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