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EITI: Afghanistan achieves transparency despite barriers
Following its second Validation, Afghanistan has made meaningful progress in implementing the Extractive Industries Transparency Initiative (EITI) Standard.
Afghanistan has been a member of the Extractive Industries Transparency Initiative since 2010, but its membership in the organization was suspended due to its inadequate implementation in 2014 and 2017.
The Extractive Industries Transparency Initiative (EITI) in a statement on Thursday said that Afghanistan has improved its transparency of licenses and contracts, state-owned enterprises and quasi-fiscal expenditures. As a result, Afghanistan’s temporary suspension has been lifted.
EITI board congratulates Afghanistan for addressing shortcoming identified in its first validation through systematic disclosures of data delivered by concrete reforms in government systems.
Afghanistan’s President Ashraf Ghani noted the important role the EITI plays in the country. “Every citizen has the right to know who is developing the country’s natural resources and how the government is managing the revenues from these industries on their behalf,” he said. “The EITI is one of the tools that is helping us achieve this policy objective. It has been instrumental in supporting our institution-building efforts in a sector critical to the economic future of Afghanistan.”
The Ministry of Mines and Petroleum announced Thursday that Afghanistan has rejoined the Extractive Industries Transparency Initiative (EITI).
Building transparent institutions and systems
Afghanistan’s government has embraced open data platforms, establishing online reporting systems to enhance transparency of extractive sector management and to address shortcomings identified in its first Validation. This has been achieved in an evolving political environment marked by presidential elections in 2019 and intra-Afghan peace negotiations in 2020. The World Bank underscored the EITI's value in driving public finance management reforms in a context of fragility and violence.
In 2018, the Ministry of Mines and Petroleum (MOMP) launched a new Transparency Portal, providing information on licenses, fiscal terms, legal and beneficial ownership information, production data and non-tax company payments to government. Since then, the portal has become even more comprehensive.
Taking action to improve accountability
State-owned enterprises (SOEs) are important players in Afghanistan’s extractive sector, accounting for nearly two thirds of government extractive revenues between 2008 and 2017. Two SOEs – Afghan Gas Enterprise and North Coal Enterprise – are strategic for the government’s plans to improve revenue generation from the sector.
In 2019, Afghanistan undertook the landmark achievement of auditing the two SOEs for the first time. This exercise highlighted gaps in the SOEs’ record-keeping and financial management, and was a necessary step in the government’s plans to corporatise the enterprises. Moving forward, the government will need to ensure auditing becomes regular practice, drawing on EITI support to follow-up on findings.
Afghanistan’s government has legislated for beneficial ownership information to be made public for mining, oil and gas licenses. The country began publishing ownership data on its Transparency Portal earlier this year. Yet more work needs to be done to ensure that all beneficial owners are publicly disclosed, including politically-exposed persons and owners who control companies through non-equity means.
Strengthening multi-stakeholder oversight
EITI Board Chair Helen Clark commented on the significance of Afghanistan’s recent progress. “Afghanistan has made concrete achievements in improving transparency despite challenging circumstances,” she said. “The priority should be to draw on this emerging transparency for policy-making in the sector. This is key to broader economic development efforts and ensuring that all citizens have an opportunity to engage in debate on the governance of the sector.”
Data from EITI reporting – spanning several legislative changes and wide commodity price fluctuations over the past decade – provides a key resource to support further research and analysis. But despite proactive dissemination efforts, including in provincial capitals, there is a lack of data use by diverse stakeholders.
Yet an initiative by Integrity Watch Afghanistan stands out. The civil society organisation is expanding its community-based monitoring programme to include extractive activities, empowering host communities to track the impacts of extractive projects in their areas. Stronger engagement in EITI implementation by government, industry and civil society could lead to more such innovations.
Afghanistan’s informal mining sector is one area where there is a high demand for data. While the government collects USD 45m a year in mining revenue, it is estimated that more than six times that amount is being lost through unmonitored, small-scale mining activities. There is strong interest, particularly from civil society, to use EITI reporting to shed more light on unrecorded mining and support efforts to formalise the sector.
According to EITI Afghanistan will have 18 months (28 April 2022) to address the remaining five “Corrective actions” in its implementation of the EITI Standard.
The Afghan Ministry of Mines and Petroleum said that the ministry renewing its commitment to implement the corrective actions of the Extractive Industries Transparency Initiative.
The Extractive Industries Transparency Initiative is an international organization that ensures transparency in the country's mines, gas and oil.
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There should be no distance between media and government: Stanikzai
Sher Mohammad Abbas Stanikzai, the political deputy minister of foreign affairs, says media outlets should be supported in a way that there is no distance between them and the government.
Stanikzai, speaking at a seminar titled "The Role of Media in Strengthening the Islamic System" in Kabul, added that the media plays a crucial role in global propaganda wars, and it is necessary for the IEA to cease exerting pressure on the country's media and allow them to freely play their role in the development and prosperity of the country.
"The problems of the media should be heard, their voices should be heard, and the environment should be conducive for them to carry out their work freely,” he stated.
He further emphasized that the views towards the country's media should be such that both sides do not view each other as strangers, and the IEA should refrain from exerting pressure on the media and allow them to operate with freedom.
Meanwhile, officials from the Ministry of Information and Culture also stated at the seminar that they have not adopted an approach of confrontation with the media and that the ministry is committed to collaborating with them.
Participants in the seminar also urged the media to spare no effort in reflecting a positive image of Afghanistan to the world.
