ADB, APPC sign loan for 58.56 MW gas-fired power plant in Mazar-i-Sharif

The Asian Development Bank (ADB) and the Afghan Power Plant Company Limited (APPC) have signed a US$10 million loan as part of a financing package for the Mazar gas-fired power plant, supporting Afghanistan’s efforts to achieve long-term energy security through affordable domestic power sources. The project is the first private sector gas-fired plant in Afghanistan to be funded by development finance institutions.

ADB will also administer a US$10 million loan for the project provided by Leading Asia’s Private Infrastructure Fund (LEAP). The project is co-financed by International Finance Corporation and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH.

The loan provides long-term financing to build and operate a 58.56 megawatt gas-fired power plant located near Mazar-i-Sharif in northern Afghanistan. The project which costs a total of US$89 million will use indigenous gas and is expected to generate 404 gigawatt-hours of power annually.

APPC is a special purpose vehicle owned by Ghazanfar Group and Hassan Allam Holdings.