Ministry of Finance (MoF) on Monday said the High Economic Council (HEC) has approved Kandahar’s solar power project contracts which after implementation will produce up to 30 megawatts of electricity.

Finance ministry spokesman Ajmal Abdul Rahimzai said at the 20th meeting of the HEC, that the projects will be implemented jointly by government and the private sector.

He said the contracts for the solar power project were approved, and the contracts will be signed with two Afghan and Turkish companies that won the contracts.

Rahimzai said the project will be implemented within the next year after signing of the contracts and $39 million USD will be invested in this project.

“By this project, instead of thermal power, we will use solar power which costs less. Second, it is an internal investment and we can encourage our investors to invest in different sections in Afghanistan,” said Rahimzai.

Meanwhile, Da Afghanistan Breshna Sherkat (DABS) officials said upon completion of the project, the produced power will be distributed to Kandahar’s industrial parks.

According to DABS officials, the project will be implemented near Kandahar airport on 60 acres of land.

“The electricity from this project will be provided during the day to factories established in Kandahar’s Shor Andam area. And if the project produces more power than needed by the factories, electricity will be distributed in parts of the city and to other business centers,” DABS spokesperson Wahidullah Tawhidi said.

According to DABS, the contracted companies have an obligation to invest $25 million USD out of the total investment of $39 million USD and government will pay the balance.