This seminar was held at a time the media considers itself committed to freedom of expression and reporting activities within the framework of national interests and Islamic values.
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DABS signs contract to purchase electricity from Uzbekistan for 2025
Da Afghanistan Breshna Sherkat (DABS) has announced that a contract for the purchase of electricity from Uzbekistan has been signed for the year 2025.
This agreement was signed following a visit by an Islamic Emirate delegation, led by DABS CEO Abdul Bari Omari to Tashkent, where they engaged in discussions with Uzbek officials.
"The General Director of Da Afghanistan Breshna Sherkat, along with a delegation, traveled to Uzbekistan and signed the electricity purchase agreement for 2025 during a meeting with officials from the Uzbek electricity sector,” said DABS spokesman Hekmatullah Maiwandi.
Meanwhile, some investors have urged IEA to engage with Uzbekistan regarding the 500-kilovolt electricity project and to ensure the swift completion of this project.
Once completed, the project is expected to alleviate some of the electricity shortages in the country.
Tajikistan agreement
Late last month, Tajikistan's national electric power company, Barqi Tojik, and DABS signed a similar agreement, which will see Tajikistan supply Afghanistan with power through 2025.
The signing ceremony was attended by Mahmadumar Asozoda, General Director of Barqi Tojik, Omar.
According to Barqi Tojik's press secretary, Kurbon Ahmadzoda, the agreement is expected to be extended annually until 2028.
However, the electricity export will reportedly be limited to the summer months, from May to September, and will be dependent on the availability of electricity within Tajikistan's domestic market, Tajik media reported at the time.
Powering a future
Afghanistan currently produces only 20% of its energy needs, while 80% of its electricity is imported from Uzbekistan, Tajikistan, Turkmenistan, and Iran.
The Islamic Emirate has however made it a priority to encourage domestic production of power since regaining control in August 2021.
Omar has met with potential investors on numerous occasions and has encouraged them to invest in the sector.
One such meeting was held in August with officials from Bayat Power.
Bayat Power is Afghanistan’s largest private Electric Power Production and Development Company and owns and operates Bayat Power-1, the first in a new generation of Gas to Electricity power generation plants.
Bayat Power is hoping to start work soon on Phase 2 of Bayat Power-1 in northern Jawzjan province in order to increase electricity production output for Afghanistan.
Mohammad Shoaib Sahibzada, the technical head of Bayat Power, has said that once Phase 2 is complete, electricity production will increase from 40 to 100 megawatts.
Sahibzada said Bayat Power's natural gas to electricity generation project will eventually produce up to 250 megawatts of electricity once Phase 3 is complete.
Bayat Power has produced over one billion kilowatt hours of electricity in just under five years after starting commercial operations in late 2019.
Sahibzada said that over the past five years, the company has also worked on capacity building of its technical employees.
Leading the way
Bayat Power is the first private company in 40 years to produce electricity from natural gas in the country and the multi-million dollar plant uses Siemens Energy’s SGT-A45 mobile gas turbine for its economic efficiency, flexible deployment, and power density.
Currently providing electricity to hundreds of thousands of end-users and generating more than 300 million kWh annually, the project was structured as an innovative public-private partnership between Bayat Power, Siemens Energy, and Afghanistan government entities such as the
Ministry of Mines and Petroleum, the Ministry of Energy and Water, and the General Directorate of Afghan Gas Corporation Company, Da Afghanistan Breshna Sherkat (DABS), and international partners.
The Bayat Group is the largest private investor in Afghanistan and Bayat Power is currently the only gas-powered plant in the country.
The Siemens Energy’s SGT-A45 mobile gas turbine used by the company is the only one in operation in the world.
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ATN’s hat-trick! Rights in place to broadcast ICC World Test Championship 2023/25 Final
Ariana Television and Radio Network (ATN) has done it again! This time it secured the rights to broadcast the ICC World Test Championship 2023/25 Final in Afghanistan.
The 2023–2025 ICC World Test Championship is an ongoing tournament of Test Cricket which is the third edition of the ICC World Test Championship.
This event started in June 2023 with The Ashes, which was contested between England and Australia. It will finish in June 2025 with the final match planned to be played at Lord's in London.
The tournament consists of 27 series and 69 matches in the league stage between nine countries. The top two teams in the points table will compete at the final.
Current State of Play
A draw this week in the third Test between Australia and India has spiced up the race to the World Test Championship Final especially as Australia and India continue to play catch-up with South Africa after the rain-truncated third Test in Brisbane ended in a stalemate.
South Africa had to dig deep against Sri Lanka recently, but a standout all-round performance helped them secure a series win and pushed them to the top of the standings, placing them as the front-runners for the WTC25 Final at Lord’s.
Alongside South Africa, Australia and India, Sri Lanka remains the only other team in contention for a WTC25 Final spot. However, they will need a string of favorable results - including a successful showing in their upcoming two-match series against Australia in January - to keep their hopes alive.
South Africa is top of the standings with a PCT of 63.33. They need to win one out of their two upcoming tests against Pakistan to reach their maiden ICC WTC final.
Australia and India are in second and third place respectively.
India has a PCT of 55.88 and two tests left, both of which they need to win to secure a place in the final.
Australia’s PCT is 58.89. After two tests against India. They have two more tests in Sri Lanka.
For cricket fans across the country, make sure you follow us on social media, and watch this spot, for updates and announcements on this event - along with other exciting tournaments coming up next year that Ariana Television will be bringing to you live and exclusively in Afghanistan.
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