Afghanistan will be paid US$40 million for the cancellation of major dam-building projects.
The money is part of a bank warranty by contracted companies of three dam construction projects. These include the Pashdan Dam in Herat, the Machalgho Dam in Paktia and the Almar Dam in Faryab.
The $40 million will be transferred to the Ministry of Finance (MoF) after a decision taken by the National Procurement Commission.
The contracts were canceled due to a delay in the construction work six months ago, the MoF officials said.
Work on the three power dams started five years ago, but only 10 percent of the construction was done.
“The procurement process of the three projects has started. Some companies have been designated to provide materials. Work on the dams will be resumed,” the MoF administrative and financial deputy Abdul Basir Azimi said.
Economic affairs analysts have said they believe that there is lack of monitoring and assessment of the implementation of projects across the country.
“The lack of monitoring on projects affects their implementation or even stops work on them. Government should appoint representatives from amongst local communities to monitor the projects,” said Sayed Qiyas Saeedi, an analyst in economic affairs.
The cost of the construction of three dams has been estimated to be more than $200 million USD.
The power-generating dams would also have the capacity of irrigating over 2,000 hectares of agricultural land.