Identifier
Created
Classification
Origin
05NEWDELHI4124
2005-06-02 11:44:00
CONFIDENTIAL
Embassy New Delhi
Cable title:  

GOI AGREES TO COORDINATION ON PUL-I-KHUMRI,

Tags:  EAID ENRG PREL IN AF PK 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 004124 

SIPDIS

E.O. 12958: DECL: 06/01/2015
TAGS: EAID ENRG PREL IN AF PK
SUBJECT: GOI AGREES TO COORDINATION ON PUL-I-KHUMRI,
PROMISES MORE IF TRANSIT ARRANGED

REF: NEW DELHI 1521

Classified By: A/DCM Geoff Pyatt, for Reasons 1.4 (B, D)

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 004124

SIPDIS

E.O. 12958: DECL: 06/01/2015
TAGS: EAID ENRG PREL IN AF PK
SUBJECT: GOI AGREES TO COORDINATION ON PUL-I-KHUMRI,
PROMISES MORE IF TRANSIT ARRANGED

REF: NEW DELHI 1521

Classified By: A/DCM Geoff Pyatt, for Reasons 1.4 (B, D)


1. (C) Summary: Meeting with a delegation from Embassy and
USAID Kabul and the Afghan Ministry of Energy and Water
(MEW),MEA Joint Secretary (Pakistan, Afghanistan and Iran)
Dilip Sinha agreed to Indian participation as necessary in a
donor Steering Committee in Kabul to coordinate technical
details for the Uzbekistan-Kabul power transmission line.
Sinha accepted the Kabul mission's proposal for fast track
coordination of additional project elements to be funded by
other donors. The GOI also promised that if it can get
transit rights through Pakistan for the materials used in the
project, all savings from the substantially lower
transportation cost would be used to fund additional Afghan
development activities. End Summary.

Agreement on Additional Requirements
--------------


2. (U) On May 31, the visiting delegation from Kabul,
including David Grizzle (Transportation and Infrastructure
Coordinator, Afghan Reconstruction Group),Patrick Fine
(Director, USAID Afghanistan),Peter Jezek (Senior Energy
Expert, USAID Afghanistan) and Ghulam Rabbani (General
Director of Planning, MEW),accompanied by PolCouns, Poloff
and AIDoff met with J/S Sinha, Director (Americas) Renu Pall,
technical experts from PowerGrid Corporation (the
Pul-i-Khumri line contractor) and representatives from the
Asian Development Bank (ADB) and the World Bank (IBRD) to
review technical coordination and the need for additional
elements of the transmission line project.


3. (SBU) Rabbani and Grizzle both praised the substantial
GOI commitment to Afghan reconstruction efforts, and outlined
six additional elements that would be required to complete
the Pul-i-Khumri transmission line (security arrangements,
en-route substations, a backup cable for the Salang Tunnel,
reactive power compensation, final delivery lines to Kabul,
and optical ground wire),but were not included in the MOU
signed between the Afghan MEW and the GOI. Emphasizing that
India would not be asked to fund these additionalities,
Grizzle noted that their existence necessitated further

coordination among the donors and project executors to ensure
that all elements of the Uzbekistan-Kabul link would function.


4. (SBU) Grizzle proposed a timeline for resolving the six
additionalities, including specification and budget estimates
by the MEW's consultant to be completed by June 30;
identification of donor funding among USAID, ADB and IBRD by
July 15; definition of contractual arrangements by the MEW,
GOI, USAID, ADB and IBRD by August 15, and issuance of an RFP
by September 1. Although participants agreed that a
sole-source contract to India's PowerGrid would be logical
for many of the items that would be constructed alongside the
core Pul-i-Khumri to Kabul line, ADB and IBRD reps cautioned
that their regulations would require close scrutiny of any
sole-source arrangements.

GOI Commits to Coordination, Seeks Transit Rights
-------------- --------------


5. (SBU) After clarifying that India's financial obligation
would not expand beyond the USD 100 million already
committed, J/S Sinha agreed to the consultation mechanism
outlined above and to Indian participation in a Steering
Committee of donors to manage any future necessary change
orders. Noting that the committee would not meet any more
frequently than required, Sinha and Rabbani agreed that the
MEW would call the meetings as needed, which could be held in
Kabul or New Delhi as appropriate.


6. (SBU) PowerGrid representatives reviewed the status of
their initial engineering studies, promising to send the
resulting technical specifications to MEW by June 3, and
requested USAID assistance to begin demining work on the
chosen route immediately. They explained that the completion
timeframe of 42 months was driven by the need for three
summer construction seasons in the Salang Pass area, but
noted that the timeline would be several months shorter if
they could transport goods through Pakistan instead of
requiring 45-60 days to send construction materials through
Iran.


7. (C) Rabbani committed to seek continued GOA engagement
with Pakistan for approval of Indian transit rights for
development assistance. PolCouns also noted that the USG has
raised this issue with the GOP as a means to advance our
shared interest in Afghan development. J/S Sinha requested
that both the US and Afghan governments continue to press
Pakistan, promising that the substantial reduction in
transportation costs due to transit rights through Pakistan
would be used to fund development projects in Afghanistan.
Comment
--------------

8. (C) The GOI accepted all of the proposals for cooperation
that we made, but remains concerned that the shortage of
manpower in their Kabul Embassy will limit their ability to
participate fully in the coordination activities. The
impending assignment to Afghanistan of a team from PowerGrid
will help in this regard. India's development commitment to
Afghanistan is a major priority for the GOI, and they are
eager for their efforts, including in collaboration with the
USG, to receive more widespread recognition. The GOI promise
to use transportation savings to fund additional development
efforts gives us another reason to continue trying to
overcome Pakistani opposition to humanitarian goods transit
rights for India.


9. (U) This message was drafted after Afghan Reconstruction
Group Coordinator David Grizzle departed India.
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