Afghanistan's Ministry of Mines and Petroleum has signed agreements with the General Directorate of State-Owned Companies and Azizi Group of Companies for natural gas extraction in northern Jawzjan, coal extraction in Baghlan and electricity generation. A statement from the Office of the Deputy Prime Minister for Economic Affairs said the projects aim to raise domestic power output, strengthen energy security and support economic growth.
Each project is designed to generate about 1,000 megawatts of electricity and the agreements will run for 30 years, the statement said. The two projects are expected to create around 5,000 direct and indirect jobs.
At the signing ceremony, Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar Akhund described Azizi Group's investment as an important step that would open the way for economic development and help reduce unemployment. Azizi Group chief executive Mirwais Azizi said the company was committed to gas, coal and power projects and that solar schemes in Ghazni and Kabul were already under way.
Sources also reported a planned investment of about $275 million for the Jangal-e-Kalan gas project, while a separate financial value for the coal agreement was not clearly stated in the official economic affairs statement.