SIGAR Audit-12-12 Infrastructure 

OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION

Fiscal Year 2011 Afghanistan Infrastructure Fund

Projects Are behind Schedule and Lack Adequate

Sustainment Plans 

July 30, 2012 
SIGAR

Special Inspector General for Afghanistan Reconstruction

SIGAR Audit-12-12 July 2012

Fiscal Year 2011 Afghanistan Infrastructure Fund 

Projects Are behind Schedule and Lack Adequate 

Sustainment Plans 

What SIGAR Reviewed

In the fiscal year 2011 National Defense Authorization Act, Congress created the Afghanistan Infrastructure Project (AIP) to allow 

the Department of Defense (DOD) and Department of State (State) to combine resources to develop and carry out infrastructure 

projects in Afghanistan that are explicitly linked to the U.S. counterinsurgency (COIN) effort. The U.S. Agency for International 

Development (USAID) is the implementing agency for State, and U.S. Forces-Afghanistan (USFOR-A) is the implementing agency 

for DOD. USAID executes its projects through contracts, while USFOR-A executes projects through contracts managed by the U.S. 

Army Corps of Engineers (USACE). Legislative provisions related to AIP require implementing agencies to show how they will 

sustain projects and report to Congress before and after obligating, disbursing, or transferring funds for AIP projects. This report

determines the extent to which (1) AIF-funded projects were implemented on schedule and achieving planned COIN effects; (2) 

DOD, State, and USAID addressed project sustainment costs and other sustainment challenges; and (3) agencies coordinated and 

jointly managed AIP. 

To accomplish these objectives, SIGAR obtained data and met with officials from DOD, State, USAID, and the Asian Development 

Bank. SIGAR limited the scope of the audit to execution, administration, and oversight of the AIP and fiscal year 2011 AIF projects 

that were ongoing or planned for implementation as of January 1, 2012. SIGAR conducted work from November 2011 to June 2012

in Washington, D.C., and in Kabul and Kandahar, Afghanistan, in accordance with generally accepted government auditing standards. 

What SIGAR Found

More than 10 years after international intervention in Afghanistan, the U.S. government, the international community, and the Afghan 

government continue to face challenges in implementing programs to build basic infrastructure, particularly those efforts aimed at 

providing power to the largest cities and most critical areas in Afghanistan. For example, five of seven fiscal year 2011 AIF projects 

are 6-15 months behind schedule, and most projects may not achieve desired COIN benefits for several years. Acquisition and 

funding delays postponed the project execution schedules of most fiscal year 2011 AIF projects, including all power sector projects, 

except the Kandahar Bridging Solution. In addition, although DOD, State, and USAID made efforts to identify potential COIN 

benefits of fiscal year 2011 AIF projects, the scale of most projects means that these agencies will not achieve the planned 

contributions to the COIN strategy described in the fiscal year 2011 congressional notification for several years. Further, in some 

instances, these projects may result in adverse COIN effects because they create an expectations gap among the affected population or 

lack citizen support. 

DOD and State did not ensure the sustainability of fiscal year 2011 AIF projects. For example, although implementing agencies 

produced sustainment plans for each fiscal year 2011 AIF project, as required, these plans did not define project sustainment costs, 

and agencies did not communicate such costs to the Afghan government. Moreover, in some cases—such as the Kandahar Bridging 

Solution and the Southeast Power System projects—the sustainment of fiscal year 2011 AIF projects relies on the completion of 

additional projects that remain unidentified, unfunded, or have projected completion dates well beyond 2014. Because agencies did 

not develop adequate sustainment plans, and project sustainment relies on Afghan entities with questionable capacity and on 

unidentified and unfunded projects or projects with completion dates beyond 2014, the U.S. government does not have reasonable 

assurance that projects implemented using fiscal year 2011 AIF funds will be sustained after completion.

Agencies are developing mechanisms for joint project management. However, the lack of comprehensive and shared project 

information and unclear guidance on agency roles in project execution limit congressional oversight and interagency coordination.

What SIGAR Recommends

SIGAR is recommending 9 actions to better define the AIP, enhance joint decision making, coordination, and oversight among U.S. 

government agencies implementing AIP projects, help ensure the successful and timely development of Afghanistan’s power sector, 

and increase the likelihood that AIP projects achieve program goals specifically related to COIN and are sustained upon completion. 

SIGAR is also recommending actions to help ensure the timely completion of congressional notifications and reports, as well as the 

timely receipt or transfer of appropriated funds. When preparing the final report, SIGAR considered comments on a draft report from 

State, the U.S. Embassy Kabul, USAID, USFOR-A, and the Office of the Secretary of Defense (OSD). State, the U.S. Embassy 

Kabul, and USAID generally concurred with the recommendations. USFOR-A responded to eight recommendations, concurred or 

partially concurred with seven and did not concur with one. OSD responded to eight recommendations, concurred or partially 

concurred with five and did not concur with three. Comments from all five agencies are reproduced in appendices V-IX. 

For more information contact: SIGAR Public Affairs at (703) 545-5974 or sigar.pentagon.ccr.mbx.public-affairs@mail.mil
Special Inspector General for Afghanistan Reconstruction

Main: 703-545-6000 

1550 Crystal Drive, 9th Floor

Arlington, VA 

 John F. Sopko, Special Inspector General www.sigar.mil

Mailing Address: 2530 Crystal Drive, Arlington VA 22202-3940

July 30, 2012 

The Honorable Hillary Rodham Clinton

Secretary of State

The Honorable Leon E. Panetta

Secretary of Defense

The Honorable James B. Cunningham 

U.S. Ambassador to Afghanistan

General John R. Allen

Commander, U.S. Forces – Afghanistan, and 

Commander, International Security Assistance Force

Dr. S. Ken Yamashita

USAID Mission Director for Afghanistan

This report discusses the results of the Office of the Special Inspector General for Afghanistan Reconstruction’s 

(SIGAR) audit of the Afghanistan Infrastructure Program and Fund. This program is intended to leverage and 

coordinate Department of Defense and Department of State resources for large-scale infrastructure projects in 

Afghanistan. However, several fiscal year 2011 projects are 6 to 15 months behind schedule, and sustainment 

plans are incomplete. This report includes 9 recommendations to the Secretary of Defense, Secretary of State, 

the Commander of U.S. Forces-Afghanistan (USFOR-A), the U.S. Ambassador to Afghanistan, and the U.S. 

Agency for International Development (USAID) Mission Director in Afghanistan to improve the 

implementation and oversight of U.S. funding for Afghanistan infrastructure projects.

We considered comments from the Department of State, the U.S. Embassy in Kabul, USAID, USFOR-A, and 

the Office of the Secretary of Defense (OSD), which are reproduced in appendices V-IX. OSD believes that the 

audit report is premature and strongly disagrees with many of our findings and conclusions. We conducted the 

audit early in the program’s implementation so that opportunities for improvement could be identified and 

addressed prior to the withdrawal of U.S. and coalition troops. In addition, we conducted our work in 

accordance with generally accepted government auditing standards, which require that we plan and perform the 

audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions. 

We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our 

audit objectives. 

SIGAR conducted this performance audit under the authority of Public Law No. 110-181, as amended; the 

Inspector General Act of 1978; and the Inspector General Reform Act of 2008. 

John F. Sopko 

Special Inspector General for Afghanistan Reconstruction
SIGAR Audit-12-12 Infrastructure Page i 

TABLE OF CONTENTS 

Background................................................................................................................................................... 2

Most Fiscal Year 2011 AIF Projects are 6-15 Months Behind Original Schedule 

and Some Projects May Not Achieve Desired COIN Effects................................................................ 4

DOD, State, and USAID Did Not Calculate Sustainment Costs or Otherwise 

Ensure Sustainability.............................................................................................................................. 8

Congressional Oversight and Interagency Coordination Are Limited by Lack of 

Shared Information and Master Plan for Energy Sector....................................................................... 11

Conclusions................................................................................................................................................. 14

Recommendations....................................................................................................................................... 14

Agency Comments...................................................................................................................................... 16

Appendix I: Scope and Methodology ........................................................................................................ 19

Appendix II: Fiscal Year 2011 and 2012 Afghanistan Infrastructure Fund Project 

Nomination and Approval Process ....................................................................................................... 21

Appendix III: Planned Contribution to Counterinsurgency Strategy of Fiscal 

Year 2011 Afghanistan Infrastructure Fund Projects........................................................................... 22

Appendix IV: Required Reports and Fiscal Year 2011 Congressional 

Notification Timeline ........................................................................................................................... 23

Appendix V: Comments from the Department of State............................................................................. 25

Appendix VI: Comments from the U.S. Embassy Kabul .......................................................................... 27

Appendix VII: Comments from the U.S. Agency for International Development .................................... 32

Appendix VIII: Comments from the U.S. Forces Afghanistan.................................................................. 40

Appendix IX: Comments from the Office of the Secretary of Defense..................................................... 48

TABLES 

Table 1: Fiscal Year 2011 AIF Projects (dollars in millions)....................................................................... 4

Table I: Planned COIN Contributions of Fiscal Year 2011 AIF Projects................................................... 22

Table II: Required Congressional Notifications and Reports for AIP and AIF......................................... 23

FIGURES

Figure 1: Fiscal Year 2011 AIF Estimated Project Execution Schedules..................................................... 5

Figure I: Fiscal Year 2011 AIF Project Nomination and Approval Process............................................... 21

