|
Economic
Press Review
May 13 - 19,2005
Headlines
In Kabul, Waiting for Americans to Light the
Way
Kabul Citizens complain of bribery for
getting power
Japan to provide aid for new int'l terminal
at Kabul airport
Afghanistan tries to reassure Japan over
security
Exports to Afghanistan close to $1b
Afghanistan to regulate NGOs to end
"Klondike" of corruption
Human Rights and Democracy Fund Projects for
Fiscal Year 2004-2005
Afghanistan Seeks Agreement with UAE on
Investment Protection
UK to hold June donor conference for
Afghanistan
Kabul municipality cleans up illegal stalls
and ?container? shops
Afghan 'pipe dream' draws closer to reality
ID cards to be computerized
Gold prices up in Kabul
Press Clippings
In Kabul, Waiting for Americans to Light
the Way
The Washington Post
05/18/2005
Regarding the May 1 front-page article "Power Grid in Iraq Far From
Fixed" :I was stunned to think that people might be shocked by a lack of
electricity in Iraq, while in Afghanistan electricity is still a privilege.
Afghanistan remains in a deep energy crisis. According to the Ministry
of Energy and Water, not even 6 percent of Afghans have access to
electricity. And even this 6 percent has only intermittent access.
The capital, which needs at least 500 megawatts daily, runs on 188
megawatts -- on a good day. Like Baghdad, Kabul relies on generators. The
sidewalks of more prosperous neighborhoods are lined with generators.
Additionally, every large organization in Kabul has a noisy generator. A
mechanical hum can be heard throughout the capital.
As for the "once-widespread belief in Americans' technological
superiority and power," Afghans have discovered that they will not be
benefiting from that. I wish the Iraqis luck, and I hope the American
"experts" will not leave them in the dark as they have Afghans.
Back to top
Kabul Citizens complain of bribery for getting power
By: Zainab Mohmmmadi and Mustafa basharat
KABUL, May 18
(Pajhwok Afghan News)
Some Kabul residents claim, the Kabul electricity department will not
distribute electricity to their areas unless they pay bribes, but the
electricity department denies these claims. However applicant say if they
don?t pay bribes the power supply would be delayed for months.
An elderly man queuing at the Kabul electricity department told
Pajhwok Afghan News on condition of anonymity: "It?s impossible to get
electricity for your house if you don?t know somebody or offer a bribe,"
adding he has so far spent about 4,000 Afs ($80) but still had no
electricity at his house.
But another Kabul resident Hameed Sediqi who was one of the thirty
applicants on the waiting list said: "I paid a bribe and my electricity
problem was solved, to some extent." He added that after one and half months
of endless queuing and paying a total of 8000 Afs ($160), the electricity
arrived but the family couldn't use it because the power meters were not
installed.
But officials while admitting cases of bribery promised to dismiss any
staff involved in taking bribes and asked people to cooperate with the
department in catching the culprits. Sayed Abdul Hanan Habibzada, the
director of the electricity regulatory commission for west Kabul speaking to
Pajhwok from his office surrounded by angry applicants: "The people who take
bribes and give bribes are both guilty, and the civilians shouldn?t complain
about the officers in the electricity office."
He added three employees had been dismissed for taking bribe a couple
of days ago. But the bribery and corruption has reached several levels, some
applicants go as far as paying agents who are registered with the
government, to get their power.
But Habibzada said it wasn?t the employees of the electricity
department who take bribes, but the agents who appoint themselves to get the
power for the citizens. But an agent who didn't want to be named told
Pajhwok Afghan News: "All the money we receive from the clients goes to pay
the government employees to do the relevant work."
Nearly 200 applications are received by the electricity department
daily, but the processing takes some time, according to the electricity
department. According to director of Kabul electricity department, more than
50% of Kabul citizens have recently benefited from having electricity at
their homes.
