THE INTER-MINISTERIAL COMMISSION FOR ENERGY (ICE)
COORDINATION MEETING
MEETING MINUTES SUNDAY, 06 JULY 2014 10:00 AM – 11:40 AM
MINISTRY OF ECONOMY, MAIN CONFERENCE HALL
Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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A. Summary of the Meeting: The eighth Inter-ministerial Commission for Energy (ICE) Monthly Coordination meeting (the fifth ICE meeting in 2014) was held on 06 July 2014. The meeting was chaired by His Excellency (H. E.) Abdul Hadi Arghandiwal, the Minister of Economy. The meeting started after a recitation from the Holy Quran. The following agenda items were discussed: 1. Overall Electricity Supply: Indigenous generation (both on and off-grid) installed capacity is 1644.76 MW while operating capacity is 1420 MW. Of particular concern is the 80% increase in demand during winter months; this is also the period when imported energy from the north is in shortest supply. 2. O&M Planning and Budgeting: DABS manages generation, transmission and distribution in 34 provinces in Afghanistan. DABS is preparing an annual maintenance plan for assets based on a core budget approved by board of directors at the beginning of each fiscal year. Mr. Alami added that DABS requires additional financial support from the MoF and international community to rehabilitate or reintegrate the generation, transmission and distribution system. DABS recommended that the donor agencies should consider including the O&M, pilot trainings and close coordination while designing new projects. This would help address current O&M challenges caused by the lack of coordination with donor agencies that cause poor project implementation. DABS also emphasized on a regulatory electricity law in order to implement generation and distribution projects by involving private sector in the future. The presentation was delivered by Mr. Mirwais Alami, Chief Commercial Officer (CCO) of DABS and is provided as Attachment A. 3. Discussion on O&M: ADB recommended the establishment of a separate O&M mechanism in order to safeguard the significant investments that have been made in power infrastructure. For example, ADB is procuring O&M equipment, vehicles and communication tools for DABS worth 12 to 13 million USD, and would encourage training DABS staff across the country to use those tools. USAID has provided DABS with specialized utility management software that includes a maintenance management system. This software will set up everything from inventory, equipment, troubleshooting codes, further technical details. 4. World Bank Projects: The Afghanistan Power Sector Development (APSD) project has primarily three contracts, (i) the distribution project in Gulbahar, Charikar, Jabal Seraj (ii) the distribution project in Puli khumri and (iii) the rehabilitation of Naghlu and Mahipar switchyards. World Bank Operation Officer noted implementation challenges and delays and anticipated that the projects will be implemented based on new timelines. The CASA-1000 Project was approved in March 2014 but the agreement is not yet signed between the World Bank and the countries. It's hoped that the
Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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agreement will take place in early August. Outstanding issues are the price of energy and the transit fee between Afghanistan and Pakistan. WB is planning the next Inter Governmental Council (IGC) meeting in early August where it is hoped that the countries will sign the Power Purchase Agreement (PPA) and also the agreement with the World Bank. World Bank approved another project worth 40 Million USD for those communities living along the CASA line. The preparatory work has already been started, a number of outstanding issues are in the line and World Bank is looking forward to the Ministry of Energy and DABS to support resolve those issues. World Bank is preparing a TA project for DABS, a capacity building project worth 7 Million USD to assist DABS with planning and O&M. 5. Update on bid documents of JFPR: ADB- announced the cancellation of a Japan Fund for Poverty Reduction (JFPR) project: the mini hydro power plants in Bamyan and Badakhshan. The notice was submitted to the government on 16 June, 2014. This project was approved in December 2008, but DABS and ADB could not succeed with the implementation. ADB worked on several options. Option-1: Could be the rehabilitation, construction of 4 mini hydro power plants with this huge amount of money where ADB will provide only of 12 million USD and then the rest of the amount to be received from the government or DABS. Option-2: ADB suggested to rehabilitate only two mini hydro plants for the total amount of 25 million USD, which will require again additional co-financing resources from the government and DABS. Option-3: Even one mini hydro plant either in Bamyan or Badakhshan, another factor which limited ADB's continuation was according to Japanese fund for poverty reduction rules that ADB could not go with the implementation of project beyond four years time. ADB encouraged other donors to take over this project and ADB will share all related studies and bidding documents with them. 6. Update on Dashte Alwan to Arghandi Transmission Line: DABS remarked that Dashte Alwan to Arghandi 500 kV transmission line is under the bidding phase , Draft bidding documents have been submitted to ADB for No Objection. 7. Update on Electricity Regulatory Department: The draft of the electricity law was prepared some time ago. The draft law is now in the ministers cabinet council and will be presented to the parliament for final approval in the coming government. The law establishes a separate electricity regulatory authority and is meant to encourage the private sector. The MEW Energy Advisor remarked that providing electricity to all parts of the country will be hard without the help of the private sector. The three main departments in the proposed regulatory authority are (i) licensing, (ii) tariffs department and (iii) technical and engineering department. The licensing department is functioning now; recently the Minister of MEW has issued a generation license to an Afghan - German private company Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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as per the president's decree. There are seven applications from Afghan and international companies waiting for the licensing in the MEW. 8. Dr. Haress Abawi from KFW: announced KFW and GIZ will jointly start the capacity assessment of MEW and DABS in August. The first round will start in August following the second round in September.
