SIGAR

ECONOMIC AND SOCIAL DEVELOPMENT
This quarter, DABS announced that it
compiled a list of 73 major debtors—
including top government officials—who
have not paid their electricity bills. These
reportedly include First Vice President
General Abdul Rashid Dostum, Mohammad
Karim Khalili, (former vice president to
then-President Hamid Karzai), former Jihadi
commander Abdul Rab Rassoul Sayaf, and a
number parliamentarians.
The largest delinquents were government
agencies, which owed AFN 1.6 billion
($24.3 million)—representing 48.2% of
all amounts due the utility—followed by
commercial institutions at AFN 773 million
($11.7 million), and residential customers
at AFN 700 million ($10.6 million). Another
outstanding AFN 247 million ($3.8 million)
was for residential properties that were
relocated for roads construction.
Source: DABS, “DABS Reveals the Names of Major
Electricity Bill Defaulters in Kabul,” 10/17/2016;
Tolo News, “DABS Says Top Govt Officials Not Paying
Electricity Bills,” 11/16/2016.
SIGAR AUDIT
An ongoing SIGAR audit focuses on
DOD and State Department progress
in completing FY 2011 Afghanistan
Infrastructure Fund projects, the impact
on other infrastructure priorities and
counterinsurgency objectives, and
sustainment challenges.
at Bagh-e Pol in need of major overhauls and shipments of critical spare
parts have stopped altogether, while three generators were transferred to
Shorandam to replace units needing scheduled maintenance. 712
The Shorandam generators are currently producing between 40,000 and
48,000 kilowatt-hours (kWh) daily, running 16 hours a day, six days a week,
which USAID said is insufficient to provide full electrical service to the
industrial park’s commercial customers. For other commercial and residential
customers in Kandahar, electricity supply is also inadequate. Some
additional power can be supplied from Kajaki Dam in Helmand Province
and diesel generators in Breshna Kot in Kabul, but USAID said the cost per
kilowatt-hour is unaffordable for most customers. USAID added that DABS
has no business incentive to generate the necessary power if it cannot
recover the costs of doing so. This results in significant load shedding—the
deliberate interruption of power supply to certain areas. 713
To help bridge the gap between Kandahar’s electric-generation capacities
and demand until the NEPS-SEPS transmission line is completed,
PTEC funded a reverse auction held on July 11, 2016, whereby independent
power producers competed to construct and sell power to DABS from
a solar-power plant that may be able to operate at an installed capacity of
10 MW. A bidder was chosen and has successfully concluded negotiations
with DABS and USAID on the provisions of the incentive contract and
power-purchase agreement. The contract signing was still pending as of
December 22, 2016. 714
Afghanistan Infrastructure Fund Power Programs
Afghanistan Infrastructure Fund (AIF) projects were initiated to support
critical counterinsurgency and economic-development objectives in
Afghanistan. Although DOD’s mission has since evolved to advising and
assisting Afghan security forces and ministries, as well as counterterrorism
operations, it is still focused on implementing AIF power projects to complete
its portion of the NEPS and SEPS. 715
Ongoing fighting in Helmand Province, as well as bureaucratic delays in
getting right-of-way approvals for NEPS and SEPS transmission lines, continued
to challenge AIF contractors and some project-completion schedules. 716
This quarter, President Ghani charged his ministers with ensuring a quick
resolution to right-of-way land issues and was formulating a presidential
decree to streamline the process by which the Ministry of Energy and Water
(MEW), the Afghanistan Independent Land Authority, and the MOF secure
agreements with landowners. U.S. Forces-Afghanistan (USFOR-A) said
multiple NEPS and SEPS contract-completion times are coming due, and it
anticipates receiving requests for extensions. 717
USFOR-A has completed four AIF power projects so far. All were phases
of the now-concluded Kandahar Power Bridging Solution, which provided
fuel and technical support for diesel power-generation plants in Kandahar
170
SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION