Technical Working Group on Energy and Infrastructure: Recommendations

Energy and Infrastructure sectors can play a significant role in the economy of Afghanistan. The Working Group recognized Afghanistan’s role as a potential trade, transportation and energy hub in the region. Turning this potential into reality will require a holistic and integrated approach involving consultations among all stakeholders and creation of mechanisms for effective follow up and implementation.

Energy Development:

The Working Group stressed that facilitating transfer of energy resources across the region was the corner stone of regional cooperation in the context of Afghanistan. Every effort should be made to complete CASA-1000 and TAPI projects, and international financial institutions should extend all possible financial and technical support to this end.

The Group took note of the presentation made by the Afghan delegation on North East Power System Development Programme. It also received updates on electricity connectivity and Afghanistan’s efforts to conclude bilateral power purchase agreements with Uzbekistan, Tajikistan and Turkmenistan.

CASAREM

The Working Group recognized high level political support for the Central Asia – South Asia Regional Electricity Market initiative and the CASA-1000 project for import of 1300 MW of electricity by Afghanistan and Pakistan from Tajikistan and the KyrgyzRepublic to meet power demand in South Asia during summer season.

After detailed deliberations, the Working Group recommended taking the project forward faster towards financial closure. It was recommended that additional discussions will need to take place with ADB. It was also observed that there was scope for expanding the electricity import by including other States.

TAPI

Participants were updated on latest developments on the proposed Turkmenistan-Afghanistan-Pakistan-India pipeline. It was noted that it appeared that Turkmenistan possessed sufficient gas reserves to meet its commitments on TAPI pipeline. Next steps with regard to the project included finalizing funding issues including for updating of the techno-feasibility study, further studies on security issues and completion of necessary legal frameworks.

Water Resources:

A number of rivers in the region flowed through two or more States. In this regard, the need to further study the riparian issues was discussed.

Transport:

The Working Group noted the importance of modern rail system to enhance transit connectivity. It welcomed plans to establish Torkham – Jalalabad and Chaman – Spin Boldak rail links, as well as the European Commission’s proposal to conduct the feasibility studies on trans-Afghan railways.

It further appreciated the progress that had been achieved on regional transit routes. CAREC was investing in six transport and trade corridors to link CAREC countries with one another and the broader Eurasian continent. Three corridors traversed Afghanistan. It was noted that Pakistan’s National Trade Corridor will play a vital role in facilitating access of Central Asia to the Sea through Afghanistan. With necessary strategies in place, CAREC was focused on implementation of the projects, which would be expedited by 2017. Significant surge in transit trade and intra-regional trade volumes was expected as a result. Transit time would be reduced, and transportation costs lowered. Investments in infrastructure however, needed to be made.

Technical Working Group on Labour and Human Resource Development: Recommendations

In the meeting of the thematic working group on Afghan labour migration and HRD, a paper entitled “Afghan labour migration and Human resources Development” prepared by the International Organisation for Migration Mission in Afghanistan, was presented by Mr. Fazal Ahmad Bahrami, Ministry of Labour and Social Affairs Afghanistan. After presentation the group thoroughly discussed the Issues and made the following recommendations:

  • First; Afghanistan is a labour surplus country. The participants agreed that bilateral agreements on labour migration should be considered to tackle the problem of surplus labour in Afghanistan. They called upon the ILO to assist in development of temporary and circular schemes of labour migration.. They also expressed a need for the enhancement of the institutional capacity of MOLSAMD for the better governess and administration of labour migration in Afghanistan. They also requested the ILO to help develop the system for labour recruitment through the involvement of the private sector.
  • Second; the participants of the working group recognized the need for skill development through vocational training and other means. They expressed their support for Afghan Government’s National Development and Skill Linkages Programme. They recognized the need for strengthening and institutionalizing this important initiative. Good information on labour market was necessary for policy formation and programme design. The participants recognized the need for a labour force survey in Afghanistan and called upon the ILO to assist in conducting such survey and developing the labour market information system in Afghanistan. They also requested the ILO to create in close consultation with the regional countries a capacity building programme in holistic way, including the training of trainers (ToT) for the up-gradation of training facilities and resources strategically targeting basic skills such as household services, buildings, agriculture and construction industry as well as for establishing regional offices in the provincial centers/capitals.
  • Third; remittances to Afghanistan are transferred largely through the informal channels. RECCA participants agreed on gradually reducing reliance on these channels, which often do not contribute to the developmental objectives of Afghanistan. In this regards, they underlined the need for a regulated and incentive-based framework for promoting and supporting remittance flows through banking/regulated channels as well through other appropriate means including mobile transfer. They thus called the Development Partners to assist the Afghanistan Central bank in creating a regulatory framework/infrastructure.
  • Fourth; The participants expressed their support for Afghan Governments programme on Sustainable Reintegration of the Afghan Returneees for Self and Waged Employment. They recognized the urgent need to attract the return of the skilled Afghans back to Afghanistan. They encouraged the Development Partners and stakeholders to help the Afghan Government to make the reintegration of returnees programme a success. They also called upon to conduct a survey of skilled Afghan refugees living in Iran and Pakistan, with a view to defining a comprehensive strategy to utilize their potential, including their return, in the development objectives of Afghanistan.