Action Items: The below is a list of action items / follow ups generated during this meeting. A full list of outstanding action items (including previous meetings) is presented as Attachment B. No
Action Item
To be Undertaken by
1
The ICE Secretariat after consultation with ICE Chair, MoEc Setting up a date for the next ICE and other stakeholders will intimate the date of the next meeting meeting to all invitees
2
A representative from the Russian embassy will be invited to O&M plans for HPPs by Russian the next ICE meeting, to talk about Russia's commitment and Government contribution to the O&M of HPPs
3
Capacity Building Scope of Work USAID or DABS will share the capacity building program to be shared by USAID/ DABS scope of work with ICE stakeholders
4
MEW letter on JFPR to be MEW will process a letter on JFPR project and submit it to ADB. Letter will be signed by Ministers of MEW and MoEC submitted to ADB
Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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B. Meeting/ Discussion Narrative: 1
Mr. Mohsin Amin, Deputy Team Leader/ICE in MoEc recited few verses from the Holy Quran. The meeting started after the recitation of Surah Al – Asr (No.103).
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H. E. Hukum Khan Habibi, the Deputy Minister MoEc welcomed the participants to ICE’s 8th coordination meeting. H. E. Hukum Khan informed the participants that Minister of Economy, H. E. Abdul Hadi Arghandiwal will join the ICE meeting later as he is attending an another meeting. He said, We have very important issues to discuss today, so we will start the meeting as per the meeting agenda. H.E. Hukum Khan also welcomed the new member of ICE team and introduced the new Office and Logistics Manager for the ICE team to the participants. Mr. Hassan Shoob, has replaced Mr. Sayed Abdul Ahad Reshtya. Mr. Hassan is a young and energetic person, I am sure that he will further strengthen the ICE operations and coordination of meetings with his well experienced team. I wish him all the success and my best wishes are always with him. He thanked and welcomed all participants to ICE secretariat meeting.
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H. E. Deputy Minister informed the participants prior to the start of ICE monthly meeting that there was an important delegation from Russia to Afghanistan. As you know the former soviet union has constructed some of the major Hydro Power Plants (HPPs) in Afghanistan. Russia has good experience of operation and maintenance of these HPPs. There was a request from the government of Afghanistan where we had invited them to consider extending their cooperation for us to maintain all of these HPPs those were built during the soviet union time. Hopefully in one of the future ICE meeting, we may have some representative from the Russian Embassy in Afghanistan and they will give us information and share their experience with us that what they can do in future regarding the O&M of these existing HPPs in the country. H.E. Deputy Minister, MoEc enquired from the participants is there any issue still unanswered / pending from the previous ICE Meeting? If no, we will start with the meeting agenda. H. E. invited DABS to present the Operation & Maintenance (O&M) Planning and Budgeting for the energy sector. O&M Planning and Budgeting for Energy Sector by Mr. Mirwais Alami - DABS
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Mr. Alami said, most of you know that DABS is the managing entity for generation and transmission of power and responsible for all substation related issues in all 34 provinces of Afghanistan. DABS is responsible operate and maintain all these assets which are increasing every day. Mr. Alami added that our generation plants with operating capacity for both the Grid Connected and Off Grid with a total generation is 1420 MW out of the installed capacity of 1644.76 MW.
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Mr. Alami said, most of our power transmission lines comes from the northern countries like Tajikistan, Uzbekistan, Turkmenistan, and very few from the western side like Iran. Putting them all together, our biggest question still remains the same to supply electricity during winter when the country’s demand increases by around 80%. Mr. Alami informed that DABS has an established process for O&M; DABS is preparing an annual maintenance plan for Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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generation, transmission, distribution and substation system and facilities based on approved budget / financial plans approved by board of directors at the beginning of each fiscal year in order to provide the required spare parts for daily, monthly and yearly maintenance. Generally the daily, monthly and yearly maintenance are covered by DABS O&M department as their routine operation. However, the supplementary rehabilitation or any reintegration of the generation, transmission and distribution system, requires an additional financial assistance from Ministry of Finance (MoF) and international community assistance to fulfill the process. Mr. Alami also explained the DABS current financial plan for 1393 (please refer DABS presentation). 6
Mr. Alami outlined and stressed the challenges ahead of DABS with quoted examples that most of the projects which are funded by donor agencies or international community are implemented by these agencies or through MEW. These projects experiences lacks of coordination with DABS, as DABS was not a part of their design, project implementation and operation phases. There were no enough spare parts provided to DABS in the past for at least one or two year maintenance, for smooth operation at the time of handing over the project to DABS. Nor the training was included as part of the handing over process activity. So DABS provide the required spare parts and training for operational staff up to a certain limit only, as DABS does not have direct access and contact of the equipment manufacturers, suppliers or technology providers. Now, DABS requests from the ICE platform to all donor agencies and development partners to include DABS at project design stage, project implementation and operation phases to get familiarized with the project for successful functioning of the project. The executing agencies should also incorporate the O&M and training needs as part of their contract. Only then the DABS will be in a position to easily maintain new projects an efferent and professional way.
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Mr. Alami mentioned DABS recommendations to involve DABS Operation Division, for project preparation, technical documents preparation and projects implementation/ implemented by MEW or international community to understand the project and address operational difficulties, getting equipped with possible challenges for future operations and maintenance of the projects. Training of the DABS personnel in the initial phase of the projects is very essential in order to perform smooth O&M. The details of Mr. Alami's presentation on O&M Planning and Budgeting for Energy Sector is in Attachment A.
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Mr. Nasurllah Habibi from UN Habitat, thanked Mr. Alami for his presentation and asked, what is the minimum size / capacity of power generation project that DABS can consider or would be interested? Mr. Nasurllah further informed that there are several small scale projects in rural areas in Bamyan and there are some power generation projects for micro hydro power up to 80 kW, 60kW, for these kinds of projects will DABS be interested to get involved? and what could be the tariff?
