Cablegate: Ge Advocacy Request: Afghan Bidding Process Suspended

VZCZCXYZ0004
PP RUEHWEB

DE RUEHBUL #3464 3020727
ZNR UUUUU ZZH
P 290727Z OCT 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 2597
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS KABUL 003464

SIPDIS

DEPT FOR SCA/FO, SCA/RA, SCA/A and EEB/CBA
COMMERCE FOR LEWIS-KHANNA, LOOP

E.O. 12958 N/A
TAGS: BEXP ENRG EFIN AF
SUBJECT: GE Advocacy Request: Afghan Bidding Process Suspended

REF: Lewis-Khanna/Wilson Email DTD 10/19

1. Responding to a request from the Department of Commerce's Trade
Advocacy Center, Embassy Kabul has confirmed the bona fides of two
international firms. The companies, ANHAM LLC and AIP LLC, have
formed a joint venture to sub-contract a $10.9 million generator set
to General Electric's Marine and Stationary Diesel Power Division.

2. The Afghanistan Investment Support Agency (AISA) solicited bids
in July, 2009 for an 18 megawatt diesel generator power plant as
part of a planned World Bank-funded Industrial Park in
Hissar-e-Shahi near Jalalabad. World Bank blueprints for the park
require self-sustained utilities, including power, water supply,
roads, and waste/wastewater treatment. AIP-ANHAM's bid on the power
plant procurement was ranked second in price.

3. On October 27, Commercial Officer met with ANHAM Deputy Managing
Director Kabir Arghandiwal and confirmed ANHAM, which is partially
American-owned, holds contracts with U.S. Department of Defense,
Overseas Private Investment Corporation (OPIC), and USAID. We have
found no derogatory information on ANHAM or its joint venture
partner AIP.

4. Arghandiwal reported that although AISA had begun conducting
technical evaluations of the bids, the procurement process was now
on hold and will likely be rebid at a future date. AISA offered no
explanation for the potential rebid. Arghandiwal expects AIP-ANHAM
to participate in a second bidding round.

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