Official PDF , 118 pages

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AFGHANISTAN RESOURCE CORRIDORPRIVATE SECTOR DEVELOPMENT

Local Capacity Assessment – Company ProfilesProgress Report #223th May, 2012

Copyright 2012

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WB456288

Typewritten Text

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AGENDA

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1. Executive Summary

2. Selection of priority categories from the procurement plan

3. Assessment of local capabilities Data collected Key findings

4. Next steps

5. Appendixes : Company profiles Services Manufactured Products Raw Materials Steel products

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• The assessment of local capacity was conducting in several stages: – After designing a procurement plan during the first phase of the project, we selected the

most important procurement opportunities that could be seized by the Afghan economy. – Based on that selected list of goods and services, we defined priority sectors of the Afghan

economy that we should assess: » Services » Manufactured products (particularly those to be used in construction or life-support) » Raw Materials » Steel Fabrication

– A tool specifically designed for each sector was used to conduct the assessment. – Altai Consulting selected a number of Afghan companies with enough experience of big

projects, that could become suppliers for the Chinese investors at Mes Aynak and Amu Darya.

– The findings from our 50+ interviews with local companies were verified using several methods:

» Interviews with suppliers, customers and other market actors » Verifications using Altai’s knowledge and databases » Verifications using external databases such as USACE-blacklisted companies or Building

Markets (PDT).

1. EXECUTIVE SUMMARY (1/2)

An assessment of Afghan companies in various sectors was conducted based on the potential procurement plan designed during the 1st phase of the project

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• Many companies are eager to participate in mining, seen as the next growth driver in the Afghan economy

• Larger enterprises have strong networks in many areas of the Afghan economy and among government officials, and are more likely to invest in mining procurement.

• Quality of work in services is usually good, but overall, management of Afghan companies is not up to international standards. Of the exceptions, usually the companies employ foreign managers.

• Raw materials for construction are readily available in Afghanistan at reasonable prices. This can be explained by the geography of Afghanistan and the boom in the construction sector in the last decade.

• Products manufactured in Afghanistan are usually of poor quality, and nearly always require imported raw materials or components. However, companies can procure a wide range of products for construction, assembled or transformed in Afghanistan.

• Steel fabrication taking place in Afghanistan is very far from covering the demand, and usually of very low quality. Most high quality steel products are imported from Uzbekistan, Russia, or Iran, and transformed in Afghanistan.

• External funding is usually found through partnerships with other companies or private investors rather than using bank loans. As a consequence, very few of the assessed companies have debts. Managers reported a willingness to work on big projects provided they find the right partners, with whom they would share profits and losses.

1. EXECUTIVE SUMMARY (2/2)

General findings about Afghan companies ability to participate in procurement activities for the extractive industries sector can be summarized as follows:

AGENDA

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2. Selection of priority categories from the procurement plan Aynak Amu Darya


4. Next steps


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• Many companies we assessed can provide multiple services or goods. However, it became clear during the assessment that those types of integrated companies have an historical business that can be classified as Cat.I, while newer activities could be classified as Cat.II

– Some construction companies built aggregate plants and supply construction materials or procurement services. They can be classified as Cat.I for engineering and construction, but Cat.II for aggregate production, because their capacity only covers some of their projects.

– Afghan Cement LLC is the historical provider of cement in Afghanistan, and the products provided are of good quality. Nevertheless, that company would require investment to upgrade its production capacity in order to deliver the cement in the volumes needed during the construction phase at Amu Darya or Aynak.

• Companies providing HR or consultancy services have the capability to hire and manage teams of workers or administrators. However, they have no experience in large scale mining or oil extraction. They are then classified as Cat.II on some procurement items, as their staff would require training to be able to operate in Amu Darya and Aynak projects.

• Some companies have the know-how to build and provide construction material or goods. However, their production capacity appears limited in the event of procuring a project as important as Aynak.

CLASSIFICATION OF ASSESSED COMPANIES IN CAT.I AND CAT.II

A clear classification of assessed companies in Cat.I and Cat.II is not always possible due to the differences in the maturity of goods and services on the local market

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Aynak will quickly represent an opportunity for local procurement during the investment phase; an important share of operating expenditures could be sourced locally in the medium term.

2.1. CLASSIFICATION OF AYNAK PROCUREMENT PLAN CATEGORIES - CAPEX

Non Recuring Non-Recurring Costs (CAPEX) ($m)

Cat. III

1,100-1,600

500-700 400-700

Cat. II Cat. I

71%40%

14%

69%

12%

100%

Construction Material

Equipment

Services / Labor

Cat. III

1,100-1,600

31%

Cat. II

400-700

16%

Cat. I

500-700

48%

25% 20%

55%

# of sub-cat. (Approximation)

(27) (14) (39)

100%

45%

45%

64% 36%

35 60

Opportunities for afghan companies (CAPEX) ($m)

60 35

# of sub-cat. (10) (3)

10%

Cat. II Cat. I

Cat. II Cat. I


Equipment

Services / Labor

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2.1. PRIORITY NON-RECURRING CATEGORIES – AYNAK

Focusing on 10 priority Category 1 items and 3 priority Category 2 items, we cover more than 50% of “actionable” Capex

Non-Recurring Subcategories (CAPEX) $m; based on lower range estimates

1. Construction equipment (all sites) ~$165m 2. Civil works & concrete labour (all sites) ~$95m 3. Transportation & hauling ~$50m 4. Construction Labour – road & building ~$30m 5. Concrete ~$20m 6. Painting ~$10m 7. Electric board ~$5m 8. Pumps for plants operation ~$5m 9. Sand / stone ~$5m 10. Bitumen ~$5m

Cat.1

1. Metallic piping $70m 2. Steel structure $60m 3. Electric cable $50m

Cat.2

~$390m 75% coverage

~$180m 45% coverage

Companies interviewed Capable companies

1. 11 companies assessed 11 Cat.I 2. 11 companies assessed 11 Cat.I 3. 6 companies assessed 6 Cat.I 4. 11 companies assessed 11 Cat.I 5. 2 companies assessed 2 Cat.II 6. 11 companies assessed 11 Cat.I 7. 3 companies assessed 3 Cat.I 8. 11 companies assessed 11 Cat.I 9. 6 companies assessed 6 Cat.I 10. 5 companies assessed 2 Cat.II

1. 8 companies assessed 3 Cat.II 2. 8 companies assessed 5 Cat.II 3. 4 companies assessed 2 Cat.I

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Aynak will quickly represent an opportunity for local procurement during the investment phase; an important share of operating expenditures could be sourced locally in the medium term.

2.1. CLASSIFICATION OF AYNAK PROCUREMENT PLAN CATEGORIES - OPEX

Recuring Recurring Costs (OPEX) ($m)

150-350

Cat. I

100-150

Cat. III Cat. II

150-250

13%

67%

93% 75%

27%

Maintenance Consumables

100% Services / Labor

Consumables

150-250

Cat. III Cat. II

150-350

12%

Cat. I

100-150

4%

18%

55%

27%


(15) (12) (16)

93%

57%

Opportunities for Afghan companies (OPEX) ($m)

Cat. I Cat. II

Cat. II Cat. I

23% 41% 36% 64% 35%

35 60

# of sub-cat. (7) (2)

35 60

43%

6% Services / Labor

Consumables

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2.1. PRIORITY RECURRING CATEGORIES – AYNAK

Focusing on 10 priority Category 1 items and 2 priority Category 2 items, we cover more than 45% of “actionable” Opex

Recurring Subcategories (OPEX) $m; based on lower range estimates

1. Fuel $50m 2. Spares for light vehicles $3m 3. Limestone $3m 4. Medical products $2m 5. Protection equipment $1m 6. Clothes, food and appliances $1m 7. Supplies (valve, piping, etc.) $1m

Cat.1

1. Ammonium nitrate/explosives $20m 2. Wear parts (foundry) $15m Cat.2

~$60m 60% coverage

~$35m 30% coverage

Companies interviewed Capable companies

1. 4 companies assessed 4 Cat.I 2. 7 companies assessed 7 Cat.I 3. 6 companies assessed 3 Cat.I 4. 7 companies assessed 7 Cat.I 5. 7 companies assessed 7 Cat.I 6. 10 companies assessed 10 Cat.I 7. 7 companies assessed 7 Cat.I

1. 1 company assessed 1 Cat.II 2. 8 companies assessed 0 Cat.II

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2.1. INSIGHTS ON LOCAL CAPABILITIES ON PRIORITY CATEGORIES - AYNAK

Based on the assessment of local companies, insights on their capabilities for each of the priority categories are as follows

• Regarding procurement plan Cat.I items needed during the development phase of Aynak, Afghan companies are fully capable of providing the following sub-categories of the procurement plan selected as priority opportunities:

– Construction equipment and material (Cement, concrete, sand, stone, etc.) – Civil works and labour – Road & Building labour

• Cat.II procurement plan items can be supplied by Afghan companies, but the exact specifications would be needed to ensure they can procure the exact quality and construction materials needed. The following sub-categories are mainly imported into the country, and transformed in the country based on the clients needs:

– Metallic piping – Steel Structure – Electric cable

• Regarding items needed during the operating phase of Aynak, Afghan companies are able to supply most of the consumables needed during mining operations:

– Fuel – Spares for light vehicles – Clothes, food and appliances – Explosives (Ammonium nitrate), etc.