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Mr. Alami responded said yes, for sure, DABS wants to be involved with renewable energy projects as much as we can. The only issue with DABS involvement comes into picture when projects are commissioned and operational. The DABS would like these projects to be Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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regulated first. There are difficulties and challenges ahead of DABS for considering these projects due to non availability of electricity law. The electricity law needs to be approved by the parliament, we need to have an electricity law in order to regulate these micro hydro power projects. DABS does not want to be involved very deep in theses small generation projects due to technical difficulties such as non availability of transmission grid lines. Mr. Alami thinks that after one or two years the grid connectivity situation will improve. Afghanistan may unbundle such small scale projects. He further said, hopefully after 5 years, Afghanistan might have a vast transmission system, thus, we need to have a transmission company and several generation companies in order to electrify Afghanistan, also the generation should be separated like other countries, where generation and distribution companies work independently. 10 H. E. Minister MoEc, Mr. Abdul Hadi Arghandiwal joined the meeting and H. E. deputy minister Mr. Hukum Khan Habibi greeted and welcomed him to chair the meeting. 11 H. E. Minister MoEc greeted the participants and informed about the reason of being late. He informed the participants that he has come to this meeting because this may be his last meeting as a Chair of the ICE, due to change in the minister’s position on account of election results. H.E Hadi Arghandiwal came to this meeting to say thanks and Good-Bye to all stakeholders for their contribution and support to ICE. 12 Mr. Moin Daqiq from MoF asked Mr. Alami that you mentioned about a project in Bamyan had difficulties and problems with a project that was implemented by the International Community or donors and then it was handed over to DABS. And you also said that there were some mistakes in some projects that were not properly handed over to DABS or the capacity was not there or some other concerns were raised, I just wanted to know how DABS want to tackle this problem? 13 Mr. Alami answered, we don't want to go back and complain about previous projects. DABS recommendations is only for the projects being implemented or for future projects that there is a need for coordination among MEW, DABS and all development partners. This is needed that DABS should be involved from the very beginning of the project, so that when we reach at the end, DABS O&M team is trained and we will not be facing any problem, what I meant was that some of the projects were not well coordinated in the past, and in future, what we want is the proper coordination between the development partners, MEW and DABS. 14 Mr. Hamid Durrani, Sr. Project Officer in ADB-AFRM asked, you have well said that O&M is very important for investment that the government and the donors have done in the last decade, we understand and agree that this is very important issue. However, we see that there is no mechanism or separate department for O&M in DABS. DABS has one operation department only, my suggestion is that DABS should have a separate O&M department and should have a mechanism in order to keep our investments maintained in the system. Also, ADB is procuring O&M equipment, vehicles and other communication tools for DABS worth around 12 to 13 million USD. ADB would like to know how those assets will be utilized by DABS? I also have another suggestion that O&M department should have a training center or technical institute for providing trainings for O&M staff, because when Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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DABS gets those equipment, DABS staff from all over the country need to operate those equipment, that's why it's very important to have trainings on how to use these tools. 15 Mr. Alami responded, actually we have a department for the high voltage transmission lines, and it has sub offices in Parwan, Puli khumri, and Mazar so this is a big department which is looking after the O&M of the high voltage overhead lines for distribution networks. There are small groups as well within the departments that DABS is trying strengthen and expand, these small groups are within the operation department. 16 Mr. Gene Lin from USAID informed that USAID had significant capacity building programs with DABS in the past. One of them was for generation and transmission. USAID is constantly supporting DABS and are providing software, the latest utility management software that includes maintenance and management system. This software will establish everything from inventory, equipment, troubleshooting codes, where the equipment should be located, spare parts-inventory, what needs to be ordered, when it needs to be ordered, who the vendors are? The USAID program will also cover outsourcing of specialized work. The total program with USAID and capacity building is around 150 Million USD, that includes at least 60 million USD to be invested in equipments for DABS. USAID would be happy to share those scopes of work or DABS could share those scopes of work with energy sector stakeholders to know what USAID is doing there. 17 H. E. Minister asked the participants, if there are no more questions on DABS presentation, then we can move to the second presentation by Mr. Quraishi about the World Bank projects and CASA 1000: World Bank Projects Status and Future Plans 18 Mr. Hameed Quraishi, project officer, World Bank (WB) informed the participants first with the ongoing projects of the WB. He talked about the Afghanistan Power Sector Development (APSD) project that primarily has three main contracts, the distribution project in Gulbahar, Charikar, Jabalu Seraj, and Puli khumri. The distribution project in Jabalu Seraj and Gulbahar are in the initial stages, the contract is to be finished in a month time from now. However, we got a proposal from the ministry to expedite the project implementation. MEW also requested for meter boxes which is not part of the scope of work of the existing project design and that means that the project will need more time and more money allocations. Hence we are currently working on this request and will see if we can find more funding to accommodate these additional requests of MEW. 19 The same applies to the other contacts for the distribution project in Puli khumri that has been a little problematic, one of the major problem was with the distribution electrical poles. The problem is somehow now resolved but the work has been delayed and we now expect the work to finish by end of March next year. 20 The third main contract of this project was the rehabilitation of Naghlu and Mahipar switchyards. Unfortunately this contact was delayed because of some issues with the equipment being transported from Karachi port. However, I understand now it has been resolved, and we expect this contract to be finished by the end of 2014. The major issue in Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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APSD is finding more money than budgeted due to over extending its project timeline due to delays at various levels. The WB is hoping that all these projects will be implemented based on new timelines. 