Figure II: Timeline for Congressional Notification of the Fiscal Year 2012 AIF 

Project List ........................................................................................................................................... 24
SIGAR Audit-12-12 Infrastructure Page ii

ABBREVIATIONS AND ACRONYMS 

AIF Afghanistan Infrastructure Fund

AIP Afghanistan Infrastructure Program

ADB Asian Development Bank

CENTCOM United States Central Command

CERP Commander’s Emergency Response Program

CBJ Congressional Budget Justification

COIN Counterinsurgency

DABS Da Afghanistan Breshna Sherkat

DOD Department of Defense

ESF Economic Support Fund

EWG Executive Working Group

GAO Government Accountability Office

IWG Infrastructure Working Group

JPC Joint Program Committee

JPDT Joint Project Delivery Teams

MATOC Multiple Award Task Order Contract

MW Megawatts

NEPS Northeast Power System

OSD Office of the Secretary of Defense

PJC Provincial Justice Center

SECDEF Secretary of Defense

SECSTATE Secretary of State

SEPS Southeast Power System

SIGAR Special Inspector General for Afghanistan Reconstruction

State Department of State

USFOR-A United States Forces-Afghanistan

USACE U.S. Army Corps of Engineers

USAID U.S. Agency for International Development
SIGAR Audit-12-12 Infrastructure Page 1 

Fiscal Year 2011 Afghanistan Infrastructure Fund Projects Are behind 

Schedule and Lack Adequate Sustainment Plans

In the 10 years since the United States began committing resources to rebuild Afghanistan, Congress has 

appropriated more than $89.4 billion for the reconstruction effort. At the end of 2003, the United States 

government shifted its resources from a focus on humanitarian relief to programs aimed at establishing

the rule of law, improving governance, building infrastructure, and increasing access to health and 

education. Since then, the United States has spent billions of dollars to build or rehabilitate key physical 

infrastructure—a critical aspect of the U.S. transition strategy—in areas such as security, transportation, 

and energy. In fiscal year 2011, Congress appropriated $400 million to the Department of Defense 

(DOD) to create the Afghanistan Infrastructure Fund (AIF) in support of the Afghanistan Infrastructure 

Program (AIP) and appropriated an additional $400 million for the AIF in fiscal year 2012 to continue 

AIP support. A viable infrastructure is intended to help curb Afghan reliance on foreign logistics and 

capacity, provide economic alternatives to insurgency involvement, diminish the vulnerability of the 

Afghan people to violent extremists, and support the U.S. civil-military campaign and counterinsurgency 

strategy for Afghanistan. 

Our previous audits of infrastructure projects implemented by the U.S. government—primarily the U.S. 

Army Corps of Engineers (USACE), the U.S. Agency for International Development (USAID), and the 

Air Force Center for Engineering and the Environment—identified problems with infrastructure programs

resulting from insufficient planning and inadequate contract management and oversight, particularly in 

areas that are not secure.1

 Moreover, a congressional hearing on Afghanistan reconstruction contracts 

revealed concerns with the adequacy of AIF project sustainability assessments.2

 

In addition, for several years we and others have noted that DOD and the United States ForcesAfghanistan (USFOR-A) were not using Commander’s Emergency Response Program (CERP)3 funds as 

intended.4

 Although CERP was created to fund small-scale projects to offer commanders in the field 

immediate counterinsurgency (COIN) benefits,5 it often funded large-scale, longer-term infrastructure 

projects. In the fiscal year 2011 National Defense Authorization Act6 and subsequent appropriating 

legislation,7 Congress reduced DOD’s CERP appropriation by over $400 million, placed a $20 million 

cap on the dollar amount of individual CERP projects, and created the AIP to address large-scale 

infrastructure needs in support of the COIN strategy. 

We conducted this audit early in the life of the program so that any problems or opportunities for 

improvement could be identified and addressed prior to the impending withdrawal of U.S. and coalition 

troops. This audit assessed the extent to which (1) AIF-funded projects were implemented on schedule 

 

1

Recurring Problems in Afghan Construction, SIGAR Testimony before the Commission on Wartime Contracting, 

January 24, 2011.

2

Unofficial transcript of June 30, 2011, Hearing on Afghanistan Reconstruction Contracts by the Senate Homeland 

Security and Governmental Affairs, Subcommittee on Contracting Oversight. 3

CERP is a DOD program managed by USFOR-A that enables commanders to fund humanitarian relief and 

reconstruction projects to immediately assist indigenous populations. 4

IBID; Commander’s Emergency Response Program in Laghman Province Provided Some Benefits, but Oversight 

Weaknesses and Sustainment Concerns Led to Questionable Outcomes and Potential Waste, SIGAR Audit 11-7, 

January 27, 2011; U.S. Embassy Kabul and U.S. Forces-Afghanistan Consolidated Policy for Executing Afghanistan 

Infrastructure Fund Procedures, February 18, 2010. 5

Joint doctrine defines an insurgency as an organized movement aimed at the overthrow of a constituted government 

through the use of subversion and armed conflict. Counterinsurgency is military, paramilitary, political, economic, 

psychological, and civic actions taken by a government to defeat insurgency. 6

P.L. 111-383 §1212, 1217, Ike Skelton National Defense Authorization Act for Fiscal Year 2011, January 7, 2011. 7

P.L. 112-10, Department of Defense and Full-Year Continuing Appropriations Act, 2011.
SIGAR Audit-12-12 Infrastructure Page 2 

and achieved planned COIN effects, (2) DOD, State, and USAID addressed project sustainment costs and 

other sustainment challenges, and (3) agencies coordinated and jointly managed the AIP.

To accomplish these objectives, we obtained and analyzed data and information from, and met with, 

officials from DOD, State, USAID, and the Asian Development Bank (ADB).

8

 We limited the scope of 

the audit to the execution, administration, and oversight of the AIP and fiscal year 2011 AIF projects that 

were ongoing or planned for implementation as of January 1, 2012. We conducted work from November 

2011 to June 2012 in Washington, D.C., and in Kabul and Kandahar, Afghanistan, in accordance with 

generally accepted government auditing standards. Appendix I provides a more detailed discussion of our 

scope and methodology.

BACKGROUND

AIP was designed to be the vehicle that would allow DOD and State to combine resources to develop and 

carry out infrastructure projects in Afghanistan that are explicitly linked to the COIN effort. To support 

this objective, Congress created the AIF and appropriated $400 million to DOD’s fiscal year 2011 

operations and maintenance budget for the program.

9

 In a joint explanatory statement by the armed 

services committees, in addition to AIF, Congress noted that State planned to fund AIP projects by 

reprogramming existing foreign assistance resources to support large-scale infrastructure projects deemed 

critical to supporting the civil-military campaign in Afghanistan.10

According to the fiscal year 2011 National Defense Authorization Act,11 infrastructure projects authorized 

under the AIP may include water, power, transportation, and other projects in support of the COIN

strategy in Afghanistan.12 According to joint guidance for implementing AIP issued by DOD and State, 

13 power projects may include repairing, restoring, or improving electrical production, transmission, and 

distribution infrastructure and limited sustainment costs; transportation projects may include building or 

repairing transport networks such as roads, railways, canals, pipelines, nodes or terminals; and water 

projects may include funding watershed studies and building or repairing infrastructure such as major 

dams, irrigation, wells, sewage treatment, waste disposal, and water supply. Other AIP activities may 

include but are not limited to education, rule of law, governance, and economic development. 

Authorizing legislation requires AIP projects to be jointly developed and approved by DOD and State, 

and implemented by State, in coordination with DOD (see appendix II for further detail on project and 

vetting approval for AIF-funded projects). However, State and DOD may jointly determine that DOD 

should implement a project. According to project evaluation criteria outlined by DOD, State, and 

USAID, fiscal year 2011AIF projects were selected based on the following criteria: 

• fulfillment of fiscal year 2010 commitments; 

• the extent to which projects support Afghanistan’s infrastructure priorities; 

 

8

ADB is the lead donor organization in Afghanistan’s energy sector, and, in conjunction with the Afghan 

government, is developing the master plan for Afghanistan’s energy sector. 9

P.L. 112-74, 125 Stat. 786, 842 (Dec. 23, 2011), appropriated another $400 million for AIF, bringing the current 

total AIF appropriation to $800 million.

10Joint Explanatory Statement of the Committees on Armed Services of the U.S. Senate and House of 

Representatives on H.R.6523, Ike Skelton National Defense Authorization Act for Fiscal Year 2011, December 22, 

2010.

11P.L. 111-383 §1217. 12FM 3-24 MCWP 3-33.5 Counterinsurgency, Headquarters Department of the Army, December 2006, outlines U.S. 

COIN doctrine and provides the principles and guidelines for COIN operations, including the U.S. strategy in 

Afghanistan. The U.S. COIN strategy in Afghanistan calls for a four-phase approach—assess, clear, hold, and build. 13U.S. Embassy Kabul and U.S. Forces-Afghanistan Consolidated Policy for Executing Afghanistan Infrastructure 

Fund (AIF) Procedures, February 18, 2010.
SIGAR Audit-12-12 Infrastructure Page 3 

• inclusion of key terrain districts14 and support from Regional Commands and Regional 

Platforms; 

• the extent to which projects support the COIN strategy, complement the State and USAID 

development strategy, and make progress toward transition; and

• executability of the project and likelihood of completion by 2014.