The Working Group on Health: Recommendations

Acknowledging the centrality of human health to sustainable economic development, the ‘Thematic Working Group on Health’ makes10-Recommendations for regional cooperation in Health

  1. Whereas control of Communicable Diseases is undoubtedly needed for sustainable development, continued lab support is a pre-requisite for reliable data and evidence based decision making.
  2. Considering limited public health lab services in the region, to meet obligations under IHR-2005, there is urgent need to improve lab capacity and establish national and regional networks. A Regional Reference Lab may immediately be identified/ strengthened to lead this initiative and also perform sophisticated and high- tech diagnostics.
  3. Accordingly concerted efforts may be made through properly worked out monetary and physical inputs to establish proper Disease Surveillance mechanisms/ Early Warning Systems in the member countries along with sharing of expertise and information for efficient and timely prevention & control of outbreaks and effective cross-border activities.
  4. Afghanistan and Pakistan will continue their exemplary cross border collaboration and efforts to vaccinate children against polio. Concerted efforts by both countries, the international community and all parties, will be essential to reach and vaccinate children, particularly in security compromised areas. In the context of Afghanistan, this involves seizing windows of opportunity and local negotiation in conflict areas; close collaboration to ensure days of tranquillity; ensuring better management in some districts experiencing difficulties. The international community is urged to bridge the funding gap in Pakistan ($135m) and Afghanistan ($28m).
  5. Shortage of doctors, specialists and health workers should be worked out in a strategic and holistic way, taking into consideration their career path, likelihood of retention, and exit. In the meanwhile, available training opportunities in the region may be effectively utilized and shared through identifying and supporting institutions capable of imparting training.
  6. For the purpose of short/ medium term addressal of serious medical ailments, regional country-specialist medical treatment services need to be provided in the following areas:

–Telemedicine

–Referral System for Specialist Health care in neighbouring countries

–Transfer to regional countries taking advantage of Turkey’s support being provided to Afghanistan)

  1. Experts Exchange Program should be planned on a priority basis for continuous skill building and updating knowledge.
  2. In order to ensure sustainable development and complement the initiatives of the health sector, the Ministries of Health of the countries should always be consulted before planning and execution of projects having inter-sectoral impact like provision of safe drinking water, sanitation etc.
  3. The need to develop safe blood transfusion services in Afghanistan was emphasized and accordingly establishment of four regional blood transfusion centres with a network of blood banks is recommended with international support.
  4. A nucleus for regional cooperation in Health needs to be established in the respective Ministries of each of the member countries to further expand upon the recommendations of RECCA-3 and also work out with stakeholders, modalities and time-frames for effective regional cooperation.

The Technical Working Group on Transit and Trade facilitation: Recommendations

Appreciating the two presentations by the Afghan Delegation on “Trade and Transit Facilitation Strategy” and on the “Situation of Transport in Afghanistan”

Noting with interestthe Transit and Trade Facilitation Strategy distributed on behalf of the Ministry of Commerce and Industry of Afghanistan

Welcoming the signing of the MOU (Memorandum of Understanding) between Governments of Islamic Republic of Afghanistan and the Islamic Republic of Pakistan on Trade and Accession Facilitation on May 6, 2009 in Washington, D. C.

