ISLAMIC REPUBLIC OF AFGHANISTAN MINISTRY OF ENERGY … · 2014. 9. 29. · islamic republic of...

ISLAMIC REPUBLIC OF AFGHANISTAN

MINISTRY OF ENERGY AND WATER

CAPACITY DEVELOPMENT FOR IRRIGATION AND WATER RESOURCES MANAGEMNENT, TA-4716 (AFG)

TA CONSULTANT’S FINAL REPORT

December 2008

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CAPACITY DEVELOPMENT FOR IRRIGATION AND WATER RESOURCES MANAGEMNENT, TA-4716 (AFG) TA CONSULTANT’S FINAL REPORT Contents List

1 INTRODUCTION............................................................................................................. 1

2 BACKGROUND.............................................................................................................. 2

3 WATER RESOURCES DEVELOPMENT IN AFGHANISTAN ....................................... 3

4 MINISTRY OF ENERGY AND WATER.......................................................................... 4 4.1 Structure of the Ministry of Energy and Water................................................... 4 4.2 Priority Projects..................................................................................................... 5

5 ADB FUNDED CAPACITY DEVELOPMENT FOR IRRIGATION AND WATER RESOURCES MANAGEMENT, TA-4716 (AFG) ................................................................... 6

5.1 Background ........................................................................................................... 6 5.2 Support for the Project Implementation Unit (Water) ........................................ 8 5.3 Role of PIU (Water) in the Development of the Water Sector in Afghanistan.. 9 5.4 Scope of Consultancy Services for ARTF Projects ......................................... 11 5.5 Procedures for Bidding and Evaluating Contracts .......................................... 12 5.6 Performance of Regional Consultants .............................................................. 13 5.7 Arghandab Irrigation Rehabilitation Project..................................................... 15 5.8 Support for ADB Water Sector Projects............................................................ 15 5.9 Assistance to the Budget Section ..................................................................... 17

6 DONOR SUPPORT FOR CAPACITY DEVELOPMENT PROJECTS IN THE WATER SECTOR ............................................................................................................................... 18

6.1 Asian Development Bank (ADB) ........................................................................ 18 6.1.1 EIRRP - Traditional Irrigation Component......................................................... 19 6.1.2 Western Basins Water Resources Management Project .................................. 19 6.1.3 Water Resources Development Project ............................................................ 20 6.1.4 Panj River Basin Flood Management Project.................................................... 20

6.2 World Bank .......................................................................................................... 20 6.2.1 Emergency Irrigation Rehabilitation Project ...................................................... 20 6.2.2 Afghanistan Water Resources Development (AWARD) Technical Assistance Project 21

6.3 European Union and GTZ................................................................................... 22 6.4 Canadian Government ........................................................................................ 22 6.5 US Agency for International Development ....................................................... 22

7 PROJECT IMPLEMENTATION UNIT (WATER).......................................................... 23 7.1 Achievements and Constraints of the Project Implementation Unit (Water). 24

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8 MEW BUDGET DEPARTMENT ................................................................................... 25

9 PROPOSED FUTURE ORGANISATIONAL STRUCTURE FOR WATER SECTOR... 26 9.1 Afghanistan Water Resources Development (AWARD) TA Project ............... 26

10 TRAINING AND CAPACITY BUILDING ACTIVITIES ................................................. 28 10.1 Training Objectives............................................................................................. 28 10.2 Professional Qualifications and Registration................................................... 29 10.3 Short-Courses and Day Release Training......................................................... 29

11 TA CONSULTANT’S ACTIVITIES ............................................................................... 30 11.1 Security Considerations..................................................................................... 30 11.2 Co-ordination with Other MEW Projects ........................................................... 31 11.3 Liaison with Other Government Departments and Agencies ......................... 31

11.3.1 Afghanistan Reconstruction and Development Service (ARDS) ................... 31 11.3.2 Asian Development Bank .............................................................................. 32

11.4 Vehicle, Offices and Equipment......................................................................... 32 APPENDIX A PRR ORGANAGRAM FOR WATER SECTOR APPENDIX B DETAILS OF ON-GOING, UNDER TENDERING AND PIPELINE

WATER SECTOR PROJECTS APPENDIX C LOCATION OF ON-GOING, UNDER TENDERING AND PIPELINE

WATER SECTOR PROJECTS APPENDIX D Concept paper on the need for a supervisory consultant to

oversee the implementation of water sector projects

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Abbreviations and Acronyms ADB Asian Development Bank AFRM Afghanistan Resident Mission (ADB) AIMS Afghanistan Information Management Services ARDS Afghanistan Reconstruction and Development Service ARTF Afghanistan Reconstruction Trust Fund BoQ Bill of Quantities BRIWRMP Balkh River Integrated Water Resources Management Project CDIWRM Capacity Development for Irrigation and Water Resources Management

TA-4716 (AFG) CIDA Canadian International Development Agency DM Deputy Minister EIA Environmental Impact Assessment EIRP Emergency Irrigation Rehabilitation Project EIRRP-TIC Emergency Infrastructure Rehabilitation and Reconstruction Project –

Traditional Irrigation Component EMP Environmental Management Plan EoI Expression of Interest EU European Union FAO Food and Agriculture Organisation GIS Geographical Information System GoA Government of Afghanistan ha hectare IRR Internal rate of return ISAF International Security Assistance Force IDB Islamic Development Bank IWRM Integrated Water Resources Management JFPR Japanese Fund for Poverty Reduction KKFCHP Kamal Khan Flood Control and Hydropower Project km kilometre KRBP Kunduz River Basin Project (EU funded) LS Lump sum MAIL Ministry of Agriculture, Irrigation and Livestock MEW Ministry of Energy and Water MoE Ministry of Economy MoF Ministry of Finance MOM Management, operation and maintenance MOSS Minimum Operating Security Standards MoU Memorandum of Understanding MUD Ministry of Urban Development MRRD Ministry of Rural Reconstruction and Development MWRLR Ministry of Water Resources and Land Reclamation (Tajikistan)

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NEPA National Environmental Protection Agency OFWM On-farm water management P&T Professional and technical PCU Project Co-ordination Unit P-FR Pre-feasibility Report PIU Project Implementation Unit PS Provisional Sum PSC Project Steering Committee RAMP Rehabilitation of Agricultural Markets Project (USAID funded) RCC Roller compacted concrete RETA Regional Technical Assistance RfP Request for Proposal RBO River Basin Organisation SAT Strategic Advisory Team (Canadian funded) SC Steering Committee SIA Social Impact Assessment SMP Social Management Plan SPC Special Procurement Commission TA Technical Assistance ToR Terms of Reference TS Technical Secretariat UN United Nations WAPECA Water and Power Engineering Company of Afghanistan WM Water management WUG Water user group

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1 INTRODUCTION

The Asian Development Bank (ADB) funded Capacity Development for Irrigation and Water Resources Management, TA-4716 (AFG) commenced in November 2006, after a delay of 15 months due to problems with the recruitment of the consultant. The TA was based in the Ministry of Energy and Water’s offices in Kabul and the consultant reported direct to the Deputy Minister (Water). The initial contract for the TA consultant was 15 months, however this was subsequently extended to 24 months at the request of the Ministry and this extension was financed within the original project budget. Because of the delay in mobilising the consultant, many of the tasks include in the original Terms of Reference had either been incorporated into other projects or had been overtaken by more pressing needs, which had occurred as a result of the reprioritisation of activities and operations within the Ministry. At the time the Ministry was embarking on a major water resources development programme, but because of the number of potential projects and the acute lack of “in-house” engineering and planning expertise, consultants were being recruited to undertake feasibility studies, prepare detailed designs and tender documents for the civil works, and supervise the construction and installation contracts. The original Terms of Reference (ToR) for the TA focused on the review and assessment of capacity building initiatives within the Ministry, however given the dearth of experienced professionals in the Ministry to effectively monitor, evaluate and manage both civil and consultancy contracts, the TA consultant was asked to adopted a more “hands-on” approach to support these activities, which ADB concurred with. In order to utilise the valuable practical work experience opportunities, the Ministry established a small unit within the Planning Department, comprising mainly young graduate engineers to work with the TA consultant. This unit was known as the Project Implementation Unit (Water) and within a short time was providing vital support for the Ministry’s water sector development initiatives. The responsibilities and work-load of the Unit expanded as the number of new contracts being awarded increased. Unfortunately the seconded engineers had very little experienced in large scale water resources projects or contract management and as a result the TA consultant had to undertake most of the technical and managerial work. However, as the TA progressed the seconded staff began to take on more of the day-to-day management of the tendering process and the administration of contracts, under the direction and guidance of the TA consultant. Recognising the critical role of the unit in the overall operations of the Ministry, the Canadian Government provided an additional international engineer for a year to support the increasing work-load. The increase in the number of contracts being awarded was also severely stretching the limited resources of the Budget Section, which is responsible for checking and monitoring the payment of invoices. In order to address these shortcomings a short-term international financial consultant was recruited under the TA to provide “hands-on” support and assistance to the section. This report summaries the activities of the TA water resources consultant and the short-term financial consultant, and describes the role and “outputs” of the PIU (Water). In addition, the report recommends possible actions to enhance the technical and managerial skills of the staff seconded to the Unit, which would also be applicable to other operational and technical sections in the Ministry. However, it should be stressed that there is no quick fix to the lack of capacity within the Ministry

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and it is likely to take many years to build-up an experienced professional cadre because of the very low starting point.

2 BACKGROUND

The decades of civil strife in Afghanistan has resulted in a massive brain-drain, which has left the country seriously depleted of qualified and experienced professional and technical people. The impact of this exodus has been particularly serious in the technical Ministries such as the Ministry of Energy and Water, which needs qualified and experienced staff to carry out its’ mandate. The situation has been further compounded by the very low government salaries compared with the private sector. The differential is substantial and without some form of additional allowance young graduates are not interested in joining the Public Service. Even with the current level of allowances (or top-ups) being paid to staff attached to projects, the overall remuneration package is still well below private sector salaries. The only benefit available to Government staff is the opportunity for overseas travel, to participate in short-courses, post-graduate courses, study tours, etc, and this is the only reason many young staff continue to work in the Ministry. The professional and technical cadre of the Ministry can be divided into two groups; (i) young graduates who usually have a basic understanding of computers and some English, and are keen to develop their engineering skills, but generally have a low understanding of basic engineering fundamentals, such as mathematics, strength-of-materials, hydraulics, etc; and (ii) older engineers who are either in senior administrative positions or have been sidelined and are waiting for retirement. The dearth of proficient and motivated staff at all levels is seriously impacting on the performance of the Ministry. There are a number of capacity building programmes being implemented by various donors; though most involve formal training courses covering technical subjects and project management. There are however, four projects, which provide “hands-on” practical work experience aimed at professional and technical staff, but nothing to address the serious shortcoming in the administrative and accounts departments. There is an urgent need to initiate a comprehensive programme of formal courses and supervised “on-the-job” training throughout the Ministry to develop skills and build competency at all levels. The Ministry is acutely aware of the need to improve staff training, but it faces a dilemma, because those staff that would benefit most from the training opportunities are the same that contribute most to the current management and operations of the Ministry and there have been a number of instances, where good staff have been prevented from taking-up overseas training opportunities, because they play a key role in the workings of the Ministry. In late 2006 the Ministry embarked on a major studies programme to reappraise the potential projects identified in the 1960s and 70s. The intention was to up-grade to full feasibility level earlier reconnaissance work and pre-feasibility studies. The MEW is the implementing agency for these new studies; however because of the limited technical capacity within the Ministry, consultants are being recruited to undertake the feasibility studies, prepare detailed designs and tender documents, and supervise construction. However, the performance of consultants currently working in the sector is generally poor and the Ministry is concerned that unless the quality of study “outputs” is improved, it will not be possible to implement the new projects to a satisfactorily standard.

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The security situation in the country is deterring many reputable firms from bidding for work and as a result most contracts are being awarded to regional consultants who lack experience in preparing studies and designs for the international donors. Unfortunately some companies have viewed the lack of oversight as an opportunity to maximise profits by employing poor quality staff and in some cases by manipulating study findings to make projects more attractive in an attempt to cover-up shortcomings and gain favour with the Ministry.