Back to top
Japan to provide aid for new int'l terminal at Kabul airport
Wednesday May 18, 9:14 PM
(Kyodo)
Japan will provide 3 billion yen in grant aid for the construction of
an international terminal at Kabul International Airport under an agreement
reached by the two countries Wednesday, the two nations' foreign ministers
said.
The accord was signed by Japanese Foreign Minister Nobutaka Machimura
and Afghan Foreign Minister Abdullah Abdullah, who is in Japan for a
three-day visit from Monday. "The Afghan people and government are very
grateful" for Japan's past and ongoing assistance, such as the airport
terminal construction, as part of efforts to rebuild postwar Afghanistan,
Abdullah told reporters after their meeting in Tokyo. The terminal is
scheduled to be completed in 2007.
Currently, both international and domestic services use the same
terminal at the airport, a Japanese Foreign Ministry official said. The new
terminal will be created for international flights and the existing terminal
will be used for domestic services.
The two foreign ministers also signed an agreement on technical
cooperation that aims to streamline the process of exchanges between the two
nations, in which Japan will send experts and research teams and Afghanistan
will send trainees. Machimura vowed that Japan will continue to provide
support for Afghanistan and further expand its support in the fields of
education, road building and agriculture.
Abdullah, meanwhile, reaffirmed Afghanistan's support for Japan
aspirations to become a permanent member of the U.N. Security Council,
saying "Afghanistan looks favorably on your position."
Back to top
Afghanistan tries to reassure Japan over security
By Isabel Reynolds
TOKYO, May 18
(Reuters)
Afghanistan sought to reassure Japan, one of its biggest aid donors,
on Wednesday that its security situation is stable following violent anti-U.S.
protests sparked by a report, later retracted, that military interrogators
desecrated the Koran.
Afghan Foreign Minister Abdullah Abdullah told reporters he had made
the comments during a meeting with Japanese Prime Minister Junichiro
Koizumi. "I discussed today's situation that it's very much under control
but also explained how it developed," Abdullah said.
Sixteen people died and more than 100 were injured in protests last
week after Newsweek magazine reported that military interrogators at
Guantanamo Bay "had placed copies of the Koran on toilets, and in at least
one case flushed a holy book down the toilet".
Newsweek retracted the report on Monday. "As the news spread at the
beginning, there were two issues in it," Abdullah said. "One was the
feelings of the ordinary people. The other was the intentions of some
extremist elements who wanted to ignite the situation and lead it to
violence."
Japan is one of Afghanistan's major sources of aid, having provided 20
billion yen ($186.2 million) in grants and technical assistance over the
four years to 2003. Abdullah denied that there was anti-U.S. feeling among
Afghans in general. "The people of Afghanistan understand the need for
cooperation from the international community. The United States is playing a
major role in it and they appreciate it," he said.
EXTENSION OF SUPPORT
Abdullah also expressed appreciation for Japanese financial aid and
Tokyo's plan to extend a law enabling it to provide rearguard support for
U.S.-led operations in Afghanistan. "Afghanistan is also grateful for the
role that Japan is playing with extension of the mission for the Pacific
fleet."
The present law is due to expire in November, and the Japanese daily
Nihon Keizai Shimbun said the government was planning to submit a bill to
the autumn session of parliament extending the mission by two years.
The counter-terrorism law, first passed in November 2001 over
widespread opposition, allowed Japan to deploy its navy to the Indian Ocean
in the first post-World War Two dispatch to a war situation. It set the
stage for a separate law allowing it to send troops to Iraq on a
reconstruction mission. Abdullah, who arrived in Tokyo on Tuesday, is to
meet other Japanese officials including Foreign Minister Nobutaka Machimura
before departing on Thursday.
Back to top
Exports to Afghanistan close to $1b
Daily Times
(Pakistan)
17 May 2005
By Sajid
Chaudhry
ISLAMABAD: Pakistan?s exports to Afghanistan have almost reached the
mark of $1 billion, recording a growth by 84 percent in the last 10 months
of the current fiscal year while the balance of trade remained grossly in
favor of Pakistan.