Welcoming the agreement between Afghanistan and Pakistan on the “Afghanistan – Pakistan Dubai Process Action Plan” resulting from the Dubai Process facilitated by The Government of Canada

Recognizing the formation of the Istanbul Forum, resulting from the Trilateral Ankara Process, supporting the apex organizations of the private sectors of the three countries to facilitate progress on the trans-regional trade and transit issues

Recognizing the efforts being made by the Government of United States of America to establish the Reconstruction Opportunity Zones (ROZ) for preferential market access for Afghanistan and Pakistan Border Areas.

The meeting was well attended with representation from almost all participating delegations. The group discussed the development of Afghanistan’s transit and trade potential and the role regional neighbors and other countries and institutions can play in expanding trade. The World Bank and European Union offered to provide technical support to regional bilateral transit trade agreements as and when requested by any of the negotiating countries.

Agreements at the Trade and Transit Working Group

Complete the APTTA negotiation process as rapidly as possible as, no later than 31 December, 2009,and in the interim on trade and accession facilitation to coordinate and resolve all issues relating to cross border commerce and inland transit trade, as agreed under the MOU between Afghanistan and Pakistan.

Following up on the “Dubai Process Action Plan”, arrive at a consensus draft of the Bilateral Customs Agreement between Afghanistan and Pakistan using the (World Customs Organization) WCO Template by June 30, 2009 and accelerate the signing of the agreement before the current agreed date of March 2010. There was reiteration of the “Dubai Process Action Plan” recommendation to harmonize the border operation times between Afghanistan and Pakistan. Similar agreements should also be signed by Afghanistan with its other neighboring countries.

The regional states agreed to facilitate the export of Afghan fresh fruits and vegetables.

Support the current efforts in Afghanistan to setup a customs academy and then develop regional linkages and twinning arrangements.

Carry out feasibility studies for the development of border economic zones around Afghanistan based on the TOR presented by the Government of Afghanistan and feasibility studies on the transit potential of Middle East, Central and South Asian regions.

Back To Back Business Meetings at the 3rd RECCA: Recommendations

  • A business conference was arranged by the Ministry of Investment / Board of Investment in collaboration with Federation of Pakistan Chamber of Commerce & Industry (FPCCI) and Afghanistan Investment Support Agency (AISA).
  • Private sector representatives of the two countries held back-to-back business discussions to explore the possibility of investment cooperation in the following areas:
  1. Agriculture
  2. Infrastructure
  3. Industry / Manufacturing
  4. Services / Banking and Insurance Sector
  5. Trade
  • The meetings took place under the format of sector specific interaction. Participants reaffirmed the importance of regional cooperation and called for renewed efforts to realize investment opportunities.
  • Pakistan’s effort to provide the much needed interface to the private sector was appreciated. The delegates demonstrated a strong commitment towards improving socio-economic conditions through private sector initiative.
  • The event was instrumental in exchange of information and exploration of possible new areas of mutual cooperation besides providing the private sector with an opportunity to assess each others potential, strengths and weaknesses, and establish one to one contact.
  • Attention was specially drawn to the existing lack or weak infrastructure available in the two countries and the importance of the private sector to play an effective role in its development on a fast track.
  • The overall improvement of infrastructure was deemed necessary to facilitate the setting up of the proposed Reconstruction Opportunity Zones (ROZs) in border areas of Pakistan and across Afghanistan. The participants termed ROZs as a catalyst for regional development.
  • A proposal to extend financing at concessionary mark-up rates to investors in ROZs under the credit line of international financial institutions was also put forth by the participants. However, survival of industry outside ROZs needs to be safeguarded.
  • Pakistan's struggle to curb extremism was applauded and it was acknowledged that peace and stability was the only way forward to open up the unlimited investment and business opportunities that the region offers.
  • In the end, the significance to actively continue information sharing and exchange of business delegations among the two countries was underlined.

CONFERENCE DECLARATION

Investment and Private Sector Cooperation

Private sector of both countries reaffirmed its commitment to play a leading role in economic development of the region. It decided to enhance collaboration to stimulate investment in the areas of infrastructure development, agriculture, manufacturing, services delivery and trade. The need for a joint strategic vision was highlighted. This would allow joint shouldering of national responsibilities towards invigorating the regional economies. The present daunting challenges of improving the law and order situation and enhancing public sector facilitatory capacity were stated to be of great importance. The future holds much promise if these challenges are met and information sharing and exchange of business delegations is pursued proactively.

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