Developer Ghazanfar Group has been contracted by the government to build, own and operate the 50 MW plant in Mazar-e-Sharif under an agreement signed this week.
The plant’s power will be sold to state-owned utility Da Afghanistan Breshna Sherkat (DABS) through a 20-year power purchase agreement.
Once online, it is expected that the plant will boost the nation’s power generation capacity by around 30 per cent.
Ghazanfar Group CEO Ismail Ghazanfar said: “We hope this project will set a good example for private investment in the power sector in Afghanistan. It will also help build investor confidence to attract greater private capital and expertise for the development of Afghanistan.”
The country’s first independent power producer (IPP) project, a 10 MW solar photovoltaic (PV) installation in Kandahar province, was agreed last week with Indian developer Jaguar Overseas.