Pakistan?s exports through land route to Afghanistan from July to
April of the current fiscal year reached $966.67 million and the target of $
1 billion for the whole year is likely to be surpassed, says the latest data
made available to Daily Times.
The exports from Pakistan during the July-April period were to the
tune of Rs 58.104 billion compared to the exports of Rs 31.42 billion during
the corresponding period of the last fiscal year, showing an increase by Rs
26.684 billion.
The exports from Pakistan to Afghanistan of Rs 58.104 billion have
showed an increase by Rs 20.39 billion as its last year?s exports were of Rs
37.714 billion.
According to official data, Pakistan?s exports to Afghanistan during
the July-April period of the current fiscal year included wheat and flour of
Rs 6.456 billion, rice worth Rs 2.084 billion, ghee of Rs 4.829 billion,
sugar of Rs 2.377 billion, cement worth Rs 2.598 billion, paints and
varnishes of Rs 2.252 billion, mild steel products of Rs 3.435 billion,
sanitary wares worth Rs 80.273 million, constriction materials worth Rs
1.075 million, electrical goods of Rs 376 million, electronic goods of
Rs142.074 million, medicines of 448.351 million, other grains and pulses of
Rs 226.131 million, fruits and vegetables of Rs 1.217 billion, milk and
cereals of Rs 739.343 million and miscellaneous goods worth Rs 28.608
billion during the July-April period of the current fiscal year.
The trade between two neighboring countries is mainly routed through
the Torkham and Chaman border by trucks. A total of 150,303 trucks
transported goods valuing Rs 58.104 billion from Pakistan to Afghanistan
during the July-April period of the current fiscal year. About 92,335 trucks
carrying export cargo crossed into Afghanistan through Torkham and 57,968
trucks through Chaman. Pakistan has imported goods from Afghanistan
amounting to Rs 3.014 billion against the imports of 2.619 billion during
the last fiscal year.
The imports from Afghanistan to Pakistan also crossed the mark of Rs
96 million during the July-April period of the current fiscal year compared
to Rs 2.182 billion imports to Pakistan. Pakistan imported vegetables, fresh
fruits, dry fruits, seeds, country drugs, spices, timber, scrap and
miscellaneous goods.
Back to top
Afghanistan to regulate NGOs to end "Klondike" of corruption
Source: Deutsche Presse Agentur (DPA)
May 17, 2005
By: Can Merey
Kabul (dpa) - For years the international community has been pumping
billions of dollars worth of aid into Afghanistan, free of government
regulation, leading to widespread accusations of corruption and dirty
practices.
But a new law by the Afghan government is aimed at regulating the work
of non-governmental organizations (NGOs) represented in the country. It is
expected that most of the 3,000 NGOs currently present in Afghanistan will
vanish once the law is implemented.
A Western diplomat in Kabul said some NGOs were likening Afghanistan
to a "Klondike'', like the gold rush that swept Alaska more than a century
ago. While by no means all NGOs were adhering to shady practices, honest
organizations admit that there are indeed black sheep amongst their ranks.
"Some groups masquerade as NGOs just to fill their own pockets,'' said
Anja de Beer from the NGO umbrella organization, ACBAR, in Kabul. "There is
corruption within the NGO community,'' she said. Contracts in the
construction sector are particularly lucrative. After 23 years of guerrilla
war and civil war, Afghanistan has recently been experiencing a construction
boom.
Because there are few controls, illegal and semi-legal activities are
very attractive to some parties. Rumors abound that some NGO staff are
paying substantial "tea money'', or bribes, in order to acquire construction
contracts, while other staff are demanding money in order to pass contracts
on. "There are some construction companies that have registered themselves
as NGOs,'' de Beer said. "Unfortunately, even some international NGOs have
entangled themselves in corruption. I have witnessed that first-hand,''
complained Afghanistan's minister of economics, Amin Farhan.
One problem would arise from a kind of "cascade system'' that had been
implemented by some groups, he added. A particular NGO would receive a
contract and pass it on to another one after it had cut its share.
