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Private-public partnership in Afghanistan energy sector commendable

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Private-public partnership in Afghanistan energy sector commendable
 For the first time in energy sector of Afghanistan, based on the law on regulating of power energy sources and private-public partnership, contracts on power energy generation project from Sheberghan natural gas in Mazar-i- Sharif with Ghazanfar Group and power energy generation project from natural gas in Jawzjan province with Bayat Power Corporation were confirmed by NPC and approved by the president with a total cost of US $113m.
The power energy generation project from natural gas in Mazar-i-Sharif which is run jointly by Ghazanfar Co. and WB-IFC, is expected to generate 50 MW power energy in its first phase and US $ 75m will be invested in this project. The contract period has been agreed 20 years and in case of both sides agreement, it is extendable for another 10 years. In the first phase of this project, Bayat Power Co has invested US $38.85m and its second and third phases will also be launched for development of power generation capacity.
Implementation of these two projects which are among the first biggest projects in their kind in the country that could open the way for other interested companies for investment and create domestic beds for energy generation, since Afghanistan is facing shortage of power energy, therefore partnership of private sector in construction and installation and montage of power generation, transmission, distribution, imports-exports could remove a heavy burden from the government shoulders in one hand and as a result of similar partnership, the power energy generation from domestic sources, would go towards self-sufficiency and would bring considerable income to private sector. The leading body of the Ministry of Water and Power MoWP is determined to pave the way for further investment of private sector in the field of power energy generation with creation of facilities.
So the MoWP would soon establish Afghan Power Regulatory Authority (APRA) in the light of law on power energy services regulation within this ministry for further facilitation of private sector partnership in the sector of energy. One of the basic duties of APRA would be providing of essential facilities for attraction of domestic and foreign investment in the field of energy power.
Public-private partnership is a kind of long-term contract between government and private sector for providing of infrastructures or pubic services based on which, the private sector could fund, build, exploit and maintain government projects. Namely the private sector could invest alone or in partnership with the government in a period of 20-30 years in procuring of infrastructural services including power energy generation, transmission, distribution, construction of dams and canals, transportation and others sectors.
Private-public partnership reduces investment risks of private sector remarkably and establishes close relations between government and private sector.