1% ESTIMATED COMPLETION DATE: December 1978 -0- •