The second NGO would cut its share, then pass the contract on to the
third, which would proceed similarly. Eventually, the contract would pass to
the third, fourth, fifth NGO, and so on. "Once the money reaches the
project, so little is left that the job quality will be sub-standard,''
Farhan explained.
For example, he had to personally order the closure of newly-erected
school buildings in Farahn province, because they were in danger of
collapsing, he said. Western diplomats also complain that NGOs dominating
some aid sectors were establishing cartels in order to dictate prices.
It has been rumored that certain NGO staff have tried to invoice
inflated costs or attempted to account personnel expenses several times
over. Some tenders had quoted up to 80 per cent of the total project budget
as "overhead''.
Dirty business practices are harming not only those Afghans for whom
the aid was originally intended, but are further damaging the already
tarnished public image of NGOs. "It is clear that as a sector we have a bad
image at the moment,'' admitted de Beer.
The new law will not only exclude all NGOs from any construction
projects, but, in addition, will require that all NGOs must register
themselves again within the six months and prove that they are providing a
community service.
Some sources familiar with the problem estimate that after this
procedure not more than 100 to 200 of the current 3,000 NGOs will still
exist in Afghanistan. "It is very clear that this sector must be
regulated,'' a diplomat said. If more than 300 NGOs survive, "the procedure
was a failure,'' said ACBAR's de Beer, who welcomed the new regulations.
Back to top
Human Rights and Democracy Fund Projects for Fiscal
Year 2004-2005
State Department fact sheet
Created: 16 May 2005
U.S. Department of State
The State Department has published a report on Human Rights and
Democracy Fund (HRDF) projects worldwide for fiscal year (FY) 2004-2005.
The HRDV supports innovative programming designed to uphold democratic
principles, support democratic institutions, promote human rights, and build
civil society in countries and regions of the world that are
geo-strategically critical to the United States.
More information, including how to apply for project funding, is
available at the Human Rights and Democracy Fund web site at http://www.state.gov/g/drl/c7607.htm.
DRL's Human Rights and Democracy Fund (HRDF), which is DRL's
allocation of the Economic Support Fund (ESF), is used to fulfill the
Bureau's mandate to monitor and promote human rights and democracy
worldwide. HRDF supports innovative programming designed to uphold
democratic principles, support democratic institutions, promote human
rights, and build civil society in countries and regions of the world that
are geo-strategically critical to the U.S.
The following are programs [involving Europe and Eurasia] that have
been or are currently being supported through the fund:
Europe and Eurasia
* Information Centers for Democracy in the Kyrgyz Republic ($613,000)
- Strengthen democracy and build a more informed electorate in the Kyrgyz
Republic by supporting existing Information Centers in the Kyrgyz Republic
through the upcoming election cycle and increasing outreach to neighboring
villages by opening five new centers. Each center is a neutral forum in
which citizens can learn their rights as voters, learn international
standards for electoral processes, debate the pros and cons of various
candidates, learn the role of domestic election monitors in ensuring a fair
process, and appreciate the importance of an informed electorate.
* Women's Leadership in Tajikistan ($500,000) - Preparing for the
February 2005 parliamentary election by strengthening political parties'
capacity to represent citizens effectively and advocate for reforms.
Training is focused on building national party structures and improving
internal democratic structures, candidate recruitment, increasing the number
of women candidates and women party members, establishing regional party
offices, and canvassing constituents to prepare the party's election
strategy.
* Information Centers for Democracy in Azerbaijan ($540,000) -
Establish a network of Information Centers for Democracy that will provide a
nonpartisan forum through which citizens can gain access to news reports and
acquire grassroots organizing and advocacy skills through training programs.
Each center location will be chosen based upon an area's need for access to
information.
* Women's Political Participation Project in Kazakhstan ($400,000) -
Work with a local Kazakh partner to increase the participation of provincial
women in Kazakhstan in the electoral process, in public policy formation,
and in promoting accountability of deputies in regional and local
legislative bodies.