3 WATER RESOURCES DEVELOPMENT IN AFGHANISTAN The water resources of Afghanistan are characterised by floods and droughts. In an average year there is sufficient precipitation in the form of rainfall and snow to irrigate vast areas, but without major storage dams most of the water flows to neighbouring countries. The Ministry of Energy and Water is mandated to develop the country’s water resources and the main focus in recent years has been the construction of small, medium and large scale dams to conserve water in order to expand and intensify irrigated agriculture. Afghanistan has an agriculture based economy, with 80% of the population directly or indirectly involved the sector. Rainfall over most of the country is insufficient to grow even drought resistant crops and as such irrigation is critical for arable farming. Irrigated agriculture has evolved over many centuries and today, despite the decades of civil strife, there are still may thousands of hectares being irrigated by traditional systems, which are managed, operated and maintained by communities with little or no involvement by the government. However, there is considerable opportunity for increasing agricultural production by the construction of major infrastructure works, which are beyond the technical and financial capacity of the farming communities. On irrigation schemes below about 1,200m it is normally possible to produce two crops a year if water is available. However, river flows decrease significantly in July and August after the snow has melted and the water supply for the second crop is unreliable. As a result farmers plant low value crops such as wheat or sorghum and if there is insufficient water to irrigate the crop to maturity, it is harvested for fodder. The construction of seasonal storage dams that store excess flows during the early part of the summer for release through to September will have major benefits for irrigation farmers downstream. The agricultural benefits are two fold; firstly the extension of the irrigation season will secure the second crop and ensure it reaches maturity; and secondly the increased reliability of the water supply will encourage farmers to plant high value crops and also apply optimum levels of agricultural inputs in order to maximise yields even on lower value crops. These benefits can be realised with little or no investment in the irrigable area. In addition to the agricultural benefits, the storage of flood water will reduce the risk of flooding downstream and associated crop losses and more importantly damage to property and the possible loss of life. The allocation of water on traditional schemes was determined by an individuals’ contribution towards the construction of the system, whether it be a free intake and canal from a river or a karez. Even though this involvement may date back many generations, these rights remain valid today and thus any improvement or rehabilitation of the distribution system, which change the original allocation, is likely to be rejected by the farmers. Consequently, it is essential that before any in-field

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works can commence the designers need to fully understand the water allocation rules and ensure that these are respected when designing the works for rehabilitation, but even then changes are to be expected during construction, when farmers can visually appreciate the modifications being implemented. Irrigation is crucial for arable farming in Afghanistan and virtually all suitable land that can be commanded by gravity from rivers and streams or from traditional karezes is being utilized. Consequently, any expansion in the irrigated area will require the construction of high level canals from dams or pumping. The greatest impact to develop the country’s water resources is the provision of storage dams to retain water for use during periods of drought. These dams can range from small check dams across streams to impound flood water and facilitate groundwater recharge, to major seasonal storage dams capable of storing large volumes of flood water for release during the late summer months. The large dams may also incorporate hydropower generation capacity, though irrigation and hydropower are not normally compatible and the dam operating rules invariably favour one or the other. In the 1960’s and 70’s a number of major potential dams sites were identified and in some cases feasibility studies were undertaken by reputable international consultants. However, after the Soviet invasion, all these projects were put on hold and only now is the Ministry of Energy and Water re-assessing these sites. The Ministry currently has seven on-going feasibility studies and a further six under bidding. The latter includes a major capacity building project to enhance the technical skills in the Ministry whilst at the same time preparing designs for 40 small dams less than 20m high, distributed throughout the country.

4 MINISTRY OF ENERGY AND WATER

The Ministry of Energy and Water is mandated to develop the nation’s water resources. In addition to the water sector, the Ministry is also responsible for the generation and distribution of electrical power, though there are moves to privatise the urban distribution network. The Ministry in its’ present form was established in December 2004, with the splitting of responsibilities previously held by the Ministry of Irrigation, Water Resources and Environment, and the merging of energy and water to form the Ministry of Energy and Water.

4.1 Structure of the Ministry of Energy and Water The Ministry is headed by Minister Alhaj Muhammad Ismail, with three Deputy Ministers, responsible for water, energy and administration. The Ministry has recently completed a reorganisation process under the Priority Restructuring Reform (PRR) programme for the head-office in Kabul; a translated English version of the new structure for the water sector is given in Appendix A at the end of the report. There have been concerns expressed that the new structure places too much emphasis on the support departments and does not adequately address the Ministry’s primary technical role, to develop the nations’ water resources. Despite these misgivings a number of director appointments have been made, though these are mainly in the administration and support departments. PRR for the provincial offices still has to be finalised. The Ministry has nearly 9,000 staff countrywide but the engineering and technical capacity is low and this is a major constraint to development. The number of staff in

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the Ministry who can understand English and are computer literate is limited and with donor projects all demanding counter-part staff there are insufficient suitably qualified staff to fill all the positions. This situation is creating problems with some project consultants using the absence of counterpart staff as an excuse for delays and non-performance. Presently the monthly salary of engineers working in the Ministry ranges from USD 44 to 100 per month, whilst a recently qualified engineering graduate can expect to earn a minimum of USD 800 per month working for the private sector or an NGO. The only incentive the Ministry is able to offer a new graduate is the opportunity for overseas training. In order to compensate Ministry staff seconded to projects for the increased workload and greater responsibility, donor projects normally make additional payments know locally as “top-ups”. These range from USD 350 to USD 1,500 per month, depending on the donor and the level of responsibility. Under PRR the total number of professional and technical staff in all sections of the Ministry in Kabul is 1,141 and the proposed salary scales range from USD 80 to 800 per month. Exceptional individuals occupying key positions may be eligible for “super-scale” with a monthly salary of USD 300 to 2,000. However, even under PRR a recent graduate will still only earn around USD 160 per month, which is well short of what they can earn in the private sector. The future of “top-ups” after the introduction of PRR is unclear; if they are discontinued most staff that currently benefit from these additional payments would be worse off and the best staff are likely to seek employment elsewhere. Despite these issues, a number of Directors and some senior technical staff have been recruited under PRR and are on an enhanced salary scale, though in general these are in the administration and support departments. The low engineering and technical capacity in the Kabul office is replicated in the Provincial Water Management offices. Many of these offices lack the basic logistical resources to undertake any engineering activities even if capable staff were available. Senior officials are acutely aware of the limited technical capacity and are concerned about the Ministry’s ability to manage and monitor the increasing number of construction projects and studies currently being planned.

4.2 Priority Projects The Ministry is under considerable pressure from parliament, provincial authorities and traditional leaders to start implementing major large-scale water projects. Although a number of potential projects were identified in the 1970s, only one (Kamal Khan) was partially constructed and the remainder were at the preliminary planning stage. Consequently in recent years the emphasis has been on the preparation of feasibility studies for the previously identified projects, though to-date only the Gambiri project has been completed. The top ranked water sector projects for the Ministry in order of priority are:

1 Lower Kotcha Irrigation Project: the feasibility study for this project is being funded by the World Bank as part of the EIRP. The initial development options being proposed by the consultant were expensive and were unlikely to attract funding from the international donors. Consequently various alternatives are currently investigated, which cost less.

2 Kamal Khan Flood Control and Hydropower Project: construction of this project started some 30 years ago, but was suspended due to the Russian war. The Ministry is keen to restart work, but because of security it is proving difficult

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to find a reputable international consultant that is prepared to up-date the feasibility study, review the original designs and modify as required and prepare tender documents for completing the civil works. Despite the priority ranking, this project is currently on hold.

3 Gambiri Irrigation Project: the Feasibility Study for this project has been completed and the Ministry is currently seeking to finance the detailed design and preparation of the civil works tender documents through the ARTF.

4 Kelegai Storage Dam: completion of the Feasibility Study for this project has been delayed until mid-February 2009. Once this has been approved, the Ministry will seek funds to finance the detailed design and preparation of the contract documents for the civil works.

5 Shatoot Storage Dam: this project is likely to be significantly less expensive than the previous four and is vital to secure the long-term water supply to Kabul City. The consultancy contract for the Feasibility Study is scheduled to be completed in November 2009 and then a follow-up contract will be required to undertake the detailed design and preparation of tender documents for the civil works.

5 ADB FUNDED CAPACITY DEVELOPMENT FOR IRRIGATION AND WATER RESOURCES MANAGEMENT, TA-4716 (AFG)

5.1 Background The ADB funded Capacity Development for Irrigation and Water Resources Management Project, TA-4716 (AFG) commenced in November 2006, over a year later than originally planned. The aim of the project was to enhance the capacity of the Ministry of Energy and Water in (i) strategic and investment planning; (ii) project and programme development and evaluation; (iii) budgeting and financial management; (iv) management; (v) Integrated Water Resources Management (IWRM); and (vi) management of shared water resources. When the Consultant arrived in Afghanistan, the MEW was embarking on a major water sector development programme, with a number of contracts being planned and awarded for feasibility studies and civil works contracts. However, the Ministry had no “in-house” capacity to prepare bidding documents, evaluate proposals, administer and monitor contracts or evaluate the outputs. The projects being planned had originally been identified and studied in the 1960’s and 70’s by reputable international consultants and some later in the early 1980’s by the Soviets. During the subsequent decades of war ands civil strife, these projects were shelved and are only now being revived. Unfortunately many of the earlier reports and drawings have been destroyed, so in most cases only a few volumes, if any, of the previous studies are available. In general these projects are big, involving the construction of major multi-purpose dams with hydro-power stations, sufficient storage capacity to irrigate tens of thousands of hectares and also serve to alleviate floods. The aim of the feasibility studies is to assist the Ministry to prioritise and optimise potential projects and provide the Ministry of Finance (MoF) with a comprehensive feasibility report to support funding requests to the international donors. These reports should therefore address the technical, social, environmental and economic issues to a level required by the international donors. Regrettably, the prevailing security situation in the country is deterring many large reputable international

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consulting firms from bidding for work and contracts are being awarded to regional consultants many of whom do not have the experience or understanding of what is required. This has resulted in a number of potential projects being rejected by donors, not because the need is not there, but because the proposed interventions were inappropriate and/or the reports did not fully address the issues. Prior to 2007 the Ministry did not have a dedicated department to manage these studies, which were being funded through the Afghanistan Reconstruction Trust Fund (ARFT) and the bidding process and evaluation of outputs were assigned to various specialists working in the Ministry, with no coordination or continuity. Initially the Ministry muddled through with this approach because there were only a few contracts being awarded. However, as the number increased there was an urgent need to formalise the bidding process and establish a unit to oversee on-going contracts. In April 2007, the Ministry established a Project Implementation Unit (Water), funded through TA-4716 (AFG), to manage and evaluate consultancy contracts financed by the Afghanistan Reconstruction Trust Fund (ARTF). At the start, the unit comprised four seconded MEW engineers and the consultant, but it has since expanded to six national staff and two internationals. This level of staffing however is still insufficient to adequately monitor and evaluate all the on-going consultancy projects and with a new project commencing virtually every month, it will be impossible to maintain even a cursory level of oversight. Initially it was anticipated that PIU (Water) would focus on the bidding, and administration and monitoring of on-going ARTF projects. However, the Ministry was looking to expand the Unit’s scope of activities to include: (i) the identification, planning, pre-feasibility level studies and prioritisation of potential projects; (ii) improve the monitoring and evaluation of study outputs; (iii) establish a comprehensive sector database; (iv) provide support to projects based outside Kabul; (v) prepare regular status reports on all water sector projects; and (vi) enhance budget and financial management. The Budget Department is responsible for all payments in the Ministry. Since establishment of PIU (Water), the number of water sector projects funded under the ARTF has increased significantly, this has resulted in a corresponding increase in the number of transfers and payments to be processed. However, time consuming procedures used by the department have not been up-graded to cope with the increased work load and this is causing delays in payment. In order to rectify this problem, the ADB has engaged a financial consultant under TA-4716 (AFG) for a period seven months to support and up-grade the Budget Department. The original ToR for the water resources consultant focused on devising strategies and policies for the Irrigation Department, however before the consultant arrived, responsibility for irrigation was transferred to the Ministry of Agriculture, Irrigation and Livestock (MAIL). The MEW retained responsibility for large scale water resources infrastructure and the overall management of water resources within the country. Because of the 15 month delay in commencing the TA, a number of the specific reporting outputs were taken-up by other projects and others were superseded after the Government established national organisations to co-ordinate inter-ministerial planning and reform activities. For example, the Afghanistan National Development Strategy was charged with preparing a national strategy and a commission was set-up within the Ministry to develop the water component. Similarly the Ministry established a commission to work with the Civil Service Commission to devise the Priority Restructuring Reform programme for the Ministry.