• However, it should be noted that Afghan companies are able to provide the consumables needed, but almost none of it is fully produced in Afghanistan. They are mostly procured abroad, and in some cases, marginally transformed in the country.

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Amu Darya also represents a short-term opportunity for local procurement; the refinery and well operations represent a long-term opportunity for the region

2.2. CLASSIFICATION OF AMU DARYA PROCUREMENT PLAN CATEGORIES - CAPEX

Cat. III

100-200

Cat. II

200-400

Cat. I

150-300

39% 39%

12%

46%

32%

8%

150-300

49%

100%


Equipment

Services / Labor

Cat. III

100-200

29%

Cat. II

200-400

46%

Cat. I

Non-Recurring Costs (CAPEX) ($m)

33%

45%

22%

# of sub-cat. (Approximation) (20) (24) (15)

45%

14%

31%

15%

50% 50%

130 130

130 130

Opportunities for Afghan companies (CAPEX) ($m)

# of sub-cat. (10) (3)

45% 46%


Equipment

Services / Labor

Cat. II Cat. I

Cat. II Cat. I

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2.2. PRIORITY CATEGORIES – AMU DARYA

With 10 priority Category 1 and 3 priority Category 2, we cover a large share of Amu Darya “actionable” local procurement

1. Cement/Concrete $50m 2. Transportation & Hauling $20m 3. Equipment for civil works – Refinery $15m 4. Labor for civil works – Refinery $15m 5. Testing and analysis – Oil production $10m 6. Administration labor – Oil production $5m 7. Fuel & Power – Drilling $5m 8. Housing and catering – Drilling $5m 9. Environmental & Safety $5m 10. Water $3m

Cat.1

1. Operator – Drilling $70m 2. Pumping equipment $40m 3. Civil works material – Refinery $20m

Cat.2

~$130m 80% coverage

~$130m 65% coverage

Non-Recurring Subcategories (CAPEX) $m; based on lower range estimates Companies interviewed Capable companies

1. 2 companies assessed 2 Cat.II 2. 6 companies assessed 6 Cat.I 3. 11 companies assessed 11 Cat.I 4. 11 companies assessed 11 Cat.I 5. 5 companies assessed 0 Cat.II 6. 5 companies assessed 2 Cat.II 7. 4 companies assessed 4 Cat.I 8. 4 companies assessed 4 Cat.I 9. 6 companies assessed 1 Cat.II 10. 4 companies assessed 4 Cat.I

1. 5 companies assessed 5 Cat.II 2. 11 companies assessed 11 Cat.II 3. 11 companies assessed 4 Cat.II

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Amu Darya also represents a short-term opportunity for local procurement; the refinery and well operations represent a long-term opportunity for the region

2.2. CLASSIFICATION OF AMU DARYA PROCUREMENT PLAN CATEGORIES - OPEX

Cat. III

0-50

Cat. II

0-50

Cat. I

50-150

48%

14%

50%

18%

41%

Cat. II

0-50

50%

Cat. I

50-150

41%

100%


Consumables

Services / Labor

Cat. III

0-50

38%

Recurring Costs (OPEX) ($m)

60%

20% 20%


(20) (8) (5)

8%

36%

63%

90%

10%

Recurring Costs (OPEX) ($m)

Cat. II Cat. I # of sub-cat.

(Approximation) (10) (2)

6

50

6 50

82%

1%


Consumables

Services / Labor

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2.2. PRIORITY CATEGORIES – AMU DARYA

With 10 priority Category 1 and 3 priority Category 2, we cover a large share of Amu Darya “actionable” local procurement

1. Fuel, power & Water – Oil prod. & Refinery $30m 2. Administration – Oil prod. $4m 3. Operators – Oil production $3m 4. Work over rig services $3m 5. Maintenance of tanker trucks $3m 6. Fasteners (nuts, bolts) $2m 7. Remedial services $2m 8. Automotive services $2m 9. Labor – Refinery $2m 10. Drivers – Oil transportation $2m

Cat.1

1. Small spare parts – Oil production $5m 2. Protection equipment $0.5m Cat.2

~$50m >90% coverage

~$6m >90% coverage

Recurring Subcategories (OPEX) $m; based on lower range estimates Companies interviewed Capable companies

1. 6 companies assessed 6 Cat.I 2. 5 companies assessed 2 Cat.II 3. 5 companies assessed 5 Cat.I 4. 5 companies assessed 1 Cat.II 5. 5 companies assessed 4 Cat.I 6. 3 companies assessed 2 Cat.I 7. 5 companies assessed 2 Cat.II 8. 6 companies assessed 3 Cat.I 9. 5 companies assessed 2 Cat.I 10. 5 companies assessed 5 Cat.I

1. 3 companies assessed 2 Cat.I 2. 3 companies assessed 2 Cat.I

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2.2. INSIGHTS ON LOCAL CAPABILITIES ON PRIORITY CATEGORIES – AMU DARYA

Based on the assessment of local companies, insights on their capabilities for each of the priority categories are as follows

• Regarding procurement plan Cat.I items needed during the development phase of Amu Darya, Afghan companies are fully capable of providing the following sub-categories of the procurement plan selected as priority opportunities:

– Construction equipment and material (Cement, concrete, sand, stone, etc.) – Civil works and labour – Road & Building labour – Life-Support services

• Cat.II procurement plan items specific to oil extraction such as pumps, refinery material and drilling operators could be procured by Afghan companies provided they have sufficient time to invest on those sub-categories of the procurement plan, because none of them now has those items in their offerings, but they have the capability and the will to invest on extractive industries.

• Regarding items needed during the operating phase of Amu Darya, Afghan companies are able to supply most of the consumables needed during mining operations:

– Fuel, power and water – Automotive services and maintenance

• Services related to oil production and refinery are currently almost non-existent among Afghan companies. However, several companies are able to provide workers who could be trained to operate the oil production operations

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• Among the 100+ procurement categories for both projects at Aynak and Amu Darya, we selected the 10 biggest categories of goods and services classified in the first tier. Those categories cover a majority of the opportunities that could be seized by Afghan companies, both in the development phase and the operating phase of the projects.

• The goods in category 2, requiring action to reach the standards or production levels required by the Chinese investors were also chosen among the biggest opportunities in the procurement list. Those goods and categories cover a fair share of the potential opportunities for Afghan companies.

• Based on the goods and services identified, we selected a number of Afghan companies able to procure those goods and services, trying to focus on the ones that already have experience working with foreign companies in Afghanistan, and would have the potential capacity to supply very big projects over a long period of time.

2.4 SELECTION OF POTENTIAL SUPPLIERS

Based on the findings from procurement plan design, a list of potential suppliers was established, in order to assess their capabilities

AGENDA

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4. Next steps


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• General information and financial data about the companies were collected : – Contact information, age of company, experience with international organizations,

geographical scope of operations, turnover, net profit ratio, current ratio, Debt service ratio, Afghans employment and experience of core personnel

• Companies were divided in 4 categories, based on the type of products / services needed in the procurement plan

– Services providers : transportation, security, technical services, etc. – Manufactured products providers – Raw material providers – Steel Fabrication and trading

• For each of those categories, a specific set of questions were asked – Services: focused on Human resources, their experience and training – Manufactured products and steel providers: focus on the quality of products, fabrication,

and capacity for special orders – Raw materials: focus on the quality of raw materials delivered and the fabrication process

• Verification was conducted through short interviews of customers / suppliers whose contacts were provided by the assessed companies themselves. When not available, we used market intelligence from International organizations such as USACE, Building Markets or market knowledge and network built by Altai over years of operation in Afghanistan

3.1. DATA COLLECTED DURING THE ASSESSMENT

The assessment was realized by collecting the following data from the Afghan companies we interviewed

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• Afghan companies offer a wide range of services: Construction and engineering, procurement, life support services, security and logistics.

