Using a Public-Private Partnership (PPP) model enables BE to take on the responsibility for the project’s financing and operations, which frees up the Government to focus on other important areas, including building the necessary capacity in preparation for reassuming control of the operation at the end of the partnership; and assisting BE in facilitating any financing agreements that require channeling of funds through the Government. In so doing, any associated financial risks will remain BE’s responsibility to bear. 

In this PPP, BE will be responsible for investing in the development of energy generation infrastructure (e.g. hydropower plants, solar power plants etc.) and the development of transmission and distribution infrastructure. While the latter is traditionally the responsibility of the Government, BE saw an opportunity to bring greater efficiencies by investing in and overseeing all aspects of the energy system, which will enable the Company to keep energy tariffs affordable for the Badakhshan community. 

The PPP also enables the Government – primarily the Ministry of Finance and the Energy Regulatory Department – to ensure that BE complies with all aspects of Afghan law and upholds the required standards in order to maintain the necessary licenses to operate.