21 Mr. Quraishi added, going to CASA-1000 Project, the project was approved in March 2014 but the agreement is yet to be signed between the WB and the countries involved. We hope that this will take place in early August 2014, hoping that a couple of other outstanding issues will be taken care of by the other countries. The major outstanding issue that the countries will need to address is to work on the price of energy, and the transit fee particularly between Afghanistan and Pakistan. We are planning the next Inter Governmental Council (IGC) meeting among the partner countries in early August 2014, We hope that the governments of these countries will be able to come up with mutually agreed figure and sign the Power Purchase Agreement (PPA) along with an agreement with the World Bank. 22 Mr. Quraishi said, as part of CASA 1000, we also approved another 40 Million USD project for the community support and development, for those communities living along the CASA transmission line. Some of the preparatory work has already been started, but there are still few outstanding issues that we are working with the ministry of Energy and DABS to resolve and support WB to finalize, particularly the finalization of the CASA transmission line, whether it is going to be through Salang pass or through other lines that is something which they really need to make their assessment and finalize. This will also pave the way for starting the implementation of community support project. 23 Mr. Quraishi added, moving on to the projects that we have under preparation stage. There are two such projects, One is the Naghlu rehabilitation project, it is basically phase two of the project which is going to be under preparation, the project will include rehabilitation or addressing the remaining mechanical works in Naghlu hydropower project, that includes the feasibility study to increase the height of dam and also some safeguard issues as well. 24 The feasibility study for Kunar project which we have also included in this project. WB hope that the project will be approved by October or November 2014. However, one of the important outstanding issues on which the project approval and progress is dependent is the notification letter from the MEW to Pakistan regarding this project. The Kunar Hydro Power Plant project which will be funded by the World Bank when they involve international water ways they do require a notification letter for the downstream user (Pakistan), so we hope that will also be addressed in coming weeks allowing us to move on with the remaining preparation work. 25 Mr. Quraishi added, the last but not the least, we are also preparing a TA project for DABS, it is a capacity building project about 7 Million USD to assist DABS with planning and O&M project. The WB TA also plan to include a training center in response to my colleague's request from ADB. Hopefully that will address most of the O&M issue. The WB is currently working with our colleagues in DABS, and DABS are in the process of hiring consultant to do the need assessment and we hope that the project will be approved in the next few months.
Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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26 Ms. Ziagul, Director, Project Implementation from Ministry of Energy and Water asked, I would like to talk about two issues; One is the notification to Pakistan, as I think, there is no need to send a notification to Pakistan for rehabilitating Naghlu dam. However, we need to double check this with the departments and, the second issue regarding the training center in DABS. I want to raise this issue as I do agree to support DABS but as you know we have the vocational training institute, when someone is graduating from the institute, he or she is suppose to work as assistant engineer in DABS, so the government of Afghanistan should commit and the donor should look into this issue based on the policy, Isn't this a duplication? I do agree supporting DABS, but we have to combine them or think about how to solve this issue otherwise I think based on the policy of the Government this may not work, before raising the fund we have to solve the issue on a higher level. 27 H.E. Minister said, I believe I do agree with Ms. Ziagul because if there is already an institute working and training people in this area it is going to be better to help them make it better instead of establishing a new institute because they are graduating people for DABS they are not using them in the Ministry of Energy. 28 Mr. Quraishi responded, the training center we are looking to assist DABS will be focusing mainly on short-term trainings which will be held for two weeks while the vocational trainings institue train people for more of a long-term needs. I think there is a difference between the two, and this training center will provide specialized trainings which again may not be in the curriculum of the vocational training institute. Regarding your first point, even if it is a feasibility study either for Naghlu or Kunar still the Bank policy requires a notification letter. I am not sure if it is going to be a very negotiable point, it has to happen, we also offered if the ministry allows us we can do that on behalf of the government of Afghanistan. 29 Mr. Rafael Nadyrshin, Energy Specialist from ADB AFRM said, I want to bring back the question regarding the CASA 1000, though ADB is not part of Consortium we are interested that this project is being implemented smoothly and on time because as you may know we plan to include the Ghazni - Kandahar transmission line under our new MFF and the tranche would be processed and hopefully approved in 2015, may be in first or second quarter, and definitely for our board's consideration, the power supply in the system will be very important to approve our project. 30 Mr. Rafael asked Mr. Qureshi to elaborate on the timeline when WB plan to physically start the project? Mr. Rafael also added, the second part of my question is that you are still lacking huge amount of money to complete the project from different sources, if you can elaborate on this point as well? 31 Mr. Quraishi replied, the project timeline is already approved and WB has very strong assurances from the countries that they are working on the remaining outstanding issues including the price that we have significant progress on that. We are hoping that these issues will be resolved in the next couple of month or so. Mr. Quraishi added, in terms of other timeline, we are working hard to address the issues related to the procurement activities of the Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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project and expecting this to be finished by end of this year, as far as funding is concerned, the Bank has already committed US$520 million, yes there is a funding gap of about US$150 million. And the WB is looking to the overall size of the project it is not that significant and the countries are probably in touch with a few potential donors and we do expect any delay as the result in the near future. 32 H.E. Minister requested the Fichtner to present the Gas development master plan, Afghanistan Gas Development Master Plan – Fichtner 33 Mr. Issa Rezaie from Fichtner did not give gas development master plan presentation and apologized H.E. and the participants as Fichtner expert for upstream was about to come to Kabul yesterday, but due to some personal problems, he could not come to Kabul as scheduled. He assured that Fichtner will try present the gas development master plan in the next ICE meeting. 34 Mr. Rafael commented, that is very unfortunate that we could not hear the presentation today, because the inception report was prepared by Fichtner and it was submitted to us few days ago. This inception report clearly identifies, the roles and responsibilities and the timeline of the Fichtner in preparation of the complete master plan. The task as you all understand is very huge and comprehensive. We need to make sure that logistics do not repeat our discussion and consideration because this minor thing could create problems in the future. He advised Fichtner representative to please make sure for the next time, what we plan we should do, because ADB being financier and USAID being the co-financier, we will be very much eager to hear the results and further steps for this master plan, we all understand and agree that this plan is very important for Afghanistan energy sector development. 35 H.E. Minister agreed and accepted the reason of failure for Gas development master plan presentation and advised to move forward to the next agenda points of the ICE meeting, Brief updates, Update on bid documents of Mini Hydropower Plants in Badakhshan and Bamyan Provinces - ADB 36 H.E Minister asked ADB to talk about updates on the bid documents of the mini hydro power plant in Badakhshan and Bamyan. 