* Citizen Participation in Local Government in Turkey ($300,000) -
Enhance the skills of newly elected officials in Turkey and encourage
citizen participation in local government. The program will focus on a few
select municipalities in Turkey, chosen based upon the results of the March
2004 general elections.
* Women's Legal Advocacy Centers in Tajikistan ($350,000) - This
project will work with local partners to establish two Women's Legal
Advocacy Centers in Dushanbe and Khojand, Tajikistan. Advocates, including
lawyers and law students, will be identified and trained with the knowledge
and tools they need to assert their legal rights. Each Center will house a
legal clinic that will provide legal services to indigent women.
* News Factory Kazakhstan ($557,000) - Create the first online
Kazakhstani news and information exchange for independent mass media. This
project will help raise the professionalism of the newly created private
media enterprises of Kazakhstan and will foster coordination and
communication among the various mass media in Kazakhstan.
* Public Defender Centers in Uzbekistan ($80,000) - Promote rule of
law in Uzbekistan by establishing Public Defender Centers (PDCs) in Karshi,
Tashkent, and Andijon to protect the rights of criminal defendants in
Uzbekistan. Advocates provide free criminal defense services to indigent
persons from the moment of detention and are on call 24 hours a day, seven
days a week. By working with lawyers capable of providing a vigorous
defense, the PDCs aim to prevent coercion, torture, and self-incrimination
while defendants are in pre-trial custody and to ensure a fair trial through
the provision of effective trial counsel.
* Tajikistan Independent Radio Network ($887,000) - Supporting the
development of radio broadcasting in Tajikistan by helping local partners
launch five radio stations, providing training, technical support, internet
access, and links with local broadcasters and NGOs, and creating quality
programming and a library of radio programs freely accessible to all
stations and citizens.
* Independent Printing Press in the Kyrgyz Republic ($350,000) -
Promote free and independent media in the Kyrgyz Republic by conducting
activities that will support the MSCF to become a self-sustaining entity
through additional oversight, training, and grants and support through
training and consultations of independent print media outlets in the Kyrgyz
Republic.
* Training Human Rights Reporters in Central Asia ($300,000) - This
project will continue a fiscal year 2002 HRDF project to offer intensive,
hands-on training to journalists and offer them web and email distribution
for their news reporting. The program will include activities that promote
cross-border and cross-conflict cooperation between journalists and NGOs in
the Kyrgyz Republic, Kazakhstan, Tajikistan, Turkmenistan, and Uzbekistan.
Worldwide/Regional [excerpts]
* Embassy Small Grants Projects ($477,000) - Small grants of up to
$50,000 for embassies to administer human rights and democracy projects
worldwide. This year's winning posts were Ndjamena, Harare, Kinshasa,
Ankara, Chisinau, Quito, La Paz, Amman, Beirut, Hanoi, Bangkok, and Colombo
(for a project in the Maldives).
* Promoting Democracy in the Muslim World ($3,479,350) - Through a
grant-making program, the National Endowment for Democracy (NED) will foster
democracy in the Muslim world by supporting activities that promote
pluralism, human rights, rule of law, freedom of association and freedom of
expression in Iran, North Africa, the Middle East, Asia and Turkey.
* National Endowment for Democracy World Movement for Democracy
($250,000) - Support the democracy promotion activities of the National
Endowment for Democracy (NED) World Movement for Democracy by organizing
three regional meetings of activists, practitioners, and scholars actively
engaged in establishing or strengthening World Movement networks, bringing
together global networks organized around particular areas of democracy
work, such as local governance and the political and civic participation of
women or youth, and enabling members of the World Movement's Steering
Committee to conduct outreach activities.
* Reagan-Fascell Democracy Fellows Program ($1,000,000) - Deepen the
knowledge, enrich the skills, broaden the perspectives, and revive the
energy and morale of some of the world's most creative and courageous
democratic practitioners and scholars by hosting approximately 16 fellows
and enriching their experiences through events, research support, seminar
series, brownbag presentations, informal gatherings and dinners, fellows'
presentations at National Endowment for Democracy, in the media and on
Capitol Hill.
