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SIGAR finds over $2 billion in capital assets wasted in Afghanistan

Published

4 years ago

March 1, 2021

(Last Updated On: )

The Special Inspector General for Afghanistan Reconstruction (SIGAR) has found that of the nearly $7.8 billion in capital assets in Afghanistan, paid for by the US, about $2.4 billion in assets is unused, abandoned, or destroyed.

The report to Congress released on Monday morning summarizes all capital assets in Afghanistan paid for by US agencies that SIGAR found in its prior work to be “unused, not used for their intended purposes, deteriorated or destroyed.”

The capital assets reviewed were funded by the US Department of Defense, USAID, OPIC, and the State Department to build schools, prisons, a hotel, hospitals, roads, bridges, and Afghan military facilities.

The report stated that of the nearly $7.8 billion in capital assets reviewed in its prior reports, SIGAR identified about $2.4 billion in assets that were unused or abandoned, had not been used for their intended purposes, had deteriorated, or were destroyed.

SIGAR also found that more than $1.2 billion out of the $7.8 billion in assets were being used as intended, and only $343.2 million out of the $7.8 billion in assets were maintained in good condition.

Most of the capital assets not used properly or in disrepair or abandoned are directly related to US agencies not considering whether the Afghans wanted or needed the facilities, or whether the Afghan government had the financial ability and technical means to sustain them, the report read.

It also stated that this waste of taxpayer dollars occurred despite multiple laws stating that US agencies should not construct or procure capital assets until they can show that the benefiting country has the financial and technical resources, and capability to use and maintain those assets effectively.

According to Special Inspector General John F. Sopko, “SIGAR’s work reveals a pattern of US agencies pouring too much money, too quickly, into a country too small to absorb it.”

“The fact that so many capital assets wound up not used, deteriorated, or abandoned should have been a major cause of concern for the agencies financing these projects.

“The lesson of all of this is two-fold. If the United States is going to pay for reconstruction or development in Afghanistan or anywhere else in the world, first make certain the recipient wants it, needs it, and can sustain it. Secondly, make certain before you spend the money there is proper oversight to prevent this type of waste,” Sopko said.

Related Topics:Afghanistan featured SIGAR US

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Baradar hails Termez Trade Center as a ‘new chapter’ in Afghan-Uzbek partnership

This will positively impact the economic relations between the two countries and establish the center as a key economic hub and commercial gateway for Central and South Asian nations, he said.

Published

1 week ago

August 29, 2024

Ariana News

(Last Updated On: )

In a ceremony to inaugurate an international trade center in Uzbekistan’s border city of Termez on Thursday, Mullah Abdul Ghani Bardar, Deputy Prime Minister for Economic Affairs, said that the center marks a new chapter of friendship, cooperation and partnership between Afghanistan and Uzbekistan, laying the groundwork for long-term prosperity and development of both countries.

Baradar noted that the center will enhance investment opportunities, commercial relationships, and job creation in both nations, and will introduce new markets for products and goods, and, overall, accelerate economic growth, according to a statement released by his office.

Highlighting the importance of this center, Mullah Baradar mentioned that the center’s inauguration would facilitate the production, processing, and export of goods, making it easier to access regional and global markets.

This will positively impact the economic relations between the two countries and establish the center as a key economic hub and commercial gateway for Central and South Asian nations, he said.

Furthermore, the trade center will strengthen joint cooperation between the two countries in the fields of technology and innovation.

According to Mullah Baradar, the center will create essential facilities and opportunities for Afghan and Uzbek traders, enabling them to find suitable markets for their products and actively contribute to the region’s economic development.

He called on the international community to establish appropriate reciprocal economic and trade relations with the Islamic Emirate of Afghanistan, in line with its economy-focused policies, and assured that the Islamic Emirate is committed to providing all necessary support and facilitation in this regard.

The ceremony was also attended by senior officials of Uzbekistan, Azerbaijan, Kazakhstan and Kyrgyzstan.

Business

Bayat Power in talks with Afghan officials for Phase 2 of gas to electricity project

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.

Published

2 weeks ago

August 27, 2024

Ariana News

(Last Updated On: )

Bayat Power officials say they are 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.

Company officials said Tuesday they have started discussions with relevant government departments to start the project.

Mohammad Shoaib Sahibzada, the technical head of Bayat Power, 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.

“Currently, it has a production of 40 megawatts, and in the second phase, it will produce 100 megawatts. Bayat Power is in contact with the relevant officials regarding the start of the second phase, the discussions are ongoing,” said Sahibzada.

Bayat Power has produced one billion kilowatt hours of electricity in 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.

After 40 years, Bayat Power is the first private company 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.

The former head of DABS Amanullah Ghalib said this week that Bayat Power was a good example of Afghanistan being able to implement big projects.

“To achieve self-sufficiency, one of the most important resources for Afghanistan is natural gas. Afghanistan has a lot of natural gas resources in the north and northeast, from which it can become self-sufficient for electricity production and reduce its dependence on its neighbors,” said Ghalib.

“Bayat Power project is one of the very effective and good examples that Afghanistan can use its experience and implement bigger projects in the future,” Ghalib added.