15 

DOD and State initially determined the lead U.S. government agency responsible for implementing fiscal 

year 2011 AIF projects based on cost, schedule, performance, and foreign policy objectives. In some 

instances, however, DOD and State changed the original implementing agency to more closely align 

implementer capabilities with project requirements. USAID is the implementing agency for State, and 

USFOR-A is the implementing agency for DOD. Implementing agencies have programmatic and 

budgeting responsibility on behalf of DOD and State. USAID executes its own projects through contracts, 

while USFOR-A executes most projects through contracts managed by USACE. The executing 

agencies—either USACE or USAID—provide contract oversight, engineering, technical, and 

construction services to execute the projects.

For fiscal year 2011, DOD, State, and USAID identified 7 projects that would receive AIF funding—5 

projects for improving the power sector, 1 road project, and 1 project to build or improve provincial 

justice centers. Table 1 lists the fiscal year 2011 AIF projects, including the implementing agency and 

estimated project cost.

 

14International Security Assistance Forces-Afghanistan and Afghan government planning teams identified key 

terrain districts. DOD defines key terrain districts as areas that afford a significant advantage to the party that 

controls them; they are districts where the bulk of the population is concentrated, and that contain centers of 

economic productivity, key infrastructure, and key commerce routes connecting such areas to each other and to the 

outside world. These districts roughly follow the line of the three major highways in Afghanistan through the most 

densely populated portions of the country.

15Afghanistan Infrastructure Fund, U.S. Embassy Kabul Joint Programs Committee, January 25, 2011.
SIGAR Audit-12-12 Infrastructure Page 4 

Table 1: Fiscal Year 2011 AIF Projects (dollars in millions)

Source: SIGAR analysis of DOD, State, and USAID data and information. 

a

Changes to project scope and final contract costs resulted in DOD and State revising some of the original project cost estimates 

contained in the fiscal year 2011 AIF congressional notification; revisions to cost estimates occurred at various times throughout 

our field work. b

Original project was split into two projects: Kandahar ($30 million) and Helmand ($100 million). c

Project scope was reduced to begin from Dast-i-Barchi instead of Chimtala after ADB agreed to complete the transmission line 

from Chimtala to Dast-i-Barchi. 

MOST FISCAL YEAR 2011 AIF PROJECTS ARE 6-15 MONTHS BEHIND ORIGINAL 

SCHEDULE AND SOME PROJECTS MAY NOT ACHIEVE DESIRED COIN EFFECTS

For fiscal year 2011, DOD and State requested $357 million—89 percent of the $400 million appropriated 

to the AIF—for projects to develop and support Afghanistan’s power sector. Timely completion of these 

projects is critical because many power sector projects are interdependent and directly affect sector-wide 

goals. Figure 1 shows project status, the extent to which projects are behind the June 2011 execution 

schedules, and obligations and disbursements for each of the seven fiscal year 2011 AIF projects as of 

January 10, 2012. 

Project title Location 

(region) Description

Initial 

implementing 

Agency

Final 

implementing 

Agency

Original 

cost 

estimate

Revised 

cost 

estimatea

Kandahar 

Bridging 

Solution

South Fuel, operations, and 

maintenance for all DOD and 

USAID procured generators in 

Kandahar

USFOR-A & 

Defense 

Logistics 

Agency (DLA)

USFOR-A & 

DLA $40 $48.3

Southeast 

Power 

System 

(SEPS)b

South & 

Southwest

Phase 1: Kandahar to Durai 

Junction and Durai Junction to 

Lashkar Gah to Kajaki high 

voltage transmission network (2 x 

110kV transmission lines and 

power substations

USAID USFOR-A

$130 

$100

$30

Northeast 

Power 

System 

(NEPS)

East Chimtala to Ghazni high voltage 

transmission network (2 x 220kV 

transmission lines and power 

substations)c

USFOR-A USAID

$101 $101

NEPS East Chimtala to Gardez high voltage 

transmission network (110kV 

transmission lines to provincial 

centers: Chimtala to Gardez and 

power substations)c

USFOR-A USFOR-A

$86 $86

Nawa to 

Lashkar Gah 

Road

Southwest Pave road from Nawa district 

center to Helmand provincial 

capital of Lashkar Gah

USFOR-A USFOR-A

$23 $17.6 

Provincial 

Justice 

Centers 

(PJCs)

Throughout 

Afghanistan

Infrastructure, equipment, 

furnishings, and one-year 

sustainment package for 5 PJCs

USFOR-A & 

Rule of Law 

Field Force 

Afghanistan

USFOR-A & 

ROLFF-A $20 $12.3

Total: $400 $394.9
SIGAR Audit-12-12 Infrastructure Page 5 

Figure 1: Fiscal Year 2011 AIF Estimated Project Execution Schedules

Source: SIGAR analysis of DOD, State, and USAID data and information.

Notes: Numbers affected by rounding. Obligation and Disbursement data as of January 10, 2012. FY = fiscal year. TL = 

transmission lines. SS = substations. ROLFF-A = [USFOR-A] Rule of Law Field Force – Afghanistan. a

The PJC project execution schedule includes a variety of projects with different estimated periods of performance. 

b

Obligation and disbursement totals are low because DLA posted fuel charges to the wrong DOD Activity Address Code. 

USFOR-A is in the process of correcting these errors and posting the charges to the correct DOD Activity Address Code. c

Obligations in Figure 1 represent the amount of funds delivered from implementing agencies to executing agencies for the 

project. Disbursements in Figure 1 represent the amount of funds spent by executing agencies for the project and may represent 

funds used by the executing agency for the development of a request for proposal or project execution under an awarded contract.

Five of Seven Fiscal Year 2011 AIF Projects Were 6-15 Months behind Schedule

Acquisition and funding delays postponed the project execution schedules of most fiscal year 2011 AIF 

projects from 6 to 15 months, including all power sector projects except the Kandahar Bridging Solution. 

For example, USACE’s initial acquisition strategy for its SEPS and NEPS projects was unsuccessful, 

resulting in delayed project execution. USACE chose to solicit contractors from two of its Multiple 

Award Task Order Contracts (MATOC) to construct its SEPS and NEPS transmission lines and 

substations projects. USACE believed that awarding its SEPS and NEPS projects through the MATOCs 

would be the fastest procurement option and ensure that contracts were awarded before the end of fiscal 

year 2011.16 However, USACE was unable to award a contract because bids received for its SEPS and 

NEPS projects were more than double estimated costs, due largely to security concerns resulting from the 

risks associated with implementing firm-fixed-price contracts in a kinetic environment, poor cost 

estimates, and unrealistic periods of performance. USACE is re-procuring both projects and plans to 

award contracts in June or July 2012, which will delay SEPS and NEPS project execution schedules from 

6 to 15 months.

Ongoing delays in transferring fiscal year 2011 AIF funds from DOD to State—and ultimately to 

USAID—also contributed to delays in project execution. USAID is the implementing agency for the 

$101 million NEPS project to construct transmission lines and substations from Dast-i-Barchi to 

Ghazni.

17 This line is a key part of a planned NEPS to SEPS connection to transport power to Kandahar 

to replace the expensive diesel-fueled power plants in the Kandahar Bridging Solution. When DOD, 

State, and USAID completed the fiscal year 2011 AIF joint project plan in late June 2011, USAID 

expected to award a contract during the fourth quarter of fiscal year 2011. As of February 15, 2012, 

USAID had not received AIF funds to implement its NEPS project because the memorandum of 

agreement to transfer AIF funds from DOD to State was still in development. According to USAID, it 

 

16Prior to the passage of the fiscal year 2011 appropriations bill in April 2011, USFOR-A and USACE planned AIF 

projects with the assumption that AIF funds, like CERP funds, would remain available for 1 year. 17Project scope was reduced to begin from Dast-i-Barchi instead of Chimtala after ADB agreed to complete the 

transmission line from Chimtala to Dast-i-Barchi.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Jun 2011

Jan 2012

Jun 2011

Jan 2012

Jun 2011

Jan 2012

Jun 2011

Jan 2012

Jun 2011

Jan 2012

Jun 2011

Jan 2012

Jun 2011

Jan 2012

NEPS: Dast-i-Barchi to Maydan 

Shar to Ghazni TL & SS

Contract 

Award 

Status

Project Description Executing 

Agency

Disb. 

($M)c

USACE

USACE

USACE SEPS: Kajaki Dam to Lashkar 

Gah TLs & SS

Original 

Est. Cost 

($M)

SEPS: Kandahar City to Durai 

Junction TL & SS

NEPS: Dast-i-Barchi to Gardez 

TL & SS

Status 

As Of

AIF FY 11

Kandahar Bridging Solution - 

Fuel / O&Mb

DLA & 

USACE

Nawa to Lashkar Gah Road USACE

Provincial Justice Centersa $0.2

Awarded

ROLFF-A

USAID

FY 2011 FY 2012 FY 2013 FY 2014

$86.0 $0.1

$101

$23

$40

FY 2015

Estimated Project Execution Schedule

Awarded

Planned 

Planned 

Planned 

Planned 

Planned 

$0.1

$30 $0.0 $0.0

$86

$20

$0.0

Oblig. 

($M)c

$19.8

$21.0

$0.0

$0.0

$0.7

$12.0

$100 $100.0
SIGAR Audit-12-12 Infrastructure Page 6 

received the funds in June 2012 and expects that the project will be under contract in early 2013. USAID 

originally planned to commission its NEPS project by July 2013; however, the revised completion date is 

in July 2014, and some estimates extend project completion until September 2015. Delays in 

implementation may pressure the U.S. government to continue to purchase diesel fuel well beyond 2013 

to maintain power distributed to Kandahar City, thereby increasing the cost of that temporary solution. 

