Sheberghan Gas Generation Activity (SGGA) Quarterly Report

in collaboration with the Ministry of Mines and Petroleum (MoMP) of Afghanistan. The project aims to develop the Sheberghan gas field and increase gas production in the region. The project is funded by the United States Agency for International Development (USAID) and is jointly sponsored by USAID and the Government of the Islamic Republic of Afghanistan. The SGGA project has several objectives, including providing procurement technical assistance to MoMP, providing technical assistance to Da Afghanistan Breshna Sherkat (DABS), and developing the capacity of MoMP and other Afghan institutions. The project also aims to support the development of the Sheberghan gas field and increase gas production in the region. One of the major activities of the SGGA project is the drilling and re-entry services contract with Turkish Petroleum Corporation (TPAO). However, TPAO has made slow progress on the contract, with only 40 percent of the contract performance period schedule completed as of the end of the reporting period. TPAO has cited long lead times for corrosive resistant casing and tubing as the primary excuse for the delay. The SGGA project team has attempted to motivate MoMP to push TPAO to improve their projected performance schedule, but TPAO has failed to respond with plans to comply with the contract schedule. The SGGA project team has also encountered problems with the issuance of a Certificate of Environmental Compliance for Re-entry/Drilling Operations by the Afghan National Environmental Protection Agency (NEPA). The preparation and submission of responses to NEPA comments on the MoMP's application for the compliance certificate was delayed due to lack of defined procedures and deadlines for the review and approval of such documents within MoMP. The SGGA project team has prepared recommendations in cooperation with MoMP's legal department and provided a final amended application to MoMP, but the amended response was not finally approved for filling with NEPA until 7 February. In addition to the drilling and re-entry services contract, the SGGA project team has also provided technical assistance to DABS in formulating a coherent business argument that the proposed Sheberghan power plant is a viable alternative to the Power Purchase Agreement (PPA) with Turkmenistan. The project team has assisted DABS managers with developing a presentation to the DABS Board of Directors to expose this problem and has met with ADB representative to research ADB funding policies. The SGGA project team has also provided contract management training for the Afghanistan Petroleum Authority (APA) and Afghanistan Geological Survey (AGS) staff. The training was provided over a period of five days and attended by 32 people. The training aimed to develop the capacity of MoMP and other Afghan institutions to manage contracts effectively. Overall, the SGGA project has made progress in several areas, including the provision of technical assistance to DABS and the development of the capacity of MoMP and other Afghan institutions. However, the project has also encountered several challenges, including the slow progress of TPAO on the drilling and re-entry services contract and the delay in the issuance of a Certificate of Environmental Compliance for Re-entry/Drilling Operations by NEPA.