* Voluntary Principles on Security and Human Rights Secretariat and
Website ($10,000) - Promote respect for human rights in the context of
extractive industry security in challenging operating environments by
creating and managing a website and a secretariat for the Voluntary
Principles process that will facilitate communication and event coordination
between participants, provide technical support for VP initiatives,
performing public outreach, and engage in public advocacy and information
exchange on the web.
* "Countries at the Crossroads" Analysis of Countries' Commitment to
Democracy and Human Rights ($374,000) - Creation of the annual survey that
evaluates a country's commitment to and record on human rights and democracy
by working with outside and in-house experts and analysts.
Back to top
Afghanistan Seeks Agreement with UAE on Investment Protection
Gulf News (UAE)
16 May 2005
Dubai: Afghanistan has sought an agreement on investment protection
with the UAE in an effort to boost investment in both countries. Noorullah
Delawari, governor and president of Da Afghanistan Bank (Central Bank), told
Gulf News that his country has signed this type of agreement with other
countries including the United States, Germany and Iran and it had helped to
improve the volume of investment.
"If such an agreement is signed with the UAE, more banks from this
country will come forward to lend to investors who are keen to invest in
Afghanistan," Noorullah Delawari said.
He said this on the sidelines of an announcement of an agreement
between Afghanistan International Bank (AIB) and Thomas Cook al-Rostamani
Exchange Company to set up the first legal money transfer system to
Afghanistan through a banking channel.
"Conflict-torn Afghanis-tan has not had a legal remittance system
using banking channels for the last 25 years and the joint move between AIB
and Thomas Cook Al Rostamani is bound to be greeted with relief by the more
than 200,000 Afghans residing in the UAE," said Niyaz Ali, general manager
of Thomas Cook al-Rostamani.
Since AIB has only one branch in Afghanistan, in Kabul, Da Afghanistan
Bank (Central Bank) has offered to use its branches situated in 27 locations
to collect the remittances from the UAE.
The governor of DAB said: "The country has a free exchange rate
mechanism and at 10 in the morning, every day, the rate will be announced by
the central bank."
On the current system of inward remittances, Delawari said the country
does not have a clear indication of how much money finds its way into
Afghanistan since the remittances mostly take the hawala route.
"And this, in fact, is an impediment to preparing an accurate balance
of payments picture," the Central Bank governor said.
Referring to the period until 2002 when the country did not have a
central bank-monitored currency system, Delawari said DAB was able to take
out of circulation four illegal currencies from the monetary system in 2002
and replace them with a legal currency issued by the central bank. "We
collected 20,000 tones of old banknotes," he said.
Back to top
UK to hold June donor conference for Afghanistan
Reuters
05/16/2005
LONDON - Britain will hold a donor conference next month to raise
funds to help rebuild Afghanistan, Foreign Secretary Jack Straw said on
Monday. It will be in London on June 21, two days before Straw hosts foreign
ministers from the G8 group of industrialized nations.
"We seek continued long-term international support and (the donor
conference) will be another opportunity," said Afghan Foreign Minister
Abdullah Abdullah at a news conference with Straw.
The conference, which takes place three years after U.S-led forces
overthrew the Taliban, aims to raise aid for post-war reconstruction before
existing commitments run out. Billions of dollars of aid have been earmarked
for Afghanistan in the last three years. A conference in Berlin last year
raised pledges of $8.3 billion.
Britain says it is the third-biggest international donor to
Afghanistan and has contributed over $100 million for the narcotics war
alone. Abdullah's visit to London comes at a sensitive time.
Tension is running high following anti-American protests in which 16
people were killed in Afghanistan after U.S. magazine Newsweek reported that
U.S. interrogators had desecrated the Koran.
Newsweek has since said the report may not be true but it sparked
protests across the Muslim world. Afghanistan's government, formed just four
months ago, has a long way to go to establish a safe and stable country.