The delayed completion of fiscal year 2011 AIF power projects—and other necessary power 

infrastructure projects—will require continuing a temporary and expensive solution to provide the current 

level of electric power for Kandahar City beyond 2013. The Kandahar Bridging Solution is expected to 

cost $80 million in fiscal year 2012 and increase to $100 million in fiscal year 2013. Until alternative 

power sources replace or increase the amount currently provided to Kandahar City, there is no indication 

that annual costs will decrease if the Bridging Solution extends beyond 2013. 

Finally, as of February 15, 2012, no major contracts had been awarded for PJC projects funded with fiscal 

year 2011 AIF funds.18 The projects have been delayed for a number of reasons, including the late arrival 

of fiscal year 2011 AIF funds, project team reorganization, personnel changes, programmatic changes to 

project execution, and difficulties of field personnel travelling to the proposed project sites to assess 

projects. 

As of February 15, 2012, Only Two of Seven Fiscal Year 2011 AIF Projects Were under Contract

As of February 15, 2012, only two of the seven fiscal year 2011 AIF projects were under contract: the 

Nawa to Lashkar Gah road construction project and the Kandahar Bridging Solution. Both projects were 

initiated with CERP funds before the authorization for AIP and appropriation for AIF. For example, 

CERP funded the development of the request for proposal for the Nawa to Lashkar Gah road, and 

USACE also planned to use CERP to award a contract and begin construction; in total, CERP provided 

$85,000 for initial design and planning work for the road. Based on our review of progress documents 

and satellite imagery, as well as conversations with USFOR-A and USACE officials, construction of the 

Nawa to Lashkar Gah road is currently on pace to meet USACE’s targeted completion date of February 

2013, although less than 10 percent of the road was complete when we conducted our field work in 

February 2012. 

Similarly, the plan to create a power bridging solution for Kandahar City by constructing diesel-generated 

plants and providing the power plants with 3 years of fuel, operations, and maintenance was initially 

approved and planned to be a multi-year CERP-funded project. The power plants were built and 

commissioned using CERP funds in the third quarter of fiscal year 2011, and—to ensure that power was 

continuously provided to Kandahar City—USFOR-A used CERP funds to pay for fuel, operations, and 

maintenance until USFOR-A received AIF funds. When AIF funding became available, USFOR-A used 

$8.8 million in AIF funds to reimburse CERP accounts for fuel purchased between April and July 2011. 

Most Fiscal Year 2011 AIF Projects Will Not Result in Identified COIN Benefits for 

Several Years and Some May Have Adverse Effects 

The scale of AIF projects means that the U.S. government will not achieve the planned contributions to 

the COIN strategy described in the fiscal year 2011 AIF congressional Notification for several years, and

some projects risk adverse COIN effects (appendix III identifies the potential COIN benefits of each 

project, as identified by DOD, State, and USAID). AIF funds large-scale, complex, multi-year projects 

that may not directly involve either the Afghan government or local communities during on-the-ground 

project implementation, and the potential COIN effects identified by DOD, State, and USAID are based 

on completed projects that are years away from completion. In addition, some fiscal year 2011 AIF 

 

18On November 18, 2011, USFOR-A disbursed $8,653 for Shade Structures at Herat Juvenile Detention Center. 
SIGAR Audit-12-12 Infrastructure Page 7 

projects may not advance COIN objectives or may have an adverse COIN effect because projects may 

create an expectations gap among the affected population or lack citizen support. 

Most Fiscal Year 2011 AIF Projects May Not Result in COIN Effects for Several Years

While DOD, State, and USAID made efforts to identify potential COIN benefits, due largely to project 

delays, most fiscal year 2011 AIF projects will not result in those benefits for several years.19 COIN 

guidance20 states that the speed with which COIN operations are executed may determine their success; 

this is especially true for operations that involve restoring essential services. As noted above, 5 of the 7 

fiscal year 2011 AIF projects were 6 to 15 months behind schedule. During spring 2011, USFOR-A 

Regional Command South officials voiced concerns regarding the need to quickly implement SEPS if it is 

going to achieve positive COIN effects. When implemented, these projects would support COIN efforts 

by increasing basic services provided by the Afghan Government in Kandahar and Helmand. However, 

the contract for Kandahar-based SEPS projects is not expected to be awarded until summer 2012, and the 

project is not expected to be completed until the third quarter of fiscal year 2014. As a result, DOD, 

State, and USAID may not achieve positive COIN effects with some fiscal year 2011 AIF projects for 

several years.

Some Fiscal Year 2011 AIF Projects May Not Advance COIN Objectives or May Have Adverse COIN

Effects 

Some fiscal year 2011 AIF projects may not advance COIN objectives or may have adverse COIN effects 

because they create an expectations gap among the affected population, or because they lack citizen 

support. COIN is an extremely complex form of warfare, though, at its core, COIN is a struggle for the 

local population’s support. COIN guidance states that the support of the populace for a given project may 

determine success. Although AIF policy requires a brief description of projects, including relevance to 

COIN strategy, it does not require documentation that the affected populations support the projects.21 

 At least two fiscal year 2011 AIF projects risk creating adverse COIN effects: 

• While the Kandahar Bridging Solution may achieve some immediate COIN benefits

because—as stated by USAID officials—“people like having their lights on,” the U.S. 

government may be building an expectations gap that cannot be met in a timely manner. 

Through the provision of diesel fuel for power generation in Kandahar City using AIF, the 

U.S. government increased power availability by up to 25-27 megawatts (MW)

22 and 

extended availability to two previously underserved areas of Kandahar City in the west and 

southeast. According to USAID data, since the beginning of the Kandahar Bridging Solution, 

electricity consumption in Kandahar City has increased by 61 percent. However, if the U.S. 

government stops providing diesel fuel for the generators before more sustainable sources are 

available, power availability will drop to approximately 12 MW.

23 Current estimates indicate 

 

19Some degree of COIN benefits may occur if implementing agencies are able to ensure that contractors employ 

local laborers, but it remains unclear if contracts will contain such requirements. 20FM 3-24 MCWP 3-33.5 Counterinsurgency, Headquarters Department of the Army, December 2006. 21U.S. Embassy Kabul and U.S. Forces-Afghanistan Consolidated Policy for Executing Afghanistan Infrastructure 

Fund Procedures, February 18, 2010. 22The average output is closer to 16 MW because the plants generally operate at 60 percent, and fuel cost projections 

are based on the average operational tempo.

23Under normal circumstances, Kajaki Dam is the only power generation source for Kandahar City and generates 

approximately 12 MW of electricity for Kandahar City. Under optimal conditions, through Kajaki and DABS 

operated diesel generators, Kandahar City may receive up to 21 MW.
SIGAR Audit-12-12 Infrastructure Page 8 

that more sustainable sources will not be available to replace the Kandahar Bridging Solution 

until well beyond 2014.24 

• The Nawa to Lashkar Gah road is another fiscal year 2011 AIF project that may result in 

adverse COIN effects. Quality assurance and quality control narratives state that there were

ongoing negotiations between the contractor and the local population regarding the 

demolition of houses and right of way issues following contract award. According to the 

contract, the Afghan government settled land ownership issues and secured the right of way 

prior to construction, and USACE instructed contractors not to include any related costs in 

their proposals. Nevertheless, USACE documents show that the local population expressed 

ongoing frustration with the project to the USACE contractor and quality assurance personnel

and stated that they were not compensated by the government for the destruction of their 

property.

DOD, STATE, AND USAID DID NOT CALCULATE SUSTAINMENT COSTS OR 

OTHERWISE ENSURE SUSTAINABILITY

Although implementing agencies produced sustainment plans—as required—for each fiscal year 2011 

AIF project, these plans did not define project sustainment costs and agencies did not communicate any 

such costs to the Afghan government. To address growing concerns about sustainability—as reported by 

us, GAO, other Inspectors General, and the Commission on Wartime Contracting in Iraq and 

Afghanistan—AIF’s authorizing legislation25 requires each project to have a sustainment plan, and the 

standards of foreign assistance stipulate what such a plan should entail. Under the Foreign Assistance Act 

of 1961, for example, agencies implementing foreign assistance greater than $1 million are required to 

evaluate recipient nations’ capacity to “effectively maintain and utilize the project, taking into account 

among other things the maintenance and utilization of projects.” 26 DOD enacted similar guidance for 

projects funded through CERP—which generally funds projects significantly smaller than AIF—and 

requires sustainment plans to include an “agreement with either the host nation, a non-Department of 

Defense agency of the U.S. government, or a third party contributor to finance the sustainment of the 

activities and maintenance of any equipment or facilities to be provided through the proposed project.” 27 

To meet these requirements, we believe that implementing agencies must accurately determine and 

clearly articulate sustainment costs to the entity ultimately responsible for the project. 

While USFOR-A made some efforts to determine the sustainment costs for the Nawa to Lashkar Gah road 

and the SEPS Helmand and Kandahar transmission lines and substations, these estimates are simple 

percentage calculations based on total project cost and do not consider Afghanistan’s unique 

circumstances, including, for example, the effect of the insurgency and security requirements. 

Specifically, USFOR-A uses a baseline of 5 percent of the construction cost estimate to calculate 

projected sustainment costs for transportation projects like the Nawa to Lashkar Gah road. Using a 

similar calculation, projected sustainment cost estimates prepared by USACE indicate that the SEPS 

Helmand transmission lines and substation compounds will cost a total of $4.2 million over 25 years to 

sustain. USFOR-A did not calculate sustainment cost estimates for other fiscal year 2011 AIF projects.