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Given the acute shortage of qualified and experienced engineers in the Ministry, the TA Consultant has taken on a far more active role in the management and operations than was originally intended because there was nobody else. This represents a substantial change in the scope of services and as such it will not be possible to continue to provide the level of support to the Ministry and complete all the reporting outputs stated in the ToR. However, some of the outputs are still applicable to the goal of enhancing capacity building within the Ministry and as such will be developed over the course of the TA extension.

5.2 Support for the Project Implementation Unit (Water) The delay in commencing the TA meant that a number of the studies and reports that had been included in the original ToR had been taken-up by other projects. However, what was seriously lacking in the Ministry was the capacity to manage the increasing number of construction and consultancy contracts. The ADB recognised the urgent need to provide the Ministry of Energy and Water with “hands-on” technical support to oversee the ARTF funded projects, and in April 2007 the Project Implementation Unit (Water) was established at the request of the Ministry, under the Capacity Development for Irrigation and Water Resources Management TA. The aim of the PIU (Water) was to take responsibility for the management of the six recently awarded ARFT funded consultancy and civil works contracts, which at the time had a combined value of over USD 8 million. Initially the main emphasis was on the management of on-going contracts and those under tendering. As the number of contracts increased, this became a full-time job for the TA consultant. Specific tasks being undertaken by the water resources consultant included:

i Establish and support a Project Implementation Unit (Water) within the Planning Department of the Ministry. Provide on-going direction and guidance to the staff of PIU (Water) and other departments in the Ministry. Given the limited capacity of seconded staff, the consultant was involved in actually doing the work, in order to ensure correspondence and documents being sent from the Ministry are complete and too a satisfactory standard.

ii Prepare terms-of-reference for feasibility studies and tender documents for civil works contracts.

iii Devise and implement a formal process for evaluating EoIs, pre-qualification documents and technical and financial proposals for both feasibility and civil works contracts. Monitor the bidding process and assist in the preparation of evaluation reports, contract negotiations, etc.

iv Ensure on-going studies and civil works contracts are managed in a timely, professional and responsive manner.

v Oversee the monitoring and evaluation of study outputs. Unfortunately the seconded staff had no experience in the preparation of feasibility studies and the consultant had to take the lead in this activity. In addition it has become apparent that many of the regional consultants undertaking the work had little or no experience in preparing feasibility studies for international donors and as a result the consultant took a more active role in directing the study than would normally be expected.

vi Support on-going ADB water sector projects and assist in the identification, planning and design of new ADB financed projects. Assist the Ministry to comply with the Bank’s bidding procedures, administration of contracts, evaluation of outputs, etc.

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vii Advise the Ministry on the evaluation and prioritisation of potential projects for progressing to feasibility and implementation.

viii Provide advice to the Ministry on technical matters related to the water sector such as integrated water resources management, specific engineering problems, preparation of letters and other documents for submission to donors and other agencies, etc.

The TA Consultant was fully integrated into the PIU (Water) working alongside the seconded engineers providing direction and guidance, however because of the inexperience of the seconded staff it was necessary for the Consultant to undertake many of the monitoring and evaluation tasks listed above in order to move projects forward and ensure the Ministry is not being exploited by unscrupulous consultants. The TA consultancy has funded a number of courses for Ministry staff seconded to the Unit and these include:

i Intensive one-on-one English course

ii English course at the newly established American University

iii Introduction to ArcGIS version 3.2 course at AIMS

iv Introduction ArcGIS I course at Liwal Training Centre, the country distributor for the software

v Introduction ArcGIS II course at Liwal Training Centre

5.3 Role of PIU (Water) in the Development of the Water Sector in Afghanistan In November 2006, when the TA Consultant was mobilised, the Ministry had three on-going ARTF consultancy contracts, which had only recently been awarded and a further four under tender (two studies, two civil works). The bidding documents for feasibility study contracts were all based on a previous model and were virtually identical in scope, even though in practice the type and scale of the projects differed. Given the limited capacity of the Ministry to tailor bidding documents, particularly the scope of services, this approach allowed the Ministry to award contracts, though it often resulted in disputes during the course of the studies when the different aspects of the projects became apparent. The bidding documents, including the scope of works or services had already been prepared and submitted to the short-listed firms for the four contracts under tendering, consequently only minor amendments to the scope could be made, without cancelling the contracts and starting the bidding process from scratch, an option the Ministry was anxious to avoid. Up until the establishment of the PIU (Water) there was no department within the Ministry responsible for the management of ARTF civil works or consultancy contracts and the evaluation of outputs was done by ad-hoc committees formed by the few English speaking government staff and, national and international consultants. However, most of the committee members were fully involved in their own projects and were therefore only able to provide cursory oversight. In addition the composition of the committee varied depending on work-load, leave, official visits, etc, so there was no continuity in the review of reports. The situation was further compounded by the absence of a co-ordinating office to manage the distribution of reports to committee members and the collation of comments. After submission of a report, the firm would be invited to make a presentation to the evaluation committee and other senior staff in the Ministry, most of whom had never read the report. Verbal

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comments were received and in some cases requests were made to incorporate specific recommendations, however these were never formally sent to the firm in writing and there was no follow-up to ensure requests were acted on. The absence of any meaningful oversight or follow-up is allowing some consultants to exploit the situation and submit sub-standard reports. The ADB reviewed three identification reports for potential medium sized irrigation schemes, which a firm was recommending were viable, but all three cases the proposed interventions were found to be inappropriate and would not be considered for funding. However, it should be stressed that alternative development options could well have been suitable for funding. In other cases, firms with limited experience of working with international donors, in particular the need to address social, environmental and financial issues, have responded positively to comments and advice. However, until the mobilisation of the TA consultant, there was nobody in the Ministry with the experience to provide the necessary practical support to these firms. Since its’ establishment, PIU (Water) has prepared the request for EoIs notice and ToR for eight feasibility studies, the bidding documents for one civil works and one procurement contract, the evaluation of six EoIs and five Technical and Financial Proposals for feasibility studies and the evaluation of one procurement contract. There are seven on-going feasibility studies and the reporting requirements for six of these contract is; (i) Inception Report; (ii) Definition Report; (iii) Social Impact Assessment Report; (iv) Environmental Impact Assessment Report; and (v) Final Report. In addition, the Consultant is required to submit monthly Progress Reports. Under the remaining contract, which involves an assessment of 21 potential projects, the preparation of eight pre feasibility reports and four feasibility and detailed design reports; the reporting requirement is: (i) Inception Report; (ii) eight pre-feasibility reports, (iii) four separate feasibility reports plus SIA and EIA Reports; (iv) four Detailed Design Reports plus contract documents.


ARTF Water Sector Project Status 30 November 2008

Project Status and Type Number Value (USD) On-Going Projects

Feasibility studies 7 13,643,587

Procurement contract 1 1,335,370

Civil works contracts 3 14,775,428

Sub-Total 11 29,754,385

Under Tendering

Feasibility studies 6 18,316,000

Civil works contracts 1 1,490,000

Sub-Total 7 17,806,000

Pipeline Projects

Feasibility studies 6

Detailed design contract 1

Construction supervision contracts 3

Civil works contracts 3

Sub-Total 13 The full list of the on-going, under tendering and pipeline ARFT projects is given in Appendix B. A map of Afghanistan showing the location of the projects is given in Appendix C.

5.4 Scope of Consultancy Services for ARTF Projects All the feasibility studies that were on-going or under tender when the PIU (Water) was established were “lump sum” contracts, with payments linked to specific milestones. For example, 10% on submission of the Inception Report, 20% for the Definition Report, etc. This approach makes it impossible for the Ministry to monitor expenditure, and there is evidence that some firms exploited the situation, because there was no rigorous evaluation of the study outputs. However, the Ministry currently does not have the capacity to scrutinise and process detailed invoices, so there was no option but to continue with “lump sum” contracts. The ToRs for all the feasibility studies included a component for capacity development, whereby six Ministry staff would be seconded to the implementing consultant to gain “hands-on” practical work experience. However, there was no requirement for the consultant’s staff to be permanently based in Afghanistan and as a result all the firms opted to undertake the planning and desk work in their home office, which effectively nullified the capacity building benefits. Although this was a major failing, the Ministry did not have suitably qualified English speaking graduates available to second to the project so it never became an issue. In later contracts, it was a condition that the Team Leader was permanently based in Afghanistan and that 50% of the remaining international inputs should be “in-country”. Although, unless the Ministry could second staff to the consultant’s team this was virtually impossible to monitor and relied on the data provided by the consultant in the monthly reports.


The format and content of later ToRs was changed considerably to make them project specific instead of using a more general scope of services for all situations. Given the inexperience of some of the regional consultants bidding for such contracts, the new ToRs set-out in detail the tasks to be undertaken, the expected outputs and the levels of accuracy required. This approach avoids disputes during the contract over the scope of the services and makes it easier for less experienced staff to evaluate the Technical Proposal and monitor progress and outputs during the course of the study. Under the earlier feasibility study ToRs, contracts included the geotechnical investigations and topographic surveys as part of the overall “lump sum”. Given the shortage of staff within the Ministry capable of monitoring these activities, coupled with the security situation, which restricted the movement of international consultants, there was often no supervision of these activities. In addition the consultant had to decide on the scope of the geotechnical investigations at the tendering stage, often without visiting the site, and in view of the considerable sum involved, it impacted heavily on the contract price. Consequently, in later contracts both the geotechnical and topographic surveys were included as a “provisional sum” (PS) and the consultants were required to include in their Financial Proposals a schedule of rates for the anticipated tasks. Then once the field work had commenced, the consultant would prepare a proposal for undertaking the topographic and geotechnical investigations based on the schedule of rates and within the PS ceiling for the approval of the Ministry. If the ground conditions proved to be too complex to enable the design work to progress with the data available from the geotechnical investigations undertaken within the PS, then the consultant would prepare as part of the study outputs the ToR for supplementary investigations which would be undertaken as part of the detailed design or at the start of the civil works contract. The request for EoI notices and the ToRs on later projects set-out precisely what was required from bidders in terms of corporate experience, staff availability, etc. The ToRs included a provisional staffing schedule, which the bidder could adjust to suit their work plan, the required qualifications and experience for the key staff and a detailed marking schedule covering corporate experience, comments on the ToR, methodology and the evaluation of staff. This enabled bidders to tailor their EoIs and Technical Proposals to satisfy the evaluation criteria and facilitate the marking process by Ministry staff.

5.5 Procedures for Bidding and Evaluating Contracts The tendering process for ARTF contracts are administered by the Afghanistan Reconstruction and Development Service (ARDS), which falls under the Ministry of Economy (MoE). The tendering process follows World Bank procedures and ARDS is responsible for managing the process up to contract signing. For each project the Ministry prepares the contract specific documents such as the project description for the request for EoIs and the ToR, undertakes the short-listing, evaluates the technical and financial proposals, responds to requests for clarification, leads negotiations with the top ranked firm and reviews and approves the contract. The role of ARDS is to ensure the tendering process is conducted in accordance with World Bank procedures, specific tasks include: (i) advertising projects; (ii) preparing and issuing contract documents; (iii) receipt and formal opening of EoIs and proposals; (iv) receiving of requests for clarification: (v) correspondence with firms; (vi) organising negotiations and the taking of minutes; (vii) preparation of documents for the Special Procurement Commission (SPC) and attend meetings in an advisory capacity; and (viii) preparation of contract and attendance of the signing ceremony.


SPC approval is required for all Government contracts including those involving loans from international donors. The commission comprises a number of ministers from key ministries and is chaired by the Minister of Finance or his deputy. Prior to the establishment of the PIU (Water), the evaluation of EoIs and Technical Proposals for feasibility studies and tender documents for civil works contracts laws lacked consistency and transparency. There was no suggestion of corruption, but there was no process in place to demonstrate that the evaluations were fair. Evaluations were undertaken by ad hoc committees established for the purpose of each evaluation. Previously there was no marking schedule and evaluators awarded marks as they saw fit. However, with the establishment of PIU (Water), a contract specific marking sheets for evaluating both the EoIs and Technical Proposals were developed, based on the evaluation criteria provided to bidders, and the process was closely monitored with a timetable and committee members signing for documents. An instruction sheet setting out how the scoring system shall be applied is provided to evaluators and this helps to remove inconsistencies. At present the actual evaluation of bids is still being conducted by members of an ad hoc evaluation committee, but the whole process is more formal and transparent. Unfortunately, the number of senior staff within the Ministry, with sufficient understanding of the work to be undertaken and proficiency in English, is limited and inevitably the same individuals are repeatedly being called upon, together with some of the international consultants who are working in the Ministry.

