Kandahar Solar Power Plant

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The project involves the development, construction, commissioning and operation of a 15.1 MW solar power plant in Kandahar, Afghanistan. The plant is expected to generate around 27.5 GWh of electricity annually and avoid 8,500 tons of carbon dioxide emissions. The SPV for the projects is called Barakat Kandahar Solar Energy. The sponsor is 77 Construction, Contracting, and Trading Group (77 Group), Turkey-based civil works contracting firm and it is investing $4.04 million of equity. Da Afghanistan Breshna Sherkat (DABS), the state-owned power utility and the purchaser of electricity in Afghanistan, entered into a 20-year power purchase agreement (PPA) with the sponsor in February 2018 and is inputting $ 7 million as a viability gap payment. Asian Development Bank (ADB) will provide a loan of up to $ 4 million and will also administer a $ 3.85 million loan from the Canadian Climate Fund for Private Sector in Asia II (CFPS II). This brings the total financing to $18.89 million. Financial close has been announced on 21 May 2019. https://www.adb.org/news/adb-private-sector-deal-promote-solar-power-afghanistan https://www.adb.org/projects/52229-001/main#project-pds https://www.adb.org/sites/default/files/project-documents/52229/52229-001-rrp-en.pdf