Determining sustainment costs is difficult, especially for projects in Afghanistan. Despite some efforts to 

determine sustainment costs for fiscal year 2011 AIF projects, these efforts have not produced accurate

 

24Sustainable sources include a three turbine strong Kajaki Dam, and another—unidentified—power source. Current 

estimates call for the completion of turbine #2 at Kajaki Dam in the second fiscal quarter of 2015. After the 

installation of turbine #2, turbines #1 and 3 will need total refurbishments; however, the period of performance and 

funding for that project remain unidentified, as does a second generation source required to fill the void left when 

the U.S. government no longer provides diesel fuel through the Kandahar Bridging Solution. 25P.L. 111-383 §1217 (g)(1). 26P.L 87-195 §611(e), Foreign Assistance Act of 1961, September 4, 1961. 27P.L. 112-10 §9005.
SIGAR Audit-12-12 Infrastructure Page 9 

estimates, nor were sustainment costs provided to or agreed to by the Afghan government. According to 

USFOR-A documents and officials, calculating accurate sustainment cost estimates requires considerable 

time and resources, and staff and capacity limitations prevented it from designing methodologies and 

collecting data to properly calculate realistic sustainment costs for fiscal year 2011 AIF projects. 

Project Sustainment Relies on Afghan Government Entities with Questionable Capacity

Fiscal year 2011 AIF project sustainment relies heavily on Afghan entities with questionable capacity. To 

help ensure that AIF projects will be properly maintained, DOD, State, and USAID require the Afghan 

government agency or official ultimately responsible for taking control of a project to sign a letter 

indicating willingness to fulfill project sustainment requirements. Afghan government entities are also 

obligated to demonstrate their capacity to sustain AIF projects prior to project approval. For example, 

implementing agencies expect the Kandahar Bridging Solution to provide the Afghan power utility, Da 

Afghanistan Breshna Sherkat (DABS), with a reliable revenue source sufficient to enable DABS to 

properly maintain existing equipment. Eventually, DOD, State, and USAID expect DABS to assume 

responsibility for all U.S. government-procured generators and for reducing the role of diesel power 

generation to the provision of backup power. Similarly, the sustainment plan for NEPS and SEPS 

requires DABS to assume responsibility for all infrastructure improvements and revenue collection upon 

project completion. Sustainment plans for the Nawa to Lashkar Gah road and PJC projects also rely on 

the Afghan government, calling for the Nawa District governor to take responsibility for the road’s 

operations and maintenance, and the Afghan government to sustain each PJC, including the maintenance 

of facilities and provision of personnel.

Although the Afghan government endorsed fiscal year 2011 AIF projects in writing, these Afghan entities 

have questionable capacity and lack the resources—financial and otherwise—necessary to fulfill these 

commitments. We reported in January 201028 that the management and operational capacity of DABS

was extremely weak. In 2011, Ernst and Young29 expanded on our assessment of DABS and found 

weaknesses in many of DABS’ core business systems.30 While USAID continues its efforts to bolster 

DABS’ capacity, and has made progress within DABS’ Kabul office, DABS’ office in Kandahar—which 

is responsible for the sustainment of SEPS and the ultimate operation of U.S. government procured 

generators in Kandahar—has not achieved similar gains. In Kandahar, DABS has limited capacity to bill 

customers, collect revenues, and maintain its infrastructure. According to USAID data and officials, 

DABS in Kandahar still only issues bills for two-thirds of its electricity output and only collects revenues 

from approximately 30 percent of its billed consumption in Kandahar City. Current estimates call for the 

U.S. government to spend nearly a quarter of a billion dollars in AIF monies to support the Kandahar 

Bridging Solution through calendar year 2013, when either DABS takes over fuel procurement or other 

power sources come online.

31 According to congressional estimates, for DABS to take over fuel 

procurement, it would have to commit approximately 60 percent of its current nationwide revenue or 

more than 400 percent of Kandahar DABS’ current revenue. Moreover, despite the U.S. government’s 

provision of a reliable revenue source at no cost to DABS through the Kandahar Bridging Solution, 

DABS remains unable to routinely fuel its generators at its Breshna Kot power station. DOD, State, and 

USAID officials all questioned DABS’ capacity to sustain fiscal year 2011 AIF projects. 

 

28SIGAR-10-4.

29Ernst & Young is a professional services firm. In 2011 Ernst & Young was hired by USAID to conduct a review 

and evaluation of DABS’s financial management capacity and internal control systems using the criteria established 

by USAID, Afghanistan. Its review included interviews, observations and tests of compliance with the DABS’s 

stated procedures. 

30Report on Pre Award Assessment of Da Afghanistan Breshna Sherkat (DABS), Ernst & Young, August 2011. 

Areas of weakness include the following: financial management, budgeting and accounting, procurement and 

purchasing, program management and monitoring, corporate governance structure, and personnel policies and 

procedures.

31Replacement power sources for this fuel will not be commissioned until well after 2013.
SIGAR Audit-12-12 Infrastructure Page 10

Additionally, the Afghan government does not have a sustainable road maintenance program and 

continues to rely on international assistance to maintain its current road network. Confusion remains 

regarding who will be responsible for sustaining the Nawa to Lashkar Gah road. Different documents 

identify either the Nawa District Governor or Helmand’s Provincial Directorate of Public Works as 

accepting responsibility for the road. Furthermore, according to USFOR-A, the Deputy Minister of 

Public Works recommended that the U.S. government stop building roads because the Afghan 

government is unable to maintain the current road network.

The Afghan Ministry of Interior pledged to sustain each PJC, including maintaining the facilities and 

providing qualified personnel to staff the various functions. The complex makeup of PJCs indicates that 

multiple Afghan government entities would be involved in staffing and sustaining the centers. However, 

it remains unclear which specific entities are expected to be involved in sustaining PJCs, and sustainment 

and staffing requirements for a functional PJC remain undefined. Moreover, although some staffing 

requirements have been identified, the Afghan government has had difficulty filling those positions.

Afghan government entities responsible for sustainment lack proven capacity and budgets to sustain 

projects. As we have previously reported, this limitation is, in part, because the government collects and 

allocates funds centrally, resulting in very small budgets for directorates outside of Kabul, which they 

only use for basic operational costs.32 For example, according to USAID and USACE officials, DABS in 

Kandahar uses nearly all of its funding for basic operating costs and salaries and does not have enough 

funds to routinely fuel its generators in the south.

Project Sustainment Relies on Unidentified and Unfunded Projects or Projects with 

Completion Dates beyond 2014 

The sustainment and viability of some fiscal year 2011 AIF projects relies on unidentified or unfunded 

projects with completion dates beyond 2014. According to DOD, State, and USAID, AIF projects should 

be completed by the end of calendar year 2014, and sustainment plans should not be overly ambitious. 

Nevertheless, replacing the energy produced by the Kandahar Bridging Solution, for example, will require 

(1) a three-turbine-strong Kajaki Dam, and (2) a yet-to-be determined second power source. 

• A three-turbine-strong Kajaki Dam requires the installation of turbine 2—an ongoing effort 

by USAID since 2005—and the refurbishment of turbines 1 & 3. The refurbishment of 

turbines 1 & 3 will not begin until after turbine 2 is installed and commissioned, which some 

USAID officials stated would not realistically happen until the end of 2015, or the first 

quarter of 2016. Moreover, there is still no clear plan or funding source for the refurbishment 

of turbines 1 & 3.

• Although original AIF sustainment plans identified the ESF-funded NEPS to SEPS 

connection to be the second sustainable power source to replace the Bridging Solution, a final

feasibility assessment for the connection is not complete and USAID, USACE, and ADB 

officials were unsure if USAID would fund or complete the connection.

33 Even if USAID 

proceeds with the connection, providing power to Kandahar via the NEPS to SEPS 

connection will not occur by the end of 2014. Further, USAID had not obligated funds for 

the connection, defined periods of performance, or issued a request for proposal. In May 

2012, USAID officials told us that they could not proceed with the $294 million ESF-funded 

portion of the connection until DOD transfers $101 million in fiscal year 2011 AIF funding

 

32Weaknesses in Reporting and Coordination of Development Assistance and Lack of Provincial Capacity Pose 

Risks to U.S. Strategy in Nangarhar Province, SIGAR-11-1, October 26, 2010. 33Although final results of this assessment are pending, USAID has met with stakeholders to discuss and confirm 

technical constraints and priorities in implementing system expansion. Based on preliminary indications, USAID is 

now confident that the NEPS/SEPS connection is viable.
SIGAR Audit-12-12 Infrastructure Page 11

for the initial segment from Dast-i-Barchi to Ghazni; USAID ultimately received the AIF 

finds in late June 2012. 

Current project plans for fiscal year 2013 AIF include $250 million for a Kandahar Supplemental Power 

Solution to fund the development of the second sustainable power source. Options under consideration 

for this power source include using AIF to fund the NEPS to SEPS connection or constructing a 360 acre 

photovoltaic field. Both solutions are projected for completion beyond the fourth quarter of fiscal year 

2015 in the AIF estimated project execution schedule. To bridge the gap in sustainable power, USFOR-A 

and USACE anticipate there may be a need to provide diesel fuel for the generators in Kandahar City 

beyond 2013. 

