A major Memorandum of Understanding (MoU) was signed for the establishment of gas power plant in the northern Jawzjan province of Afghanistan as efforts are underway to resolve the electricity shortage in the country.
The MoU signed in the presence of President Ghani and other high level government officials will pave the way for the utilization of Shebarghan natural gas to produce up to 50 megawatt of electricity.
The Minister of Energy and Water Ali Ahmad Osmani signed the contract during a special ceremony organized in ARG Presidential Palce today.
The contract is worth around $250 million and the implementing partner is Bayat Foundation which is one major foundations in the country.
Osmani said the contract will allow the Bayat Foundation to present its proposal for the implementation of the project within the next three months.
The signing of the contract for the production of electricity from the natural gas comes as President Mohammad Ashraf Ghani said earlier in March that work on key infrastructure projects including construction of water dams will start in accordance with the available resources.
During a meeting of the National Procurement Commission (NPC), President Ghani reviewed a report by the Ministry of Energy and Water regarding the construction of 29 large, medium and small water dams.
The Afghan government signed a Memorandum of Understanding with a Turkish firm last week to start work on Kajaki Dam Phase-2 in a bid to help expand its electricity production by up to 151.5 megawatt.