• The growth of those companies over the last ten years was mainly driven by the reconstruction of Afghanistan and projects funded by international organisations.

• As a consequence, most Afghan companies with the scale to provide services that were assessed in our study have been working in international contexts, by contracting or sub-contracting with international organisations and private companies.

• Most companies assessed have integrated in their business strategy the downsizing of international aid and reconstruction projects after 2014, and the increase in projects related to the mining industry, which will be the main driving force for Afghanistan’s economic growth in the coming years.

• The quality of the work provided by the assessed companies is generally very high compared to Afghan standards. However, many areas of improvement exist :

– In general, local standards for construction and logistics are lower than international standards

– International companies sub-contracting Afghan companies think that the management is usually poor, and not to international standards regarding marketing and customer service.

– Afghan companies themselves acknowledge that they have to make improvements regarding business management and soft skills.

3.2. KEY FINDINGS FOR SERVICES PROVIDERS

More than 20 service suppliers were assessed on the Afghan market. Our main findings about those potential suppliers to MCC and CNPCI-W are as follows:

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• Manufacturing capacity is very low in Afghanistan, and involves a lot of foreign content.

• Usually, manufacturing companies locally produce one or two products and provides to their customers a wide range of imported products to be able to satisfy the needs of their clients.

• Many manufacturing companies also offer related services: companies offering electrical products provides electrical engineering services.

• Manufactured products used in construction are mainly transformed/adapted in Afghanistan, or simply imported from abroad.

3.2 KEY FINDINGS FOR PROVIDERS OF MANUFACTURED PRODUCTS

Our key findings about providers of manufactured products are as follows

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• The geography of Afghanistan and a boom in the construction business over the past decade has resulted in raw material for construction being readily available, and at relatively cheap prices throughout Afghanistan.

• The main raw materials provided by the companies assessed are: – Gravel – Stone – Sand – Cement and Concrete

• The quality of the raw materials usually depends on a corporate commitment to provide

quality products and to test them using the services of external laboratories.

3.2. KEY FINDINGS FOR PROVIDERS OF RAW MATERIALS

Raw materials used in construction are readily available in Afghanistan. Here follows our key findings about companies producing raw materials

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• Suppliers of steel import rebars and steel structures mainly from Uzbekistan and Russia. • The availability of energy supply has always been a big problem in steel fabrication in

Afghanistan. • Steel traders have developed a capacity to transform the products depending on the needs of

their customers. • The biggest steel suppliers, such as Rahim Gardezi, Zurmat and Sino-Afghan steel (part of the

Watan group) have plans to develop steel factories in the future. • When metal engineers from Afghanistan are not available, companies would employ Pakistani

engineers. • The procurement sub-category of foundry wear parts rise a specific aspect of the local steel

market: – Existing foundries are artisanal and are not capable, nor willing to work in the extractive industries – Afghan steel providers are mostly traders, and do not have the capacity to build wear parts – Plans exist to build steel plants or foundries, but it would be necessary to bridge the gap between the

demand of the extractive industries and the local market future capabilities – To develop successfully foundries, the program of action needs to address the lack of funding, identifying

sources of patient capital and trained personnel on the local market – Some Afghan investment groups indicated an interest to develop foundries which could provide wear parts

for Aynak copper mine, but which could also benefit more largely the Afghan market

3.2. KEY FINDINGS FOR PROVIDERS OF STEEL PRODUCTS AND WEAR PARTS

Steel production is at very low levels in Afghanistan, which explains why the assessed companies are mostly steel traders, and not producers.

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• Watan Group has influential government relationships that allows them to facilitate their business operations, and may have a preferential arrangement with CNPC on procurement

• However, WG does not cover the entirety of the procurement needs of Amu Darya, and CNPC may have an interest in diversifying its suppliers in case of political change in the medium term.

• The Watan Group owns companies able to provide large chunks of the procurement plan at Amu Darya :

– Ehsan Construction (Engineering and construction) » Ehsan construction works on design/build projects throughout Afghanistan

– AMP Logistics (Transportation and logistics) » AMP Limited facilitates the distribution of different products throughout Afghanistan through the use

of its own storage facilities, strong local distribution networks

– Watan Risk Management (Security) » Watan Risk Management is in the process of obtaining an RMC license, that would allow it to continue

to operate as a security company, without having to appeal to the Afghan Police Protection Force (APPF)

» The security arm of the Watan Group has been banned to work with US organizations 3 years ago.

– Watan Oil & Gas (Fuel & Gas supply) » Watan Oil & Gas operates in 3 main areas : Exploration and Production, Refining and Marketing, and

Gas and Power

– Sino-Afghan Steel (Steel fabrication) » The plant to produce steel is not operating yet, but could provide metal structures needed to build

and maintain the wells in the Amu Darya basin

3.2. KEY FINDINGS – IMPLICATION OF WATAN GROUP IN PROCUREMENT PLAN AT AMU DARYA

Watan Group, the joint-venture partner of CNPC, has capabilities to provide many of the biggest procurement categories at Amu Darya

AGENDA

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4. Next steps


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• Based on the procurement opportunities selected, and taking into account the local capabilities, we will design a program of action allowing Afghan private sector to seize the opportunities linked to the construction and early operation of Aynak copper mine and Amu Darya oil fields.

• Meetings should be held with MoM, the National Resource Secretariat, MCC and CNPCI-W to have a better understanding of where they stand in the development of Aynak and Amu Darya projects.

• One of the key successes in designing the program is to associate stakeholders and give them a sense of ownership of the program

• Contacts were initiated during the course of the project with actors that could give valuable input in the program design : ACCI, AISA, ISAF, DFID, CIDA, etc.

• The goal of the program will be to develop the competitiveness of Afghan companies and transfer knowledge and best practices to Afghanistan.

– Enhance Afghan companies business & technical competency – Internalize linkage processes within industry – Increase Afghan companies access to finance – Bridge demand/ supply information flow gaps among Afghan companies, industry,

government and financing institutions

4. NEXT STEPS : PROGRAMME DESIGN

The next step of that project will be to design a program of action for seizing the opportunities linked to the development and operation of Aynak and Amu Darya

AGENDA

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4. Next steps


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MIRGROUP MINING CO. (1/2)

Contact information Sayed Mirwais, tel : 0773030525 email : [email protected]

Location of HQ Qala-e Fatullah, in front of Ehsan Petroleum, Kabul

Website http://www.mirgroupafg.com/

Type of Business Technical services

Established Between 3 and 10 years ago

Geographical Scope of Operations Kabul, Herat

Ownership Structure Private Afghan

International Experience supply only afghan organisations

Turnover below $1m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt: None Current Ratio: Unreported

Cat. 2

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MIRGROUP MINING CO. (2/2)

Services Provided Marble Extraction. Services related to stone mining : supply of equipment material, HR services related to hiring and training mine workers, mining engineering. Can also provide geology services and environmental services via partnerships with experts or other companies.

Level of Experience of skilled staff Specialized employees have more than 5 years of experience

Afghan Employment Less than 20 employees, 100% of Afghan employees

Skilled Employees Less than 10% of skilled employees

Training Internal training every year

Reputation on the market

Has a wide range of stones available, at different quality and prices. Operates mostly around Herat region HR and technical Services couldn’t be verified yet on the market

Comments MirGroup is sharing business interests with White Eagle HR, and they can offer services ranging from security and logistics to stone mining engineering. Mir Group lacks experience on copper mining, and could provide geology and environmental services provided they find sufficient incentive in upgrading their offering.

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SALEEM CARAVAN LTD (1/2)

Contact information Haje Hafiz Caravan, tel : 0786530000-0700275658-0777275658 email : [email protected]

Location of HQ Shop no.57, Siray Shahzada, Kabul Afghanistan

Website www.saleemcaravan.com

Type of Business Engineering and construction

Established More than ten years ago

Geographical Scope of Operations Kabul, Nangarhar



Turnover above $5m

Financial Situation Profit: Unreported | 0<Net Profit Ratio: <=10% | Debt: None Current Ratio: >2

Cat. 2

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SALEEM CARAVAN LTD (2/2)

Services Provided Construction design and related services; Transportation services; Supplies Construction material, armoured vehicles; Produces aggregates (gravel)


Afghan Employment More than 100 employees, 100% of Afghan employees

Skilled Employees Between 10 and 50% of skilled employees



Construction projects are mainly residential, in Kabul.