CONGRESSIONAL OVERSIGHT AND INTERAGENCY COORDINATION ARE 

LIMITED BY LACK OF SHARED INFORMATION AND MASTER PLAN FOR 

ENERGY SECTOR

DOD and State have defined AIP differently and do not provide comprehensive AIP information to 

Congress, thus inhibiting congressional oversight of the program. The legislation authorizing AIP

requires the Secretary of Defense, in coordination with the Secretary of State, to submit to Congress a 

report regarding implementation of AIP during each fiscal year. The legislation indicates that the AIP is 

to be comprised of projects jointly developed by DOD and State. Furthermore, a joint explanatory 

statement of the congressional armed services committees stated that AIP is “intended to be a whole-ofgovernment approach in support of the counterinsurgency plan, with both the Department of Defense and 

the Department of State bringing resources to the effort.”34 The joint statement indicated that DOD 

would use AIF funds to support the AIP, and State would reprogram existing foreign assistance resources. 

In their fiscal year 2012 Congressional Budget Justification, State and USAID requested ESF funding 

specifically for AIP and stated that they would use these funds in conjunction with AIF funds to support 

AIP and achieve shared objectives.

35 In its comments on our draft report, the Office of the Secretary of 

Defense (OSD) stated that in congressional briefings regarding the fiscal year 2011program, “DOD, State, 

and USAID identified all AIP projects—funded by either ESF or AIF—and their relationship to each

another.” However, in its report to Congress on the implementation of AIP for fiscal year 2011, DOD, in 

coordination with State, only reported on projects funded through AIF,36 thereby limiting comprehensive

congressional oversight of key infrastructure projects in Afghanistan. In commenting on our draft report, 

OSD estimated that fiscal year 2011 AIP projects funded through ESF totaled over $1 billion. 

In addition, although the USFOR-A Commander and the Ambassador to Afghanistan endorsed the fiscal 

year 2012 AIF project list for congressional notification in July 2011, DOD did not provide relevant 

congressional committees with the fiscal year 2012 AIF notification until late February 2012 due to 

unclear agency reporting guidance. The reporting and notification approval processes involve multiple 

stakeholders throughout DOD—both functionally and geographically. Fiscal year 2011 was the first year 

for AIF processes and procedures, and DOD did not clearly articulate the requirements for notifications 

and reports to field program managers. According to officials from OSD and U.S. Central Command 

(CENTCOM), initial reports and notification documents provided by AIF program managers in the field 

did not contain required data or information. For example, they stated that, although the initial fiscal year

2012 AIF project list endorsed by the Commander of USFOR-A and the U.S. Ambassador to 

Afghanistan—and sent to CENTCOM and OSD for approval—contained minimal, basic information 

 

34 Joint Explanatory Statement of the Committees on Armed Services of the U.S. Senate and House of 

Representatives on H.R.6523, Ike Skelton National Defense Authorization Act for Fiscal Year 2011, December 22, 

2010. 35Congressional Budget Justification, Volume 2, Foreign Operations, Department of State, Fiscal Year 2012.

36Department of Defense Implementation of the Afghanistan Infrastructure Program and Fund, Report to Congress 

in Accordance with Section 1217 of the National Defense Authorization Act for Fiscal Year 2011; submitted April 

18, 2012.
SIGAR Audit-12-12 Infrastructure Page 12

such as project titles and dollar amounts, final reports required more detailed information, including 

sustainment plans.

37 However, USFOR-A officials stated that CENTCOM and OSD did not provide 

guidance on the format or requirements. Thus, USFOR-A could not track the status of reports because 

CENTCOM and OSD did not clearly articulate the vetting and approval processes. Appendix IV provides 

more information on required reports and the fiscal year 2012 project notification timeline.

DOD, State, and USAID Are Developing Approaches for Overall Joint Project 

Management, but Guidance Lacks Specific Responsibilities for Joint Implementation 

AIF guidance38 states that once DOD, State, and USAID identify project components and assign a lead 

implementing agency, the lead agency should form a Joint Project and Delivery Team (JPDT) to ensure 

joint project management, create transparency and accountability, and enable joint decision making in 

support of the United States Government Integrated Civilian-Military Campaign Plan for Support to 

Afghanistan.

39 Each JPDT is intended to include members of the Afghan government, USAID, USFORA, and the appropriate Regional Command and Regional Platform. In practice, these teams do not jointly 

implement all AIF projects. DOD, State, and USAID use JPDTs for the large-scale, complex energy 

sector infrastructure projects funded by AIF, such as the NEPS and SEPS power projects, but they have 

not established these teams for fiscal year 2011 AIF road and PJC projects. Teams hold a bi-weekly 

teleconference for stakeholders in Afghanistan’s energy sector, led by USFOR-A’s Joint Program 

Integration Office and USAID’s Office of Infrastructure, Energy, and Engineering in Kabul. However, 

while AIF guidance40 requires JPDTs to meet, provide overall project management for AIF projects, and 

include relevant stakeholders, it does not define specific responsibilities for project implementation or 

oversight for lead and secondary agencies to ensure joint management. Agencies responsible for AIF 

project execution—primarily USACE or USAID—retain all project implementation and oversight 

responsibilities. 

DOD and USAID officials noted a planned effort to jointly manage project delivery related to the AIFfunded SEPS project in Helmand. During our fieldwork, USFOR-A, USACE, and USAID officials were 

in the process of establishing a Project Integration Office at the Kajaki Dam in Helmand province to 

support the implementation of several planned infrastructure projects in the vicinity of the dam over the 

next 3 years, including projects implemented using AIF, ESF, and CERP funds.41 The Project Integration 

Office at Kajaki Dam, as planned, will be similar to a JPDT. For example, although individual project 

implementation will be executed through separate USAID or USACE contracts, the Project Integration 

Office will leverage the personnel and physical resources of a common field office for quality assurance 

and contractor oversight. According to both DOD and USAID, the Project Integration Office is unique to 

projects in the vicinity of the Kajaki Dam, and other AIF projects do not have similar arrangements.

DOD, State, and USAID also face challenges in monitoring and coordinating the execution of AIF 

projects due to the lack of a shared database. As GAO reported in 2011, maintaining an accessible data 

system that promotes interagency information sharing is particularly important in an environment such as 

 

37Coordination with State and USAID is ongoing throughout the process, but final approval from State does not 

occur until after reports/notifications are vetted through DOD.

38The Joint Plan for Implementation & Management of the Afghanistan Infrastructure Fund, In Support of the 

United States Department of State, Department of Defense, and the Government of the Islamic Republic of 

Afghanistan, USFOR-A Joint Program Integration Office and USAID’s Office of Infrastructure, Energy, and 

Engineering, June 16, 2011.

39August 2009.

40USFOR-A Joint Program Integration Office and USAID’s Office of Infrastructure, Energy, and Engineering, June 

16, 2011.

41 The Joint Project Integration Office at Kajaki will serve as the hub of on-site management for U.S. government 

projects in the area, including some AIF funded SEPS projects in Helmand, ESF funded installation of turbine 2, and 

CERP funded repair of the Kajaki Dam intake tower.
SIGAR Audit-12-12 Infrastructure Page 13

Afghanistan, where several agencies are involved in similar development efforts that are dispersed 

throughout the country.42 Nevertheless, USFOR-A established the “AIF Checkbook” 43—an internal 

system that can only be accessed by USFOR-A and Army Central Command—to track commitments, 

obligations, disbursements, and key project funding data associated with AIF, and USAID plans to use its 

internal “Phoenix” system to track commitments, obligations, and disbursements from AIF.44 Whereas 

CERP guidance requires data for all construction projects to be reported for inclusion in a USAID 

database, no similar legislative or policy requirement exists for AIP projects. Without insight into the 

implementation of interdependent projects, DOD, State, and USAID officials may not have adequate 

information to make effective project management decisions. 

Some Fiscal Year 2011 AIF Projects Affect Afghanistan Energy Sector Goals but Are Not 

Based on a Master Plan 

DOD, State, and USAID continue to build large-scale energy infrastructure projects that affect the plans 

of other donors and sector-wide goals without the benefit of a master plan for Afghanistan’s energy 

sector. Our previous report,45 as well as a report by ADB,46 found that a master plan for Afghanistan’s

energy sector would provide a strategic approach to project implementation and bring standardization to 

the generation and distribution system. In response to our report, USAID stated that it would work with

ADB and the Afghan government to finalize the master plan for Afghanistan’s energy sector by June 

2011. However, USAID and ADB did not achieve that goal, primarily because ADB had ongoing 

difficulty securing a consulting firm to conduct necessary fact finding in Afghanistan; the master plan is 

more than a year behind schedule and is not scheduled for completion until December 2012. 

Without a master plan, donors—including DOD, State, and USAID—are implementing projects without a 

clear roadmap of priorities or specific projects to finance and execute. As a result, officials from DOD, 

State, and USAID may not have adequate information to make effective project management decisions, 

and AIF funds may be at risk for waste due to a lack of awareness of existing or planned projects or 

duplication of effort by different donors.