37 Mr. Rafael informed the participants about the JFPR project. The project is about an upgrade of mini hydro power stations in Bamyan and Badakhshan, unfortunately on 16 June 2014, ADB submitted a notification to the government of Afghanistan that ADB withdraws from this project. This project was approved in December 2008, and since then almost eight years have passed, ADB tried but could not succeed with the implementation. Although the project was small, only US$12 million, but the impact on the population were expected to be very huge. If this project would have happened as we planned originally to construct four mini hydro plants with the total capacity of 2 MW, 500 kW each, It is important to note here that those areas were not under grid coverage and no grid is foreseen in the near future. From 2013 this project was delegated to ADB’s Afghanistan Resident Mission Office (AFRM), the local office in Kabul. AFRM tried their level best to fulfill project financing cycle and Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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completed all those activities required for disbursement. We approved all the documents and even announced the tender notification and received encouraging results from potential bidders to built those mini hydro plants, but unfortunately our previous cost estimate was too small (US$12 million). If we compare it with the current estimated amounts about 38.5 million USD, with the required mini grid. We prepared different scenarios, Option-1: Could be the rehabilitation, construction of 4 mini hydro power plants with this huge amount of money where ADB will provide only of 12 million USD and then the rest of the amount to be received from the government or DABS. Option-2: We suggest rehabilitate only two mini hydro plants for the total amount of 25 million USD, which will require again additional co-financing resources from the government and DABS. Option-3: Even one mini hydro plant either in Bamyan or Badakhshan, but again, our another factor which limited our continuation was according to Japanese fund for poverty reduction rules that we could not go with the implementation of project beyond four years time. In this case, the project started in 2008 and not ended as yet. This means that we really exceeded that time, therefore, we took very difficult but the only correct decision at this time to cancel the project. That does not mean that this project could not go ahead without ADB. I am encouraging the bilateral donors or other donors to take over this project. Because everything is done and all the bidding documents, environmental and safeguard documents are available with ADB and ready to refer/use., We also conducted the first bidding, if anyone either from donors side or local companies are interested to pursue this project, ADB would be happy to share all required documents with them. 38 Ms. Ziagul, Director Project Implementation was upset with the decision of the ADB and she quoted “it is a hopeless news for me”, because I think the Baharak project was very important from the socio-economic point of view, when ADB provided the inception report in 2007. I was waiting for Baharak and Topchi since that time and it was in the process of biding since 2008. Ms. Ziagul said, I think ADB is funding a lot of transmission lines which is also necessary for Afghanistan, but domestic resource is one of the priority for the power sector in Afghanistan. I think based on the fund provided by ADB for the transmission line and substation, if we compare this resource of 38.5 million USD with other ADB funded recourses the cost is not too much, and the procedure of the bidding is already done as per the rules of ADB. I appreciate if any other donor wants to do this project, if it's possible as a Government we and Ministry of Economy write a request letter to ADB's higher authority to put fund for this mini hydro power plants as the people of these area are very poor and requires all possible support for their socio-economic uplifment. I have this suggestion and I would appreciate if H.E. Chairman of ICE considers this. MEW will prepare and process a letter signed by Minister of MEW and Minister of Economy to be submitted to ADB HQ. 39 Mr. Rafael from ADB responded, for the information of the participants, we have already received a letter from Ministry of Finance proposing projects for the MFF II. 40 Mr. Alami from DABS asked, What is the main reason of the JFPR project cancelation, is it shortage of funds only or there are other reasons as well? Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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41 Mr. Rafael responded, yes, one of the reason is shortage of fund, the other reason is the guidelines of JFPR to implement projects within the maximum period of four years. We have already exceeded that time, and our co-financing department consider this almost impossible to further extend this timeline. 42 H.E. Minister ask the secretariat to move on to the brief update on Dashte Alawn to Arghandi power transmission line project. He requested DABS to brief us about this project. Update on Dashte Alwan to Arghandi Transmission Line project 43 Mr. Alami from DABS informed the participants about Dashte Alwan to Arghandi 500 kV transmission line. The project is under bidding phase, draft bidding documents submitted to ADB for obtaining No Objection from the ADB to release the document. 44 H.E. Minister asked MEW to present the updates on Regulatory Authority Department. Update on Electricity Regulatory Department 45 Mr. Mohammad Arif, Senior Energy Advisor, Ministry of Energy and Water updated the participants about the electricity regulation. The draft of the electricity law is prepared by the MEW a long time ago and it is with the ministers cabinet council now. When the election results are declared and the new government starts functioning. The new government will send the law to the parliament house for final approval. The law will help in improving the electricity services in Afghanistan. The sector require private investors, without the help of the private sector it will be hard to provide electricity to all parts of the country. Regulatory department is working and have prepared the organization chart, Terms of Reference for different positions to be advertised for the department. There are three main departments in the regulatory authority. (i) licensing department (ii) tariffs department and (iii) technical and engineering department. The licensing department has started functioning now, recently the Minister of MEW has issued a generation license to an Afghan - German private company in accordance with the president's decree. 46 There are seven application waiting for the issuance of generation license in the ministry. All of them are Afghan and international companies. Mr. Arif also explained the process of license issuance. 47 Dr. Haress Abawi from KfW announced that he is glad to announce that KfW and GIZ together will start a Capacity assessment of MEW and DABS in August 2014. The first round will start in August and the second round of assessment will follow in September 2014. 48 Gene Lin, USAID said, we also have plans for capacity building, we will be interested to know the outcome of KfW and GIZ capacity assessment. 49 Ms. Ziagul from MEW said, regarding capacity building, we have a strategy in MEW. She requested all development partners to consider that strategy in their capacity building assessment programs. 50 H.E. Minister Mr. Abdul Hadi Arghandiwal concluded the ICE meeting and announced that this will be his last ICE meeting. He expressed his sincere appreciation and high regards to all ICE participants, counterparts throughout his 5 years term in his office. He said, he Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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believes that ICE will remain there and will grow more stronger no matter who is going to replace him.
