AF: Afghanistan Energy Projects: Year-End Update

UNCLAS SECTION 01 OF 02 KABUL 000102 SIPDIS DEPT FOR SCA/FO, SCA/RA, AND SCA/A (A/S BOUCHER, GASTRIGHT, DEUTSCH) DEPT PASS AID/ANE, OPIC DEPT PASS USTR FOR LILIENFELD AND KLEIN DEPT PASS OPIC FORZAHNISER DEPT PASS TDA FOR STEIN AND GREENIP CENTCOM FOR CG CFC-A, CG CJTF-76, POLAD, JICENT NSC FOR JWOOD TREASURY FOR ABAUKOL, BDAHL, AND MNUGENT MANILA PLEASE PASS ADB/USED PARIS FOR OECD/ENERGY ATTACHE OSD FOR SHIVERS, SHINN COMMERCE FOR DEES, CHOPPIN, AND FONOVICH TOKYO ALSO FOR AID COUNSELOR AANENSON SENSITIVE SIPDIS REF: 2007 KABUL 3998 E.O. 12958 N/A TAGS: ENRG EFIN ETRD KPWR EAID PGOV AF CH SUBJECT: AF: Afghanistan Energy Projects: Year-End Update Sensitive but Unclassified ¶1. (SBU) The following is a short update on the current status of some of the most high-profile USG energy projects in Afghanistan: ¶2. (SBU) 100 MW KABUL POWER PLANT "GEN SETS" - Despite earlier problems with squatters on the project site, site clearing is underway. Topographical and aerial survey mapping have been completed as well as site cleaning and the project appears to be on schedule for completion with 66 MW coming on line in December 2008 and the remaining 34 MW in early April 2009. ¶3. (SBU) North East Power System (NEPS) - UZBEKISTAN - As reported in Reftel, the Afghans have agreed to fund the construction of 43 km of power lines and power transformer (500/220 KV - 500 MVA) within Uzbekistan in order to complete the interconnection with the NEPS system. Deputy Minster of Energy and Water Mir Sediq will lead a delegation to Uzbekistan on January 4 to complete construction contract and Power Purchase Agreement (PPA) negotiations. ¶4. (SBU) NEPS - TAJIKISTAN - Although it has previously said no work on the Tajik line of the NEPS would begin until a PPA was negotiated, the Asian Development Bank released tender documents for the Kunduz to Tajik border transmission line in early December. This step was taken in the hopes that Afghanistan will conclude a PPA with the Tajiks by March or April of 2008. This will coincide with the expected contract award deadline for the construction of the line and will allow work to begin immediately. If a PPA is not in place by April 2008, the ADB will delay the project award. ¶5. (SBU) NEPS - TURKMENISTAN - In discussions with the Ministry of Energy and Water, the Turkmen have requested a demonstration of Afghan commitment to the NEPS. They would like to see Afghanistan begin construction of the 40 km of transmission line needed in Afghanistan to connect with Turkmenistan. In turn, Turkmenistan will then begin construction of its 400 km of transmission line necessary to export power into the NEPS system. Discussions are underway to identify funding for the Afghan portion of the NEPS line to Turkmenistan. ¶6. (SBU) South East Power System (SEPS) - Security problems persist, however, an airlift to transport materials for the rehabilitations of Unit #3 to the site is expected to take place in early January. The planned rehabilitation would take Unit # 3, currently generating approximately 11 MW, off-line for nine months. Discussions are underway to explore the possibility of providing temporary gensets to the areas affected by the shutdown of Unit #3 in the interim. ¶7. (SBU) SHEBERGHAN GAS WELL REHABILITATION - A joint Ministry of Mines, Louis Berger Group and USAID team completed their analysis of the bids. The USAID contracting office hopes to have the contract awarded by mid-January allowing the contractor to mobilize into the field by the end of January 2008. Preliminary well test results should be available by June 2008. ¶8. (SBU) SHEBERGHAN POWER GENERATION - USAID is exploring two simultaneous approaches to power generation, i.e., a fast-track approach that would procure gas turbine generators for public sector management, and a necessarily longer-term effort to attract private sector investment in larger-scale generating capacity, assuming that the above-mentioned well test results prove sufficiently positive. KABUL 00000102 002 OF 002 Wood