AF - Request for input for New Required Reports to Congress

UNCLAS SECTION 01 OF 03 KABUL 000388 SIPDIS DEPT FOR SCA/RA, SCA/A, EEB, EEB/ESC/IEC (GRIFFIN) DEPT PASS AID/ANE, OPIC DEPT PASS USTR FOR LILIENFELD AND KLEIN DEPT PASS OPIC FOR ZAHNISER 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 USOECD/ENERGY ATTACHE OSD FOR SHIVERS, SHINN COMMERCE FOR DEES, CHOPPIN, AND FONOVICH SIPDIS REF: SECSTATE 10743 E.O. 12958 N/A TAGS: ENRG EFIN ETRD KPWR EAID PGOV AF SUBJECT: AF - Request for input for New Required Reports to Congress on Energy. ¶1. (U) The following is Embassy Kabul's response to Reftel, which requests input for 2 new reports to Congress on energy. Paragraph 2 offers a brief overview of the energy situation in Afghanistan and U.S. objectives. Paragraphs 3,4,5 and 6 contain the Embassy's responses to questions A, B, C and D in Reftel. ¶2. (U) After decades of conflict Afghanistan is now a fast-growing economy with little or no infrastructure to support new demands from the public and private sector for provision of services. Key among these is reliable energy. The nation depends largely on hydropower generation plants installed in the 1950-60's and limited power imports from its neighbors (Uzbekistan, Turkmenistan, Tajikistan and Iran),which, at this point are completely inadequate to serve demand, especially during the winter months when usage (primarily for heat) spikes. Private sector growth is stunted, because whatever power is available is provided erratically, and blackouts are frequent, forcing business to invest in high-cost diesel generation in order to operate. U.S. priorities in the Afghan energy sector aim to increase stability and promote sustained economic development by: -- working with the host government to rehabilitate current energy infrastructure; -- helping Afghanistan ensure a reliable power supply through installation of domestic generation, development of domestic gas, coal and oil resources, construction of infrastructure to enable large-scale power imports from its northern neighbors (Turkmenistan, Uzbekistan and Tajikistan); and -- assisting energy and finance authorities in eliminating subsidies to the energy sector, improving performance, and boosting collection rates for energy consumption. ¶3. (U) A. Sections of the Embassy working on energy matters and their total number of staff: -- Executive Office: Ambassador and Deputy Chief of Mission. Total staff 3 FSOs, 2 OMSes. -- Economic Section: Economic Counselor, Deputy Economic Counselor and Economic officer. Total staff 5 FSOs, 1 OMS. -- Afghanistan Reconstruction Group (ARG): One Senior Advisor for Energy. Total ARG staff numbers 5 FP limited-appointment hires and 1 OMS. -- USAID, Office of Infrastructure, Engineering and Energy (OIEE): Office Director and Deputy Office Director, 1 U.S. Army Corps of Engineers (USACE) hydropower program manager, 1 Electrical Engineer/Program Manager, 1 Energy and Power Team Leader, 2 FSN Energy Specialists and 1 Budget Analyst and 1 OMS. Total current staff of nine. ¶4. (U) B. Positions of employees that work on energy matters and the percentage of time they devote to energy matters: -- Ambassador: 10 percent. -- Deputy Chief of Mission: 10 percent. -- Economic Counselor: 10 percent. -- Deputy Economic Counselor: 20 percent. -- Economic Officer: 60 percent. -- ARG Senior Advisor for Energy: 100 percent. -- ARG Senior Advisor for Natural Resources: 25 percent. -- ARG Senior Advisor for Infrastructure Development: 5 percent. -- ARG Senior Advisor for Private Sector Development and Privatization: 10 percent. -- USAID Country Director: 10 percent. KABUL 00000388 002.2 OF 003 -- USAID Deputy Country Director: 10 percent. -- USAID Director of OIEE: 60 percent (also covers roads and building structures.) -- USAID Deputy Director of OIEE: 60 percent (also covers roads and building structures.) -- USAID TCNPCS* Energy and Power Team Leader: 100 percent. -- USAID USPSC** Program Manager: 100 percent. -- USAID USACE Program Manager/Electrical Engineer: 100 percent. -- USAID FSN Engineer: 100 percent. -- USAID FSN Engineer: 100 percent. -- USAID Budget Analyst: 40 percent. * Third country national personal service contractor. ** U.S. personal service contractor. ¶5. (U) C. Description of the positions of employees and the kinds of work they do (as regards energy): -- Ambassador: Engages with host government officials and donor country representatives on energy issues, maintains