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Cablegate: Af: Update On Usg Energy Projects

VZCZCXRO3602
PP RUEHIK RUEHPOD RUEHPW RUEHYG
DE RUEHBUL #2189/01 2320557
ZNR UUUUU ZZH
P 190557Z AUG 08
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 5151
INFO RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHNT/AMEMBASSY TASHKENT 6908
RUEHAH/AMEMBASSY ASHGABAT 5684
RUEHDBU/AMEMBASSY DUSHANBE 0700
RUEHIL/AMEMBASSY ISLAMABAD 6854
RUEHTA/AMEMBASSY ASTANA 0038
RUEHZG/NATO EU COLLECTIVE
RUEKJCS/OSD WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUEABND/DEA HQS WASHINGTON DC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 KABUL 002189

DEPT FOR SCA/RA, SCA/A, EEB, EEB/ESC/IEC (GRIFFIN)
DEPT PASS FOR AID/MARK WARD, 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, HAMROCK, AND FONOVICH

SIPDIS

E.O. 12958 N/A
TAGS: ENRG EFIN ETRD KPWR EAID PGOV AF
SUBJECT: AF: UPDATE ON USG ENERGY PROJECTS

1. (U) The following cable provides a current status update on USG
energy sector projects in Afghanistan.

2. (U) KABUL 100 MW GENERATOR SETS (GENSETS) - All work at the site
is progressing apace with no significant delays. Equipment and
parts are arriving daily, with some 70 pieces already at the site.
Construction of the camp for expat and other workers is complete,
and all other construction of power plant buildings and structures
is advancing on schedule. The first 6 diesel engines and generators
(of 18 total) will arrive by air in mid-August, with an additional
six by early September. By December 31, 70 MW should be on-line,
with the additional 35 MW in the spring. Former problems with the
neighboring Hotak tribesmen have been resolved with the assistance
of the Ministers of Energy and Urban Development.

3. (U) North East Power System (NEPS) - UZBEK COMPONENT - Though the
GIRoA has made progress in its discussions with the Uzbeks, there is
still no firm agreement or schedule for constructing the remaining
stretch of distribution line in Uzbekistan. On 23 July Mr. Rabbani
of the Afghanistan Ministry of Energy and Water (MEW) left for
Uzbekistan to complete technical details of the proposed agreement
for construction of the 220 kV line segment in Uzbekistan. On July
28, the GIRoA has made the first installment payment to the Uzbeks
of $2.5 million. In early July, an Uzbek technical team visited
Afghanistan and inspected the line to assure itself there would be
no technical difficulties in connecting to NEPS, and left with that
assurance. An Afghan delegation is now scheduled to return to
Uzbekistan the week of August 25 to sign the construction contract.


4. (U) NEPS - TAJIKISTAN COMPONENT - On 20 July, GIRoA
representatives informed USAID technical assistance experts that
Afghanistan and Tajikistan have agreed on a price for the imported
energy and that the PPA could be signed shortly. USAID has
continued to provide the MEW with assistance in finalizing the
proposed PPA with Tajikistan. The successful conclusion of a PPA
is expected shortly.

5. (U) NEPS - TURKMENISTAN COMPONENT - On July 16-18, the Joint
Working Group (JWG) of MEW and the Turkmenistan Minister of Energy
and Industry (MOEI) met in Ashgabat to discuss technical details of
the construction of a 500 kV interconnection for the supply of
electric energy from Turkmenistan to Afghanistan. The meeting
resulted in a protocol agreement to continue working collaboratively
and for the development by the Turkmen of a firm construction
schedule. USAID/Afghanistan's Deputy Director of Infrastructure,
Engineering and Energy participated in the meeting, a demonstration
of USAID's commitment to the construction of the proposed
transmission line within Afghanistan. The next meeting of the
working group will take place within three months.

6. (U) SHEBERGHAN GAS FIELDS TESTING - A sub-contract to a
Turkish-American firm has now been signed and the subcontractor is
purchasing and shipping well casings and other supplies. Planning
for the contractor/sub-contractor camp is also underway. Highly
specialized well-logging and testing equipment will be coming from
Kazakhstan. USAID resolved the former well-fire insurance issue by
modifying the prime contract to include an optional line item to
cover well-fires, should they occur. It is estimated the first wells
should be reopened by the end of September, with initial results
available 30 days later.

7. (U) South East Power System - SEPS - The repairs of Unit 3 at

KABUL 00002189 002 OF 002


Kajaki continue on-schedule with completion projected by Spring,
though there are efforts underway with the subcontractor to conclude
the work sooner. Airlifting 8 large pieces for Unit 2 equipment
from Kabul to Kandahar Air Field (KAF) is underway. There has been
significant coordination between USAID, ISAF, RC/South, and TF
Helmand not only for loading the equipment at KAIA and offloading it
at KAF, but in preparations and planning for the military to move
the 8 heaviest pieces by road from KAF to the Kajaki site. All
smaller parts will be taken from KAF to Kajaki by USAID's
contractor. USAID is in the process of acquiring new expressions of
interest by local contractors for repair of the 110 kv transmission
line from Kajaki to Kandahar and Lashkar Gah. That period ends
August 14, with a subcontract for the combined tasks of assessing
repair requirements then actually implementing the repairs to follow
shortly thereafter. Until the assessment has been completed, we
cannot estimate the completion date of the work. Once repaired, the
line will have the capacity to carry the full production of all
three units at Kajaki, minus the power that is destined for Musa
Qala and environs.

WOOD

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