Taliban Signs Over 20 Billion Afghani Power Contracts In Kabul

The Taliban has signed contracts worth 20.75 billion Afghanis (over £230 million) with domestic and foreign companies for ten power generation projects, aimed at producing 228 megawatts of wind, thermal, and solar energy across Afghanistan.

The agreements, announced on Thursday by officials from the Taliban-run electricity company, Breshna, also include the construction of substations and the expansion of power lines in various cities.

The projects encompass seven power generation facilities, two initiatives to complete the 110-kilovolt Kajaki-Kandahar transmission line, and one focused on substations in Qalat, Zabul, and eastern Kandahar. Specific developments include 43.2 MW of wind power and 5 MW of solar power in Herat, 50 MW of gas-powered electricity in Jowzjan, 40.25 MW of solar power in Balkh, 40 MW in Logar, 40 MW in Nangarhar, and 10 MW in Laghman. Additional efforts involve building a substation in Mohammad Agha district of Logar and finalising power line expansions from Zabul to Kandahar.

Details of the private companies awarded the contracts remain undisclosed by the Taliban. At the signing ceremony, Breshna Chief Executive Abdul Bari Omar said, “the company is striving to enhance power supply by relying on domestic energy sources.”

Afghanistan currently faces a severe energy crisis, as highlighted by a United Nations Development Programme (UNDP) report. With only 40 percent of households connected to electricity, the country relies on imports for over 75 percent of its energy needs, primarily from Central Asia.

A 2022 report by the Special Inspector General for Afghanistan Reconstruction (SIGAR) noted that Afghanistan spends £172 million annually on imported electricity, which constitutes over 80 percent of its power supply. The report also underscored the Taliban’s challenges with technical expertise, staffing, and revenue to maintain the nation’s energy infrastructure.