5.6 Performance of Regional Consultants

The Ministry currently has seven on-going feasibility studies in the water sector and six under bidding, which are being financed by the GoA. However, there is growing concern about the quality and completeness of the “out-puts” of these studies, which need to be to an internationally accepted standard if they are to be of any value. Unfortunately only a limited number of companies are interested in working in Afghanistan and even projects being financed directly by international donor agencies are failing to attract more than a few bidders. The main concerns of the Ministry are summarised below:

i The number of firms submitting EoIs for projects is declining and even when short-listed, firms are frequently withdrawing and as a result only three or four submissions are evaluated. For example; the consultancy services for the Kama Irrigation and Hydropower Project has been re-bid and still only one firm has submitted a financial and technical proposal.

ii The quality of reports received to-date is generally poor.

iii The MEW is under pressure to complete studies as quickly as possible so that proposals can be submitted to potential donors and as a result sub-standard and incomplete work is overlooked in order not to delay completion of the study.

iv The Ministry does not have the capacity at present to adequately review and comment on the in-coming reports.

v All the on-going GoA funded feasibility study contracts are “lump sum” and there is no requirement for the consultant’s staff to work in Afghanistan once they have completed their field work. This situation makes it difficult to monitor inputs or even ensure the work is being done by the nominated person. The other


disadvantage is that there are limited work experience opportunities for Ministry staff.

vi International companies are likely to be wary of bidding for work being financed by the GoA, because of perceived uncertainties concerning payment.

vii The technical and financial proposals being submitted often fail to comply with the RfP; however minor deficiencies are being overlooked because otherwise there would even fewer bids to evaluate.

There is an urgent need to address the above problems, particularly the first two points; otherwise there could be serious implications for the future development of water resources in the country. The security situation in some parts of the country is obviously a major concern for overseas firms considering whether on not to bid for work. The MEW is not in a position guarantee security, other than requesting the respective provincial authorities to provide appropriate security for site visits by the consultant’s staff. However there are other measures that may address some of the concerns of potential bidders and improve the standard of reports from consultants:

i ARDS should endeavour to publicise the “Request for Expression of Interest” notice more widely, including the UN and other relevant websites and also circulate to the commercial officers at the embassies of countries currently represented in Afghanistan.

ii Consider using other methods of payment such as “letter of credit” for GoA funded projects.

iii Provide furnished office accommodation within Ministry compounds for consultants; this will hopefully improve communications between the companies and Ministry staff responsible for overseeing the project. A separate budget item controlled by the Ministry should in future be included in each Project to cover the cost of providing such facilities.

iv Appointment of competent and demanding project managers to take responsibility for the management and administration of the studies and the performance of the consultant. If the Ministry do not have suitable staff available, then consideration should be given to recruiting people on contract and the cost included in the project budget.

v Establish a team of experienced specialists, who initially may be foreigners, to rigorously evaluate the “out-puts” of the studies and if necessary guide the consultants to ensure the reports are sufficiently complete and rigorous to satisfy the needs and standards of the international donor agencies.

The last point will require support from an international funding agency and as discussed previously it will take time for national staff to gain sufficient experience to be able to critically review feasibility study outputs, civil works contracts, etc and thus assistance will be necessary for a considerable number of years. The review and approval procedure for reports prepared by consultants was formerly undertaken by committees established on an ad-hoc basis. The committee members usually had their own projects to work on and as such comments tended to be cursory with no comprehensive review of the appropriateness or viability of the proposal. In addition there is no continuity because the people reviewing the different reports for the same study often changed to accommodate other commitments. One of the main tasks of the TA consultant and the SAT engineer was to review the reports prepared for the feasibility studies and draw-up a formal list of comments for submission to the consultant, where possible site visits were also undertaken to


verify proposals in the field. This approach improved the standard of reports, though with the increase in the number of on-going contracts and the fact that there were only two specialists available, it was impossible to provide complete oversight. The Government is investing a considerable amount of money in preparing development proposals for submission to potential donors and it is essential that these studies are completed to international standards. Otherwise there are likely to be further delays in the implementation of the projects whilst donors undertake their own studies before agreeing to finance the civil works.

5.7 Arghandab Irrigation Rehabilitation Project The Government of Canada (GoC) is initiating a major irrigation development project in Kandahar Province called the Arghandab Irrigation Rehabilitation Project. The project is divided into three phases; Phase 1 comprises (i) the urgent renovation of the outlet works on the existing Dhala Dam, which is 50 years old; (ii) rehabilitation of the downstream diversion weir and the Tarnak Canal; and (iii) studies to identify potential social, agricultural and environmental sub-components. Phase 2 involves the raising of the dam wall and spillway by 5m to increase the capacity to compensate for the loss of storage as a result of sedimentation; and Phase 3 would focus on implementing the potential projects identified in Phase 1, which are expected to include improved on-farm water management, improved agricultural extension services including the rehabilitation of the research station, institutional strengthening, measures to protect the environment and social development and gender interventions. At the end of 2008, the consultant for Phase 1 had been identified by CIDA, though the name was being withheld until the contract details are finalised. Security was proving to be a major issue and a considerable proportion of the USD 50 million allocated for the project by the GoC would fund a private security firm. The PIU (Water) is co-ordinating the Ministry’s activities, and the GoC provided an engineer to support the PIU (Water) initially as part of the Strategic Advisory Team (SAT) project (see Section 6.4) and later under the Canadian Governance Support Office (CGSO).

5.8 Support for ADB Water Sector Projects The TA Consultant provided on-going support and assistance to other ADB projects in the water sector through the PIU (Water). Specific projects and the scope of assistance are detailed below. Western Basins Water Resources Management Project, Loan 2227-AFG (SF) and Grant 0033-AFG i Chair the pre-bid meeting and prepare responses to clarifications sought by

bidders

ii Co-ordinate and administer the activities of the evaluation committee established to evaluate the Technical Proposals and prepare SUBMISSION 2

iii Check Financial Proposals of the firms that exceeded the technical threshold score and prepare SUBMISSION 3

iv Chair the negotiations with the top ranked firm on behalf of the Ministry and prepare the minutes of the meeting and the SUBMISSION 4

v Prepare project brief for the SPC and subsequent documents addressing issues raised by the Commission before the contract was approved


vi Provide the Ministry with technical and managerial support during the mobilisation process, which unfortunately involved the replacement of a number staff for key positions.

vii Assist the Ministry to manage the project, prepare letters and other documents, review and comment on reports and check invoices for accuracy and compliance with the contract

viii Convene the inaugural joint Project Steering Committee for ADB funded water sector projects, which in addition to the Western basins also included the Balkh River Integrated Water Resources Management Project and the Emergency Infrastructure Rehabilitation and Reconstruction Project (Traditional Irrigation Component)

ix Assist the Ministry establish the Project Management Unit in Herat, advise on the recruitment of key staff and provide on-going advice and support to the Unit

Regrettably the consultant implementing the Western Basins Project had major problems recruiting and retaining staff and in the first year virtually every position had to be replaced, either because the nominated person was unavailable or at the request of the Ministry. The frequent staff changes resulted in delays and a lack of continuity, however following the last ADB review mission a strategy was agreed by all parties to accelerate progress and hopefully address the outstanding issues. Western Basins Capacity Development Component i Manage and co-ordinate the evaluation of EoIs and prepare draft SUBMISSION 1

ii Prepare preliminary budget and draft ToR for the consultancy services Balkh River Integrated Water Resources Management Project, TA JFPR-AFG i Act as a liaison between the project office in Mazar-e-Sharif and the Ministry in

Kabul

ii Assist in obtaining permits, approvals from AFRM, etc EIRRP – Traditional Irrigation Component i Act as a liaison between the project office in Mazar-e-Sharif and the Ministry in

Kabul

ii Assist Ministry in it’s dealings with the Consultant, particularly over requests for an extension and staffing

iii Prepare letters and documents on behalf of the Ministry

iv Provide administrative support to PIU, particularly after the Team leader de-mobilised

Community Flood Management and Livelihood Improvement in Takhar Province i Participated in ADB’s project identification mission to Takhar as the water

resources engineer

ii Prepared outline designs and costs for the proposed permanent gated free intake to the General Canal at Yatim Tepa, write-up the engineering section for the report together with ToR for the proposed consultancy staff to implement the engineering component


Water Resources Management PPTA i Provide assistance during mobilisation and renovate the PPTA office prior to

arrival of the team

ii Share existing technical information and reports with the team. Panj River Basin Flood Management Project i Provide assistance, and technical and operational advice as required The current TA finished at the end of 2008 and there is now no long-term permanent ADB representation in the Ministry’s head office in Kabul. The aim of the on-going PPTA is to identify and design a number of water sector projects for future funding by the Bank, however without a permanent representative in the Ministry to guide and direct the GoA approval and tendering process, delays can be expected. The World Bank is funding the Afghanistan Water Resources Development (AWARD) TA Project (see Section 6.2.2), which will continue and expand the support being provided to PIU (Water). The consultancy services for the project are currently being tendered and the consultant is expected to be mobilised in June or July 2009. The WB consultant would be well placed to assist the Ministry progress the approval and tendering of potential ADB funded water projects, though this may not be desirable. However, without a permanent long-term representative, in the Ministry, there may be no alternative. The WB have indicated that it would be interested in collaborating with other donors for the AWARD TA Project, which would allow ADB to retain some representation to support and assist on-going and new water sector projects.

5.9 Assistance to the Budget Section The rapid expansion in the number of contracts being implemented by the Ministry has highlighted the shortcomings of the Budget Section, which is responsible for checking and authorising invoices, monitoring payments against budgets and contract payment schedules, and compliance with Ministry of Finance (MoF) procedures. Unfortunately most of the staff in the budget office have no understanding of English, which is the language of all the ARFT contracts awarded to international firms. Consequently, it is extremely difficult to check invoices, even lump sum contracts, which have fix payment schedules based on a percentage of the total contract price. The payment procedure is somewhat complicated because although the Financial Proposals are evaluated net of tax, the Ministry of Finance deducts a flat rate tax, which is currently 8% from all payments, and provision for this has to be included in each invoice. Unfortunately some of the regional consultants undertaking work for the government do not understand the tax implications and the Budget Section are unable to provide consistent advice. This has resulted in the overpayment of invoices and/or deductions which are not applicable. Previously, the Ministry had no procedure for certifying payments against the satisfactory completion of outputs and as a result some payments were made before reports had been approved. The TA consultant and the SAT engineer are largely responsible for the critical review and approval of reports prepared by consultants. Once comments on the draft reports have been addressed and incorporated into the final version, then payments of staged invoice is authorised.


The MoF procedures for processing invoices have recently changed and now require additional supporting documents, which has inevitably resulted in delays in payment. The introduction of Provisional Sums for geotechnical and topographic surveys, with consultants having to draw-up a programme of work based on a schedule of rates included in their Financial Proposals for the approval of the Ministry, is likely to create problems with the checking of invoices, because these will effectively be reimbursable expenses. The existing set-up in the Budget Department is not equipped to process payments for contracts based on timescale and reimbursable items. The ADB Western Basins Project for example, has a dedicated Financial Manager engaged on a private sector salary contract to ensure invoices are in-line with the Financial Proposal and provisions of the contract. The ADB recognised the shortcomings in the Budget Department and the need to improve the performance and professionalism of the department in order to ensure invoices and payments are processed in an efficient and transparent manner. The Bank engaged a short-term financial consultant under the TA, who already had a number of years experience in the Ministry and was fluent in spoken Dari, to support and strengthen the department. Unfortunately the financial consultant had only a limited input and was therefore only in a position to put-in place the procedures and carry-out the initial training. As with the water resources TA, the financial consultant was very much involved in the day-to-day running of the budget department with Government staff in attendance.