For example, DOD plans to use $86 million of fiscal year 2011 AIF funds to implement a project that 

already had funding available from another donor. In July 2011, the ADB told stakeholders from the 

Afghan government, DOD, State, USAID, and the World Bank that one fiscal year 2011 AIF project

worth $86 million conflicted with a project that the Bank had approved in early 2010 and that was already 

under design and preparation. Specifically, the Bank had funding for, and planned to execute, the NEPS 

220kV transmission line from Dast-i-Barchi to Gardez. Following the July 2011 meeting—1 month 

before DOD and State notified Congress of the fiscal year 2011 AIF project list—the Bank agreed to 

allow USFOR-A to implement the project using fiscal year 2011 AIF funds. However, as a result of 

 

42The Afghan government developed a Donor Assistance Database, which includes donor reported foreign 

assistance to Afghanistan from other countries. However, in 2011,GAO found that the database was incomplete. See 

Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue, 

GAO-11-318SP, March 2011. 43USFOR-A J8 inputs commitments and obligations into DOD’s Resource Management Tool. The Operational Data 

Store functions as a repository system for information already processed through Defense Finance and Accounting 

Services Standard Finance System. AIF Checkbook contains information available in these systems, but filtered 

specifically for AIF projects. 44As of February 15, 2012, USAID had not used Phoenix to track AIF funds because a memorandum of agreement 

for the transfer of funds between USFOR-A and USAID was not finalized and USAID had not received any AIF 

funds.

45Afghanistan Energy Supply has Increased but an Updated Master Plan is Needed and Delays and Sustainability 

Concerns Remain, SIGAR-10-4, January 15, 2010. 46Islamic Republic of Afghanistan: Power Sector Master Plan (Financed by the Japan Fund for Poverty Reduction), 

Project Number: 43497 Policy and Advisory Technical Assistance, ADB Technical Assistance Report, November 

2010. 
SIGAR Audit-12-12 Infrastructure Page 14

USACE’s ongoing delays in executing the project, ADB officials stated in February 2012 that they were 

keeping funds available for the project.

In commenting on our draft report, USFOR-A disagreed with our recommendation to reassess the 

feasibility of allowing ADB to complete the NEPS project, thus allowing USFOR-A to put the $86 

million in AIF funds to better use. USFOR-A stated that the project design was completed and the project 

was advertised in May 2012. USFOR-A further noted that the ADB had not planned to construct the 

project for 2 or 3 years after the estimated completion date of the AIF-funded project. As a result, we 

have deleted that recommendation. However, we note that USFOR-A missed an opportunity to allow 

another donor to continue financing the project, particularly after it had completed the design and 

preparation phase. Given AIF project delays, it is uncertain whether the ADB project would have been 

completed 2 or 3 years later. In deciding to fund this project, the U.S. government missed an opportunity 

to put those funds to better use. 

CONCLUSIONS 

More than 10 years after international intervention in Afghanistan—and nearly 9 years since the U.S. 

government began focusing efforts to build Afghanistan’s infrastructure—the U.S. government, the 

international community, and the Afghan government continue to face challenges in implementing 

programs to build basic infrastructure, particularly those efforts aimed at providing power to the largest 

cities and most critical areas in Afghanistan. 

Effective COIN strategy requires the U.S. government to work closely with the host nation to establish 

achievable goals. If goals are set and not achieved, both the U.S. and the Afghan governments can lose 

the populace’s support. Fiscal year 2011 AIF projects may result in adverse COIN effects because DOD, 

State, and USAID did not ensure the availability of energy sources to replace AIF-procured dieselgenerated power in Kandahar City or ensure the buy-in or compensation of local populations affected by 

AIF projects. Additionally, implementing projects that the Afghan government is unable to sustain may 

be counterproductive to the COIN strategy. Projects that are too complex may prevent genuine 

cooperation or take too long to complete to provide immediate COIN benefits given the impending 

withdrawal of U.S. and coalition troops. They might not advance, and may even undercut, U.S. 

government and COIN objectives. Our reports have found that the U.S. government’s efforts to execute 

large-scale energy sector projects in Afghanistan have frequently resulted in cost and schedule over-runs, 

contractor default, questionable or undefined sustainment methods, and wasted U.S dollars. 

The success and viability of many AIF projects hinge, in part, on unidentified, unfunded infrastructure 

projects and the successful, timely completion of other projects that the U.S. government has been unable 

to complete for more than 7 years. If the U.S. government considers the execution of large-scale 

infrastructure projects— particularly in the energy sector—a priority for U.S. investment in Afghanistan,

more effort must be made toward joint implementation by U.S. government agencies; coordination with 

the Afghan government and international community; and development of realistic, achievable, and 

clearly defined sustainment plans. 

Because implementing agencies did not develop adequate sustainment plans, and project sustainment 

relies on Afghan entities with questionable capacity and on unidentified and unfunded projects or projects 

with completion dates beyond 2014, Congress and the U.S. taxpayers do not have reasonable assurance 

that projects implemented using fiscal year 2011 AIF funds will be viable or sustained by the Afghan 

government after completion. 

RECOMMENDATIONS

To improve Congress’s capacity for effective oversight and enhance joint decision making for large-scale, 

interdependent infrastructure projects that effect sector-wide goals, SIGAR recommends that the U.S. 
SIGAR Audit-12-12 Infrastructure Page 15

Ambassador to Afghanistan and the USAID Mission Director, in coordination with the Commander

USFOR-A: 

1. Define and identify all infrastructure projects that compose AIP, including projects funded 

by AIF and ESF, and include this information in required congressional reports as part of 

AIP. This notification should illustrate the interrelationship of infrastructure projects. 

To enhance coordination and oversight between DOD (USFOR-A and USACE), State, and USAID, 

SIGAR recommends that the Commander USFOR-A, the U.S. Ambassador to Afghanistan, and the 

USAID Mission Director:

2. Define the roles and responsibilities for lead and secondary agencies for the implementation 

and oversight of AIP projects, and 

3. Develop a shared or web-based database, or include AIP projects into an existing shared or 

web-based database, to monitor project implementation and track progress. (Similar 

consideration should be given to all development/infrastructure projects, as recommended 

previously by SIGAR and GAO.)

To help ensure the successful and timely development of Afghanistan’s power sector, which relies on 

interdependent projects implemented by different U.S. government agencies and international donors, 

SIGAR recommends that the Commander USFOR-A, the U.S. Ambassador to Afghanistan, and the 

USAID Mission Director—in close coordination with key stakeholders including the Afghan government

and ADB:

4. Develop a project execution schedule of U.S.-funded interrelated infrastructure projects to 

determine and communicate the “critical path” to stakeholders and implementers, and 

incorporate the schedule into the master plan for Afghanistan’s energy sector being 

developed by ADB. 

To help ensure the successful and timely development of Afghanistan’s power sector, which relies on 

interdependent projects implemented by different U.S. government agencies and international donors, and 

to ensure that $101 million of fiscal year 2011 AIF funds do not expire, SIGAR recommends that the 

Secretary of Defense and the Secretary of State:

5. Expedite the transfer of $101 million of fiscal year 2011 AIF funds from DOD to State—

and ultimately to USAID—for the implementation of the NEPS project from Dast-i-Barchi 

to Ghazni. 

To help ensure AIP projects achieve COIN goals, SIGAR recommends that the Commander USFOR-A, 

the U.S. Ambassador to Afghanistan, and the USAID Mission Director:

6. Clearly indicate the amount of time that infrastructure projects will take to achieve COIN 

benefits identified in congressional notifications required by AIP authorizing legislation. 

7. Revise AIP guidance and project selection criteria to ensure that AIP projects have the 

support of the affected population.

To help ensure AIP projects are sustained and viable upon completion, SIGAR recommends that the 

Commander USFOR-A, the U.S. Ambassador to Afghanistan, and the USAID Mission Director:

8. Develop a comprehensive sustainment plan for each AIP project that, at a minimum, 

includes (a) a realistic estimate of costs necessary to sustain the project, the planned source 

of such funding, and an assessment of the reliability of the planned source; (b) evidence 

that estimated sustainment costs have been provided to the Afghan government and that 

the Afghan government has committed to sustain the project; and (c) a joint assessment of 

the capacity of the Afghan government entity responsible for sustaining the project. The 

sustainment plans should be included in required congressional notifications.
SIGAR Audit-12-12 Infrastructure Page 16

To help ensure the timely completion of congressional notifications and reports for AIP projects, as well 

as the timely receipt of appropriated funds, SIGAR recommends that the Secretary of Defense and the 

Secretary of State: 

9. Clarify and formalize the requirements and format for AIP notification and reporting 

packages and the approval process, including expected timeframes, for providing 

notifications and reports to Congress. 

AGENCY COMMENTS

State, the U.S. Embassy Kabul, USAID, USFOR-A, and OSD provided written comments on a draft of 

this report. These comments are reproduced in appendices V, VI, VII, VIII, and IX, respectively. The 

Embassy, CENTCOM, USACE, and OSD also provided technical comments, which we incorporated 

into our final report, as appropriate.

State

In addition to general comments about AIP, State responded specifically to recommendation 9 regarding 

late notification and reporting to Congress of AIP projects. State acknowledged that implementation 

challenges were encountered in 2011 as a result of the unique and new structure of the AIF. State noted 

that a refined process, developed last year and now in place, “will effectively manage the notification and 

other administrative requirements under the law.” However, as noted in the report, we found that 

notification and reporting challenges continued through the end of fiscal year 2011 and into fiscal year 

2012. We therefore remain concerned that the process for AIP notifications and reporting still needs to be 

improved. 

U.S. Embassy Kabul 

In addition to general comments on the draft report, U.S. Embassy Kabul responded to all 

recommendations. The Embassy concurred with recommendations 1, 2, 4, 5, 6, 7, and 9. The Embassy 

partially concurred with recommendations 3 and 8. Regarding recommendation 5, the Embassy stated 

that the transfer of $101 million of fiscal year 2011 AIF funds from DOD to USAID would be 

accomplished by the end of June 2012, and OSD confirmed in its response to the draft report that the 

transfer had taken place. The Embassy did not clearly outline the steps it would take, and the associated 

timeframes, to implement the other eight recommendations. 