Straw said "visible, palpable progress" was being made but Abdullah
stressed the need for international support. He insisted the latest protests
did not represent a widespread rejection of western engagement.
"There are extremist elements, those who don't want the process of
democratization, stabilization, rebuilding of Afghanistan," he said. "But
without the continuation of support from the international community ... the
process is not consolidated enough for Afghanistan to stand on its own
feet."
Back to top
Kabul municipality cleans up illegal stalls and ?container? shops
By: Zarghona Salih
KABUL, May 15,
(Pajhwok Afghan News)
The Kabul municipality has destroyed 650 illegal stalls and moved 300
?container? shops to the outskirts of the capital from the 16th district,
during the last month. Shah Mahmood Amiri, the director of municipality for
the 16th district said that the clean up operation which started on the 20th
of April was completed on May 14.
Amiri said the clean-up operation was introduced following a decree
issued by President Hamid Kaarzai to clear up all illegal shops. Amiri
said:" These shops had no legal documents and were trading illegally and
overcrowding the streets."
Some of the container shops have been moved to the outskirts of the
capital Kabul, and the shopkeepers complain that for the past month their
business has plummeted, instead of growing.
Hamid Ullah a shopkeeper of Pul-e-Mahmood in the suburbs of Kabul
said," the government and municipality are not solving the unemployment
problems of the people; instead of creating jobs for people they are making
people unemployment."
Back to top
Afghan 'pipe dream' draws closer to reality
May 13, 2005 edition
By Scott Baldauf The Christian Science Monitor
http://www.csmonitor.com/2005/0513/p05s01-wosc.html
KABUL, AFGHANISTAN - Back in the days of the Taliban, Mir
Sediq was an engineer for Unocal, working on a pipe dream: bringing natural
gas from Turkmenistan down through Afghanistan to Pakistani ports on the
Arabian Sea. Today, Mr. Sediq is minister for Afghanistan's energy, mining,
and industrial sector, and he's confident that the pipeline is coming close
to reality.
Driven by a Pakistani economy growing at nearly 7 percent a
year and higher energy prices, the pipeline, on paper, is the closest thing
to a win-win scenario as one can find in Central Asia. For Pakistan,
expected to run out of its own reserves in five years, the pipeline will
help sustain growth. For Turkmenistan, it helps to provide a market for its
substantial gas reserves. And for Afghanistan, it could mean from $200
million to $350 million per year in transit fees.
In the rough parlance of oil industry executives, that beats
a kick in the head. "This pipeline is an opportunity for Afghanistan, and we
would like to keep Afghanistan a place that is open and attractive for
foreign investment," says Sediq. "The foreign investment rate of return is
17.5 percent, based on the assumptions that the gas reserves in Turkmenistan
are enough and the consumption rate in Pakistan remains high. Only security
of the pipeline is left, and the government of Afghanistan is capable of
providing security."
It wasn't so long ago that the pipeline was thought to be
dead. Taliban attacks in the south appeared to be on the increase, and other
sources of energy, such as Iran or Qatar, were more attractive. But growing
Pakistani demand, increased Afghan stability, and higher energy prices for
Turkmenistan have made the pipeline increasingly feasible. This week,
President Hamid Karzai told donor countries the project was a top priority -
on a par with the war on terror and opium eradication.
As yet, there are no foreign investors vying for the project,
but talks between Turkmenistan, Afghanistan, and Pakistan are proceeding. In
mid-April, the three countries and the Asia Development Bank held their
eighth round of meetings to hammer out details of what Turkmenistan has, how
much gas Pakistan needs, and whether Afghanistan is safe enough. The next
round comes in July, but Sediq is expected to travel to the Turkmen capital
of Ashkabad Friday to see if the government's survey of reserves will be
finished in time.
"The biggest question is certification of gas reserves in
Turkmenistan," says Mary Louise Vittelli, an adviser to the Afghan Ministry
of Mines and Industry. "We need to know if there is enough gas for the next
30 years. There are lots of pipelines in countries where there is war, so
security is a question, but not a deal breaker. You can have all the
security you want, but if the price is five times higher than getting gas
from Qatar, then the deal is broken."