6 DONOR SUPPORT FOR CAPACITY DEVELOPMENT PROJECTS IN THE WATER SECTOR A number of international donors currently have on-going capacity development projects in the water sector; these include ADB, the World Bank, EU, GTZ, Canadian Government and USAID. In addition there is the UNDP funded Capacity for the Afghan Public Service (CAP) programme, which provides individual consultants for specific training/coaching assignments covering; (i) budgeting; (ii) procurement; and (iii) accountancy. Though currently there are none specifically working in the water sector.

6.1 Asian Development Bank (ADB) The ADB is currently funding the following five water sector projects in Afghanistan, which include a capacity development component:

EIRRP - Traditional Irrigation Component (Balkh Province), Loan 1997 (AFG)

Western Basins Water Resources Management Project, Loan 2227 (AFG) and Grant 33(SF)-AFG

Water Resources Development Project, TA-7088 (AFG)

Panj River Basin Flood Management Project, RETA-6452 (AFG/TAJ)

Capacity Building for Irrigation and Water Resources Management Project, TA-4716 (AFG)


6.1.1 EIRRP - Traditional Irrigation Component This project in the Balkh River basin aims to rehabilitate and construct new permanent structures in the vast traditional flood irrigation area around Mazar-e-Sharif and Balkh and establish Water User Associations (WUAs) to take responsibility for the management, operation and maintenance of the improved schemes. The capacity building component of the project focused on the strengthening and training of the traditional Mirab structure, which has been used for centuries to manage, operate and maintain community irrigation schemes. The consultancy contract ended on 30 November 2008, though ADB agreed to extend a scaled down PMU operation for five months, in order to complete the outstanding construction contracts.

6.1.2 Western Basins Water Resources Management Project The Western Basins is a multi-sector water resources development project covering the Hari Rod and Murghab River basins in western Afghanistan. The consultant mobilised in February 2008 and the project is scheduled to last five years. The largest component of the Project is the construction of water resources infrastructure, with the planning and design work, and construction supervision being undertaken by the Consultant, supported by national consultancy firms and the Project Management Unit (PMU). Although the implementation of the Project relies on substantial inputs from the staff of PMU, the Consultant is responsible for the completeness and structural integrity of the works. In addition to the construction component, the project also promotes the Governments policy of integrated water resources management in the Western Basins, with support for the establishment of basin and sub-basin councils, in accordance with the “Water Law”. Agriculture and livelihood services are included to enable communities to fully realise the benefits of the improved irrigation water supplies and ensure that the resources are distributed fairly to all sectors of the community, including women, nomadic livestock herders and landless families. The development of water resources infrastructure sub-projects from the initial planning and surveys, through detailed design and the preparation of tender, to construction supervision and contract management provide an ideal opportunity for PMU staff to gain practical “hands-on” experience. Unfortunately openings for this type of capacity building are limited in the Ministry, and thus it is important that every effort is made to maximise the training benefits. A second component of the Western Basins project is a separate capacity building sub-project. The contract for consultancy services to implement this component is expected to be signed in April/May 2009. The sub-project aims to address the acute shortage of proficient engineers and other professionals in the Ministry, specifically in the western basin. The sub-project seeks to develop a formal career development programme, which would combine supervised on-the-job training and practical short-courses. This combination will enable PMU and provincial water management staff to continue working on productive assignments, whilst at the same time gaining valuable professional experience. Ideally the in-service training courses and the work experience should be scheduled so that staff have the opportunity to put into practice what they have learnt immediately after the course. In addition to the in-service training, there is provision in the sub-project for staff to study for master degrees and diplomas from overseas universities through distance


learning, though these courses include a number of visits to the institute for formal lectures and practical’s.

6.1.3 Water Resources Development Project

The Project Preparation TA commenced in October 2008 and is due to be completed in June 2009. The aim of the TA is to prepare an investment programme of suitable sub-projects for funding under the Bank’s Multi-Tranche Financing Facility (MFF). Four core sub-projects have been identified; (i) bank protection and flood management along the Amu Darya; (ii) modernisation of Nangahar Valley Development Authority; (iii) Northern basins water resources development; and (iv) sector strategy, capacity building and project development facility. Under the fourth component the TA will prepare a comprehensive and detailed capacity development programme to; (i) support the implementation of the sub-projects being funded under the first release of funds; (ii) prepare and manage sub-projects for subsequent tranches; and (iii) support in general the Ministry’s activities to develop water resources and irrigated agriculture. The World Bank is intending to implement a similar capacity development project under their Afghanistan Water Resources Development (AWARD) Technical Assistance Project, which is expect to commence in late 2009 and last four years. There would be considerable benefit in combining the World Bank and ADB capacity building components to avoid duplication and ensure that proposals for enhancing the capacity and performance of the PIU (Water) are compatible.

6.1.4 Panj River Basin Flood Management Project The Panj River project covers both Afghanistan and Tajikistan and is intended to improve water resources management in the basin, with particular emphasis on flood control and bank protection. The project includes both institutional development and co-operation, and capacity development components. The consultant mobilised in August 2008 and the project is due to last 30 months. Under this TA project, the capacity development activities will include workshops, short training courses and resource materials prepared by the international consultants for stakeholder ministries and organisations in both countries. In addition there is provision for overseas short course for staff of the Technical Secretariat and the funding to enable Steering Committee members to participate in conferences and other activities in relevant fields.

6.2 World Bank

6.2.1 Emergency Irrigation Rehabilitation Project The World Bank has recently approved USD 50 million funding for the second phase of its’ very successful Emergency Irrigation Rehabilitation Project (EIRP), which is scheduled to last four years. The first phase, worth USD 71 million also lasted four years and ended in September 2008. However, the second phase is not expected to commence until 2010, but in order to ensure continuity and retain staff, USD 28 million of bridging finance is being provided to extent phase one through to the end of March 2011. Consequently there will be an overlap between the extension and the start of Phase 2.


During Phase 1, the project has started 624 small and medium scale rehabilitation works of which 580 have been completed, 20 are still on-going, work on 12 was stopped after partial completion and 12 have been dropped. In addition ten major projects have been started with three complete and seven still on-going. When EIRP started, it was the only large scale project being implemented by the Ministry and as such the best engineers were seconded to work in the PMU. Training was a major component of the project, particularly in the early stages and took the following forms; (i) supervised “on-the-job” training; (ii) specialist “in-country” short courses conducted by project staff; (iii) formal in-country training by external consultants; and (iv) specialist short courses overseas. The number of staff trained is impressive with 243 attending basic and intermediate computer courses, 80 attending three quality control training for construction work in India and a total of 2042 attending internal courses on irrigation, water resources management, construction techniques, contract management, etc. Approximately 20% of staff left the project having received training for higher paid jobs in the private sector and with donor projects. Under Phase 2 of EIRP, the emphasis will move from rehabilitation to the construction of new works, involving a number of large scale sub-projects, which will require more sophisticated engineering. The intention is to enhance the current training programmes to meet these demands, with more technical course and the introduction of courses dealing with the social, agricultural, financial and environmental aspects of large scale works.

6.2.2 Afghanistan Water Resources Development (AWARD) Technical Assistance Project The AWARD Technical Assistance Project is currently under preparation and is expected to commence in late 2009. The aim of the project is to enhance the capacity of the Ministry to plan and implement infrastructure projects in the water sector. The Bank has already initiated a water resources planning study for the Kabul Basin and the intention under the project is to create a dedicated planning unit under the Director of Planning called the Water Resources Planning Unit (WRPU). The unit would investigate and model different interventions within a basin in order to optimise and priorities investment in water resources infrastructure. The second component of the Project is to establish a Project Preparation Unit (PPU) also under the Planning Director, which would takeover and expand the responsibilities of the existing Project Implementation Unit (Water). The proposed activities of the Unit are the same as previously identified for the expanded PIU (Water) and would include; (i) carry out pre-feasibility level studies for priority interventions identified by the Planning Unit; (ii) preparation of ToR and managing the bidding process for feasibility study consultancy contracts; (iii) supervision of studies and where necessary providing guidance and direction; (iv) evaluation of study outputs; contract management and administration; and the preparation of planning and status reports for the Ministry and GoA. Initially consultancy services will be required to support the two units and this has been called the Implementation Support Consultant. This consultancy would expand the support, currently being provided by the ADB funded TA 4716 (AFG) in order to identify and plan potential projects and prepare pre-feasibility studies.


6.3 European Union and GTZ The EU is funding two water resources development projects in the Panj-Amu River Basin; the Kunduz River Basin Programme (KRBP) and the Amu Darya River Basin Programme (ARBP). Both projects have a capacity building component for seconded Ministry staff and activities to establish and strengthen the technical and managerial capacity of Water User Associations. The first phase of the KRBP started in September 2004 and is due to be completed in December 2008, with a second three year phase starting in January 2009. Unfortunately the ARBP has suffered from a rapid turnover of consultant staff and this has adversely affected progress, though under the current Team Leader the situation has improved. KRBP has conducted courses in English, computer skills and GIS. In addition staff have benefited from supervised “on-the-job” training in design and construction supervision. The project has pioneered the establishment and institutional strengthening of sub-basin agencies and WUGs in accordance with the Water Law. This aspect has involved farmer meetings and The GTZ Water Programme commenced in January 2004 and has recently been extended through to Jul 2010. The programme has been actively involved in drafting the Water Law and guiding it through the various approval stages before it could be passed by Parliament. There is also a small capacity building component, which has focused on English and computer training and practical work in the field of IWRM.

6.4 Canadian Government The Government of Canada has been supporting the PIU (Water) initially through the Strategic Advisory Team (SAT) and more recently as part of the Canadian Governance Support Office (CGSO). The SAT was part of a bi-lateral agreement between the Canadian forces and the GoA, whereby experienced military and civilian personnel were placed in key ministries to strengthen capacity, and develop and implement strategies for improving management and operational performance. The SAT was replaced in August 2008 by the wholly civilian CGSO, though the aims and objectives were similar. The SAT engineer attached to the PIU (Water), was fully integrated into the Ministry providing guidance and direction to the seconded staff as well as actually doing the job. Unfortunately the replacement CGOS engineer was too involved in the Arghandab project to provide support for other PIU (Water) projects.

6.5 US Agency for International Development The USAID funded Afghanistan Human Resources Liaison Services (HRLS) Programme Phase 2 is providing technical support and assistance to the Afghanistan Supreme Council of Water Affairs Management (SCWAM) and in particular the establishment of the Technical Secretariat. Under the secretariat, the following nine working groups are being set-up, in each case the lead ministry is shown in brackets:

Drought (MAIL) * Trans-Boundary (MEW) Flood (MEW) * Water and Sanitation (MUD) Capacity Development (MEW) * Data Management (MRRD) * Decision Support System (Modelling) (MEW)


Public Education (MRRD) Institutional Support/Integrated Water Resources Management (MEW and MAIL)

The programme is currently devising an appropriate policy, strategy, scope of responsibilities and procedural guidelines for each working group. Within each group stakeholder ministries and other organisations have been identified and those groups marked with an asterisk have been convened and are developing an appropriate policy and strategy. The Institutional Support/IWRM group has made considerable progress and the members have already agreed the policy and strategy, and are in the process of defining the responsibilities and guidelines. In addition USAID is also funding a programme budgeting unit based in the Ministry of Finance, but with sub-offices in selected ministries, including MEW. The implementation of the programme for the 1387 budget year is part of the fiscal governance reform in Afghanistan. The software incorporates a budgeting and accountability framework, which monitors the delivery of works and services, assesses performance and identifies problems and prepares reports for Government, Parliament and communities. Significant progress has been made in the Ministry of Energy and Water, with the support of international partners:

• A Programme Budget was developed in 1387 Budget Year, together with a set of performance indicators and performance targets;

• The Afghanistan Financial Management Information Systems, or AFMIS, administered by the Ministry of Finance, was rolled out to the MEW to support internal expenditure tracking and managerial decision-making;

• A first step was made to integrate the operating and development budgets through organisational structural reform in the financial area;

• Internal processes have been established to enable the Ministry to report to the centre and to the Government on its financial and operational performance on a quarterly basis; and

• Cascading throughout the Ministry, including to the provinces, the concept of accountability by managers for results, through a number of workshops.

