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Bayat Power in talks with Afghan officials for Phase 2 of gas to electricity project

Sahibzada said Bayat Power’s natural gas to electricity generation project will eventually produce up to 250 megawatts of electricity once Phase 3 is complete.

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Last Updated on: August 28, 2024

Bayat Power officials say they are hoping to start work soon on Phase 2 of Bayat Power-1 in northern Jawzjan province in order to increase electricity production output for Afghanistan.

Company officials said Tuesday they have started discussions with relevant government departments to start the project.

Mohammad Shoaib Sahibzada, the technical head of Bayat Power, said that once Phase 2 is complete, electricity production will increase from 40 to 100 megawatts.

Sahibzada said Bayat Power’s natural gas to electricity generation project will eventually produce up to 250 megawatts of electricity once Phase 3 is complete.

“Currently, it has a production of 40 megawatts, and in the second phase, it will produce 100 megawatts. Bayat Power is in contact with the relevant officials regarding the start of the second phase, the discussions are ongoing,” said Sahibzada.

Bayat Power has produced one billion kilowatt hours of electricity in under five years after starting commercial operations in late 2019.

Sahibzada said that over the past five years, the company has also worked on capacity building of its technical employees.

After 40 years, Bayat Power is the first private company to produce electricity from natural gas in the country and the multi-million dollar plant uses Siemens Energy’s SGT-A45 mobile gas turbine for its economic efficiency, flexible deployment, and power density.

Currently providing electricity to hundreds of thousands of end-users and generating more than 300 million kWh annually, the project was structured as an innovative public-private partnership between Bayat Power, Siemens Energy, and Afghanistan government entities such as the Ministry of Mines and Petroleum, the Ministry of Energy and Water, and the General Directorate of Afghan Gas Corporation Company, Da Afghanistan Breshna Sherkat (DABS), and international partners.

The Bayat Group is the largest private investor in Afghanistan and Bayat Power is currently the only gas-powered plant in the country. The Siemens Energy’s SGT-A45 mobile gas turbine used by the company is the only one in operation in the world.

The former head of DABS Amanullah Ghalib said this week that Bayat Power was a good example of Afghanistan being able to implement big projects.

“To achieve self-sufficiency, one of the most important resources for Afghanistan is natural gas. Afghanistan has a lot of natural gas resources in the north and northeast, from which it can become self-sufficient for electricity production and reduce its dependence on its neighbors,” said Ghalib.

“Bayat Power project is one of the very effective and good examples that Afghanistan can use its experience and implement bigger projects in the future,” Ghalib added.

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Business

Afghanistan and Iran discuss boosting trade and investment ties

Both sides agreed to follow up on the issues raised, improve coordination between relevant economic institutions and work towards removing barriers to trade.

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Afghanistan and Iran have held talks on expanding bilateral trade, improving cross-border commerce and creating new investment opportunities for businesses in both countries.

The discussions took place during a meeting between a trade delegation from Afghanistan’s Kandahar province and representatives of the Iran-Afghanistan Joint Chamber of Commerce.

The Afghan delegation was led by Kamaluddin Tawhid, Chairman of the Afghanistan-Iran Joint Chamber of Commerce, who met with his Iranian counterpart, Mahmoud Seyadat, along with members of the chamber’s board of directors. Afghanistan’s Consul General in Mashhad, Noor Mohammad Mutawakkil, also attended.

The talks focused on strengthening economic cooperation, streamlining trade procedures at ports and border crossings, and encouraging joint investment by Afghan and Iranian companies.

Participants also raised several practical obstacles affecting commercial activities, including foreign exchange obligations, visa arrangements for Afghan truck drivers and the movement of Afghan freight vehicles through Iranian territory.

Tawhid highlighted Kandahar’s economic potential and investment opportunities across Afghanistan, urging Iranian businesses to play a greater role in the country’s economy.

He also pointed to investment opportunities identified by Afghanistan’s Ministry of Industry and Commerce, stressing the need for improved facilities for private-sector businesses and closer cooperation between the two countries’ commercial communities.

Both sides agreed to follow up on the issues raised, improve coordination between relevant economic institutions and work towards removing barriers to trade.

The meeting concluded with a commitment to strengthen commercial exchanges and expand trade and investment relations between Afghanistan and Iran.

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UK-Afghanistan trade falls 16.7% to £70 million over 12 months

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Trade in goods and services between the United Kingdom and Afghanistan declined by 16.7 percent to £70 million in the 12 months to the end of June 2026, according to the latest figures published by the UK Department for Business and Trade.

The department’s trade and investment factsheet, released on November 6, shows that bilateral trade fell by £14 million compared with the same period a year earlier.

UK exports to Afghanistan totalled £57 million, down 18.6 percent or £13 million, while imports from Afghanistan stood at £13 million, representing a 7.1 percent decline.

The figures show that goods accounted for £32 million, or 45.7 percent, of total trade, while services made up the remaining £38 million, or 54.3 percent.

UK exports to Afghanistan included beverages, pharmaceutical products, dairy products, road vehicles and industrial machinery.

Vegetables and fruit were the leading Afghan goods exports to the UK, worth £1.7 million. Clothing and textile fabrics were also among the main products exported.

The report ranks Afghanistan as the UK’s 166th-largest trading partner, accounting for less than 0.1 percent of the UK’s total trade during the period.

 
 

 

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Afghanistan and Russia discuss expanding trade and investment ties

Both sides highlighted the importance of closer cooperation between the Afghan and Russian private sectors.

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Afghanistan and Russia have discussed ways to strengthen bilateral trade, expand private-sector cooperation and attract new investment during a meeting in Kabul.

Inayatullah Sediqzi, Deputy Head of the Afghanistan Chamber of Commerce and Investment (ACCI) for Services, met with Russian Ambassador to Afghanistan Dmitry Zhirnov on the sidelines of an event marking Russia’s National Unity Day on Wednesday, November 4.

The event was hosted by the Russian Embassy in Kabul.

According to a statement from the ACCI, discussions focused on boosting economic relations, increasing bilateral trade and creating greater opportunities for businesspeople and investors from both countries.

Both sides highlighted the importance of closer cooperation between the Afghan and Russian private sectors, exploring new areas of economic partnership and establishing stronger direct links between their respective business communities.

The discussions reflect Afghanistan’s continued efforts to expand economic engagement with regional and international partners, with increased trade, private-sector development and foreign investment remaining key priorities.

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