Afghanistan Analysts Network – English

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2nd largest Afghan city could go dark when U.S. subsidies end

AAN < 1 min

McClatchy newspapers, 4 August 2014

Residents and businesses in Kandahar could go without power when US subsidies for diesel fuel phase out next year, according to a report by the Special Inspector General for Afghanistan Reconstruction. The Pentagon will continue to provide subsidized fuel to the Afghan government, tapering the amount over the preceding months from 400,000 gallons in June 2014 to 50,000 gallons in September 2015, at which point the subsidies are scheduled to end. In order to prevent such a situation, USAID has awarded a $266 million sole-source contract to Black & Veatch to refurbish the Kajaki Dam in southern Afghanistan, but even after a third turbine finally comes online, the SIGAR writes, the dam won’t be able to generate enough power to meet all of Kandahar’s needs. The the agency says it was studying the possibility of funding a solar power plant and new hydroelectric turbine at Dahla Dam nearby, but the SIGAR dismissed the tight deadlines and cost estimates of those proposals as unrealistic.