7 PROJECT IMPLEMENTATION UNIT (WATER) The Project Implementation Unit (Water) was established in April 2007. The unit forms part of the Planning Department in the Ministry under the General Director of Planning, Eng Zia Gul “Saljuki” and focuses on the management and evaluation of water sector contracts. Specific tasks undertaken by the Unit include: i Assist the Ministry of identify and prioritise potential projects.

ii Preparation of initial project notices requesting Expressions of Interest (EoI) and full Terms of Reference (ToR) in accordance with World Bank procedures.

iii Formalise evaluation of EoIs and Technical Proposals with appropriate criteria and ensuring the adoption of fair and consistent marking schedules.

iv Evaluation of Financial Proposals, leading the Ministry’s contract negotiation teams and preparing the minutes of negotiations.


v Administration of contracts and ensuring that correspondence and invoices are dealt with promptly and in a professional manner.

vi Provide direction and guidance to the implementing consultant’s team to ensure the completeness of the studies and the appropriateness of the proposed interventions.

vii Undertake site visits to review in the field proposals.

viii Critical evaluation of study outputs and the preparation of written comments.

ix Advise the Ministry on contractual matters, flag potential problems and recommend remedial measures.

x Where necessary undertake supplementary surveys, preliminary designs, etc, to confirm or otherwise study findings.

xi Provide technical and administrative support to ADB and other donor funded projects.

xii Prepare weekly contract status reports for on-going, under tendering and pipeline contracts in English and Dari for senior management.

By the end of the two year TA, the seconded staff were able to undertake some of the activities listed above, though there is still a need for technical support, particularly for the preparation of ToRs, the evaluation of study outputs and the resolution of contractual issues. The language of the consultancy and larger civil works contracts is English and as such one of the main criteria for the selection of staff for the Unit was a reasonable understanding of both written and spoken English, in addition proficiency in computers was also essential. This effectively excludes the older engineering cadre who qualified during the Soviet occupation or earlier. As a result the Ministry has had to assign its’ best graduates and young engineers, who had the necessary language and computer skills, into administrative and project management positions, before they have gained the experience and skills to qualify as professional engineers. A situation which both the TA consultant and the Ministry, is concerned about, but with the water resources development strategy based on engaging consultants to undertake studies and supervise construction work it was essential that these were monitored and managed in a professional manner.

7.1 Achievements and Constraints of the Project Implementation Unit (Water)

After being established the PIU (Water) quickly became a key unit in the Ministry, and at the end 2008 was responsibility for the monitoring and administration of 18 consultancy and civil works contracts, with a combined value of nearly USD 48 million. Although the small team of young engineers seconded to the unit were enthusiastic and well motivated, they were all inexperienced and as a result the evaluation of consultancy outputs and dealing with contractual issues, including payments had to be done by the TA consultants and the SAT engineer. Without the involvement of the international specialists, there would have been no oversight of the on-going contracts or tendering process. This real support is likely to be required for at least another five and probably ten years, because there is a serious shortage of staff with any experience in water resources and contractual matters. This type of experience requires many years experience under the guidance and direction of senior and competent engineers, which are just not there.


If one has never been involved in carrying out a feasibility study, then it is impossible to critically review reports and where necessary advise the implementing consultant to ensure the study remains on track, the proposals are based on sound engineering judgements and that the interventions are socially, environmentally and economically viable. Unfortunately there is no substitute for practical “hands-on” experience under the supervision of a professional engineer. Six months before the ADB funded TA ended, the Ministry start approaching potential donors to take over support and funding of the PIU (Water). A concept paper (Appendix D) was prepared and distributed to all the major international donors operating in Afghanistan. Although it was generally acknowledged that there was a need to continue and expand the PIU (Water), only the World Bank indicated that they would be in a position to take over the support. However, because the bank is unable to hire individual consultants, it was necessary to engage a firm of consultants and this inevitably takes time. As an interim measure, the intention was to fund the local running costs and staff allowances under the on-going EIRP. Unfortunately there are problems with this approach and unless the matter can be resolved quickly, the seconded staff, particularly the better ones, are likely to leave and seek work in the private sector. This would mean any follow-up project having to start from scratch. Although the staff of PIU (Water) are still relatively inexperienced, particularly in respect of technical engineering matters, they are now able to co-ordinate and manage EoI and technical evaluations, and handle day-to-day contract administration. The loss of this capacity will be a serious “backward” step and thus every effort must be made to retain the staff seconded to PIU (Water).

8 MEW BUDGET DEPARTMENT The financial consultant introduced systems and procedures for the Budget Section of the Planning Department. However, in time it is anticipated that the implementation of PRR will strengthen the technical and administrative capacity of the section. In the meantime, the role of the Budget Section has to be defined. The volume of payments is expected to increase, as new projects come online and the more complex payment schedules are introduced for new projects.

Lack of a detailed budget is problematic and is an impediment to the flow of funds to project. Specific tasks undertaken by the financial consultant included:

i Developing a budgeting mechanism to ensure that funds can be provided as quickly as possible when needed.

ii Assist and support projects to develop and regularly update financial, administrative and budgetary plans based upon clearly defined priorities.

iii Develop policies and procedures that are "user friendly" to assist the Deputy Minister (Water), department heads and project managers in meeting their needs while safeguarding project's assets and consistently meeting its responsibilities of providing accurate and timely financial reports which reflect the transactions recorded into the books of accounts and meet the accepted standards of accounting practices.

iv The section must be kept separate from the components’ activities within projects and particularly matters relating to procurement. This will ensure an ambience of transparency and greatly reduce the dangers of conflict of interests.


v To treat all project’s business activities in strict confidentiality. Such information should be used only for conducting the project’s business or as authorized by the project director.

vi To achieve the Department’s aims of being efficient and effective through continual improvements

The input of the financial consultant was limited and thus it was only possible to initiate a programme to support the Budget Section. Unfortunately the WB’s follow-on AWARD TA Project, does not include provision for continuing support to the Budget Section and this is likely to cause problems in the future.

9 PROPOSED FUTURE ORGANISATIONAL STRUCTURE FOR WATER SECTOR The Ministry is being completely reorganised under the Priority Restructuring Reform (PRR) programme though as already stated there is concern that the proposals for the water sector are not focused sufficiently on the technical and operational activities. Neither the existing PIU (Water) nor the Planning Department appear in the new structure, though it is generally acknowledged that the Ministry could not operate without these offices. The World Bank’s Afghanistan Water Resources Development (AWARD) Technical Assistance Project envisages the establishment of two units, the Water Resources Planning Unit and the Project Preparation Unit, which would take-over the activities of the PIU (Water). According to the proposed organisational framework, both units would report directly to the General Director Planning, which will require some modifications to the PRR structure and it is understood that this will be a conditionality of the Bank’s funding agreement.

9.1 Afghanistan Water Resources Development (AWARD) TA Project The GoA is embarking on an unprecedented five year investment programme for the water sector. The MEW will be the primary implementing agency and thus there is an urgent need to expand the existing PIU (Water) under the World Bank’s AWARD TA to cope with the anticipated increase in the number of projects. The current staff complement of four seconded Ministry staff and two direct hire employees needs to be increased significantly. The TA consultant has been advocating an expansion in the role of the PIU (Water) to include the identification, planning and preliminary design of new projects. Unfortunately, this was not possible under the ADB TA; however the AWARD TA will establish two units to undertake both the project planning and implementation roles. The Project Preparation Unit (PPU) will replace PIU (Water) and undertake the following:

i Undertake identification, surveys, investigations and reconnaissance level studies of investment options with its own staff or through consultants.

ii Undertake pre-feasibility and feasibility level studies of priority projects selected by the Ministry with its own staff or through consultants.

iii Determine the need and scope of work required for consultant studies and prepare ToRs, requests for EoIs, short listing of eligible consultants, Requests for Proposals (RfPs), evaluation of proposals, selection of consultants and preparation of contracts.


iv Supervise the on-going work of the study consultants including field reconnaissance and inspection, review of reports, preparation of comments and instructions, and monitoring of progress and compliance with guidelines and instructions. necessary

v Prepare planning and design guidelines to be incorporated into study consultant ToR that are based on international standards of practice and prevailing conditions in Afghanistan.

vi Collaborate with the Water Resources Planning Unit (WRPU) in setting investment priorities, project planning frameworks, identifying necessary studies, preparation of ToRs, etc.

Early in 2008 the Ministry, at the request of the Bank, established a fledgling planning unit known as the Water Resources Planning Unit (WRPU). The aim of the unit is:

i Prepare strategic and integrated river basin investment and water management plans progressively over the whole country beginning in priority basins.

ii Identify and assess water management and development options.

iii Establish analytical knowledge based frameworks (decision support systems) to prepare alternative water management and investment plans for these basins, and support effective policy and water management decision making.

iv Propose investment priorities and the se quenching of sector investments including specific project planning frameworks (eg project scope and functions, etc) and collaborate with PPU on the preparation of ToR for follow-up studies and data gaps and carry out the studies.

v Support effective water management and provide water resources management policy advice to the Ministry and the Government.

vi Facilitate the implementation of MEW’s proposefd water policy and draft water law under which a system of River basin councils and water rights will be established.

Technical assistance to establish and support the activities of the two units would be provided by the Implementation Support Consultant. The proposed team would comprise the following international positions; Team leader – Water Resources Engineer, Water Resources Planning Specialist, Civil Engineer specialising in planning and design of water infrastructure including dams and a Civil Engineer specialising in procurement and contract management, plus a national Financial Management Specialist. In addition there is provision for short-term specialist’s inputs such as an agricultural and resource economist, hydrologist, geotechnical engineer, etc. The Implementation Support Consultant would be recruited using the WB’s tendering guidelines. The Ministry has requested that selection be quality based, though this still has to be agreed by the Bank. It is anticipated that the consultant would mobilise in mid-2009, however in order to provide continuity between the end of the ADB TA and the start of the AWARD TA, the intention is to fund the PIU (Water) running costs from the recently agreed interim funding for EIRP. In addition FAO would be requested to provide an international engineer to provide guidance and direction.


10 TRAINING AND CAPACITY BUILDING ACTIVITIES The education system in Afghanistan was severely disrupted during the decades of civil strife and only now, are schools and universities beginning to receive donor support, but it is likely to take many years before the benefits are realised and standards improve. Regrettably this history of sub-standard education has resulted in a generation of students who lack the basic skills necessary to fully understand engineering concepts and practices and this is evident in the poor technical capacity of graduates currently joining the Ministry. There is no formal career development structure within the Ministry and the only opportunity for improvement is through training courses either in-house or overseas. Since these courses are invariably in English, there are only a limited number of staff In order to ensure those selected for training outside the country are sufficiently proficient in English, the Civil Service Commission now conducts written English tests and for those that pass, there is an interview in English. In the case of post graduate courses of more than one year duration, the Ministry of Higher Education undertakes the testing. There is an acute shortage of staff within the Ministry that are proficient in English and since dealings with donors and foreign consultants are in English most recent engineering graduates are being pushed into administrative positions before they learn the practical skills and gain sufficient experience to qualify as professional engineers, because they can speak English and have basic computer skills. This is detrimental to the individual’s career development and long-term technical capacity of the Ministry.

10.1 Training Objectives The basis for any technical subject is mathematics and it is therefore essential that all engineers and technicians have a solid understanding in the subject. In order to give young professionals a better foundation in mathematics and other the basic principals of engineering, there is a need to go back and develop the basic skills in a more practical and problem solving environment than they received during their undergraduate course. Such a move may be regarded by some as demeaning, so it is important that courses are structured in such a way as to make the topics being studied applicable to the kind of problems encountered as part their work. For example, geometry could be taught in the context of determining land areas. The approach to education at the universities tends to be rather old fashioned with formal lectures and note taking. There are no activities aimed at developing a student’s capacity for problem solving or the ability to find solutions to problems they have not been specifically taught and this is evident amongst graduates joining the Ministry. Unfortunately at present the Ministry does not have a formal career development policy for young graduates and technicians. The World Bank funded AWARD TA, provides an opportunity for young graduates to gain practical experience in different core engineering skills, such as mapping and surveying, hydrology, geotechnical investigations, preliminary engineering design of water resources infrastructure, civil and consultancy contracts, etc. The value of supervised “hands-on” work experience under the guidance and direction of a qualified engineer cannot be underestimated and is key to achieving professional status in many developed countries.


