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Viewing cable 07KABUL3993, Progress On Afghan Electricity from Uzbekistan?

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Reference ID Created Released Classification Origin
07KABUL3993 2007-12-04 13:02 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kabul
VZCZCXRO3117
PP RUEHIK RUEHPOD RUEHYG
DE RUEHBUL #3993/01 3381302
ZNR UUUUU ZZH
P 041302Z DEC 07
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 1637
RUEATRS/DEPT OF TREASURY WASHINGTON DC 0569
INFO RUEHNT/AMEMBASSY TASHKENT 6879
RUEHJI/AMCONSUL JEDDAH 3352
RUEHDBU/AMEMBASSY DUSHANBE 0432
RUEHAH/AMEMBASSY ASHGABAT 5676
RUEHTA/AMEMBASSY ASTANA 0013
RUEHNE/AMEMBASSY NEW DELHI 7174
RUEHUL/AMEMBASSY SEOUL 0092
RUEHKO/AMEMBASSY TOKYO 1970
RUEHML/AMEMBASSY MANILA 1644
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
RUCNDT/USMISSION USUN NEW YORK 4301
UNCLAS SECTION 01 OF 02 KABUL 003993 
 
SIPDIS 
 
 
DEPT FOR SCA/FO, SCA/RA, AND SCA/A 
DEPT PASS AID/ANE 
DEPT PASS USTR FOR GERBER AND KLEIN 
DEPT PASS OPIC FOR ZAHNISER 
DEPT PASS TDA FOR STEIN AND GREENIP 
CENTCOM FOR CSTC-A 
NSC FOR JWOOD 
TREASURY FOR LMCDONALD, ABAUKOL, BDAHL, AND MNUGENT 
OSD FOR SHIVERS 
COMMERCE FOR DEES, CHOPPIN, AND FONOVICH 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958 N/A 
TAGS: ENGR ECON EPET ETRD KPWR EAID PGOV AF
SUBJECT: Progress On Afghan Electricity from Uzbekistan? 
 
1. (SBU) SUMMARY: Discussion with Afghans and donors on the North 
East Power System (NEPS) connection to Uzbekistan, yielded signs of 
increased Uzbek commitment to provide 150 MW of electricity to 
Afghanistan by the end of 2008 (including completing 43 KM of 
transmission lines to the Afghan border).  Uzbek commitment was 
reiterated at the highest level to Afghanistan and the Asian 
Development Bank (ADB).  An Afghan delegation to Tashkent the week 
of November 20 tested the Uzbek engagement on technical and 
commercial issues.  We will evaluate the results of that mission 
prior to engaging further on this question with the Uzbeks.  The ADB 
reps confirm that they were prepared to organize payment guarantees 
if the Uzbeks requested some proof of Afghanistan's ability to pay. 
END SUMMARY. 
 
2. (SBU) SCA Senior Advisor, Robert Deutsch, held a series of 
meetings November 12 and 13 on Afghan and donor efforts to complete 
arrangements for the connections of the developing Afghan NEPS 
electricity grid to its northern neighbors.  Deutsch reviewed the 
status of the arrangements with the Ministers of Economy and Energy 
and Water and with key representatives of ADB, World Bank (WB) and 
Islamic Development Bank (IDB), all of whom were present in Kabul 
for the Central Asia South Asia Regional Electricity Market 
Ministerial (CASAREM).  The discussions focused mainly on completing 
the Uzbek inter-connection and electricity trade commitment.  The 
Afghans and the international financial institutions (IFIs) believe 
that with accelerated activity on the part of the Uzbeks that could 
have some 100 MW of power could flow on the NEPS to Kabul by late 
2008. 
 
3.  (SBU) Over the last several weeks, there were significant 
exchanges between Uzbekistan and Afghanistan and with the ADB and 
IDB on the margins of the Central Asian Regional Cooperation 
Conference (CAREC) in Dushanbe, November 2 and 3.  According to 
Minister of Economy, Dr. Mohammad Jalil Shams, Afghan First 
Vice-President Ahmad Zia Masoud visited Tashkent and received 
renewed confirmation of Uzbekistan's commitment to take the steps 
required to provide power. 
 
4. (U) ADB Energy Project Officer, Jim Liston, reported that ADB 
President Kuroda had met with President Karimov, and the latter, in 
the presence of the head of Uzbekenergo, assured Kuroda that he was 
committed to providing increased electricity to Afghanistan. 
 
5.  (SBU) Consistent with these renewed political commitments, Dr. 
Shams told us that the Uzbeks have invited the Afghans to send a 
delegation to Tashkent to pursue the technical discussions necessary 
to complete power sales arrangements.  That exchange was to begin in 
November when an Afghan delegation led by the Deputy Minister of 
Energy and Water was to have visited Tashkent.  The delegation was 
to have met at Uzbekistan's southernmost substation at Surkhan to 
review the capacities of the connecting point for power to 
Afghanistan.  Dr. Shams indicated that the Uzbeks are said to have 
begun work on extending 43 KM of 220 KV transmission line from the 
Surkhan substation to the Uzbek border, in order to deliver the 
increased electricity to Afghanistan; the delegation had hoped to 
see signs of that effort.  USAID contractor advisors had prepared 
the Afghan team for both the technical and commercial issues they 
needed to address with the Uzbeks, but Dr. Shams told us that he 
 
KABUL 00003993  002 OF 002 
 
 
believed that the Uzbeks would not react positively to a direct USG 
role in this effort, and his strong preference is to continue the 
effort with U.S. assistance only behind the scenes. 
 
6.  (SBU) According to the IDB regional project officer, Imtiarz 
Hizkil, who came to Kabul via Tashkent, the Uzbeks are not seeking 
external financing for the 43 KM line south of Surkhan.  They have, 
however, expressed an interest in assistance with the 500 KV line 
stretching the 200 KM between the Guzar and Surkhan associated 
transformers that will be required to make 300 MW available to 
Afghanistan.  Hizkil indicated that the IDB and ADB are continuing 
discussions with the Uzbeks on financing for that project.  Hizkil 
noted that his trip to Uzbekistan was connected to a project review 
of another ongoing electricity transmission project.  In response to 
our query he opined that the IDB experience left him convinced the 
Uzbeks would not have a problem constructing the 220 KV line the 43 
KM to the border and would need only limited quantities of readily 
available components from outside Uzbekistan. 
 
7. (SBU) In commenting on the renewed activity, Rune Staune of ADB 
said that ADB has informed the Uzbeks that it would be willing to 
organize a payment guarantee on behalf of the Afghans, if the Uzbeks 
deemed that a group we agreed that a full power purchase agreement 
is not necessary and a relatively simple agreement should be 
sufficient.  However, a payment guarantee would necessitate some 
more detailed commitments. 
 
8. (SBU) COMMENT: The diplomatic and technical activity on the 
Uzbek-Afghan electric connector is encouraging.  Embassy Kabul and 
USAID energy contractors will continue to support and prepare the 
Afghans in this regard.  Given their reluctance to have the U.S. 
play a more visible role at this point, we will want to hear the 
results of the Afghan's efforts before determining how the U.S. will 
engage further directly with the Uzbeks. END COMMENT. 
 
9.  (U) This message was drafted by SCA Senior Advisor, Robert 
Deutsch. 
 
DELL