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ECONOMIC AND SOCIAL DEVELOPMENT will likely not be available to allow moving forward with large scale power production for at least five to seven years.” 667 USAID is exploring a followon program to help the MOMP develop and exploit Afghanistan’s petroleum and gas resources. 668 Mining Investment and Development for Afghan Sustainability USAID’s, four-year, $38.7 million Mining Investment and Development for Afghan Sustainability (MIDAS) program aims to strengthen the MOMP’s capacity to develop Afghanistan’s natural resources in accordance with international standards. It focuses on legal and policy frameworks for the sector as well as mineral exploration. 669 USAID said the MOMP currently cannot administer the approximately 488 existing extractives contracts. This caused MIDAS to be rescoped to provide technical assistance and transaction-advisory services to the MOMP in its effort to either cancel or renegotiate some or all of these contracts. 670 Activities This Quarter MIDAS consultants provided technical and legal support to help the MOMP move forward on the multi-billion-dollar oil and gas contracts: Amu Darya (signed December 2011), Afghan-Tajik (phase I signed October 2013; phase II awarded March 2014), and Totimaidan (awarded September 2014). Negotiations on Amu Darya and Afghan Tajik are ongoing, but no exploration or production work is taking place. The bidders chosen for the Totimaidan block of the Amu Darya Basin have walked away from negotiations. 671 In addition, MIDAS advisors also completed a rapid assessment of the Afghanistan Petroleum Authority’s (APA) structure, staffing, and roles to help inform two new directorates created by the interim MOMP administration—the General Directorate of Petroleum and the Petroleum Support Unit—that will take over APA responsibilities plus hydrocarbon exploration. MIDAS reported that the General Directorate of Petroleum’s organizational structure is currently flawed, has limited capacity, and inadequate staffing to manage exploration contracts. 672 Also this quarter, MIDAS advisors helped draft procedures to help the ministry collect outstanding financial obligations owed to it by mineral-rights owners; continued to draft and revise amendments to the Minerals Law; and helped develop technical, financial, bidding, and contract-oversight regulations. 673 MIDAS has disbursed $32.5 million, as of December 31, 2016. 674 MOMP Capacity Challenges Remain USAID’s implementing partner reported “extremely low levels of capacity and motivation of MOMP and Afghan Geological Survey employees.” There 164 SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION
ECONOMIC AND SOCIAL DEVELOPMENT are also over 250 vacant positions in the ministry, with many key departments understaffed by at least half. Twenty-three of 26 director positions were either unfilled or staffed by lower-level employees, as of November 2016. Additionally, there have been two permanent and three acting ministers of mines and petroleum since the MIDAS program began in 2013, each bringing their own sets of policy and priority changes. MOMP efforts and MIDAS programmatic activities are negatively affected absent a permanent minister. USAID said Acting Minister Ghazaal Habibyar does not have the authority to set the long-term strategic direction for minerals and natural gas. 675 Agriculture Agriculture continues to be the main source of real GDP growth, employment, and subsistence for the Afghan population. It accounts for about 22% of GDP, employs 44% of the population, and affects the 61% of Afghans who depend on agricultural activities for their livelihoods. 676 The Afghan government said that aside from weather volatility, agricultural growth has been hampered by underinvestment in developing water resources, poor-quality inputs such as seeds and fertilizer, degrading natural resources, and weak domestic- and export-product marketing. It wants to move from an agrarian-subsistent and importing nation to an agroindustrial exporting one. The government said it will focus on promoting agro-industry, increasing quality control, expanding cold-storage facilities, and introducing better packaging to reduce waste and spoilage—areas that show the largest potential to improve economic growth. 677 USAID’s agricultural projects are designed to enhance food security, create jobs and export markets, increase incomes and productivity, and strengthen the government’s ability to promote broad-based growth. USAID aims to bolster the Ministry of Agriculture, Irrigation, and Livestock’s (MAIL) “farmer-focused” approach through the production and marketing of high-value horticultural crops and livestock products, the rehabilitation of irrigation and drainage systems, and the greater use of new technologies. 678 Since 2002, USAID has disbursed more than $2 billion to improve agricultural production, increase access to markets, and develop income alternatives to growing poppy for opium production. 679 USAID reported $157.6 million worth of various Afghan agricultural commodities were sold in FY 2016, and $531.9 million cumulatively from 2008 to September 2016. 680 Pages 193–199 of this quarterly report discuss USAID’s agriculture alternative-development programs. A list of active USAID agriculture programs is found in Table 3.20 on the next page. Agricultural Credit Enhancement II The Agricultural Credit Enhancement (ACE) II project is the technical-assistance/advisory-support component of the conditions-based Agricultural REPORT TO THE UNITED STATES CONGRESS I JANUARY 30, 2017 165
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SIGAR JAN Special Inspector General
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JOWZJAN BALKH KUNDUZ TAKHAR BADAKHS
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This quarter, SIGAR issued 13 audit
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EXECUTIVE SUMMARY • the abandonme
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TABLE OF CONTENTS SECTION 4 203 OTH
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1AFGHAN PROCUREMENT REFORM 1
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AFGHAN PROCUREMENT REFORM THE NEED
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AFGHAN PROCUREMENT REFORM from ente
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AFGHAN PROCUREMENT REFORM Conflict:
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AFGHAN PROCUREMENT REFORM that alth
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AFGHAN PROCUREMENT REFORM system fr
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AFGHAN PROCUREMENT REFORM identify
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AFGHAN PROCUREMENT REFORM THE STAKE
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2 SIGAR OVERSIGHT 17
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SIGAR OVERSIGHT ACTIVITIES SIGAR OV
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SIGAR OVERSIGHT ACTIVITIES on TFBSO
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SIGAR OVERSIGHT ACTIVITIES Performa
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SIGAR OVERSIGHT ACTIVITIES were pro
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SIGAR OVERSIGHT ACTIVITIES Financia
