DELAY OF TURKMEN-AFGHAN POWER LINE PROJECT

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001410 SIPDIS STATE FOR SCA/CEN, EEB AID/W FOR EE/EA E.O. 12958: DECL: 10/24/2018 TAGS: ENRG EAID PREL AF TX SUBJECT: DELAY OF TURKMEN-AFGHAN POWER LINE PROJECT POSSIBLY DUE TO DIFFICULTIES ON AFGHAN SIDE, TURKMEN INTERAGENCY Classified By: Charge d'Affaires a.i. Sylvia Reed Curran for reasons 1. 4 (B) and (D). ¶1. (C) SUMMARY: According to various sources in Ashgabat, the delay in concluding an agreement to build a Turkmen-Afghan power line is the result of complications on the Afghan side. While the Turkmen reportedly remain prepared to finance and build their portion of the project, the Afghans' inability to commit to timely completion of the Afghan portion is blocking further progress. And although the Turkmen are still publicly committed to the project, their interagency funding approval process may have slowed down movement on their side. It looks unlikely that a final agreement will be reached until the issues on the Afghan side, whether budget, technical or something else, are resolved. Another working group meeting is certainly called for in order to clarify concerns, whether they are "technical" or not. END SUMMARY. ¶2. (C) According to the head of the UN Regional Center for Preventive Diplomacy for Central Asia Miroslav Jenca, both sides want to proceed with the project to construct a Turkmenistan-Afghanistan power line, but the issue blocking final agreement is the timeframe for completion. Jenca said he has raised the issue with President Berdimuhamedov, who affirmed Turkmenistan's willingness to build its portion of the power line project within two years, provided the Afghans commit to completing their portion within the same time period. Jenca added that Afghanistan's Ambassador to Turkmenistan Abdul Karim Khaddam had confirmed to him that was the reason for the hold-up and told him the Afghan side is not able to complete its portion of the power line within two years, without specifying the reason(s). ¶3. (C) In a separate conversation Ambassador Khaddam, he told poloff there are unresolved budgetary difficulties on the Afghan side that are holding up process on construction of the power line. He also mentioned technical challenges posed by inadequate power transmission infrastructure in Afghanistan. Afghan Embassy DCM Haji Rooz Mohammad Noor shared with a different poloff that there were still unresolved issues regarding where each side wanted the power line to cross the border. (NOTE: According to the working group's protocol signed in April 2008, the two sides agreed that the power line would cross the border near Imamnazar in Turkmenistan, Ageena in Afghanistan. END NOTE.) He confirmed that the Turkmen side is committed to funding the construction to Imamnazar. Noor said the Afghan side can not afford to build the longer line to reach Imamnazar due to the government's financial difficulties. He added that the Afghan government would like the power line to cross near Kelif because that region of Afghanistan currently lacks electricity. ¶4. (C) A contact at TurkmenEnergo, Serdar Garayev (strictly protect),said that the issue of construction is "broader," meaning that the Turkmen side is considering whether Turkmenistan should go ahead with this project and "whether it is needed." (COMMENT: In a meeting with MFA officials on October 24, we assured them that the U.S. government is paying for the project on the Afghan side. Their surprised reaction and subsequent questions makes us wonder if the Turkmen have also wondered if financial issues are the reason behind the inability to commit to finish the project within a two-year time period. END COMMENT.) In mid-September, Garayev said that it was too early at that time to discuss the next joint working group meeting because financing for construction had not been discussed internally in the Turkmenistan government and was not yet on the agenda. ¶5. (C) COMMENT: It's understandable that the Turkmen may be reluctant to build a power line without assurances that it will be able to connect with the Afghan power grid. No one ASHGABAT 00001410 002 OF 002 wants a power line to nowhere. It also appears that unspecified issues in Afghanistan, possibly related to finances, routing or technical requirements, are preventing the Afghans from making the necessary commitment. Perhaps the Afghans are reconsidering the route because of the budgetary reasons cited by the Afghan ambassador. That said, post is unaware of any financial issues on the Afghan side that might contribute to a reassessment, since the protocol from the July 16-18 joint working group meeting explicitly stated that "USAID has made a financial commitment to fund construction of 500 kV line and Andkhoy substation and that funding of construction of 220 kV line to Naibabad is programmed within 2009 funding program." In any case, another working group meeting is certainly called for in order to clarify concerns, whether they are "technical" or not. Lack of discussion only further adds to problems and misunderstandings. We plan to meet with high-level officials to drill down on Turkmen concerns and encourage a return to the table. END COMMENT. CURRAN