Border District Electrification Project (BDEP)

BDEP (Border District Electrification Project) aiming to improve the living condition statues of households through provision of electricity packages in rural Afghanistan those are bordering the Islamic Republic of Pakistan and the Islamic Republic of Iran was approved by H.E The president of Islamic Republic of Afghanistan on 25th March-2018 in High Economic Council. It was practically commenced in the MRRD ASERD in Sep 2018 as one of the Afghanistan Border District Electrification project.

In terms of scope and coverage area working across the 55 districts in 13 border provinces ( Nangarhar, Konar, Nooristan, Herat, Kandahar, Helmand, Zabul, Khost, Paktya, Paktika, Farha, Nemroz, and Logar)  of the country. The project development efforts are focused on helping the poor who dealing with many of the risks they face in their lives such as, lack of accessibility to read and write, lack of education, home and health facilities, lack of awareness to protect their environment, low economic growth and poor social condition.

The technical specification and design of the project has been prepared. Looking to the household’s demand and their economic statues to apply the subsidy application, the solar home system has been considered in three different packages (50, 75, 100) Watts with three different costs. Looking to the financial statues of border districts household’s, majority of the people are living under poverty line. Therefore; the 80/20 business model was designed as subsidy application, because they cannot afford to contribute more than 20% of the kits.

The electricity package includes: Solar panel, Battery, Charge controller, TV, Radio, Electric lights and protective equipment’s.

The purpose of the survey is to evaluate the people’s poverty, electricity needs, current energy uses, households demand for the designed kits and required load capacity of the packages. Based on these mentioned assessments the survey is under process and till date it has been 54% progressed which is around 256,667 households in 48 border districts.

In addition to socio and technical survey, the project team carried out a socioeconomic survey of BDEP targeted households using a combination of assessment, interviews, focus group discussions and case studies. The assessments were undertaken for their current lightening and energy expenses. In order to quantify BDEP project benefits, and support to border resident’s economy of Afghanistan; a joint economic analysis is carried out. Several households are randomly selected and analyzed based on 7% discount rate to find an average EIRR, NPV and BCR values as shown below:

Internal Rate of Return (IRR)

Net Present Value NPV (USD)

Benefit Cost Ratio BCR

20.11%

   149,841,445.62

1.67

 

 The above economic values prove BDEP as a beneficial project for improving local economy and households living condition through solar home system. And by the end of 10 years, project will earn approximately USD 149,841,445.62 million.

 

Expected results:

At the end of the project following outcomes are estimated to be achieved:

  • Access of556,757 households to electricity
  • Access of 3,279,908 people to electricity
  • Total 47 MW Electricity will be produced
  • People will have access to media
  • Better education
  • Facilities for women
  • Reduce eye and respiratory diseases
  • Connect people with the government
  • Get people support in remote areas