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