Is US-Afghan power plant a white elephant?
Updated on 12 November 2009
Nick Paton Walsh reports from Kabul, where a new $300m electricity plant may not run at full capacity because it would cost too much money to run flat-out.
Given by the American people, the new electricity plant outside Kabul was no doubt meant to be a shining example of the US government's stated aim to "help Afghans take charge of their own future and development".
But after building costs spiralled to over $300m, it has now emerged that the plant will probably only be fired up to run at half-capacity because it costs too much to run flat out.
Nick Paton Walsh reports
When the lights stay on in Kabul, it's a rare sign of progress in America's eight-year occupation.
But these lights are the exception, and the manual water pump is the rule.
America has spent billions on development, but it's helped only a lucky few.
On the outskirts of Kabul you can see how much cash America's throwing at Afghanistan, at the building site of a new electrical power plant called Tarakhil.
This plant was supposed to be a symbol of hope for Afghanistan, a gift from the American people.
But many fear it may up being a white elephant. A Channel 4 News investigation has learned there are problems here causing intense concern in Washington.
And many Afghans are wondering if they can afford the expensive fuel needed to keep the plant running.
This grand project is now millions of dollars over budget.
And for some, it shows how the best intentions can go wrong.
Opening the plant, President Karzai seemed happy with the system. Perhaps his prayers had been answered by the American ambassador beside him.
Kabul's power supply would get a boost. But costs have spiralled.
Afghan officials we've spoken to said they were told in 2006 it would cost $120m.
Last year the Americans signed off on a budget of $257m. But the final cost came to $305m.
The project manager here rejects criticism that the aid money could have been used more wisely.
Much of Afghanistan's electricity now comes from neighbouring countries. The plant provides an alternative source. But can Afghanistan afford it?
It runs on diesel which has to be trucked in daily from Uzbekistan. The trip takes two days and can be risky.
By the side of the road lies the wreckage of fuel tankers attacked by bandits or the Taliban.
To run the plant at full power, they need 25 of these trucks to arrive a day.
That would be too expensive, so the plant will only run at half-strength. But even that means a fuel bill of up to $96m a year.
The Afghan government is meant to pay it – but that is 12 per cent of their annual budget.
We asked John Smith Sreen, the US AID official in charge of the project if it was viable in the long term. He told Channel 4 News that he believed the plant would be used and a way would be found to continue operations and that he believed the Tarakhil power plant contributes significantly to the overall energy project for Afghanistan.
But the project has raised eyebrows within the US government, and with its inspectors.
For months US inspectors have been poring over the plant's books, looking to see if there's been any inefficiency or waste.
They'll report soon, but Channel 4 News understands it will highlight problems of "intense concern".
We put this to the Black & Veatch the company responsible for building the plant.
Their spokesperson Jack Whippen told us that "[the inspectors] job is to look in an investigative way.
Their job is to look in a manner that allows that if there was an error it not be repeated. So I would expect they would flash up what they considered to be weaknesses and I would hope they would.
At the same time I expect they will also flash up some strengths."