When first proposed back in the early 1990s, the
Turkmenistan-Afghan-Pakistan pipeline (nicknamed TAP), was planned to be
roughly 1,100 miles long. The Afghan portion would have been 466 miles long,
much of it following the Herat-Kandahar road. Now, Afghan officials and
foreign engineers are exploring a possible route across the northern
provinces and through Kabul.
If started Today, the pipeline could be completed in seven
years. That comes two years too late for Pakistan, which is running out of
reserves.
While Pakistan has doubled its energy output since 1999 - to
4 billion cubic feet per day - its roaring economy is expected to deplete
gas reserves by 2010. By 2015, it will need to buy 2.5 billion cubic feet
per day from abroad. "We cannot sustain our economic growth if we don't get
additional energy," says Ahmad Waqar, Pakistan's secretary for petroleum and
natural resources. "We need gas."
In all likelihood, Pakistan will need more than one pipeline
project. Pakistan is negotiating with Qatar and Iran over separate projects.
The Qatari pipeline is the most politically stable, but it has technical
problems. The Iranian pipeline - which would distribute gas to both India
and Pakistan - is technically the simplest. But it faces substantial US
opposition, as US law precludes giving a government contract to a US company
doing business with Indian or Pakistani firms working on the Iranian
pipeline. Both India and Pakistan are so desperate to find gas that they are
working together as joint customers on the Iranian pipeline.
The TAP pipeline is expected to cost $3.8 billion, and create
hundreds if not thousands of jobs for Afghans. Afghan officials say that it
might be one of the first projects to generate revenue for the state.
"There is the opportunity to create 3,000 Afghan jobs for 30
years," says Sediq. Hiring local labor will help increase security, he adds.
"When they are the part of the project, they will not let anyone attack it."
Back to top
ID cards to be computerized
By Najib Khilwatgar
KABUL, May 12
(Pajhwok Afghan News):
The Interior Ministry said on Thursday if provided with requisite
funds it could issue Afghan nationals computerized identity cards.
Abdul Rahman Maqool, an official of ministry, told Pajhwok Afghan News
an amount of $50 million was needed for the project. "Computerized ID cards
will have the holder's name, father's name, fingerprint, photo, blood group
and other details. "He recalled the ministry had floated the computerization
suggestion last year to President Hamid Karzai, who had promised the Finance
Ministry would provide the budget this year.
Work on the project, initiated in 2002, had to be stopped due to fund
shortage, he said, adding the computerization process would cover passport
and license records as well.
Maqbool pointed out each national had to change his/her ID card every
10 years but wars and instability hampered the replacement. "In wartime,
many people faked ID cards and other documents, which are being used even
today."
Back to top
Gold prices up in Kabul
By: Zainab Mohammadi
KABUL, May 12
(Pajhwok Afghan News)
Gold prices went up in Kabul this week after a hike in the
international bullion market while rates of food items registered a decline,
traders said on Thursday. In terms of one gram, Iranian and Saudi gold sold
for 530 and 660 Afghanis respectively in the local market during the week
ending on May 5. On May 12, prices of both varieties witnessed an increase
of 20 Afghanis each.
Abdul Samir, a goldsmith in the main mart here, told Pajhwok Afghan
News: "We fix gold prices on a daily basis in line with international market
swings. And this pricing strategy is followed in most countries."
But foodstuff prices trended down this week, with a 50-kilo sugar bag
costing 1,100 Afghanis - falling by 50 Afs. By the same token, the rates of
cooking oil, wheat flour and tea also came down - to consumer relief.
Meanwhile, the currency market remained stable during the current
week. The afghani saw no appreciable value change in relation to most
foreign currencies. Last week, one greenback was valued at 49.90 Afs, but
the local currency was up by a whisker on Thursday.
Fuel and gas costs also remained unchanged, according to market
sources, who did not expect any big price differential till Saturday.
Back to top
|