Comments Saleem Caravan started operating more than 10 years ago providing import / export services, as well as currency exchange and international transfers. The capital built over the years allowed them to get into construction business. They are now working on their second residential complex. Construction projects are mainly residential in Kabul, thus the experience of Saleem Caravan in construction is almost non-existent in mining facilities construction.

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AFANTOKH ROAD REHABILITATION AND CONSTRUCTION COMPANY (1/2)

Contact information En. Ahmad Shah (Afandi), tel : 0799421414 / 0772641770 email : [email protected]

Location of HQ Kart-e Se, Sharkat Street, Kabul

Website none

Type of Business Engineering and Services


Geographical Scope of Operations Kandahar, Nangarhar, Herat, Balkh, Faryab


International Experience supply international organisations in Afghanistan

Turnover above $5m


Cat. 2

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AFANTOKH ROAD REHABILITATION AND CONSTRUCTION COMPANY (2/2)

Services Provided Security services; Transportation services; Road and building construction services; Oil and construction material supply



Skilled Employees More than 50% of skilled employees

Training Internal training for every project


Holds Certification from the US Army and NATO. Provides transportation services and procurement offer mainly for the needs of their own construction projects.

Comments Afantokh is a family business that has grown into a big operation. Works with suppliers abroad that are part of the family. Afantokh wants to enter mining sector as a construction services supplier, as part of a strategy to find continued growth after 2014. Upgrade in management skills would be necessary to work on big mine facilities construction, as most of Afantokh’s experience lies in road construction.

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ZAZAI LTD (1/2)

Contact information Nowruzuddin Zazai, tel : 0777818128 email : [email protected]

Location of HQ Shop.323, Pashtun Market, Kabul

Website none

Type of Business Services

Established More than ten years ago. Started importing explosives in 2005

Geographical Scope of Operations Kabul, Balkh. Explosives shipped all over the country by Afghan Police.


International Experience Only supply Afghan organisations

Turnover above $1m

Financial Situation Profit: Unreported | Net Profit Ratio: Unreported | Debt: None Current Ratio: >2

Cat. 2

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ZAZAI LTD (2/2)

Services Provided Importing Explosives material : Ammonite, Electric detonator, blasting caps, burning fuses. Also imports granulite when asked by clients in order to boost explosion.




Training Internal training when needed, given by top management


Zazai Ltd can supply low-tech explosives, used to prepare road construction, coal mining (used in Ghori cement plant). As the only importer in Afghanistan, connected to MoI, Zazai is able to bring any kind of explosives on client request. Products are tested by Afghan customs to check quality of products is conform to paperwork. Few comments about explosives products on the market, all stay discrete about it for security reasons

Comments Zazai is the only authorized importer of explosives material in Afghanistan. Import is made from Russia, Uzbekistan or Iran. Products are stocked in a facility of MoD, and authorizations for sales all go through MoI. Products are transported all over the country by police forces from the depot to the final client, never more than 7-8 MT at a time for security reasons. Zazai is just an importer of explosives and has no in-house capabilities for engineering of precise blasting operations.

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STANDARD CONSTRUCTION AND LABORATORY COMPANY (1/2)

Contact information Eng. Aziz ur Rahman, tel : 0798905156-0799606614 email : [email protected]

Location of HQ Ayoub khan mena, 2th street near Habibia high school, Kabul

Website www.sscl.af



Geographical Scope of Operations All provinces


International Experience Supply international organisations in Afghanistan

Turnover In excess of $1m

Financial Situation Profit: Unreported | Net Profit Ratio >10% | Debt: None Current Ratio >2

Cat. 1

37

STANDARD CONSTRUCTION AND LABORATORY COMPANY (2/2)

Services Provided Road and building construction, mining; Supply of construction equipment, material testing


Afghan Employment More than 100 employees, 70% or more of Afghan employees

Skilled Employees Between 10 and 50% of staff are skilled employees

Training External training (through governmental programs or private institutes) is provided every few years


SCLC has been working with USACE, which requires a high standard of work and quality

Comments They are willing to participate in mining industry, and already communicated with the MoM to offer their services. The general manager is from Logar, thus knows the local conditions of operations well and has a network in that province.

38

RISE ENGINEERING COMPANY (1/2)

Contact information Shir Ahmad Harifal, tel : 07724295224 email : s.harifal@rise_engineering.com

Location of HQ House # 399, Wazir Akbar Khan, Kabul

Website www.rise-engineering.com (under construction)

Type of Business Engineering


Geographical Scope of Operations

Kabul, Wardak, Nangarhar, Baghlan, Kunduz, Balkh, Herat, Hilmand, Paktika



Turnover below $1m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt: None Current Ratio: >2

Cat. 1

http://www.rise-engineering.com/

39

RISE ENGINEERING COMPANY (2/2)

Services Provided Chemical testing, survey, design and construction of roads and dams, construction supervision, Aggregates supplier.


Afghan Employment Between 20 and 100 employees, 70% or more of Afghan employees


Training External training (through governmental program or private institute ) every few years


Rise Engineering worked with USACE, particularly in the field of testing and surveys, which indicates a high quality of work.

Comments Imports their testing material machinery from Italy and UK.

40

PAMIR GEOTECHNICAL SERVICES COMPANY (1/2)

Contact information Sayed Ismail Hosseni, tel : 0778373320 email : [email protected] / [email protected]

Location of HQ Next to erad daily, corner of first junction, Dehmazang square, Kabul

Website www.pgs.af






Turnover above $1m


Cat. 1

mailto:[email protected]


41

PAMIR GEOTECHNICAL SERVICES COMPANY (2/2)

Services Provided Geotechnical, Geophysical, Hydrological and Geophysics services; Material testing services, and geotechnical core drilling; Mine investigation, analysis of mine material






Rise Engineering worked with USACE, particularly in the field of testing and surveys, which indicates a fairly high quality of work. USACE estimates their performance to be good

42

AZIZ NATIONAL FURNITURE & BUILDING SUPPLY COMPANY (1/2)

Contact information Sima Tabib, tel : 0700204073 / 0799231293 email : [email protected]

Location of HQ Nasaji Bagrami, Kabul

Website www.anfbs.com.af

Type of Business Others





Turnover Between 1 and 2$m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt : Yes Current Ratio: >2

Cat. 1

43

AZIZ NATIONAL FURNITURE & BUILDING SUPPLY COMPANY (2/2)

Services Provided Supplies furniture and construction services (wood windows, doors, Work Stations, bedroom sets, desks, chairs, etc.)


Afghan Employment Between 20 and 100 employees, 100% of Afghan employees




Aziz commits to deadlines and understand the needs of its clients and the level of quality they require. Pricing is generally competitive and fair, because furniture is built locally. General Management is able to supply a good customer service and modification of clients’ orders.

Comments Aziz National Furniture & Building Supply Company is managed by a western-educated woman who came back to the country to reclaim her family’s factory.

44

WHITE EAGLE HR (1/2)

Contact information Muhammad Salem Ahmadi, tel : 0799024645 email : salem.ahmadi@wesecurity,com

Location of HQ Qala-e fatullah, in front of Ehsan Petroleum, Kabul

Website www.wesecurity.com

Type of Business Security Services



All provinces, with a focus on the southern provinces (Ghazni, Nimroz, Helmand)



Turnover above $5m

Financial Situation Profit: Unreported | Net Profit Ratio: <=0 | Debt: None Current ratio: Unreported

Cat. 1

45

WHITE EAGLE HR (2/2)

Services Provided Security and HR services. Provides services as convoy escort and unarmed guards.



Skilled Employees Less than 10% of skilled employees

Training Internal training every year, or project-based


The company is trusted to convoy escorts coming from Pakistan or Kabul to the southern provinces, mainly for foreign logistics company.

Comments 99% of afghan employees. Only some senior management is of foreign origin. Security guards are trained according to NATO/CENTCOM standards. The company is in the process of getting a RMC license. They have diplomatic contracts, so they were able to retain their armed guards.

46

AFGHAN BUILDERS CONSORTIUM (1/2)

Contact information Taj Mohammad, tel : 0798397714/0783538093 email : [email protected]

Location of HQ Shash Darak, Street no2, House #37, Kabul

Website www.afghanbuilders.af






Turnover $14m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt: None Current ratio: Unreported

Cat. 1

47

AFGHAN BUILDERS CONSORTIUM (2/2)

Services Provided Horizontal and vertical construction services, logistics, procurement of construction material and equipment. That consortium also owns an aggregates plant, a cement plant and an asphalt plant that they use on their projects. Furthermore, the group owns a fuel supply company.




