IPD will be the entity that would be expected to provide necessary comfort and confidence to the prospective private sector investors, who wish to develop power projects in Afghanistan. IPD will be single point of contact for the private investors and would meet all the information needs of the private investors and address the issues in the project development processes. It will also provide handholding support to the private investors.

The creation of IPD would support MEW in attaining following objectives:

  • Relevant information to the private power companies regarding policy framework and approval processes is available through a single point of contact
  • Assistance is provided to the Deputy Minister, MEW in bid process management of private power projects
  • The investors are provided guidance in the assessment of their project proposals and follow up for timely approvals for setting up the power projects
  • The concerns of the investors are addressed properly
  • Proactive steps are taken to attract private sector investment of power sector in Afghanistan
  • Investments are speeded up on the ground through a “one stop” facilitation process

Along with the above, the IPD will create a framework that can help private sector assess their risks better and take informed decisions. By bridging the information asymmetry, the IPD can also help mitigate some of the risks, albeit indirectly.