10.2 Professional Qualifications and Registration A proficient engineer has both academic qualifications and practical “hands-on” experience. It is often said that an engineer’s training begins after he/she graduates and in many countries, the engineering profession has a formal post-graduate training programme, which leads to a recognised professional qualification in addition to the academic qualification. The same type of professional training also applies to accountants and accounts technicians. There is currently no professional registration of engineers in Afghanistan, though there is an Afghanistan Engineers Association, which is open to engineering graduates from approved educational institutions. The Association focuses on the preparation of engineering manuals, in both English and Dari. Regrettably the Association does not operate a career development or professional certification programme, so once a student graduates, there is no formal opportunity for career enhancement within the country, though some may be fortunate to work with experienced national and international engineers who are willing to provide guidance and direction to young graduates. The Indian Association of Engineers is planning to introduce a profession qualification for engineers similar to the British system where an engineer can register as a Chartered Engineer, under the auspicious of the Engineering Council. In UK the registration process varies for the different engineering institutes. In the case of civil engineers, applicants must have an approved degree and four or five years experience under the supervision of a registered engineer, after which there is an exam and a professional interview. Large construction companies, consultants and government organisations undertake to provide a broad based “hands-on” training programme for graduates encompassing all the main fields of construction, planning and design, to ensure the individual has experience in all facets of the profession. It is unlikely the Afghanistan Engineers Association will be able to establish a registration system for engineers in the foreseeable future. Consequently, once the Indian Engineers Association has its’ registration programme in place, it would be worth exploring opportunities to enable members for the Afghanistan Engineers Association to obtain recognition under the Indian system as an affiliate. Initially, a major problem with the introduction of a registration programme is the shortage of suitably qualified and experienced senior staff within the Ministry who can mentor graduate staff. In UK for example only registered engineers with a specific number of post registration years can act as a mentor. Until sufficient Ministry staff attain registration, arrangements will have to be made to attach graduates to professionally registered international engineers and there are normally reciprocal agreements between national engineering associations to allow for this.

10.3 Short-Courses and Day Release Training There is an urgent need for a concerted training and work experience programme targeting all staff levels in the Ministry. To date capacity building projects have focused on professional training, but there is an equal need to support administrative departments, which are also under performing. The Ministry does not have a dedicated water sector training centre in Kabul and short course are normally held in one of the Ministry’s conference rooms either at the main Ministry compound or in the office of the Kabul Provincial Water Management Department. However, these are not ideal for training, with participants seated


around a large central table and also priority is given to meetings so courses are likely to be interrupted. There is also the Mechanical Institute, which is situated near the main Ministry compound. The Institute provides formal full-time technical education for school leavers and mature staff, who are sent by MEW departments and thus the facilities are normally fully occupied. It is therefore suggested that the Ministry constructs a dedicated short-course centre within the existing Ministry compound, which ideally would comprise:

Two classrooms (40 m² each) equipped with furniture, overhead projector, screen, multi-media projector, white boards, etc

Computer centre (30 m²) equipped with eight student desktop computers and master computer, multi-media projector, screen, etc.

Drawing/design office (40 m²) equipped with four A1 drawing stations, mapping table, four AutoCAD stations, etc

Technical Library (20 m²) fitted with shelves and furniture

Three offices (12 m²)

Bathroom facilities

Reception area

Storage facilities for field equipment and stationary

Dining room and small kitchen The building could be on two floors to reduce the land area.

11 TA CONSULTANT’S ACTIVITIES 11.1 Security Considerations

The security situation in Afghanistan deteriorated over the duration of the TA. Consultants engaged under the TA were required to comply with the UN’s MOSS (Minimum Operating Security Standards) and these impose serious constraints on small projects, which have only limited resources and thus have to rely on hiring or borrowing armoured vehicles and other equipment in order to comply. The situation is changing all the time and approval has to be sought from the UN security authorities for permission for each trip and then depending on the threat level, approval is given conditional on compliance with the appropriate level of security. The highest level that allows travel requires foreign staff to travel in a convoy of at least two armoured 4WD vehicles. During the year the Canadian funded SAT project was supporting the PIU (Water), both the national and international staff had access to armoured vehicles and guards/drivers (Canadian military in civilian clothes) for field trips. These were generally very low-key missions with no visible guns, which enabled team members to discuss development options with local communities in a relaxed and friendly environment. Unfortunately when the SAT-A project ended, the security support stopped, which immediately restricted international staff travel to the relatively safe north and west of the country. The TA consultant has tried on a number of occasions to set-up meetings with various units within ISAF to discuss ways of supporting the Ministry’s development


activities, but nothing happened. As a result major development initiatives by the international donors are being concentrated in the relatively peaceful north of the country. Given the inexperience of the regional consultants implementing the feasibility studies it is essential that an experienced water resources/development engineer visits each site to ensure that the proposed works are appropriate and viable. Examples of inappropriate works included proposals to construct of a large canal half-way-up an exposed limestone cliff face, the inclusion of supposedly irrigable land, where a contractor was excavating surface gravel, gross under-estimation of the numbers and problems of enforced resettlement, etc. The lack of security measures to facilitate visit sites to medium and high risk areas means projects are now being progressed with no opportunity for proposals to be assessed in the field. There is an urgent need for closer co-operation between the international donors and the international security forces to provide security in medium and high risk areas to support development activities and this obviously has to be resolved at the highest level. However, any support will require a change in the aggressive approach adopted by the military, in order to allow the development teams to engage with communities in an informal and relaxed atmosphere. If the security forces are unable or unwilling to work with development agencies then the disparity between those areas where donors can operate in reasonable safety and those considered too risky will be exasperated. Parliamentarians from less secure areas are already putting pressure on the Ministry to initiate projects in these areas. The Ministry has in the past tried to use provincial staff who are familiar with the local conditions to indentify possible projects, but the low technical calibre of these staff means that the selection of potential interventions is based on the influence of local leaders rather than technical considerations. The MEW is unable to guarantee the security of consultants whilst on field trips and the normal procedure is to formally notify the Provincial and District authorities that a team of consultants will be visiting the area and request them to provide appropriate security. However, this usually involves the deployment of an escort of armed police or soldiers, which can intimidate the local communities.

11.2 Co-ordination with Other MEW Projects The TA consultant through the PIU (Water) is fully integrated into the Planning Department in the Ministry and is providing assistance and advice on all manner of subjects in addition to those directly related to the water sector. The PIU (Water) has developed close, but unofficial links with the other donor funded water sector projects being undertaken in the Ministry. The consultant regularly attends Water Commission and the Ministry’s Leadership meetings to advise on specific issues. In addition briefing notes and progress reports are prepared for the Minister and DM (Water) as required.

11.3 Liaison with Other Government Departments and Agencies

11.3.1 Afghanistan Reconstruction and Development Service (ARDS) The TA consultant and PIU (Water) work closely with the Afghanistan Reconstruction and Development Service (ARDS), the Government’s procurement agency, based in the Ministry of Economy. ARDS is responsible for managing the tendering process for both internationally and nationally funded contracts, up to contract signing. Unless


specifically required by the funding agency, the tendering process used by ARDS is based on the World Bank guidelines. In the case of consultancy contracts, the instructions to bidders, technical and financial forms, data sheet and contract are all standard documents.

11.3.2 Asian Development Bank In addition to the support and advice to ADB funded water sector projects, the central role played by the PIU (Water) in the water sector, means that AFRM and ADB head office staff have an insight into the operation of the Ministry, the role of the key players, proposed projects, changes in strategies and policies, etc. With the end of the TA, the Bank will no-longer have a permanent long-term contact person in the Ministry and this may delay the planning and tendering stage of future projects.

11.4 Vehicle, Offices and Equipment

The TA project has procured a 4WD double-cab pick-up for official use by the consultant, which has been registered as a government vehicle. The driver’s salary and vehicle running costs are being funded by the TA. In addition, since the establishment of PIU (Water), the TA has hired a vehicle. The PIU (Water) occupies two large offices in the MEW compound on the Darulaman Road in Kabul. The first office was already partly furnished and the TA project procured the remainder of the furniture, all the computer equipment and some field equipment. The second office was allocated to the unit in anticipation of an increase in the number of international consultants and seconded staff. This office was furnished by the TA and the GoC as part of the SAT project. Additional computers and ancillary equipment were purchased by the SAT and at the end of that project a nearly new multi-function A0 colour printer was transferred to the office. The TA has financed the procurement of the following office and field equipment: Office Equipment

1 x Canon IR 2016J photocopier 5 x Dell desktop computers 5 x UPSs 1 x HP 510 notebook computer – stolen, a police report is available 1 x 300 Mb Maxtor external hard-drive 2 x HP Laserjet 1018 printers 1 x HP Deskjet 1280 colour printer 2 x HP Scanjet 3800 A4 scanner 1 x Harlem gas/electric heater 1 x Samsung vacuum cleaner 3 x Casio fx-911W calculators 1 x Comb binding machine Specialist Software

1 x Single user licence ArcView GIS version 9.2 2 x Google Earth Plus Field Equipment

1 x Nikon Coolpix 7.1 mega pixel digital camera 1 x Garmin 76S GPS


1 x battery charger + 8 AA rechargeable batteries The above equipment has been formally handed over to the Ministry.

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APPENDIX A

Eng Shujaudin Ziaie

Deputy Minister (Water) Ministry of Energy and Water

PRR Organgram for Water Sector

Secretary Grade - 4

Department of Law and Economic Affairs

Over rank

Department of Technical Affairs

Over rank

Secretary Grade - 4

Secretary Grade - 4

Law Grade - 1

Gender Grade -1

Environment Grade -1

Economics Grade - 1

Sociological and Cultural Grade -1

Hydrology Grade - 1

Hydro-Technique (Design) Grade - 1

Hydrogeology Grade - 1

Geology Grade - 1

Metrology Grade - 1

Industrial and Civil Structures Grade - 1

Technical Staff Computer Operator Grade - 2 (1) Driver Grade - 2 (3) Cleaner Grade – 2 (1) Office assistant Grade – 6 (1)

Deputy Minister (Water)

Out of rank

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APPENDIX B Ministry of Energy and Water, Project Implementation Unit (Water) On-Going Projects

Project Code Name of Project Name of Company

Responsible Engineer Start Date End Date Contract

Value USD Remarks

AFG/0594301 Feasibility Study of Small and Medium Dams

CES Eng Naim 11 Jun 06 5 Jun 08 2,132,010 Completion delayed

AFG/0602102 Feasibility Study of Kajaki Gates Project

Hasan Construction

Eng Naqib 20 Feb 07 20 May 08 Project complete (value USD 500,000)

AFG/0602103 Feasibility Study of Gambiri Irrigation Project

Tossab Eng Naim 22 Aug 06 22 Aug 07 751,500 Final Feasibility Report submitted

AFG/0602104 Design and Build Contract for Amu Darya-Andkhoi Pump Scheme

Tossab/ Mumtaz JV

Eng Nqib 10 May 07 10 Jun 09 10,480,928 Survey and design under review construction of 12000 m³ and 500 m³ reservoirs nearing completion

AFG/0602105 Feasibility Study for Kelagai Storage Dam

CES Eng Zarif Dec 06 Jun 08 2,210,000 Review revised Definition Report, geotechnical investigation started, new completion date Feb 09

AFG/0602106 Feasibility Study for Farah Rod Irrigation Project

CES Eng Naim Aug 06 Apr 08 2,321,560 Definition Report submitted, geotechnical work in progress

AFG/0632101 Rehabilitation of MEW Conference Room

Afghan Companies

Eng Naqib 21 Mar 07 20 Aug 07 300,000 99% complete

AFG/0753501 Emergency Flood Control along Amu Darya

Afghan Companies

Eng Naqib Apr 07 Aug 07 3,994,500 98% complete

AFG/0337701 Feasibility Study for Kama Irrigation and Hydropower Project

Mahab Ghodss

Eng Naim Jan 08 Jun 09 1,900,000 Definition Report submitted and reviewed, Phase 2 to start

AFG/0663801 Feasibility Study of Gulbahar Storage Dam

Yekom Eng Zarif Feb 08 Aug 09 2,459,517 Inception Report under review

AFG/0710701 Feasibility Study of Shatoot Storage Dam

Pooyab Eng Zarif Jun 08 Nov 09 1,869,000 Inception report under review

AFG/0632001 Procurement of Deep Well Drilling Equipment

Mohan Exports

Eng Naim 19 Nov 08 19 Mar 09 1,335,370 Contract recently awarded

Total 29,754,385

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APPENDIX B continued Ministry of Energy and Water, Project Implementation Unit (Water) Projects Under Tendering