Meeting Participants 51 The meeting was attended by about 37 stakeholders representing energy, economy, finance, DABS and other government ministries, development partners and private sector participants. The participants’ name and contact details are included as Meeting Participants List – Attachment C.
Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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Attachment A O&M Planning and Budgeting for Energy Sector
Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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DA AFGHANISTAN BRESHNA SHERKAT ﺩﺍﻓﻐﺎﻧﺴﺘﺎﻥ ﺑﺮﺷﻨﺎ ﺷﺮﮐﺖ
Inter- Ministerial Commission for Energy (ICE) DABS, COO Briefing, Shekeeb Ahmad Nessar
ﺍﻧﺟﻧﻳﺭ ﺷﮑﻳﺏ ﺍﺣﻣﺩ )ﻧﺛﺎﺭ( ﺭﺋﻳﺱ ﻋﻣﻠﻳﺎﺗﯽ ﺩﺍﻓﻐﺎﻧﺳﺗﺎﻥ ﺑﺭښﻧﺎ ﺷﺭﻛﺕ Sunday, July 6th, 2014 ۱۳۹۳ / ﺳﺭﻁﺎﻥ/ ۱۴ ﻳﮑﺷﻧﺑﻪ
www.dabs.af
DABS is responsible for Operation and Maintenance of Generation Transmission substation and distribution system 34 province in Afghanistan.
3
DA AFGHANISTAN BRESHNA SHERKAT ﺩﺍﻓﻐﺎﻧﺳﺗﺎﻥ ﺑﺭښﻧﺎ ﺷﺭﮐﺕ
Generation system Grid Connected Hydro Thermal Diesel Generators Power Imports Subtotal Grid Off Grid Hydro Micro Hydro Thermal Diesel Generators Solar Power Imports Subtotal off Grid Total
Capacity (MW) Operating Installed 220 264.5 200 200 60 93 800 895 1280 1452.5 Capacity (MW) Operating Installed 10.3 18 33 33 0 0 50 74.7 6.7 6.7 40 60 140 192.4 1420
1644.76
4
DA AFGHANISTAN BRESHNA SHERKAT ﺩﺍﻓﻐﺎﻧﺳﺗﺎﻥ ﺑﺭښﻧﺎ ﺷﺭﮐﺕ
Transmission lines
5
DA AFGHANISTAN BRESHNA SHERKAT ﺩﺍﻓﻐﺎﻧﺳﺗﺎﻥ ﺑﺭښﻧﺎ ﺷﺭﮐﺕ
Transmission lines • •
• •
From Uzbekistan 300 MW in 220 KV T/L for Kabul City and other provinces. From Turkmenistan: – 25 MW from 110 KV T/L to Andkhoy, Jawzjan, Saripul, and Maymana – 25 MW from 110 KV T/L to Herat and Rubat Sangi From Tajikistan 25 MW from 110 KV T/L to Kunduz. • 300MW in 220kV T/L From Islamic Republic of Iran: – 120 MW through 132 KV double circuit TL to Herat and Ghorian substations – 10 MW through 20 KV single circuit to Herat – 20 MW through 20 KV double circuit to NimRoz
6
DA AFGHANISTAN BRESHNA SHERKAT ﺩﺍﻓﻐﺎﻧﺳﺗﺎﻥ ﺑﺭښﻧﺎ ﺷﺭﮐﺕ
DABS Operational Substation (47) Kabul Substations Total Capacity Total Capacity Total Capacity Total Capacity Total Capacity Total Capacity Total Capacity Total Capacity Total Capacity Total Capacity
651.3 MVA Jalal Abad Substations 35 MVA Pul-e- Khumri Substations 16 MVA Mazar-r- sharif Substations 126 MVA Maimana Substations 42 MVA Shebarghan Substations 32 MVA Kundoz Substations 76 MVA Baghlan Substations 16 MVA Kandahar Substations 80 MVA Herat Substations 170 MVA
7
DA AFGHANISTAN BRESHNA SHERKAT ﺩﺍﻓﻐﺎﻧﺳﺗﺎﻥ ﺑﺭښﻧﺎ ﺷﺭﮐﺕ
DABS Status of Operation and Maintenance Process
DABS typically preparing an annual maintenance plan for Generation, Transmission, Substation and Distribution system and facilities base on approved core budget / financial plan by board of directors a the beginning of each financial year.
To provide the required spare parts for daily, monthly and yearly maintenance.