Training Internal training every year, internal for workers ; external training for safety, quality or management.


Works with ACHTO quality standards. The quality of their work has been recognised by a “contractor of the year” award from USACE (and other awards from USAID)

Comments The company is willing to work more in the extractions industry, because they expect a decrease of their commands after 2014. ABC owns their own machinery for road or building construction and has a strategy of integration, in order to be able to work on construction projects from A to Z. They have the financial capacity to undertake projects of up to $50m The fuel business they own is one of the biggest in Afghanistan, with storage capacity of up to 4mL.

48

GHOLGHOLA GROUP (1/2)

Contact information Mohammad Yahya, tel : 0795533604 / 0784224917 email : [email protected] / [email protected]

Location of HQ Shahrak Hajinabe, Kabul

Website www.gholghola.com



Geographical Scope of Operations Ghazni, Kunduz, Balkh, Jawzjan, Herat, Bamyan, Kandahar



Turnover above $5m

Financial Situation Profit: Unreported | 0<Net Profit Ratio: <=10% | Debt : Yes Current Ratio: between 1 and 2

Cat. 1

49

GHOLGHOLA GROUP (2/2)

Services Provided Horizontal and Vertical construction services, Construction material and equipment supply (mainly 3D Panels, Polyethylene Pipes, UPVC Doors and Windows, Stone carving & Sculptures and Concrete poles) The group also owns businesses in marble extraction and a bottled water factory.





Reputation on the market Construction materials sold by Gholghola are certified by the USACE.

50

OMRAN GROUP OF COMPANIES (1/2)

Contact information Mohammad Nasser Ahmadi, tel : 0799225560 email : [email protected]

Location of HQ House No# 452, Behind Syed Jamaluddin Secondary School, Karte 4, Kabul

Website www.omraninc.com

Type of Business Engineering, steel supplies




International Experience supply international organisations abroad

Turnover above $5m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt : Yes Current Ratio: between 1 and 2

Cat. 1

51

OMRAN GROUP OF COMPANIES (2/2)

Services Provided Geotechnical services, procurement, engineering, steel structures




Training Internal training every year, external training when needed

Reputation on the market / Comments

Omran has been working with USACE, and received a “contractor of the year award” in 2010. Their strength lies in the ability to undertake design/build projects. They work with several partners or subsidiaries that allow them to provide a complete solution for building projects. Omran is confident they can get awarded a geotechnical services contract at Mes Aynak because they have good connections within the MoM

Steel Products Portfolio

Large choice of steel structure and stock available at suppliers plant

Welding Capacity Qualified welding operator with more than 10 years of experience

Fabrication Fabrication in suppliers plant for complicated parts and transportation on site for final assembly

Level of Quality Sectorial specific standards – ISO, API, ASME, etc.

Capacity for special processes and orders

has in-house this special processes

52

NAZARI CONSTRUCTION COMPANY (1/2)

Contact information Shir Mohammad Nazari, tel : 0799217064-0787886300 email : [email protected]

Location of HQ Nazari House, Line 4, street # 13 Wazir Akbar Khan, Kabul

Website www.nazariconstruction.com (under construction)



Geographical Scope of Operations Kabul, Ghazni, Paktya, Nangarhar, Paktika, Khost



Turnover above $5m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt: Yes Current Ratio: >2

Cat. 1

http://www.nazariconstruction.com/

53

NAZARI CONSTRUCTION COMPANY (2/2)

Services Provided Road and building design and construction. Also supplies construction material and equipment.






Worked with the US Army and participated in the construction of roads throughout Afghanistan, some of the contracts estimated around $20m each. Work is of good quality, but management is not always up to international standards.

Comments Nazari Construction Company is planning to start working in mining industries because they plan a decrease of their business following 2014 and want to operate on sector that is expected to grow in the future. They created a team specialized in mining operations, staffed with foreigners (program manager from the U.S.A, and specialized workers from Ukraine)

54

MIRZADA LOGISTIC AND TRANSPORTATION COMPANY (1/2)

Contact information Abdul Haseeb, tel : 0797692296 email : [email protected]

Location of HQ Wazir Akbar Khan, 15th street, Lane#1, Kabul

Website www.themtclogistics.com

Type of Business Life Support Services





Turnover above $1m

Financial Situation Profit: Unreported | 0<Net Profit Ratio: <=10% | Debt : Yes Current Ratio: between 1 and 2

Cat. 1

http://www.themtclogistics.com/

55

MIRZADA LOGISTIC AND TRANSPORTATION COMPANY (2/2)

Services Provided Logistics; Life support services; Uniform services; Supplier of oil and fuels for airplanes; Fleet Management services; Catering; Supplies Heavy equipment and machinery as well as associated services





Reputation on the market Overall, the logistics and transportation services provided are satisfying by

themselves, but the quality of management is poor according to clients from the private sector operating to international standards worldwide.

56

KARIM HAYAT LTD (1/2)

Contact information Khalid Momand, tel : 0795701011-0700030455 email : [email protected]

Location of HQ House # 40, Main Road Wazir Akbar Khan, Kabul

Website www.instatelecom.com

Type of Business Fleet Management, Life Support Services, IT Services



Kabul, Ghazni, Laghman, Takhar, Kunduz, Balkh, Herat, Hilmand, Kandahar, Khost



Turnover above $5m


Cat. 1

57

KARIM HAYAT LTD (2/2)

Services Provided Fleet Management and Catering; Telecommunication and IT Services; Supplier of construction equipment and construction material






Telecommunication and Internet Services available in major afghan cities for the general public, businesses and wholesalers.

Comments Verification could only be done for IT Services ; process still on-going for fleet management and catering

58

AFGHAN FRONTIER LOGISTICS,SUPPLIES AND SERVICES (1/2)

Contact information Adnan Azhar, tel : 0782276880-0093202501041 email : [email protected]

Location of HQ Kart-e-Char, pul-e Surkh, Kabul

Website www. aflsupplies.com (under construction)

Type of Business Life Support Services and Logistics


Geographical Scope of Operations Kabul, Ghazni, Kunar, Hilmand, Kandahar, Bamyan, Khost



Turnover above $1m


Cat. 1

59

AFGHAN FRONTIER LOGISTICS,SUPPLIES AND SERVICES (2/2)

Services Provided Life support services and Logistics; Supplies uniform services and construction-related goods; Drilling water wells






Services from Afghan Frontier Logistics and Services have been used by international customers in Afghanistan, globally satisfied with the service provided

60

PAYENDA GENERAL TRADING LLC (1/2)

Contact information Mohammad Reza, tel : 0799453453-0799304827 email : [email protected]

Location of HQ Kabul university road behind Rahman Baba High school

Website none

Type of Business Life Support Services and Trading





Turnover above $5m


Cat. 1

61

PAYENDA GENERAL TRADING LLC (2/2)

Services Provided Life support services; Logistics services; Supplies Construction material and equipment

Level of Experience of skilled staff Specialized employees have more than 3 year of experience





Business partners are satisfied with construction supplies offered by Payenda General Trading, and would recommend doing business with them.

Comments Payenda Trading operates in partnership with its sister company, based out of Dubai. Trading is done through that company. Value added in Afghanistan could not be assessed.

62

PEARL HORIZON CONSULTING CO. (1/2)

Contact information Mir Abdul Rahim Yahya, tel : 0793513901 email : [email protected]

Location of HQ Appartment #06, 4th Floor, 2nd Entrance, Sadiq Plaza, Salim Karwan Square, Taimani, Kabul

Website www.pearl-horizon.com

Type of Business Consulting

Established Less than three years ago

Geographical Scope of Operations Kabul



Turnover below $1m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt: None Current ratio: Unreported

Cat. 1

63

PEARL HORIZON CONSULTING CO. (2/2)

Services Provided Consulting services all along the project management cycle : feasibility studies, monitoring, data analysis; Environmental assessment and studies






Pearl Horizon Consulting is a young consulting company, but its international clients are very happy with the work that was undertaken for them and highly recommend the company for the serious of their work.

Comments Pearl Horizon is a small and young consulting company (founded late 2010), by a former program development specialist who had worked with IRC, UNDP and USAID. Mr Yahya has a great experience in environmental services assessments and studies and program management, as is his team of 5-10 consultants.

