Tuesday, 6 March 2018

The government of Afghanistan will most likely announce the 2nd rebidding for the construction of the Kokcha dam in the northern Takhar province

A foreign Consortium of 5 companies has shown interest in investing about 1 billion dollars in the Kokcha dam project in the northern Takhar province of Afghanistan, however the Afghan government is not satisfied with their terms. The Consortium (made up of two European companies, a Chinese company, a Malaysian company and one Kazakh firm) is ready to build the dam based on a Power Purchase Agreement (PPA) and then sell the power to Afghan government for a period of 10-15 years before handing over the dam to the Afghan State. The consortium has bid for the contract on two occasions, and on both occasions they were the only participant in the tender. The Consortium wants to build the dam based on a PPA agreement, but government wants them to work under a Public Private Partnership (PPP) agreement. According to a Senior advisor to the Afghan President, the project will be probably put out to tender once again with the hope that companies with terms more satisfactory for the Afghan government will participate in.