Generally the daily, monthly and yearly maintenance are covered the routine operation of all facilities
For supplementary rehabilitation or any reintegration of the generation, transmission and distribution system required to have an additional financial assistance from MOF or international community to fulfill the process. 8
DA AFGHANISTAN BRESHNA SHERKAT ﺩﺍﻓﻐﺎﻧﺳﺗﺎﻥ ﺑﺭښﻧﺎ ﺷﺭﮐﺕ
DABS Current Financial Plan 1393 Items
Allocation in AFG
%
Administration Cost
368,755 2.24%
Taxes
302,200 1.84%
Remunerations / wages
1,583,872 9.62%
Energy Import
11,669,737 70.90%
Diesel Fuel
506,968 3.08%
Diesel generation O&M
77,762 0.47%
Routine O&M
450,000 2.73%
Depreciation
1,500,000 9.11%
Total
16,459,295
Figures in 1000 AFG
9
DA AFGHANISTAN BRESHNA SHERKAT ﺩﺍﻓﻐﺎﻧﺳﺗﺎﻥ ﺑﺭښﻧﺎ ﺷﺭﮐﺕ
Challenges Most of the projects which are funded by donor agencies or international communities, are implemented by themself or MEW. There was no enough spare part for at least one or two year maintenance to do and fulfill smooth operation. And the training was not included. So DABS provide the required spare part and training for operational staff up to certain limit. For the New project: DABS requested all donor agencies to include the O&M as well as the training issue, as part of contract in that case DABS will be able easily maintenance the new projects 10
DA AFGHANISTAN BRESHNA SHERKAT ﺩﺍﻓﻐﺎﻧﺳﺗﺎﻥ ﺑﺭښﻧﺎ ﺷﺭﮐﺕ
DABS Recommendation Participation / Involvement of DABS particularly Operation
Division,
in
preparation
of
the
technical
documentation of projects implemented by MEW or International community funded. Training of the DABS personnel in the initial phase of projects for forthcoming smooth operation. Source identification of the supplies for DABS training or any additional spare parts, if its required in operation perspective. 11
Attachment B List of Outstanding Action Items
Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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Ministry of Economy (MoEc) Inter‐Ministerial Commission for Energy (ICE) As of 06 July 2014 Open Discussion Items Tracker
ICE Mtn No
Action Item
Responsible Organization (s)
Priority level
ICE Meeting No. and Date
Status
Comments/Remarks
Normal
4th ICE Meeting 27 Jan 2014
Completed
Normal
2nd ICE Meeting October, 27th 2013
Completed
Working group on database formed with focal points from all ministries. Data gathering and analysis underway.
High
3rd ICE Meeting November, 25th 2013
Completed
To present update in next ICE meeting
Normal
4th ICE Meeting 27 Jan 2014
Completed
Normal
4th ICE Meeting 27 Jan 2014
Completed
Normal
3rd ICE Meeting November, 25th 2013
Completed
As part of 'state of the industry' reports
Normal
7th ICE meeting 2 March 2014
Completed
ICE ST will circulate Fichnter's presentation with 7th ICE meeting minutes.
Negotiations underway and to be concluded in 2 months.
Resolved 1 2 3
Greshek HPP Update
Update on Electricity Law
4
Electricity Regulatory Law
5
Electricity Generation Application form
6
Exploring Funding Gaps in NEPS/SEPS system
7
DABS will present the Greshek HPP project status and timeline
Establish common source of information on All participants to provide Project/ Portfolio progress updates to ICE secretariat Energy projects. as requested. MEW Ministry of Energy and Water and Ministry of Justice to send it to Presidential Office for approval. Ministry of Energy and Water will finalize and upload the document on ministry web site ICE Secretariat
Circulation of Fichtner's presentation in ICE secretariat will circulate Fichnt'er presentation on the inception workshop of inception workshop of Gas Development Gas Development Master Plan (GDMP) Master Plan presentation.
In Progress 1
Update on Turkmenistan PPA
DABS/MEW/ADB
High
5th ICE meeting 2 March 2014
In progress
2
Update on CASA‐1000 financing
WB/DABS/MEW
Normal
5th ICE meeting 2 March 2014
In progress
3
Process to update Power Sector Master Plan
MEW
High
3rd ICE Meeting November, 25th 2013
In progress
4
Evaluate need for ICE Standing Committee
ICE Secretariat in consultation with ministries and development partners.
