Politics drive new Afghan energy deals
Friday, February 10, 2017
Subject
The politics of new energy deals in Afghanistan.
Significance
During September, Kabul signed three separate energy generation deals for the construction of a dam and two gas plants capable of producing a total of 450 megawatts. Yet it is questionable whether the new deals represent genuine progress towards economic and infrastructural development, or are rather meant to lay the ground for new political alliances and the 2019 presidential elections.
Impacts
- Evidence of malfeasance would further erode donor confidence in the aid-dependent country.
- Major cost overruns in the new energy projects would compound the fiscal stress of the cash-strapped government.
- Afghanistan’s reliance on imported energy will remain sizeable for the foreseeable future.
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