64

HAMBASTAGI CONSULTING GROUP (1/2)

Contact information Muhammad Suleman Kakar, tel : 0798010102 email : [email protected]

Location of HQ House 7, Lane 1, Street 1, Qala-e Fatullah, Kabul

Website www.hambastagi.af

Type of Business Consulting and Business Facilitation



Kabul, Kapisa, Logar, Nangarhar, Laghman, Kunar, Takhar, Kunduz, Faryab, Herat, Kandahar, Bamyan, Panjsheer, Daikundi



Turnover above $1m

Financial Situation Profit: Unreported | 0<Net Profit Ratio: <=10% | Debt: None Current ratio: Unreported

Cat. 1

65

HAMBASTAGI CONSULTING GROUP (2/2)

Services Provided Research and Evaluation, Risk assessment and feasibility studies, Management consulting, HR Management, Facilitation of business partnerships, Advocacy, Legal services




Training Internal training every year through mentoring and coaching, finance training given through an external institution


The company was founded by Hanif Atmar (Former minister of Interior, Minister of Rural Rehabilitation and Development and Minister of Education). Has a good record with JICA and MoLSA.

Comments Many employees are former senior management from ministries or NGOs. As part of their strategy, they work on rebuilding Afghanistan, and the company runs almost as a non-profit, even though it's a private afghan company. Personnel as a lot of experience in fields related to development, research, policy, conflict resolution, for organisations as diverse as UNDP, Afghan Ministries, WB, ADB, etc. Senior personnel from the company have a very good network in government institutions.

66

KABIR AND ZAK LOGISTICS COMPANY (1/2)

Contact information Eng. Abdul Kabir, tel : 0799 533 001 / 0700 224709 email : [email protected] / [email protected]

Location of HQ Traffic Square, District No4, street No2, Kolola Poshta, Kabul

Website www.kzc-af.com (under construction)

Type of Business Life Support Services and Logistics





Turnover above $5m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt: None Current Ratio: between 1 and 2

Cat. 1

http://www.kzc-af.com/

67

KABIR AND ZAK LOGISTICS COMPANY (2/2)

Services Provided Food and dining facilities services, laundry, O&M Services, thrash disposal; HR services (unskilled workers); Logistics : transportation and heavy lift, Supplier of gravel, sand, fuel; Import of computer material and heavy equipment.


Afghan Employment Between 20 and 100 permanent employees, 100% of Afghan employees




Provided transportation services to the US military, from the borders to any part of Afghanistan. Has the connections to secure convoys in dangerous areas. Clients are generally satisfied with the quality of service in itself but often find a lack of capacity in Management.

Comments The president of the company expressed needs for training to Management and Marketing in order to get closer to international standards. Furthermore, he noted the difficulties to work with the GIRoA (Bureaucracy, Nepotism, Corruption). Company has capacity to move heavy equipment inside Afghanistan, and work on logistic projects of up to 200 trucks.

68

PYRAMID (1/2)

Contact information Ahmad Shoaib Yousufzai, tel : 0700254521 - 0786509750 email : [email protected] / [email protected]

Location of HQ Qalai Fatullah st:12 Kabul Afghanistan

Website www.pyramid.com.af






Turnover below $1m


Cat. 1


69

PYRAMID (2/2)

Services Provided Drilling water wells; Geotechnical investigations; Construction material testing lab; Geophysical surveys; Water supply and well drilling




Training Internal training if needed


Company has been around for a long time, and most of its activity lies in Material testing and Well drilling. However, USACE estimates they’ve been performing poorly on material testing according to their standards. Well drilling projects were undertaken for the US Military for more than $100,000 contracts.

70

POUSHANG CONSTRUCTION CO. (1/2)

Contact information Abdullah Foushanji, tel : 0787069105 email : [email protected]

Location of HQ Khushal-Khan Mena, Kabul

Website none

Type of Business Engineering and Construction


Geographical Scope of Operations Kabul, Parwan, Herat



Turnover above $1m


Cat. 1

71

POUSHANG CONSTRUCTION CO. (2/2)

Services Provided Construction building design, road design





Reputation on the market As the president wants all the projects to focus on quality, the clients are quite

happy with the realizations, even if they have to pay services a little more expensive than the usual market price.

Comments Mr Foushanji, President of the company, was operating in Iran and Dubai as a principal engineer on big construction projects for more than 20 years. He has a vision of developing capacities of the local workforce in Afghanistan by providing quality services. The company is young but aims at bringing top quality on construction projects in Afghanistan. Also operates a company manufacturing PVC Doors and Windows (Nawawaran-e Poushang). Company only works with cash, and can operate alone on projects up to $5-7m, or with partners up to $20m.

72

ELITE CONSTRUCTION (1/2)

Contact information Hussain Akhlaqi, tel : 0700283942 email : [email protected]

Location of HQ Fortune Center, 3rd floor, Charahi Tarabaz Khan, Shahr-e Naw, Kabul

Website www.elite.af

Type of Business Engineering, Logistics, Procurement




International Experience supply international organisations abroad

Turnover above $5m

Financial Situation Profit: Unreported | 0<Net Profit Ratio: <=10% | Debt: Yes Current Ratio: between 1 and 2

Cat. 1

73

ELITE CONSTRUCTION (2/2)

Services Provided Construction services : design, engineering, water distribution, sewage, electrical engineering, topography; Logistics; Procurement of construction material and equipment




Training Internal training for every project, external training through Kabul University or USAID programs


Is able to undertake big multi-million dollars construction projects for foreign companies of government entities. Delivers on time and try to reach international standards by hiring foreigners in key roles to build up capacity.

Comments Has privileged links that could help them get business with CNPCI-W, through Watan Group.

74

AWISTA GROUP (1/2)

Contact information Roohollah Rahimi, tel : 0793554003 email : [email protected]

Location of HQ Qasabi Street, Shahr-e Naw, Kabul

Website www.awistagroup.com

Type of Business HR Services





Turnover above $5m


Cat. 1

75

AWISTA GROUP (2/2)

Services Provided Language training; Translation services (9 translation centers across the country); Mining vocational training is being developed






International clients are very happy with the services of Awista, and would recommend to use their services.

Comments The project for mining training centers is directed to the industry and general public in order to build capacity in Afghan workforce for mining industry. Plans to build 4 training facilities across the country and have mobile training facilities to provide on-site training. HR strategy to hire only young and educated afghans as trainers. The president is linked to the current GIRoA members and to MCC employees.

76

JACEC CONSTRUCTION COMPANY (1/2)

Contact information Mahmood Khosti, tel : 0799340886 email : [email protected]

Location of HQ Shash Darak In front of Setara High school, Kabul

Website www.jacec.com


Established Between 3 and 10 years ago (2008)




Turnover above $10m


Cat. 1

77

JACEC CONSTRUCTION COMPANY (2/2)

Services Provided Engineering and Construction (road and building); Supplier of construction materials






Has worked with USACE and built PRTs. Quality of work is overall good, but management is not always up to international standards. Generally employs good electrical material. Can procure all the construction materials needed on a building site.

Comments Main engineers have more than 20 years of experience in construction, abroad and in Afghanistan.

AGENDA

78




4. Next steps


79

KAR NEEROO (1/2)

Contact information Mohammad Kazem Karbalai, tel : 0700210219 / 0778813544 email : [email protected] / [email protected]

Location of HQ Pol-e sorkh, sarak aval, side of Kabul university, Kabul

Website www.karneeroo.com

Type of Business Manufactured Products





Turnover above $5m


Cat. 2

80

KAR NEEROO (2/2)

Goods Design and survey for electrical projects; Supply a wide range of electrical products; Building transformers, electrical poles and control rooms

Level of Quality Sectorial specific standards (IEC, NEC, IEEE+ ISO9001, ANSA, ASTM); No tracking record of non-quality

Skilled Employment 90% of skilled employees

Afghan Employment Between 20 and 100 employees, 99% Afghan employees


Provides many construction companies in the country, is said to have a good performance and a wide range of products.


Partnership with company that realize special processes on demand

Production Capacity Between 50 and 70% of production capacity is used

Comments Offers special processes, can have custom products ordered or manufactured abroad based on client needs, they can also transform products to suit any use. Kar Neeroo is classified Cat.II because it lacks the capacity to produce a full range of electrical products. However, with investment and vision on the future of their markets, they could develop fabrication facilities for electrical products other than transformers and electrical poles.