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SIGAR OVERSIGHT ACTIVITIES 1. Deter
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SIGAR OVERSIGHT ACTIVITIES is now t
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SIGAR OVERSIGHT ACTIVITIES Review L
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SIGAR OVERSIGHT ACTIVITIES indefini
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SIGAR OVERSIGHT ACTIVITIES their co
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SIGAR OVERSIGHT ACTIVITIES communit
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SIGAR OVERSIGHT ACTIVITIES advocate
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SIGAR OVERSIGHT ACTIVITIES remote o
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SIGAR OVERSIGHT ACTIVITIES The Cour
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SIGAR OVERSIGHT ACTIVITIES at both
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SIGAR OVERSIGHT ACTIVITIES restitut
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QUARTERLY HIGHLIGHT Louis M. Bailly
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SIGAR OVERSIGHT ACTIVITIES FIGURE 2
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QUARTERLY HIGHLIGHT Suspensions and
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QUARTERLY HIGHLIGHT appealed a susp
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SIGAR OVERSIGHT ACTIVITIES the Unit
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SIGAR OVERSIGHT ACTIVITIES identify
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3RECONSTRUCTION UPDATE 63
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RECONSTRUCTION UPDATE RECONSTRUCTIO
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RECONSTRUCTION UPDATE that project
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STATUS OF FUNDS STATUS OF FUNDS To
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STATUS OF FUNDS Security Forces Fun
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STATUS OF FUNDS Congress appropriat
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STATUS OF FUNDS ASFF BUDGET ACTIVIT
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STATUS OF FUNDS USAID INCLE State A
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DOD STATUS OF FUNDS CERP DOD DOD DR
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DOD STATUS OF FUNDS ESF USAID INTER
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STATUS OF FUNDS the United Kingdom
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SECURITY SECURITY KEY ISSUES AND EV
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SECURITY FIGURE 3.26 AVERAGE NUMBER
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SECURITY investigation concluded th
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SECURITY USFOR-A determined that
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SECURITY System for the ANA’s Nat
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SECURITY FIGURE 3.27 RS TRAIN, ADVI
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SECURITY DOD reported the ASSF in b
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SECURITY TABLE 3.8 ANDSF ASSIGNED F
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SECURITY function without Coalition
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SECURITY international scholarships
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SECURITY TABLE 3.10 COST OF U.S.-FU
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SECURITY Utility in Kabul ($314,325
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SECURITY An AAF specialist adjusts
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SECURITY According to USFOR-A, the
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Page 129 and 130: GOVERNANCE GOVERNANCE KEY ISSUES AN
Page 131 and 132: GOVERNANCE U.S. RECONSTRUCTION FUND
Page 133 and 134: GOVERNANCE TABLE 3.14 USAID ON-BUDG
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Page 137 and 138: GOVERNANCE Of 59 conditions defined
Page 139 and 140: GOVERNANCE TABLE 3.15 USAID CAPACIT
Page 141 and 142: GOVERNANCE independent news and pub
Page 143 and 144: GOVERNANCE ministry of municipal af
Page 145 and 146: GOVERNANCE In January, the Wall Str
Page 147 and 148: GOVERNANCE TABLE 3.17 RULE OF LAW A
Page 149 and 150: GOVERNANCE ADALAT found in the cour
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Page 155 and 156: GOVERNANCE TABLE 3.18 USAID GENDER
Page 157 and 158: GOVERNANCE service is organized on
Page 159 and 160: ECONOMIC AND SOCIAL DEVELOPMENT ECO
Page 161 and 162: ECONOMIC AND SOCIAL DEVELOPMENT Agr
Page 163 and 164: ECONOMIC AND SOCIAL DEVELOPMENT TAB
Page 165 and 166: ECONOMIC AND SOCIAL DEVELOPMENT $7.
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Page 193 and 194: ECONOMIC AND SOCIAL DEVELOPMENT wit
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Page 197 and 198: COUNTERNARCOTICS opium-poppy cultiv
Page 199 and 200: COUNTERNARCOTICS UNODC estimates th
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Page 205 and 206: COUNTERNARCOTICS Community Based Ag
Page 207 and 208: COUNTERNARCOTICS activities include
Page 209 and 210: COUNTERNARCOTICS in 2016 at an addi
Page 211: COUNTERNARCOTICS TABLE 3.6 INTERDIC
Page 214 and 215: OTHER AGENCY OVERSIGHT CONTENTS OTH
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APPENDICES AND ENDNOTES CONTENTS Ap
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APPENDICES APPENDIX A CROSS-REFEREN
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APPENDICES TABLE A.1 (CONTINUED) CR
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APPENDICES TABLE A.2 CROSS-REFERENC
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APPENDICES APPENDIX B U.S. FUNDS FO
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APPENDICES APPENDIX C SIGAR WRITTEN
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APPENDICES Ongoing Financial Audits
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APPENDICES APPENDIX D SIGAR INVESTI
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APPENDICES TABLE D.1 SPECIAL ENTITY
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APPENDICES TABLE D.1 (CONTINUED) SP
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APPENDICES TABLE D.1 (CONTINUED) SP
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APPENDICES ACRONYM OR ABBREVIATION
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ENDNOTES 1. Transparency Internatio
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ENDNOTES 100. General John Nicholso
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ENDNOTES 226. RS, email to SIGAR, 1
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ENDNOTES 380. UNMAS, Afghan Civilia
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ENDNOTES 483. Voice of America, “
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ENDNOTES 596. SIGAR, analysis of MO
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ENDNOTES 698. USAID, OI, response t
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ENDNOTES 794. UN, Report of the Sec
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A worker looks down on an Afghan va
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