BRINGING LIGHT AND WARMTH TO BADAKHSHAN

How is the Public-Private Partnership arranged?

Badakhshon Energy (BE) is a 30-year Public-Private Partnership (PPP) with the Government of the Islamic Republic of Afghanistan. Stakeholders including the Ministry of Finance and then-Ministry of Energy and Water (now the Energy Services Regulatory Department) and BE developed this PPP to channel investment in the Government’s project to bring clean, reliable and affordable electricity to every household in the Province of Badakhshan. This investment will include new, large-scale energy generation, transmission and distribution infrastructure; repairing and improving existing infrastructure; and, building out comprehensive business processes. 

The PPP enables the Government to hand over the operation of Badakhshan’s energy system – previously operated by DABS – to BE while retaining ownership and authority over all related assets. BE will develop the required infrastructure and create a sustainable operation that will be handed back to the Government at the end of the partnership. Throughout the duration of the PPP, the Government will retain ownership and authority over all water, land and other relevant natural resources used by BE. The Government and BE will also cooperate to ensure that required project financing is secured, channeled, and managed appropriately. BE will retain all of the financial risks associated with any secured financing and projects under implementation.