Afghanistan’s Ministry of Energy and Water (MEW) has floated a tender for the development of 40 MW of grid-connected solar photovoltaic (PV) projects at Hishar-E-Shahi Industrial Park of Nangarhar in Afghanistan.

The last date for the submission of the bids is October 16, 2019. The pre-application meeting is scheduled to be held on September 18, 2019.

The scope of the project includes the design, supply, manufacture, installation, testing, commissioning, along with the project’s operation, and maintenance.

The financing for the project, including both debt and equity, will be the sole responsibility of the successful bidder.

The interested bidder must have a net worth of at least ~$80 million or its equivalent in another currency at the end of the last three financial years.

According to MEW, the bidders must be able to demonstrate that they have raised at least ~$30 million or its equivalent in another currency in third party debt (A long term liability a business takes on by borrowing money from any banking/non-banking financial institution) for at least one project in three years. Moreover, the applicant should have had free cash flow to equity (FCFE) of at least ~$20 million or its equivalent in another currency at the end of the last two financial years.

The bidder should also have developed and commissioned at least two eligible projects. An eligible project involves the installation of a solar power project having a minimum of 40 MW capacity or a project that was completed and opened to operations in the last ten years. Each bidder will be permitted to submit up to a maximum of five reference projects as potential eligible projects.

Currently, the share of solar power is minuscule in the country’s total installed generation capacity. This is despite Afghanistan having about 220,000 MW of solar power generation potential. The Government of Afghanistan aims to develop the country’s renewable energy generation, including solar power so that it can contribute at least 5,000 MW (40% share) to the national grid by 2032.

Last year, the country awarded 50 MW of solar hybrid projects to be developed in the country in two separate orders. The 40 MW solar hybrid project is also located in the Hisar-e-Shahi Industrial Park in Nangarhar province of Afghanistan. The Shuangdeng Group of China, a green energy storage solutions provider, had won the contract valued at $59.7 million.

In May 2019, Mercom had reported that a $4 million loan agreement was signed between the Asian Development Bank and Barakat Kandahar Solar Energy, a special purpose vehicle with its majority-owned by 77 Afghanistan, a subsidiary of 77 Group. The loan agreement was signed to build a 15.1 MW solar power project and promote the development of renewable energy in Afghanistan.