The Ministry of Energy and Water will invest $450 million in Dahla dam project in Shah Wali Kowt district in Kandahar province.
The Asian Development Bank (ADB) provide fund for construction of Dahla dam, Kandahar deputy governor Abdul Hanan Moneeb said to Bayan Radio.
He further said, that besides increasing the water the power of Kandahar will also be increased.
Arghandab River Authority acting head Wahidullah Kamran said, that this is a vital project for farmers and other residents of Kandahar which the work on part of the project has started.
He said, the project comprises four components which include drinking water system, power, raising the dam height, and some other canals.
Meanwhile, Nasrullah Zahir, head of Kandahar Chamber of Commerce, said that such vital projects benefit not only useful to farmers and industries, but also benefit for the public.
Hafizullah Sayedee, the head of Agriculture and Livestock of Kandahar, also said that with raising the dam height, farmers will have water in the 12 months of the year and they will not face with water shortages.
The construction work of the dam will be done by a New Zealand Company.
Official say the dam irrigate agriculture land in seven districts of the province including Shah Wali Kowt, Arghandab, Zheri, Panjwai, Maiwand, Dand and Daman.
The dam was first built 64 years ago during the reign of Mohammad Zahir Shah, the last king of Afghanistan, with financial support from the United States.