Sheberghan Gas Generation Activity (SGGA) Quarterly Report

The project is managed by Advanced Engineering Associates International, Inc. (AEAI) and is implemented in collaboration with the Ministry of Mines and Petroleum (MoMP) and the Afghanistan Petroleum Authority (APA). The project's primary objective is to support the development of the Sheberghan Gas Development Project (SGDP), which is a critical component of the country's energy sector. The SGDP is a joint venture between the Afghan government and the Turkish Petroleum Corporation (TPAO), with the goal of extracting and processing natural gas from the Juma-Bashikurd field. As of January 1 - March 31, 2015, the project was facing significant challenges in meeting its objectives. TPAO, the drilling contractor, was 369 days behind schedule and had not yet completed a significant portion of mobilization of equipment and materials. Despite two extensions of the performance period, TPAO was still struggling to meet its commitments, and the Ministry of Mines and Petroleum (MoMP) and TPAO had not reached agreement on the terms of the extension. The Afghanistan Petroleum Authority (APA) was also facing challenges in managing the project. The authority had received an extension in early March 2015, but approximately 25 of the formerly 72 staff members remained part of the directorate. The new acting director general, Dr. Qaeym, had little experience in petroleum business economics or finance, and the mid-level staff, especially the finance department, lacked anyone with significant experience to run the department. SGGA continued to work with APA's Z. Sarwari, but his interest in the project appeared to have waned, and SGGA was prioritizing engaging him with its director of capacity development for the second quarter of the year to improve collaboration. SGGA recognized current organizational deficiencies within APA, but these issues did not appear to influence the project greatly, as Dr. Qaeym did not appear to have limited Z. Sarwari's decision-making regarding the administration of SGDP. The project also faced challenges in obtaining necessary information from MoMP, including implementing partner contracts, budgets, and related documents. SGGA provided copies of all SGDP ILs and a PowerPoint presentation on the current status of SGDP, but MoMP's request for information was still pending. In order to implement assistance projects successfully, full access and cooperation with APA officials were needed. SGGA delayed a crucial SGDP three-party meeting for weeks to ensure that then director general Dr. Aryan could attend, but even after confirmation from all three, Dr. Anwar failed to attend the meeting, despite a major topic being the continuation of grant funding. The project's progress was hindered by the lack of cooperation from MoMP and APA, which was necessary for the successful implementation of assistance projects. SGGA continued to work with MoMP senior leadership to address strategic SGDP issues and Z. Sarwari for day-to-day contract management.