contacts with U.S. agencies and companies working in energy sector and directs mission energy policy, coordinates multilateral energy discussions. -- Deputy Chief of Mission: Follows internal mission progress on energy issues, coordinates Embassy position on energy issues. -- Economic Counselor: Meets with host government officials on energy issues, participates in donor coordination meetings on energy as needed, briefs front office on development in the sector. -- Deputy Economic Counselor: As needed, meets with host government officials on energy issues, briefs front office on developments in the sector, participates in fixing governmental logjams on specific issues. -- Economic Officer: Participates in donor coordination meetings on energy, tracks various U.S. and donor energy projects for the Front Office, drafts memos/cables on developments in energy sector, coordinates recent development of Embassy Energy Strategy, one of several Embassy representatives on Interministerial Committee on Energy (ICE) that coordinates donor works with Afghan Government priorities. -- ARG Senior Advisor for Energy: Advises Embassy, USAID and Afghan government on matters of energy policy, operations and project implementation. Specific focus has been assuring power supply for Kabul and bringing system operations up to an acceptable level of performance. Also includes work on cross-border energy issues. -- ARG Senior Advisor for Natural Resources: Advises Embassy, USAID and Afghan government on matters pertaining to hydrocarbon resource development. -- ARG Senior Advisor for Infrastructure Development: Independent Power Production issues, legal framework, etc. -- ARG Senior Advisor for Private Sector Development and Privatization: Works with emerging Afghan private sector to encourage private sector involvement in energy sector as well as on the development of industrial parks, including provision of infrastructure; power/energy, also works on micro-hydro, bio-diesel, alternative fuels issues, etc. -- USAID Country Director: Engages with host government officials and donor country representatives on energy issues, as needed, and provides focal point for major decision on energy-related issues. KABUL 00000388 003 OF 003 -- USAID Deputy Country Director: Follows USAID progress on energy issues, represents Country Director as needed, and participates in some energy-related meetings and fora. -- USAID Director of OIEE: Provides leadership and manages energy activities, in addition to other infrastructure programs. Assures overall program objectives are met and that programs remain on target. Engages high-level host country officials on energy matters, as well as other donor representatives. -- USAID Deputy Director of OIEE: Assists the Director in guiding and managing day to day energy activities, in addition to oversight of other infrastructure programs. Engages high-level host country officials on energy matters, as well as other donor representatives. -- USAID OIEE Energy and Power Team Leader: Manages all energy activities, providing oversight and management to USAID contractors. Provides expert advice to Office Director and USAID Mission on all energy-related matters. -- USAID OIEE Program Manager/Electrical Engineer: Ensures USAID's energy activities related to new power development and transmission are addressed and are technically sound. Provides day to day management oversight with contractors. -- USAID OIEE USACE Program Manager: Provides expert advice and program oversight to all hydropower-related activities, including transmission from generation to major centers. Assures technical viability and quality control for hydropower activities. -- USAID OIEE FSN Engineer: Provides project management to an array of alternative energy activities. Performs on-going program monitoring and evaluation. -- USAID OIEE FSN Engineer: Provides project management to on-going energy activities, as assigned. Performs on-going program monitoring and evaluation. -- USAID OIEE Budget Analyst: Tracks budget expenditures on all OIEE activities. ¶6. (U) --1. Embassy Budget: Personnel Costs: Managed through State offices in Washington. Program Costs: NONE. -- 2. ARG Budget: Personnel Costs (from Embassy/DOS Funds): Managed through State offices in Washington. Program Costs: NONE -- 3. USAID: Personnel Costs: Managed through USAID offices in Washington. Program Costs: 164 million USD in contracts in FY ¶2007. WOOD