Presentation to the Afghan-American Chamber of Commerce, U.S.-Afghanistan Business Matchmaking Conference, Construction and Infrastructure Panel, 3 December 2013
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A Contractor's Perspective on Afghanistan
1. 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
7. Consider the Work Environment
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Afghanistan is ranked one of the world’s most corrupt countries
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Logistics - an extreme challenge
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Security is uncertain
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Climate and topography often affect project site conditions, including access, constructability, and available labor
9. This Behavior is a Constant Issue for ECC
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Subs make false claims well after the work is finished
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Subs don’t abide by the contract
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Political influence and police force is used to harass and attempt to extort ECC
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Orders issued for ECC staff to not leave the country
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Criminalization of civil disputes
10. Safety Program Impacted by Culture
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No established safety culture in Afghanistan
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Lack of education influences worker outlook
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Language barrier inhibits on-job training
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Lack of human value influences how much $$ subs spend on safety
11. The Country Environment is Changing
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Draw down has started – ISAF forces leaving
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Spanish, French, Dutch, US, German
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Provincial Reconstruction Teams closing
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Combat Operating Bases (COBs) closing
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ANA, ANP, APPF continue taking over security
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NATO forces may leave sooner, or not remain at all
12. Relationships Changing
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US and Afghanistan relationship is stained
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Issues of sovereignty affect Bilateral Security Agreement
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Afghan presidential election in 2014
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DoD contracts concluding
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USACE/AFCEC on a strict deadline to draw down
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Donor shift away from direct contracting
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Providing funding to ADB trust fund and to Afghan line ministries & state-owned enterprises
13. 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
14. 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
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In 2011, Afghanistan received $6.7 billion dollars in aid, according to the Organization for Economic Cooperation and Development.
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There have been concerns about donor engagement in Afghanistan once NATO withdraws its troops in 2014, although Afghanistan continues to have massive development needs.
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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.
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Donors are looking to stimulate development by creating meaningful partnerships in-country.
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Experience in capacity building, women’s empowerment, monitoring and evaluation, and financial management is in demand.