A Contractor Perspective on Afghanistan

by David Van Horn, AICP

Afghan-American Chamber of Commerce U.S.-Afghanistan Business Matchmaking Conference

3 December 2013 Construction and Infrastructure Panel

A Lot of Work has Been Accomplished

ECC People in Theatre

Not an Easy Place to Work

GV ECP Hit by Suicide Bombers

Inside ECP – They Got In

Consider the Work Environment

• Afghanistan is ranked one of the world’s most corrupt countries

• Logistics - an extreme challenge • Security is uncertain • Climate and topography

often affect project site conditions, including access, constructability, and available labor

Bribery is Part of the Culture

This Behavior is a Constant Issue for ECC

• Subs make false claims well after the work is finished

• Subs don’t abide by the contract • Political influence and police force is used to

harass and attempt to extort ECC • Orders issued for ECC staff to not leave the

country • Criminalization of civil disputes

Safety Program Impacted by Culture

• No established safety culture in Afghanistan • Lack of education influences worker outlook • Language barrier inhibits on-job training • Lack of human value influences how much $$

subs spend on safety

The Country Environment is Changing

• Draw down has started – ISAF forces leaving – Spanish, French, Dutch, US, German

• Provincial Reconstruction Teams closing • Combat Operating Bases (COBs) closing • ANA, ANP, APPF continue taking over security • NATO forces may leave sooner, or not remain

at all

Relationships Changing

• US and Afghanistan relationship is stained – Issues of sovereignty affect Bilateral Security

Agreement • Afghan presidential election in 2014 • DoD contracts concluding

– USACE/AFCEC on a strict deadline to draw down • Donor shift away from direct contracting

– Providing funding to ADB trust fund and to Afghan line ministries & state-owned enterprises

What This Means to Us

Security risk + corruption + changing relationships = A less attractive work

environment for ECC

Unpredictability is a real concern for all of us

Prospective Opportunities

Project RFP Release Client

MEW Capacity Building 4Q13 USAID

Power projects 2014 USACE

Power projects 2014 ADB/DABS

ANSF Facilities 2014 USACE, AFCEC

CASA 1000 2014 WB, IsDB

TAPI Gas Pipeline ? USAID

• In 2011, Afghanistan received $6.7 billion dollars in aid, according to the Organization for Economic Cooperation and Development.

• There have been concerns about donor engagement in Afghanistan once NATO withdraws its troops in 2014, although Afghanistan continues to have massive development needs.

• The Tokyo Conference on Afghanistan July 2012 proved donors do not plan to abandon the conflict-torn country, pledging to provide $16 billion of conditional aid over four years.

• Donors are looking to stimulate development by creating meaningful partnerships in-country. • Experience in capacity building, women’s empowerment, monitoring and evaluation, and financial

management is in demand.

Questions?