ADB invests in energy distribution company in order to increase access to safe and reliable energy in Afghanistan

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The Philippines based Asian Development Bank (ADP) sent out a press release earlier this week that they will invest up to $8 million dollars and buy a 25% stake in Sungas LLC, a liquefied petroleum gas (LPG) distributor in Afghanistan. As a result of this, Sungas will be able to further expand its distribution through out Afghanistan, and ADP officials are hoping that this will will encourage other companies to invest in Afghanistan’s energy sector.

The vast majority of Afghanistan’s energy needs are met using old forms of energy such as firewood, animal dung, and vegetation brush. The hope is that with the use of more modern forms of energy, such as liquefied petroleum gas, the Afghan economy will develop further, and as a result, improve the lives of its citizens. For example, people will spend less time looking for wood to burn in order to heat their homes and cook their foods. Energy will be much more readily available. The other benefit is that it will also reduce air pollution since there were be a reduction in smoke and fumes as result of burning wood.

April 1, 2010 · admin · No Comments
Posted in: Afghanistan's Economy, Environmental Issues, Reconstruction and Development