US embassy cable - 05NEWDELHI4124

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 004124 
 
SIPDIS 
 
E.O. 12958: DECL: 06/01/2015 
TAGS: EAID, ENRG, PREL, IN, AF, PK, India-Afghanistan 
SUBJECT: GOI AGREES TO COORDINATION ON PUL-I-KHUMRI, 
PROMISES MORE IF TRANSIT ARRANGED 
 
REF: NEW DELHI 1521 
 
Classified By: A/DCM Geoff Pyatt, for Reasons 1.4 (B, D) 
 
1.  (C) Summary: Meeting with a delegation from Embassy and 
USAID Kabul and the Afghan Ministry of Energy and Water 
(MEW), MEA Joint Secretary (Pakistan, Afghanistan and Iran) 
Dilip Sinha agreed to Indian participation as necessary in a 
donor Steering Committee in Kabul to coordinate technical 
details for the Uzbekistan-Kabul power transmission line. 
Sinha accepted the Kabul mission's proposal for fast track 
coordination of additional project elements to be funded by 
other donors.  The GOI also promised that if it can get 
transit rights through Pakistan for the materials used in the 
project, all savings from the substantially lower 
transportation cost would be used to fund additional Afghan 
development activities.  End Summary. 
 
Agreement on Additional Requirements 
------------------------------------ 
 
2.  (U) On May 31, the visiting delegation from Kabul, 
including David Grizzle (Transportation and Infrastructure 
Coordinator, Afghan Reconstruction Group), Patrick Fine 
(Director, USAID Afghanistan), Peter Jezek (Senior Energy 
Expert, USAID Afghanistan) and Ghulam Rabbani (General 
Director of Planning, MEW), accompanied by PolCouns, Poloff 
and AIDoff met with J/S Sinha, Director (Americas) Renu Pall, 
technical experts from PowerGrid Corporation (the 
Pul-i-Khumri line contractor) and representatives from the 
Asian Development Bank (ADB) and the World Bank (IBRD) to 
review technical coordination and the need for additional 
elements of the transmission line project. 
 
3.  (SBU) Rabbani and Grizzle both praised the substantial 
GOI commitment to Afghan reconstruction efforts, and outlined 
six additional elements that would be required to complete 
the Pul-i-Khumri transmission line (security arrangements, 
en-route substations, a backup cable for the Salang Tunnel, 
reactive power compensation, final delivery lines to Kabul, 
and optical ground wire), but were not included in the MOU 
signed between the Afghan MEW and the GOI.  Emphasizing that 
India would not be asked to fund these additionalities, 
Grizzle noted that their existence necessitated further 
coordination among the donors and project executors to ensure 
that all elements of the Uzbekistan-Kabul link would function. 
 
4.  (SBU) Grizzle proposed a timeline for resolving the six 
additionalities, including specification and budget estimates 
by the MEW's consultant to be completed by June 30; 
identification of donor funding among USAID, ADB and IBRD by 
July 15; definition of contractual arrangements by the MEW, 
GOI, USAID, ADB and IBRD by August 15, and issuance of an RFP 
by September 1.  Although participants agreed that a 
sole-source contract to India's PowerGrid would be logical 
for many of the items that would be constructed alongside the 
core Pul-i-Khumri to Kabul line, ADB and IBRD reps cautioned 
that their regulations would require close scrutiny of any 
sole-source arrangements. 
 
GOI Commits to Coordination, Seeks Transit Rights 
--------------------------------------------- ---- 
 
5.  (SBU) After clarifying that India's financial obligation 
would not expand beyond the USD 100 million already 
committed, J/S Sinha agreed to the consultation mechanism 
outlined above and to Indian participation in a Steering 
Committee of donors to manage any future necessary change 
orders.  Noting that the committee would not meet any more 
frequently than required, Sinha and Rabbani agreed that the 
MEW would call the meetings as needed, which could be held in 
Kabul or New Delhi as appropriate. 
 
6.  (SBU) PowerGrid representatives reviewed the status of 
their initial engineering studies, promising to send the 
resulting technical specifications to MEW by June 3, and 
requested USAID assistance to begin demining work on the 
chosen route immediately.  They explained that the completion 
timeframe of 42 months was driven by the need for three 
summer construction seasons in the Salang Pass area, but 
noted that the timeline would be several months shorter if 
they could transport goods through Pakistan instead of 
requiring 45-60 days to send construction materials through 
Iran. 
 
7.  (C) Rabbani committed to seek continued GOA engagement 
with Pakistan for approval of Indian transit rights for 
development assistance.  PolCouns also noted that the USG has 
raised this issue with the GOP as a means to advance our 
shared interest in Afghan development.  J/S Sinha requested 
that both the US and Afghan governments continue to press 
Pakistan, promising that the substantial reduction in 
transportation costs due to transit rights through Pakistan 
would be used to fund development projects in Afghanistan. 
Comment 
------- 
8.  (C) The GOI accepted all of the proposals for cooperation 
that we made, but remains concerned that the shortage of 
manpower in their Kabul Embassy will limit their ability to 
participate fully in the coordination activities.  The 
impending assignment to Afghanistan of a team from PowerGrid 
will help in this regard.  India's development commitment to 
Afghanistan is a major priority for the GOI, and they are 
eager for their efforts, including in collaboration with the 
USG, to receive more widespread recognition.  The GOI promise 
to use transportation savings to fund additional development 
efforts gives us another reason to continue trying to 
overcome Pakistani opposition to humanitarian goods transit 
rights for India. 
 
9.  (U) This message was drafted after Afghan Reconstruction 
Group Coordinator David Grizzle departed India. 
BLAKE