A Memorandum of Understanding was signed for the reconstruction of Dahla Dam in southern Kandahar province of Afghanistan.

The Office of the President, ARG Palace, in a statement said the MoU was signed in the presence of President Mohammad Ashraf Ghani by acting finance minister Dr. Humayoun Qayoumi, World Bank Country Director Shubham Chaudhuri, and Asian Development Bank Country Director Samuel Tumiwa.

The statement further added that the Asian Development Bank signed a contract with ANZDEC and Afghan Tarin companies for the design work of raising the altitude of Dahla Dam which would complete by 31st August 2019 and would a bear a total cost of $400 million.

The Asian Development Bank and the World Bank would fund the project, ARG Palace said, adding that the reconstruction work of the dam would be implemented in four phases.

According to ARG Palace, the dam walls would be raised to 12 meters in the phase of the reconstruction work that would increase the dam reservoir from 298 million cubic meters to 798 cubic meters.

The second phase include irrigation system which would help with the irrigation of 20 thousand hectares more land, third phase include supply of drinking water to Kandahar city and the villages located in its proximity, and the fourth phase include generation of 24 megawatts of electricity for Kandahar city.