Turkmenistan Agrees to Energize Afghanistan

UNCLAS SECTION 01 OF 02 ASHGABAT 000450

SIPDIS

SENSITIVE

SIPDIS

STATE FOR SCA/CEN (PERRY)

E.O. 12958: N/A
TAGS: EPET ECON EFIN ENRG ETRD PGOV PREL TX
SUBJECT: Turkmenistan Agrees to Energize Afghanistan


Summary
--------------


1. (U) The Afghan power delegation headed by
Afghanistan Power and Water Resources Minister, the
former Governor of Herat, Muhammad Ismail signed a
Memorandum of Understanding (MOU) with President Niyazov
for delivery of an additional 330 MW of electricity per
year on April 24 in Ashgabat. The GOTX agreed to upgrade
and construct the necessary infrastructure to expand the
power network to additional Afghanistani towns and
cities. The financial details of the deal were not
disclosed, however Niyazov announced that Turkmenistan
will write off half of Afghanistan's current debt to
Turkmenistan as a gesture of goodwill. The Afghanistani
debt for previous power supplies is believed to be around
$8 million. End Summary.

Niyazov Promises More Power
--------------


2. (SBU) The Turkmenistani media focused reporting on
the ambitious Turkmenistan-Herat-Kandahar-Kabul-Mazar-e-
Sharif-Herat power loop. Although Niyazov proposed to
increase Turkmenistani exports to neighboring Afghanistan
to 800 MW, no specific improvements in the Herat grid
were discussed. The priority for the GOA is the North
East Transmission System (NETS) that is designed to bring
power produced by Afghanistan's Shabirgan power plant --
supported by imported power from Uzbekistan, Turkmenistan
and Tajikistan -- to the northern and eastern regions of
Afghanistan. The proposed link is most likely connected
to the $6.6 million 102 km Serhetabad (Turkmenistan)-
Turghundi-Herat transmission line that is capable of
transmitting 200 MW. The 2004 Turkmenistan-built link
has a 220 kV capacity, but it is currently operating at
110 kV. The two governments agreed that Turkmenistani
experts will work to resolve the imminent voltage
upgrade.


3. (U) The signed MOU envisages the extension of 110 kV
power lines from Turkmenistan to Afghanistan's Maruchak
and Kalay-Nau cities in Badghis province and to Hamiyab
and Karkin cities in Jawzjan province. The extensions
will increase power from 40 MW to approximately 70 MW.


4. (SBU) The GOTX also committed to spend its own funds
to build an ADDITIONAL dual-circuit 220 kV link from the
Turkmenabad or Mary power stations in Turkmenistan to the
Afghan border to ultimately connect to Shabirgan and
deliver up to 300 MW of power. The GOA will then link
the Shabirgan substation to the Turkmenistan border. The
city of Shabirgan already receives 165 MW via the 110 kV
line Imamnazar- Andhoy- Shabirgan built in 2002. Both
sides agreed that the capacity of the line needs to be
increased to in order to supply additional power to the
city of Maymene.

Debt Relief Aids Afghanistan's Power Sector
--------------


5. (SBU) The exact amount of Afghanistan's debt was not
officially disclosed, but USAID Energy Group Expert and
Afghanistan power delegation member Thomas Hayes said
that it is around $8 million. Turkmenistan's official
Russian-language newspaper Neytralny Turkmenistan
reported on April 25, that the money from the repayment
of the Afghan debt will be directed towards construction
of power facilities on the Turkmen-Afghan border.

Comment
--------------


6. (SBU) Turkmenistan is currently exporting about 1.3
MW a year, including 599 MW to Iran and 535 MW to Turkey.
At the current Turkmenistan-Afghanistan power price: $
.02/KWh, Turkmenistan's potential annual revenue from
Afghanistan could reach $9.8 million (based on 490 MW

ASHGABAT 00000450 002 OF 002


Afghan import assumption). Total power production in
2005 was 12.8 MW. The GOTX is most likely interested in
extending power supplies to Pakistan to reach a deeper
customer base. End Comment.

JACOBSON