Normal
2nd ICE Meeting October, 27th 2013
In progress
5
Corporatization of Afghan Gas
Economic Committee
Normal
3rd ICE Meeting November, 25th 2013
In progress
6
Process to institutionalize PSMP
MEW
Normal
3rd ICE Meeting November, 25th 2013
In progress
4th ICE Meeting 27 Jan 2014
In progress
7
Develop an environment to attract Public Ministry of Energy & Water and Ministry of Finance to work together and finalize Private Partnership (PPP) a plan to attract PPP
Normal
8
Hard' limit of 100 kW for MRRD projects
Normal
MRRD/MEW/RECC
5th ICE meeting 2 March 2014
Negotiations to be concluded by June To be discussed in Next ICE meeting : Can suggested changes be included in ADB TA for updating Power Sector Thus far ICE secretariat setting agenda in consultation with line ministries and development partners against evolving To present update in next ICE meeting Concept note with assistance of ICE‐ST prepared and and pending review by MEW. MEW agreement in principle to ICE‐ST providing support upon request by MEW ‐ preparing initial draft of guidelines
In progress
Pending 1 2 3 4 5 6 7 8 9 10
MoF to forward issues for delay in customs Neak Mohamed – MoF to forward MEW concern to relevant department. clearance for MEW project infrastructure All participants to please inform ICE secretariat whether customs clearance is an AEIC presentation Budget subcommittee for on‐budget discretionary assistance Submitting conclusion report on Master Plan Waste to Energy Project Feasibility Study funding Designation of a focal point for UNDP SE4All initiative
DABS will present AEIC presentation
ICE‐ST to propose structure submit draft to MoEc, MoF, MEW, DABS, MoMP, MRRD for discussions Fichtner with ADB will present changes to the PSMP and will submit finding and conclusion report to MEW Late June or early July 2014 Kabul Municipality will be Submitting a feasibility study request for ADB funding through MoF MEW and MRRD will nominate a focal point to lead the SE4All initiative and coordinate among the relevant stakeholders. The ICE Secretariat after consultation with ICE Chair, MoEc and other Setting up a date for the next ICE meeting stakeholders will intimate the date of the next meeting to all invitees A representative from the Russian embassy will be invited to the next ICE O&M plans for HPPs by Russian meeting, to talk about Russia's commitment and contribution to the O&M of Government HPPs Capacity Building Scope of Work to be USAID or DABS will share the capacity building program scope of work with ICE shared by USAID/ DABS stakeholders MEW will process a letter on JFPR project and submit it to ADB. Letter will be MEW letter on JFPR to be submitted to ADB signed by Ministers of MEW and MoEC
Normal
1st ICE Meeting September 23rd 2013
Pending
MoF to update us on the progress
Normal
4th ICE Meeting 27 Jan 2014
Pending
Normal
5th ICE meeting 2 March 2014
Pending
To be done after elections
Normal
6th ICE meeting 2 March 2014
Pending
Findings will be submitted by June ‐ July 2014
Normal
6th ICE meeting 2 March 2014
Pending
Letter will be submitted to ADB by mid June 2014
High
7th ICE meeting 2 March 2014
Pending
MEW and MRRD will report back in the 8th ICE meeting about nominating a focal point for SE4All
High
8th ICE meeting 2 March 2014
Pending
High
9th ICE meeting 2 March 2014
Pending
High
10th ICE meeting 2 March 2014
Pending
High
11th ICE meeting 2 March 2014
Pending
Attachment C List of 06 July 2014 ICE meeting participants
Inter-Ministerial Commission for Energy (ICE) Malik Asghar Square, Ministry of Economy Kabul, Afghanistan
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MINISTRY OF ECONOMY (MoEc) THE INTER-MINISTERIAL COMMISSION FOR ENERGY (ICE) COORDINATION MEETING
8
th
ICE MEETING
PARTICIPANTS LIST Sunday 06 July 2014 1000-1120hrs Venue MoEc Conference Hall
No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
NAME
H.E. Abdul Hadi Arghandehwal H.E Hukum Khan Habibi Mirwais Alami Eng. Zia Gul Saljuki Mohammad Ismail Rahimi Mohammad Arif Abdul Hashim Hekmat Robert MacIver Gene Lin Jepp Kaufman Samiullah Dawoody Haress Abawi Martin Hofmann Nasrullah Habibi Isabella Vettolani Sebghatullah Nilofer Malik Abhijit Chatterjee Manoj Kumar Sultan Ali Javid A. Mirwais Nangialai Miakhail Hameed Quraishi Moein Daqiq A. Jawid Tahiri Mohammad Issa Rezaie Mohammad Dawood Sherzad Peter Stevenson Zubair Noori David Kraus Rafael Nadyrshin Hamid Durrani Syed Khursheed Zaidi Mohsin Amin Mohammad.Hashim Alimi Abdul Majid Labib Hassan Shoob
PL - 07/06/2014
ORGANIZATION
DESIGNATION
Ministry of Economy MoEc Ministry of Economy Acting Minister MoEc Da Afghanistan Bereshna Sherkat Chief Commercial Officer MEW General Director of Planning Ministry of Economy Director General Policy MEW Energy Advisor MoEc Director Department for International Development (DFID) Infrastructure Advisor USAID PTEC Program Manager USAID Deputy Director US Embassy Economic Section German Development Bank (KFW) Program Coordinator German Cooperation (GIZ) Program Manager-Advisor United Nations Human Settlements Programme (UN–HabitaProgram Manager United Nations Office for Project Services (UNOPS) Business Development Officer NEPA Expert of RSE UNDP Programme Associate UNDP Climate Change Policy Specialist Ministry of Rural Rehabilitation and Development Renewable Energy Specialist Ministry of Rural Rehabilitation and Development/NABDP Head of ERDA Sheberghan Gas ABAT/USAID G.L.O Da Afghanistan Bereshna Sherkat (DABS) Head of Planning World Bank (WB) Operation Officer Ministry of Finance Technical Advisor USAID Project Management Specialist Fichtner Engineering & Consulting Deputy Team Leader, Gas Sector Master Plan Mercy Corps Afghanistan SPNA Program Manager Mercy Corps Afghanistan Director of Programmes – Energy & Natural Resources MoF PFM Advisor USAID Program Manager Asian Development Bank- Afghanistan Resident Mission Energy Specialist Asian Development Bank- Afghanistan Resident Mission Sr. Project Officer Inter-Ministerial Commission for Energy - Secretariat Team Leader / Energy Specialist Inter-Ministerial Commission for Energy - Secretariat Deputy Team Leader/Energy Specialist Inter-Ministerial Commission for Energy - Secretariat Project Coordinator Inter-Ministerial Commission for Energy - Secretariat Project Coordinator Office & Logistics Manager Inter-Ministerial Commission for Energy - Secretariat
EMAIL
[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
CELL NUMBER
0799829797 0771262626 0799620031 0787711912 0778687558 0794155507 0702636358 0702999450 0799892094 0791611097 0795665875 0792001079 0799340266 0790461348 0700996510 0799036456 0799406054 0729005000 0799264390 0773134603 0702636373 0788084872 0793506585 0796234720 0780680269
0791930045 0786728523 0789295270 0797717505 0798913237 0786717476
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