81

ETIMAAD AFGHANISTAN (1/2)

Contact information Hafizullah Safi, tel : 0777234820 email : [email protected] / [email protected]

Location of HQ Khane 34, street 12, Wazir Akbar Khan, Kabul

Website www.etimaadafghanistan.com (under construction)



Geographical Scope of Operations Kabul, Logar, Nimroz, Helmand, Kandahar, Zabol, Uruzgan



Turnover above $5m


Cat. 2

http://www.etimaadafghanistan.com/

82

ETIMAAD AFGHANISTAN (2/2)

Goods Supplies Fuel, Electrical equipment, Generators and related services; Construction Material, Cars & IT Services; Also owns an aggregates plant in in Helmand that produces gravel and sand

Level of Quality Sectorial specific standards: ISO, ASME; No tracking record of non-quality

Skilled Employment More than 50% of skilled employees

Afghan Employment Less than 20 employees, 70% or more of Afghan employees


Has worked with the national electrical company of Afghanistan and the presidential office to supply electrical material.



Production Capacity Between 70% and 100% of production capacity is used

Comments Etimaad is only a supplier of electrical equipment. Investment could allow to build an electrical equipment facility, and increase the capabilities in electrical engineering. Special processes could also be realized in-house with investment on HR and equipment.

83

NAWAWARAN-E POUSHANG CO. (1/2)

Contact information Abdullah Foushanji, tel : 0787069105 email : [email protected]

Location of HQ Kulula Poshta road, before Miwa Market, opposite Milli Market, Kabul

Website none






Turnover above $1m


Cat. 2

84

NAWAWARAN-E POUSHANG CO. (2/2)

Goods PVC & Alumnium Doors and windows

Level of Quality no standard qualification. Tracking record of quality, 1-2% non-quality

Skilled Employment Between 10 and 50% of skilled employees



The company is known for the excellent quality of its products. All doors and windows are made following the specifications of its clients. As a consequence of the effort on quality, prices are higher than the market.

Capacity for special processes and orders has in-house special processes capability

Production Capacity Less than 70% of production capacity is used

Comments Even if quality of products offered by Nawawaran-e Poushang, the production capacity is very low, and the management is mainly turned towards engineering, and gives few attention to marketing. Training in Marketing and investment to increase production capacity could allow that company to become one of the top producers of PVC doors & windows in Afghanistan, both in terms of quality and quantity.

85

ALOKOZAY (1/2)

Location of HQ Pol-e charkhi industrial park, Kabul

Website www.alokozay.com





Contact information Hamid Abbassi, tel : 0778685882 / 0799045010 email : [email protected]

International Experience Sells its products in Afghanistan and in the UAE.

Turnover above $5m

Financial Situation Profit: Unreported | 0<Net Profit Ratio: <=10% | Debt: Yes Current Ratio: between 1 and 2

Cat. 1

86

ALOKOZAY (2/2)

Goods Tea, cooking oil, cigarettes, paper tissue, non-alcoholic beverages

Level of Quality Sectorial specific standards: ISO; No tracking record of non-quality




Alokozay is the biggest tea seller in Afghanistan, able to market its products all over the country through its wholesalers network.

Capacity for special processes and orders No capability on special processes

Production Capacity 100% of production capacity is used

Comments Tea is grown in Vietnam on a land rented by Alokozay. It is then packed in Dubai and from there marketed all over Afghanistan. The group also has a logistics branch, headquartered in Jebel Ali Free Zone (Dubai). Another of their area of operation is property development (They are building an apartment complex in Kabul)

87

HABIBULLAH HASEEB GROUP (1/2)

Contact information Mohmmad Heidar, tel : 0777289740 / 0700289740 email : [email protected] / [email protected]

Location of HQ Charrahi Gul-e-Surkh, Kolola Pushta, Kabul

Website www.hhg-c.com






Turnover above $5m


Cat. 1

88

HABIBULLAH HASEEB GROUP (2/2)

Goods Printing and Advertising services; Packaging (production and services); DFC one of its subsidiary, produces fresh and dried fruit, packaged

Level of Quality Sectorial specific standards:ISO ; Tracking record of quality and number of non-quality products is below industry standard




Printing services from HHG are the best in Afghanistan. They have been serving many international organisations, satisfied with their services.

Capacity for special processes and orders has in-house capability for special processes


Comments Offers 1-year warranty on their printing services. Inks and other printing supplies are bought from world-known producers, thus ensuring quality of printing services. Packaging services for a wide range of products (food, stationery, etc.)

AGENDA

89




4. Next steps


90

AFGHAN INVESTMENT COMPANY - AFGHAN CEMENT LLC (1/2)

Contact information Abdul Karim Farokh, tel : 0700735273 / 0799616006 email : [email protected]

Location of HQ Ghori-cement factory, Pol-e Khomri

Website www.afghaninvestco.com

Type of Business Raw Materials





Turnover below $1m

Financial Situation Profit: Unreported | Net Profit Ratio: <=0 | Debt: Yes Current Ratio: >2

Cat. 2

91

AFGHAN INVESTMENT COMPANY - AFGHAN CEMENT LLC (2/2)

Type of Materials provided

Cement and Coal (coal is extracted to provide energy for their own factory)

Quality Standards no standard qualification (cement is produced with standards dating back to Soviet era)




Afghan Cement is the biggest and the oldest cement producer in Afghanistan, also known as Ghori cement. The cement produced is of good quality (they provided us with all the technical analysis results), and they have quite a good reputation with their clients.

Quality control Test done internally continuously on test sample taken from production batch Testing is also done through external labs upon client’s demand


Comments Produces 200MT/day. Would need $15m investment to increase production 5-fold. With $150m investment, they could open other plants in the country and produce 10,000MT/day. Gets all the raw materials from the vicinity of the plant, and produces electricity for their operations through their own coal-powered plant. A 50kg bag of cement from Afghan Cement LLC is 40AFS cheaper than pakistani cement on local markets.

92

WATANDOST COMPANY (1/2)

Contact information Abdul Hadi (Mansoor), tel : 0700293600 - 0777293600

Location of HQ Kavaja Mosafer, Paghman district

Website none




Kabul, Kapisa, Parwan, Wardak, Logar, Ghazni, Paktya, Nangarhar, Baghlan, Balkh, Zabul, Bamyan, Paktika



Turnover below $1m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt: Yes Current Ratio: between 1 and 2

Cat. 2

93

WATANDOST COMPANY (2/2)


Produces different sizes of gravel, building stones and sand

Quality Standards General standards – ISO 9001, ANSA, ASTM, AASHTO, etc.




Suppliers abroad are satisfied of their business relationship with Watandost. Verification with the customers is still on-going.

Quality control Test in external facility for beginning life of product

Production Capacity Between 70% and 100% of production capacity is used. Production capacity is approx. 150 MT/hr

Comments Production capacity of Watandost is almost entirely used, and quite low. Investment in machinery and training the management could help bring the company to more acceptable standards in order to work with foreign investors.

94

ARIANA SAZA CC (1/2)

Contact information Dr. Habibullah Hamidi, tel : 0700282738-0799245566 email : [email protected]

Location of HQ Pole charki-Ghasaba street Tarakhil, Kabul

Website None






Turnover above $1m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt: Yes Current Ratio: between 1 and 2

Cat. 2

95

ARIANA SAZA CC (2/2)


Suppliers all types of construction materials, Produces gravel and building stones in different sizes, concrete

Quality Standards no standard qualification




Has a good reputation with both its clients and suppliers. However, the company is not registered with PDT, which indicates poor capacity for marketing and reaching out to clients.



Comments Production capacity of Watandost is almost entirely used, and quite low. Investment in machinery and training the management could help bring the company to more acceptable standards in order to work with foreign investors.

96

HARIROD (1/2)

Contact information Mohammad Raffi, tel : 0797797009 email : [email protected]

Location of HQ Golzar market, baraki, sharara, Kabul

Website www.harirod.af



Geographical Scope of Operations Kabul, Kapisa, Parwan, Nangarhar, Balkh, Herat, Panjsheer



Turnover above $5m


Cat. 1

97

HARIROD (2/2)


Produces concrete, concrete blocks, precast, Supplies construction material for horizontal and vertical structures.

Quality Standards Sectorial specific standards – ISO, ASTM, AASHTO; No tracking record of non-quality


Afghan Employment About 1000 employees, 98% Afghans


Supplied International organisations and Afghan Government entities. Harirod is one of the big suppliers in Afghanistan and has a fair reputation all over the country.

Quality control Test done internally continuously on test sample taken from production batch


Comments Sold concrete for Mes Aynak projects. Outlined that they usually don’t contract directly with the client, but are providing their goods through a prime contractor. Harirod takes quality of projects seriously and partners with labs to test their products when the client requests it.

