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Viewing cable 07KABUL3087, AF: Anyak mine tender: WB comfortable with current state of

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Reference ID Created Released Classification Origin
07KABUL3087 2007-09-15 13:02 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kabul
VZCZCXRO8504
PP RUEHDBU RUEHIK RUEHPOD RUEHPW RUEHYG
DE RUEHBUL #3087/01 2581302
ZNR UUUUU ZZH
P 151302Z SEP 07
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 0238
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0529
RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUEKJCS/OSD WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUEABND/DEA HQS WASHINGTON DC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUCNDT/USMISSION USUN NEW YORK 4204
RUEHFR/AMEMBASSY PARIS 2980
RUEHML/AMEMBASSY MANILA 1607
RUEHBY/AMEMBASSY CANBERRA 0272
RUEHOT/AMEMBASSY OTTAWA 1391
RUEHNE/AMEMBASSY NEW DELHI 7123
RUEHJA/AMEMBASSY JAKARTA 0057
RUEHRL/AMEMBASSY BERLIN 2105
RUEHUL/AMEMBASSY SEOUL 0079
RUEHLO/AMEMBASSY LONDON 3753
RUEHKO/AMEMBASSY TOKYO 1951
UNCLAS SECTION 01 OF 02 KABUL 003087 
 
SIPDIS 
 
DEPT FOR SCA/FO, SCA/RA, AND SCA/A (A/S BOUCHER, GASTRIGHT,DEUTSCH) 
DEPT PASS AID/ANE, OPIC 
DEPT PASS USTR FOR GERBER AND KLEIN 
DEPT PASS OPIC FORZAHNISER 
DEPT PASS TDA FOR STEIN AND GREENIP 
CENTCOM FOR CG CFC-A, CG CJTF-76, POLAD, JICENT 
NSC FOR AHARRIMAN 
TREASURY FOR ABAUKOL, BDAHL, AND MNUGENT 
MANILA PLEASE PASS ADB/USED 
PARIS FOR OECD/ENERGY ATTACHE 
OSD FOR SHIVERS, SHINN 
COMMERCE FOR DEES, CHOPPIN, AND FONOVICH 
TOKYO ALSO FOR AID COUNSELOR AANENSON 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958 N/A 
TAGS: ENRG EFIN EPET ETRD KPWR EAID PGOV AF
SUBJECT: AF: Anyak mine tender: WB comfortable with current state of 
play. 
 
Sensitive but Unclassified 
 
1. (SBU) In a September 13 meeting, World Bank staff informed 
Embassy Treasury Attach and EconOff that based on the information 
available to them, the initial evaluation of the Anyak copper mine 
bids appears to have proceeded according to the process spelled out 
in tender documents, and in accordance with the law.  Citing sources 
from within the Ministry of Mines (MOM) as well as conversations 
with MOM Minister Adel, Minister of Finance Ahadi and Deputy 
Minister of Finance Sharani, they reported that the 
Inter-Ministerial Committee (IMC) has asked for another evaluation 
of the bids due to difficulty evaluating the "non-mining"/ancillary 
parts of the submitted bids (e.g., social and economic impacts.) 
(Note: The IMC has requested meetings with bidders on September 15 
and 17.  U.S. bidder Phelps-Dodge is to go before the committee on 
September 17.  End Note.) 
 
--------------------------------------------- 
Meeting to Evaluate the "Tinsel on the Tree" 
--------------------------------------------- 
 
2.  (SBU) Alastair McKechnie, the World Bank Country Director for 
Afghanistan in the Bank's South Asia Bureau, speculated that bidders 
will be quizzed about their ability to deliver the "tinsel on the 
tree" extras included in their proposals so that empty promises can 
be dismissed.  One example given was a bidder's proposed railroad 
from Central Asia through the Hindu Kush Mountains to Afghanistan, a 
very expensive endeavor.  It should then prove easier for the IMC to 
evaluate the core of each bid and realistically include the value of 
the promised extras.  After meeting with the bidders, the IMC is 
expected to make a final decision on the tender award; however, with 
the start of Ramadan on September 13, Bank staff were unwilling to 
speculate as to the timing of any follow-on IMC meeting, saying only 
that the IMC decision-making process will take time. 
 
------------------------------------------- 
World Bank Message Mirrors Embassy Emphasis 
------------------------------------------- 
 
3. (SBU) According to McKechnie, the Bank's message to the IRoA has 
mirrored that of the Embassy and focused on the need for 
transparency, following the letter of the law and the government's 
ability to justify its decision before an international audience. 
McKechnie has directly conveyed this message to the Minister of 
Mines, Minister of Finance, and Deputy Minister of Finance. 
Additionally, McKechnie told us the following: 
 
      -- Minister Adel has insisted that after the tender is 
awarded, all materials relevant to the evaluation of the bidders 
will be available to the general public. 
 
      -- The World Bank has extended the contract for the MOM's 
 
KABUL 00003087  002 OF 002 
 
 
tender advisors, Gustavson and Co., to now include support to the 
IGoA during the negotiating process with the tender winner. 
 
      -- Despite rumors to the contrary, the World Bank's sources 
tell them the gap in bid "scores" between the top bidder and second 
runner-up was very slim. (The rumored difference was a more 
significant 30 points.) 
 
      -- The Ministry of Finance appears to have high visibility in 
the IMC evaluation process and is pushing to ensure the process 
focuses on determining the value of the core copper mine bid before 
moving on to the secondary, promised "tinsel." 
 
4. (SBU) Comment: Obtaining accurate information on the Anyak tender 
evaluation process within the Afghan government is difficult on the 
best of days.  Despite this, the IMC's request for a second 
evaluation of the bids is a positive development because a larger 
number of ministries are represented than may have been on the 
initial evaluation committee convened by Minister Adel.  We also 
welcome the IMC's decision to give bidders another opportunity to 
clarify their bids and to focus on the core bid rather than the 
various "extras" being offered by some to sweeten the deal.  U.S. 
bidder Phelps-Dodge has contacted the Embassy regarding their 
September 17 appointment with the IMC and we intend to support their 
bid as appropriate.  End comment. 
 
Dell