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World Bank supports Afghanistan gas project with $52.5 million grant

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The World Bank has approved a grant worth $52.5 million (€47.7 million) to support the Afghanistan Gas Project, which will provide sustainable supply of natural gas to independent power producers in northern Afghanistan.

The project will provide direct financing and technical assistance for the construction, operation and maintenance of a gas pipeline from Sheberghan to Mazar-e-Sharif and a new natural gas desulphurisation amine plant, as well as the establishment of a management framework.

"By investing in critical gas infrastructure and developing a strong foundation for good governance in the gas sector, the project will improve Afghanistan’s energy supply, which is currently critically low, and contribute to poverty reduction," said Henry Kerali, World Bank country director for Afghanistan.

The project is part of the World Bank’s support for improved energy access in Afghanistan. The support to domestic gas utilisation will help diversity sources of electricity supply in the country and connect more Afghans to the electricity grid.

The country’s Ministry of Mines and Petroleum will lead the overall implementation of the project, in coordination with other government agencies, including the Afghanistan Gas Enterprise and the Afghanistan Oil and Gas Regulatory Authority.