The commercialization of the national electricity utility, Da Afghanistan Breshna Sherkat, has improved power quality for many in Kabul

Afghani utility service improved and expanded through adoption of commercial practices and IT improvements despite severe conflict in the country.

Afghanistan’s national power utility, Da Afghanistan Breshna Sherkat (DABS) was incorporated in May 2008.  Shortly after, in 2009, USAID began working with DABS, through the Kabul Electricity Service Improvement Project (KESIP) to support commercialization of the young utility. As the result of USAID’s efforts to improve metering, billing, and collections, over the span of the project DABS increased revenue collections by well over 50% and reduced power losses from over 50% to approximately 35%. 

USAID continues our support of DABS through the Power Transmission Expansion and Connectivity (PTEC) program whose focus is one two key issues: 1) improving Afghanistan’s electric transmission system and 2) increasing the capacity of the national electric utility to effectively manage Afghanistan’s energy sector. Under the PTEC program umbrella, USAID is funding several off- and on-budget contracts, including broad partnerships with the DABS and other key Afghan Government ministries. PTEC is on schedule to be completed by December 2018.

A top USAID priority under PTEC is widening the national power grid by extending Afghanistan’s North East Power System (NEPS) from Kabul to the Southern Electric Power System (SEPS) in Helmand and Kandahar. To this end, USAID is funding the construction of a 490 km transmission line connecting the NEPS network to the SEPS network. Once completed, the transmission line will be capable of providing sustainable power to 1.1 million underserved and non-served Afghans in Kandahar and the major population centers along the Highway 1 economic corridor. SEPS complements another USAID financed program, the installation of a third (and final) turbine at the Kajaki hydroelectric plant in Helmand province.

Equally important are the commercialization and capacity building activities under PTEC, intended to improve sustainability of the infrastructure investments, increase revenue collection and reduce losses. USAID is funding four on-budget commercialization contracts focusing on Distribution, Generation and Transmission, Corporate Management Support (CMS) and Asset Valuation. Combined, these activities intend to strengthen and streamline DABS business functions through advisory and capacity building services. The DABS CMS team has also conducted a detailed study on the DABS business functions and processes to identify the gaps and to suggest appropriate solutions. Based on the results, DABS implemented the Microsoft Great Plains Enterprise Resource Planning® (ERP) utility management software with the objective of automating DABS business functions, improving productivity and service delivery and increasing revenue generation.