Afghan Power Plant Company (MIGA-14360)

Countries
  • Afghanistan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 27, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Ghazanfar Neft & Gas DMCC METKA Power Investments Limited Deutsche Investitions und Entwicklungsges
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 49.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Oct 30, 2019

Disclosed by Bank May 7, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank website, "This summary covers (i) equity investments by Ghazanfar Neft & Gas DMCC (Ghazanfar) of the United Arab Emirates and METKA Power Investments Limited (METKA) of Cyprus and (ii) non-shareholder loans and future interests by Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) of Germany into Afghanistan Power Plant Limited (the project enterprise). MIGA has been requested to provide 15-year guarantees to Ghazanfar, METKA and DEG for up to US$49.5 million in total against the risks of breach of contract and war & civil disturbance. It has been proposed that MIGA will share the exposure risk by utilizing the MIGA Guarantee Facility (MGF) under IDA Private Sector Window (PSW).

The project involves the development, design, construction, operation and maintenance of a 58.56MW greenfield natural gas-fired reciprocating engine power plant and its associated facilities which include an access road and overhead transmission line. The project will be located in an industrial site approximately 20km west of the Northern Afghan city of Mazar-e-Sharif. Energy produced from the power plant will be sold to Da Afghanistan Breshna Sherkat (DABS), the national power utility in Afghanistan, under a 20-year Power Purchase Agreement. Gas will be supplied to the project enterprise by GoIRA, acting through Afghan Gas Enterprise (AGE) and Afghanistan Ministry of Mines and Petroleum (MoMP), under a Gas Supply Agreement."

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Deutsche Investitions und Entwicklungsgesellschaft mbH Client -
- - - - Ghazanfar Neft & Gas DMCC Client -
- - - - METKA Power Investments Limited Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contact information provided at the time of disclosure.

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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