98

MERAJ CONSTRUCTION AND PRODUCING OF CONSTRUCTION MATERAIL COMPANY (1/2)

Contact information Engr.Meraj Ismail, tel : 0752014081-0700296923-0799335274 email : [email protected] [email protected]

Location of HQ Kotai Sangi Sarak 3 Selow House No 165, Kabul

Website none



Geographical Scope of Operations Kabul, Kapisa, Parwan, Paktya, Nangarhar, Laghman, Kandahar, Uruzgan,

Paktika, Khost.



Turnover above $1m

Financial Situation Profit: Unreported | Net Profit Ratio: >10% | Debt: Yes Current Ratio: >2

Cat. 1

99

MERAJ CONSTRUCTION AND PRODUCING OF CONSTRUCTION MATERAIL COMPANY (2/2)


Produces construction material, Road and building construction services, Logistics services.


Skilled Employment Less than 10% of skilled employees



Sold aggregates products to international organisations and Ministry of Rural Development.



100

FAJIR TAWHID CONSTRUCTION COMPANY (1/2)

Contact information Sayed Tawakal Shah (Hashimi), tel : 0799330804-0799247798-0799014882 email : [email protected]

Location of HQ 4th floor, syed muslim apartment, opposite maywand hospital, maywand street, Kabul

Website none




Wardak, Logar, Paktya, Takhar, Baghlan, Kunduz, Samangan, Balkh, Jawzjan, Faryab, Kandahar, Sari Pul.



Turnover above $1m


Cat. 1

101

FAJIR TAWHID CONSTRUCTION COMPANY (2/2)


Produces and trades construction material : stone, gravel, sand, cement, paint, isogam, isolation products, wood. Fajir Tawhid is also a construction company.




Reputation on the market Worked with International organisations and MCC

Quality control Test done internally continuously on test sample taken from production batch


Comments Has extensive experience working in Logar Province. Got contracted to build 5 security posts for Aynak mine.

102

NADER JABAR KHIL GRAVEL COMPANY (1/2)

Contact information Mohammad Nader, tel : 0700255419 - 0789505615

Location of HQ Jalal Abad Road, Qala-e-Gul baz, Kabul

Website

Type of Business

Established


Ownership Structure

International Experience

Turnover

Financial Situation

none

Raw Materials

Between 3 and 10 years ago

Kabul

Private Afghan

supply international organisations in Afghanistan

below $1m

Profit: Unreported | 0<Net Profit Ratio: <=10% | Debt: None Current Ratio: >2

Cat. 1

103

NADER JABAR KHIL GRAVEL COMPANY (2/2)


Produces Gravel




Reputation on the market Still undergoing verification


Production Capacity Between 70% and 100% of production capacity is used

104

NEK MUHAMMAD RAMAKI STONE BREAKER AND CONSTRUCTION MATERIAL COMPANY (1/2)

Contact information Nek Mohammad Ramaki, tel : 0799356188 - 0777356188

Location of HQ Pol-e Charkhi, across from KMTC, Kabul

Website

Type of Business

Established


Ownership Structure

International Experience

Turnover

Financial Situation

None

Raw Materials

Between 3 and 10 years ago

Kabul, Kapisa, Ghazni, Nangarhar, Laghman, Takhar, Balkh, Kandahar, Sari Pul, Panjsheer

Private Afghan

supply international organisations in Afghanistan

above $1m

Profit: Unreported | 0<Net Profit Ratio: <=10% | Debt: None Current Ratio: >2

Cat. 1

105

NEK MUHAMMAD RAMAKI STONE BREAKER AND CONSTRUCTION MATERIAL COMPANY (2/2)


Supplies construction material and equipment; Produces stone s for construction





Work and products provided are satisfying for the clients, but the reputation on the market is almost non-existent because the company doesn’t do any advertising nor marketing.



AGENDA

106




4. Next steps


107

ARYAN AMU COMPANY (1/2)

Contact information Eng. Sayed Mohammad Moqadas, tel : 0700033016 email : [email protected]

Location of HQ 40 meter road, Barake ,Traffic Square, Kabul

Website None

Type of Business Steel Fabrication and Trading


Geographical Scope of Operations Kabul, Kandahar, Panjsheer



Turnover below $1m


Cat. 2

108

ARYAN AMU COMPANY (2/2)

Product Portfolio Large choice of steel structure and stock available at suppliers plant




Fabrication Fabrication on site (where the plant will be)


Level of Quality no standard qualification


Special processes are realized in-house

Comments Investment is needed to increase the capabilities to transform steel structures imported, and to increase the quality of the products.

109

NOORI BROTHERS COMPANY (1/2)

Contact information Mohammad Ata, tel : 0799404020-0777404020-0788404020 email : [email protected]

Location of HQ Qova-e markaz, Sara-e Haji Ata, Kabul

Website None



Geographical Scope of Operations Kabul, Balkh



Turnover above $1m


Cat. 2

110

NOORI BROTHERS COMPANY (2/2)

Product Portfolio Full choice but no stock of steel structure, products imported from abroad

Welding Capacity None



Fabrication Only sell steel structure (long steel, flat steel…)


Level of Quality General standards – ISO 9001, ANSA, ASTM, AASHTO, etc.


No capability on special processes

Comments Investment is needed to allow Noori brothers to gain the capability to transform steel structures imported, and to increase the quality of the products.

111

MAISAM (1/2)

Contact information Parwiz Khojazadah, tel : 0799659440 email : [email protected]

Location of HQ Kabul

Website none



Geographical Scope of Operations Kabul, Herat, Balkh, Kandahar, Nangarhar



Turnover above $1m


Cat. 2

112

MAISAM (2/2)

Product Portfolio Full choice but no stock of steel structure

Welding Capacity No welding capability





Level of Quality No standard qualification



Comments Only buys used raw material, because they say government connections are needed to get good quality raw material. Works with metal engineers from Pakistan because they can’t find the good competences within Afghanistan’s labour market. Investment is needed to gain the capabilities to transform steel structures imported, and to increase the quality of the products.

Comments

113

ZURMAT GROUP (1/2)

Contact information Mujtaba, tel : 0799188252 email : [email protected]

Location of HQ Shirpoor main road, Kabul

Website www.zurmatgroup.com






Turnover above $5m


Cat. 2

114

ZURMAT GROUP (2/2)

Product Portfolio Steel rebars and structures No stock and limited choice of steel structure (shape, size of bars)

Welding Capacity Qualified welding operator with less than 10 years of experience





Buys steel structures in small quantities from Rahim Gardezi, has a good record with suppliers and clients. Used to be certified for its material testing services with USACE but got suspended in 2010




Comments For the moment, only imports and transform steel. Has plans to build a factory. Investment and support to build and operate the plant, and then to market the products will be needed to make the project successful

115

ZAHER WALID LTD (1/2)

Contact information Haji Mohammad Rrahim, tel : 0786909040 - 0799326533 email : [email protected] – [email protected]

Location of HQ Kolola Poshta, Kabul

Website www.zw-af.com (under construction)

Type of Business Steel Trading and Construction


Geographical Scope of Operations Kabul, Nangarhar, Takhar, Kunduz, Balkh, Faryab, Herat, Hilmand, Kandahar



Turnover above $5m


Cat. 2

http://www.zw-af.com/

116

ZAHER WALID LTD (2/2)

Product Portfolio Full choice but no stock of steel structure Also operates as a construction company




Fabrication Fabrication in suppliers plant for complicated parts and transportation on site for final assembly


Zaher Walid Ltd has good record with its suppliers and customers. Works in joint-ventures with construction companies.

Level of Quality no standard qualification



Comments Investment is needed to allow Zurmat to gain the capability for special processes, and to increase the quality of the products. Investment could allow them to produce and provide new steel products to the extractive industries.

117

RAHIM GARDEZI (LTD) (1/2)

Contact information Haji Mohammad Rahim Gardezi, tel : 0700278755 - 0799742000 email : [email protected]

Location of HQ Salang Watt Street, Kabul

Website www.rahimgardezi.com (under construction)



Geographical Scope of Operations Kabul, Logar, Nangarhar, Kunduz, Balkh, Faryab, Kandahar, Paktika



Turnover Didn’t communicate the figure


Cat. 1

http://www.rahimgardezi.com/

118

RAHIM GARDEZI (LTD) (2/2)

Product Portfolio Large choice of steel structure and stock available at suppliers plant

Welding Capacity No welding capability




Reputation on the market Rahim Gardezi is the biggest steel distributor in Afghanistan.




Comments Imports steel products from Uzbekistan and Russia. Medium to low grade quality. Rahim Gardezi Ltd has plans to build a factory with a capacity of 10,000 MT/day

Official PDF , 118 pages

Documents

Transcript of Official PDF , 118 pages