Responsible Engineer

Start Date End Date Estimated

Cost USD Remarks

AFG/0456301 Feasibility Study for Kamal Khan Flood Control and Hydropower Project

Eng Zarif 816,000 Evaluation complete, only one bidder, pending SPC decision

AFG/0602101 Feasibility Study for Upper Amu Darya Irrigation and Hydropower Project

Eng Zarif 2,000,000 Pending

AFG/0710601 Procurement of Surveying and Testing Equipment

Cancelled

AFG/0771201 Consultancy Services for Detail Survey and Design of Small Dams and Related Structures

Eng Zarif 7,500,000 EoI evaluation complete, currently on hold pending decision by MEW on how to proceed

AFG/08077801 Control of Flooding and Bank Erosion along the Amu Darya/Panj River

Eng Naim 2,500,000 Technical Proposals under evaluation

AFG/807701 Nahree Lashkari Canal Greenbelt 1,490,000 Bidding documents prepared, pending with ARDS

AFG/807401 Warsaj Irrigation and Hydropower Project

Eng Raouf 2,000,000 ToR prepared, pending with ARDS

AFG/8074001 Chashma-e-Shafa and Pule-e-Barak

Eng Raouf 1,500,000 ToR prepared, pending with ARDS

Total 17,806,000

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APPENDIX B continued Ministry of Energy and Water, Project Implementation Unit (Water) Pipeline Projects


Responsible Engineer

Start Date End Date Estimated

Cost USD Remarks

AFG/0730201 Andkhoi Irrigation Project Eng Zarif

Alishing Irrigation Project Eng Raouf

AFG/0753001 Preliminary Study of Machalgho and Paraki Irrigation and Hydropower Schemes in Paktiya and Paktika

Eng Naim

Kafgan Irrigation Project Eng Raouf

Rehabilitation of Six Dams Eng Raouf

Kalagosh Irrigation Project Eng Raouf Almar Storage Dam Civil Works

Contract Eng Naim Feasibility Study and contract

documents available, pending with ARDS

Shah-wa-Arous Storage Dam Civil Works Contract

Eng Naim Feasibility Study and contract documents available, pending with ARDS

Pashdan Storage Dam Civil Works Contract

Eng Naim Feasibility Study and contract documents available, pending with ARDS

Almar Storage Dam Construction Supervision Contract

Eng Naim Draft ToR prepared

Shah-wa-Arous Storage Dam Construction Supervision Contract


Pashdan Storage Dam Construction Supervision Contract


Detailed Design of Gambiri Irrigation and Hydropower Project

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APPENDIX C

Appendix D

APPENDIX D Ministry of Energy and Water Concept paper on the need for a supervisory consultant to oversee the implementation of water sector projects 1. The Government of Afghanistan (GoA) is embarking on an unprecedented five year investment programme for the water sector. The Ministry of Energy and Water (MEW) will be the primary implementing agency and because of the number of projects, consultants will be engaged to undertake the feasibility studies and prepare detailed designs and tender documents for civil and procurement contracts, and supervise the construction and installation contracts. 2. The performance of the consultants currently working in the sector is generally unsatisfactory and the Ministry does not have sufficient staff to adequately monitor and evaluate the contracts in a timely manner. The MEW is concerned that unless there is a substantial improvement in the completeness and quality of study “outputs”, the entire water sector development programme could be seriously compromised. 3. The aim of the feasibility studies is to assist the Ministry to prioritise and optimise potential projects and provide the Ministry of Finance (MoF) with a comprehensive feasibility report to support funding requests to the international donors. These reports should therefore address the technical, social, environmental and economic issues to a level required by the international donors. Regrettably, the prevailing security situation in the country is deterring many large reputable international consulting firms from bidding for work and contracts are being awarded to regional consultants many of whom do not have the experience or understanding of what is required. This has resulted in a number of potential projects being rejected by donors, not because the need is not there, but because the proposed interventions were inappropriate and/or the reports did not fully address the issues. 4. The Ministry has established a Project Implementation Unit (Water), funded through an ADB TA project, to manage and evaluate consultancy contracts financed by the Afghanistan Reconstruction Trust Fund (ARTF). The unit currently comprises two international consultants, four seconded MEW engineers and two support staff. This level of staffing is insufficient to adequately monitor and evaluate all the on-going consultancy projects and with four projects due to commence in the near future, it will be impossible to maintain even a cursory level of oversight. 5. It is understood that a number of donors have expressed an interest in funding a TA consultancy to assist the Ministry evaluate the outputs of ARTF financed studies and civil works contracts. However, given the inexperience of many of the regional consultants, it is necessary to intervene earlier in the process to provide guidance and direction throughout the period of the study in order to ensure the “outputs” satisfy the requirements of the international donors. 6. In order to enhance the level of oversight, the Ministry is urgently seeking support to fund a “super consultant” to manage the civil and consultancy contracts, identify and prioritise projects and provide work experience and training of Ministry staff to enable them to take over responsibility, though it is anticipated that the transition will take a number of years. The consultant would be expected to assume responsibility for the operation and capacity development of the current PIU (Water). The scope of services would need to include:

i Assist the Ministry to identify and prioritise potential water resources projects

ii Undertake reconnaissance surveys and prepare a preliminary assessment of possible projects

iii Prepare “Terms of Reference” for feasibility studies and assist in the tendering process

Appendix D

iv Provide direction and guidance to the implementing consultant, to ensure the study is in-line with the requirements of the major funding agencies, with particular attention to environmental, social and resettlement issues.

v Manage contracts, certify payments, etc

vi Evaluate reports and other outputs, and where necessary advise the consultant on how best to remedy shortcomings

vii Devise and implement a capacity building programme for Ministry staff, with both formal training and supervised work experience

viii Advise the Ministry on water resources issues, the introduction of integrated water resources management (IWRM) based on the basin approach, the establishment and strengthening of River Basin (and Sub-Basin) Councils and Agencies, and the interaction between projects within the same basin

7. In addition to office activities, the super consultant’s team members must be able to visit proposed project sites. Such on-site visits are essential to ensure proposals are realistic and that serious physical, social or environmental obstacles are not being ignored. 8. Recent ToRs prepared for feasibility and detailed design contracts include provision for a Panel of Experts (PoE), which is empowered to direct the consultant during the course of the study. Special clauses would retain responsibility for the contract with the consultant. The introduction of a PoE ensures that the study findings and deliverables are complete and the work is conducted in accordance with international norms and donor specific requirements. 9. The Ministry has expressed a preference for engaging a firm of consultants rather than recruiting individuals, in order to ensure a legal entity is responsible for the performance of the team. If the consultant has to be recruited using a quality cost based selection (QCBS) process, stringent pre-qualification criteria should be applied to exclude inexperienced and poor quality firms. It would therefore be preferable to recruit the super consultant using quality based selection (QBS) or direct selection (DS). 10. The lead time to design the TA project, obtain donor approval, undertake the tendering process and award the contract is likely to take a minimum of 12 months. However, given the increasing number of feasibility, procurement and construction contracts being signed by MEW and the inclusion of the PoE to monitor progress throughout the contract period, the two international advisors currently working in PIU (Water) are unable to provide the required level of supervision. Consequently, there is an urgent need for an interim solution to strengthen the existing PIU (Water) immediately to facilitate the monitoring and evaluation of on-going and recently awarded contracts until the long-term consultant support contract is in place. 11. The ongoing ADB funded TA-4716 (AFG) project, which is currently financing the PIU (Water) is scheduled to end on 31 October 2008. The Canadian SAT-Afghanistan support is expected to continue with at least one person, and possibly two, until 31 July 2009, though there is no provision under this contract to fund the PIU (Water) running costs. Consequently, if ADB is unable to expand and extend their existing project, there is an urgent need to find an alternative donor to fund the transition period, which is expected to be at least six months in duration and could be more. 12. The scope of services for the super consultant will be defined during the project preparation phase, but is likely to involve a much broader and in-depth level of support than is currently being provided. In order to ensure adequate support for the interim period between the close of the ADB TA and the mobilisation of the super consultant, the current PIU (Water) set-up needs to be strengthened. Ideally the number of both international and seconded staff should be increased during the transition period to six international and ten nationals (eight seconded staff, two support staff) as the workload expands.

Appendix D

13. The Ministry expects to retain the PIU (Water) for the foreseeable future and thus it is anticipated that the staff assigned to the unit would become the national counterpart staff for the super consultant. Consequently the progressive expansion of the PIU, will facilitate a seamless transition to the super consultancy. The estimated monthly running cost for the expanded PIU (Water) is USD 138,050, which is divided between USD 125,000 for international staff costs and USD 13,050 for national costs. A breakdown of the cost is shown below in Table 1. Table 1: Preferred Option - Monthly Recurrent Cost

Cost (USD)

1 International Staff Costs

1.1 Team Leader/Water Resources Engineer 25,000 1.2 Water Resources Planner/Hydrologist 25,000 1.3 Geotechnical/Dam Engineer 25,000 1.4 Contracts Specialist Canadian support 1.5 Financial Specialist 25,000 1.6 Agricultural Economist/Agronomist 25,000

Sub-Total International 125,000

2 National Staff Costs 2.1 Support staff salaries (x 2 persons) 1,100 2.2 Training Allowances (x 8 persons) 4,600 2.3 Field trip per-diems (x 10 days) 550

3 Transport

3.1 Project vehicle running costs 900 3.2 4WD vehicle hire (x 2) 2,400 3.3 2WD vehicle hire (x 1) 900 3.4 Domestic flight (x 5) 600

4 Office Running Costs

4.1 Communications 300 4.2 Stationary 600 4.3 Office consumables (cartridges, etc) 600 4.4 Repair and servicing of equipment 300 4.5 Cleaning costs 200

Sub-Total National 13,050

Total 138,050

Note: International staff costs are inclusive of fees, flights, per-diems, etc 14. The proposed expansion of the PIU (Water) will require another office, which the Ministry will provide next to the existing offices. In addition some furniture and equipment will also be required, though this will be available for the super consultant project. The estimated cost of the new equipment is USD 7,700 and the breakdown is given below in Table 2.

Appendix D

Table 2: Preferred Option – Cost of Furniture and Equipment

Cost (USD)

1 Office furniture 2,500 2 Desk top computer with software (x 2) 2,400 3 DeskJet A3/A4 colour printer (x 1) 200 4 LaserJet A4 printer 200 5 UPS, cables, etc 400 6 Air conditioner (x 2) 800 7 Heater (x 2) 200 8 Miscellaneous fittings 1,000

Total 7,700

15. The minimum short-term requirement to provide a superficial level of management over the on-going ARTF projects would be for a team of four consultants; a team leader/water resources engineer, water resources planner/hydrologist, contracts specialist and a financial specialist. The PIU (Water) staff complement would remain the same, thus no additional equipment would be required and there would be no increase in the current office running costs. The estimated monthly cost for the minimum option is USD 82,215, which is divided into USD 75,000 for international staff costs and USD 7,215 for national costs. A breakdown of the costs is given below in Table 3. Table 3: Minimum Option - Monthly Recurrent Cost

Cost (USD)

1 International Staff Costs

1.1 Team Leader/Water Resources Engineer 25,000 1.2 Water Resources Planner/Hydrologist 25,000 1.3 Contracts Specialist Canadian support 1.4 Financial Specialist 25,000

Sub-Total International 75,000

2 National Staff Costs 2.1 Support staff salaries (x 2 persons) 1,100 2.2 Training Allowances (x 4 persons) 2,300 2.3 Field trip per-diems (x 5 days) 275

3 Transport

3.1 Project vehicle running costs 900 3.2 4WD vehicle hire 1,200 3.3 Domestic flight (x 2) 240

4 Office Running Costs

4.1 Communications 150 4.2 Stationary 400 4.3 Office consumables 400 4.4 Repair and servicing of equipment 150 4.5 Cleaning costs 100

Sub-Total National 7,215

Total 82,215

Note: International staff costs are inclusive of fees, flights, per-diems, etc

Appendix D

16. The duration of the transition period needs to be flexible, so that there is an overlap with the start of the super consultancy contract. 17. The Ministry is anxious to have the funding for the short-term funding in place as soon as possible, to avoid any interruption in the operations of PIU (Water). It is essential that the national costs are funded in full, in order to retain the national staff already working in the unit.

ISLAMIC REPUBLIC OF AFGHANISTAN MINISTRY OF ENERGY … · 2014. 9. 29. · islamic republic of...

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