Report - United States Department of Defense

UNCLASSIFIED
reviewed by MoPW personnel, U.S. Department of Transportation personnel, and the U.S. Army
Rail Advisory Team in-theater. Suggestions have been made and changes have been accepted to
the legal and regulatory framework. This comprehensive piece of legislation now only needs the
review and approval of Parliament prior to being put into law. The legal and regulatory
framework is an integral part of ensuring the ARA has the proper authority to execute its duties.
Power
Improvements to energy transmission and distribution systems continue to be one of the top
priorities for the current infrastructure development strategy because of the foundational role it
plays in fostering economic development and growth. During the reporting period, Afghanistan
achieved significant progress towards capacity development and strengthening of energy
institutions. However, a major challenge continues to be effective commercialization and
efficiency in the sector. Currently, power is only available to one-third of the population and
power imports, along with domestic generation, do not provide 24-hour supply to those
connected. The sector requires extensive development in capacity and skills at every level.
Major weaknesses of Afghanistan’s power sector are its lack of nationwide metering and pay
mechanisms. This results in the overuse of low-cost and no-cost electricity, thereby limiting
revenue potential and investment in the sector.
The major power initiative in Afghanistan is USAID’s Power Transmission Expansion and
Capacity (PTEC) project, whose aim is to strengthen the North East Power System (NEPS),
expand it, and ultimately connect it to the Southeast Power System (SEPS). The NEPS brings in
imported electricity from the Central Asian Republics to provide power to Kabul and the
communities north of Kabul. The SEPS services the areas south of Kabul in the Kandahar and
Helmand areas, drawing most of its power from the Kajaki Dam and, currently, from diesel
generators in Kandahar City. The NEPS and SEPS transmission lines will connect the north and
south with the Gardez region into one unified system. The Kajaki Dam and power plant requires
structural and power generation refurbishments and upgrades. These projects will improve
employment, manufacturing capabilities, and quality-of-life in the region. Estimated completion
date for the majority of the project is December 2014, although the third turbine will not be
installed until 2015.
USAID’s Kandahar-Helmand Power Program (KHPP), which will improve distribution in the
SEPS, has maintained activity on all project components, which include the rehabilitation of two
substations (partially complete) and improvements to the Kandahar medium voltage network
(early stages). Installation of unit two at Kajaki Dam was originally an off-budget project and is
now being implemented as an on-budget program through Da Afghanistan Breshna Sherkat
(DABS), the national electric utility. The eight-month closure of the Pakistan GLOCs created a
significant backlog of electrical materials required for this project and resulted in delays of some
project components of KHPP. Following the reopening of the Pakistan GLOC in July 2012, all
electrical equipment arrived at the project site. The Durai Junction substation, one of the KHPP
components, is nearing completion, and the Breshna Kot substation is now progressing,
following early subcontractor delays.
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