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Viewing cable 07TOKYO441, JAPANESE UPDATE OF AFGHAN RING ROAD PROJECT

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Reference ID Created Released Classification Origin
07TOKYO441 2007-01-31 23:47 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tokyo
VZCZCXYZ0000
PP RUEHWEB

DE RUEHKO #0441 0312347
ZNR UUUUU ZZH
P 312347Z JAN 07
FM AMEMBASSY TOKYO
TO RUEHBUL/AMEMBASSY KABUL PRIORITY 0422
RUEHC/SECSTATE WASHDC PRIORITY 0233
INFO RHAKDOC/18WG CP KADENA AB JA
RUEHUNV/USMISSION UNVIE VIENNA 0426
RUEHNO/USMISSION USNATO BRUSSELS
RUCNDT/USMISSION USUN NEW YORK 3154
RUEKJCS/SECDEF WASHDC
RHEHAAA/NSC WASHDC
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
UNCLAS TOKYO 000441 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/A, S/CT 
STATE PASS TO USAID FOR AID AA/ANE MARK WARD 
NSC FOR AHARRIMAN 
CENTCOM FOR CG CFC-A, CF CJTF-76, POLAD 
 
E.O. 12958: N/A 
TAGS: ECON AID ECON PGOV PREL ELTN SNAR ASEC AFIN AF JA
SUBJECT: JAPANESE UPDATE OF AFGHAN RING ROAD PROJECT 
 
REF: 06 KABUL 04432 
 
1.  Summary.  Japan has signed a contract with a construction 
company, SAITA of Afghanistan, to complete its 114 km segment 
of the Afghan Ring Road (Kandahar to Herat), and expects work 
to be completed by December 2008, if not sooner. MOFA 
International Cooperation Bureau Grant Aid/Technical 
Cooperation Division Director Wada said that on January 20, 
2007 SAITA began construction on the first ten kilometers. 
End summary. 
 
2.  In Fall 2006, the initial contract for this section of 
the Ring Road was canceled due to security concerns and 
Taisei's employees departed Afghanistan.  A new tender was 
issued to include third parties (other companies in addition 
to Japanese and Afghan companies.)  Negotiations with an 
Indian company were undertaken, however  no agreement was 
reached.  As a result, Japanese procurement agent, the Japan 
International Cooperation System (JICS) issued yet another 
tender  requesting bids by early December.  MOFA Grant 
Aid/Technical Cooperation Division Director Mitsuhiro Wada 
said of four companies submitting bids, the best bid was from 
SAITA of Afghanistan.  On December 26, 2006, the Government 
of Afghanistan, through JICS, signed an agreement with SAITA 
of Afghanistan (a Japanese invested firm) to construct the 
Road.  In addition, a Japanese engineering services firm, 
Pacific Consultants International (PCI), was contracted to 
provide the technical oversight. 
 
3.  Director Wada reported that SAITA began construction on 
January 20, 2007, with PCI providing technical oversight. 
 
4.  Director Wada said that the contracting system is 
somewhat complicated.  MOFA initially only had sufficient 
funds to cover the first 50 kilometers, and asked the Afghan 
Government through JICS to issue the contract accordingly. 
MOFA is now waiting a formal request from the Afghan 
Government for grant funds to complete the remaining 64 
kilometers.  Once the request is received, MOFA will 
calculate the necessary funding, and obtain budget approvals 
from the Ministry of Finance and the Cabinet, so that the 
funding can be issued during 2006 fiscal year (FY 2006 ends 
March 31, 2007.).  Director Wada assured AID Counselor that 
funding is not a problem, but these administrative procedures 
must be followed. 
 
5.  Director Wada also told AID Counselor that the Afghan 
Government and JICS would approve and sign a contract with 
SAITA of Afghanistan for the final 64 kilometers, perhaps 
following the same procedure of constructing 10 kilometers at 
a time.  Director Wada assured that the 114 kilometers from 
Kandahar to Herat would be completed by December 2008 if not 
earlier. 
 
6.  MOFA recently appointed senior official, Yoshiki Mine, as 
the Ambassador in Charge of Afghanistan Assistance 
Coordination and NGOs.  Director Wada reported that the Ring 
Road is one of Mine's highest priorities. 
SCHIEFFER