Afghanistan inks $10 bn deal to generate 10K MW power across country

Afghanistan's Ministry of Energy and Water has signed a landmark agreement worth $10 billion with a domestic private company to implement projects aimed at generating 10,000 megawatts of electricity across the country, Tolo News reported.

Describing it as a significant breakthrough, Acting Minister of Energy and Water Abdul Latif Mansoor said the deal marked a major achievement for the Islamic Emirate and a vital step toward the country's economic progress.

"This is a major achievement for us. In today's world, electricity is an essential need for every individual, whether in healthcare, industry, or for families and households," Mansoor said, according to Tolo News.

The agreement outlines the development of power generation projects using a mix of solar, coal, hydro, wind, and gas sources. These projects will span several Afghan provinces with the goal of enhancing the national electricity supply and reducing power shortages, particularly in industrial and residential areas.

"We assure you that Afghanistan has excellent resources for generating energy from water and wind to solar and gas, these resources are all available in the country," Mansoor added, as quoted by Tolo News.

Under the terms of the agreement, the technical design for the project will be finalized within six months. In its initial phase, power production is expected to begin with a capacity of 2,000 to 3,000 megawatts.

Mirwais Azizi, the head of the private company, said: "This project will involve 17 to 18 foreign experts. Our goal is to train Afghans and have them make up 98% of the workforce, fully entrusting them with responsibilities."

He also announced the establishment of a training center to build the professional capacity of Afghan nationals, ensuring local involvement and long-term sustainability.

The energy production breakdown includes 3,400 MW from coal in provinces like Balkh, Bamiyan, Herat, and Baghlan; 3,700 MW from gas in Jawzjan, Herat, and the northern zone; 2,040 MW from hydroelectric sources in Kabul, Kapisa, and Daikundi; 700 MW from wind in Herat and Farah; and 200 MW from solar in Kabul, Kandahar, and Ghazni.

According to Tolo News, the project is slated to be implemented over a six-year period from 2026 to 2032.

The deal comes amid persistent electricity shortages in Afghanistan, which continue to hamper industrial development and affect daily life across urban and rural areas.