With regard to recommendation 3–to develop or include AIP projects in a shared or web-based database–

the Embassy stated that USFOR-A and USAID had ample means to track AIF and ESF projects and that 

it was uncertain that a separate database would add value to already established practices. However, 

requiring the inclusion of AIP project information in an existing or developing database would meet the 

intent of our recommendation and should minimize agency burden or costs. With regard to 

recommendation 8–that agencies develop a comprehensive sustainment plan for each AIP project that 

contains specific information that should be included in required congressional notifications–the Embassy 

stated that the recommendation was warranted but that the sequence of AIP project identification, 

approval, notification, design, and acquisition might not support inclusion of a detailed joint assessment 

in the congressional notification. However, given that the AIP project identification, approval, and 

notification are already joint processes, the conduct and inclusion of a joint assessment of the capacity of 

the Afghan government entity responsible for sustainment should be a manageable requirement, in 

addition to the other requirements for a comprehensive sustainment plan outlined in the recommendation. 
SIGAR Audit-12-12 Infrastructure Page 17

USAID

USAID generally concurred with the first eight recommendations but did not clearly outline the 

timeframes and steps it would take to implement them. USAID did not respond to recommendation 9.

USFOR-A 

In addition to general comments, USFOR-A responded to eight recommendations in our draft report. 

USFOR-A concurred with recommendations 1 and 4, and partially concurred with recommendations 2, 3, 

6, 7, and 8, but did not clearly outline the timeframes and steps it would take to implement them. 

USFOR-A did not concur with a recommendation in our draft report to reassess the feasibility of allowing 

ADB to complete the $86 million NEPS project. According to USAFOR-A, the project design was 

complete and the project was advertised in May 2012. As a result, we have deleted the recommendation, 

but we note that the U.S. government has missed an opportunity to put the $86 million to better use by 

allowing another donor to continue funding the project. USFOR-A indicated that OSD would respond to 

recommendations 5 and 9. See appendix VIII for USFOR-A’s full comments and our responses.

OSD

In commenting on our draft report, OSD strongly disagreed with many of our findings and conclusions

and stated that the audit report is premature and reflects a lack of understanding of COIN doctrine. We 

reject these positions. We conducted the audit early in the program’s implementation so that 

opportunities for improvement could be identified and addressed prior to the withdrawal of U.S. and 

coalition troops. We conducted our work in accordance with generally accepted government auditing 

standards, which require that we obtain sufficient, appropriate evidence to provide a reasonable basis for 

our findings and conclusions. We believe that the evidence obtained provides a reasonable basis for our 

findings and conclusions based on our audit objectives. We focused our assessment on what DOD and 

State reported as the COIN benefits that would be achieved by these projects. We did not try to interpret 

COIN doctrine; but rather assessed whether the COIN benefits identified were being achieved or would 

be achieved given project delays and the length of time needed to complete projects.

In addition to general comments on our draft report, OSD responded to eight recommendations. OSD 

concurred with recommendation 5, partially concurred with recommendations 2, 3, 8, and 9, and did not 

concur with recommendations 1, 6, and 7. Despite its concerns, OSD indicated that it saw merit in many 

of our recommendations. 

OSD did not concur with recommendation 1 to define and identify all infrastructure projects that compose 

AIP. OSD stated that it did not concur with this recommendation because, “Additional detailed reporting 

as part of AIP would be duplicative and administratively burdensome. Congress did not intend for 

creation of the AIP to impose such burdens on the ESF program.” However, as noted in our report, the 

legislation authorizing AIP requires the Secretary of Defense, in coordination with the Secretary of State, 

to submit to Congress a report regarding implementation of AIP during each fiscal year. The legislation 

indicates that the AIP is to be comprised of projects jointly developed by DOD and State. In addition, 

State’s primary implementing agency for ESF in Afghanistan is USAID, and USAID concurred with the 

recommendation, thus indicating that including the ESF-funded projects that constitute AIP would not be 

overly burdensome. Moreover, elsewhere in its comments on our draft report, OSD stated that, “In 

congressional briefings supporting the FY11 notification process, DoD, DOS, and USAID identified all 

AIP projects-funded by either ESF or AIF-and their relationship to each other.” Given OSD’s statement, 

implementing our recommendation should not be overly burdensome. We note that U.S. Embassy Kabul

and USFOR-A also concurred with this recommendation. 
SIGAR Audit-12-12 Infrastructure Page 18

OSD did not concur with recommendation 6 to clearly indicate the amount of time that infrastructure 

projects will take to achieve COIN benefits identified in congressional notifications required by AlP 

authorizing legislation. OSD stated that it did not concur with this recommendation because it “does not 

recognize that COIN benefits can begin at project inception and increase through project completion.” 

However, nearly all of the COIN benefits identified by OSD in the fiscal year 2011 congressional 

notification are based on completed projects that are years away from completion. Our report notes that 

COIN benefits may accrue prior to project completion. If DOD were to implement this recommendation, 

it would identify those benefits to decision makers. We note that U.S. Embassy Kabul, USAID, and 

USFOR-A concurred with this recommendation. 

OSD did not concur with recommendation 7 to revise AIP guidance and project selection criteria to 

ensure that AIP projects have the support of the affected population. OSD stated that it did not concur 

with this recommendation because “Current initial guidance already includes the local population and 

government in project identification and planning for sustainment. The project approval process includes 

consultations with local, provincial, and national Afghanistan government officials who represent the 

Afghan population.” Given OSD’s statement, it is unclear why it did not concur with the 

recommendation to formalize this requirement.

OSD’s comments, and our responses, are included in appendix IX. 
SIGAR Audit-12-12 Infrastructure Page 19

APPENDIX I: SCOPE AND METHODOLOGY

This report provides the results of the Office of the Special Inspector General for Afghanistan 

Reconstruction’s review of the Afghanistan Infrastructure Program (AIP) and the Afghanistan 

Infrastructure Fund (AIF). This report assessed the extent to which (1) AIF-funded projects were 

implemented on schedule and achieved planned counterinsurgency effects; (2) ) the Department of 

Defense (DOD), the Department of State (State), and the U.S. Agency for International Development 

(USAID) addressed project sustainment costs and other sustainment challenges; and (3) agencies 

coordinated and jointly managed the AIP. Although the Commander of the U.S. Forces-Afghanistan 

(USFOR-A) and the U.S. Ambassador to Afghanistan endorsed the fiscal year 2012 AIF project package 

on July 16, 2012, as of February 15, 2012, the project package had not been signed by the Secretary of 

Defense and the Secretary of State or notified to Congress. As a result, we limited the scope of the audit 

to review the execution, administration, and oversight of the AIP and fiscal year 2011 AIF projects 

implemented, being implemented, or planned for implementation as of January 1, 2012. The period of 

our review included documents dated between February 2010 and March 2012. 

To calculate the amount and purpose of all funds obligated and disbursed, as well as the extent to which 

projects are implemented on schedule, we reviewed funding documents and databases, base contracts and

contract modifications, independent government cost estimates, contractor bids, and funds increase 

memoranda. To assess the reliability of computer-processed data, we verified that committed, obligated, 

and disbursed amounts in project files matched the cost data available in financial databases, and 

reviewed fund increase memoranda and other available evidence to identify reasons for cost increases, 

and found data to be sufficiently reliable for the purposes of the audit. As part of this effort we 

interviewed project managers, purchasing officers, and financial managers to clarify information in 

project files, and reviewed all project schedule documents, schedule estimates, and notices to proceed. To 

evaluate the extent to which fiscal year 2011 AIF projects contribute to the Afghanistan COIN strategy 

and achieve COIN effects, we obtained, analyzed, and compared COIN strategy, the United States

Government Integrated Civilian-Military Campaign Plan for Support to Afghanistan, Afghanistan’s 

National Development Strategy, and regional and sector based reports outlining priority issues to project 

selection criteria, planned COIN contributions stated in the fiscal year 2011 AIF congressional 

notification, and AIF project files, progress reports, and status briefings to ensure selected projects are 

clearly linked to national strategic objectives and demonstrate COIN support in accordance with 

established COIN guidance. We also met with DOD, State, and USAID officials throughout Afghanistan 

to obtain their on-the-ground assessment of how AIF projects positively or negatively affect COIN in 

their respective localities. 

To assess the extent to which DOD, State, and USAID addressed project sustainment costs and other 

sustainment challenges, we reviewed project files to evaluate project sustainment plans, coordination with 

Afghan representatives, and efforts to calculate sustainment costs and communicate theses costs to 

Afghan government entities. In addition, we held meetings with DOD, State, and USAID officials and 

reviewed project files to evaluate project sustainment plans, coordination with Afghan representatives, 

and efforts to calculate sustainment costs and communicate these costs to Afghan government entities. 

To assess the extent to which DOD and State coordinated and managed project execution, we obtained 

and analyzed relevant legislation and congressional reports, U.S. government reports, as well as DOD, 

State, and USAID policies and procedures, briefings, working group minutes and notes, e-mail 

exchanges, including documentation indicating AIP proposal and approval processes and selection 

criteria. In addition, we interviewed DOD, State, USAID, and the Asian Development Bank (ADB) 

officials to gain practical understanding of how AIP projects are initially proposed, selected, and 

coordinated. To determine the extent to which DOD and State fulfilled legislative requirements related to 

congressional reporting requirements for the AIP, we obtained and analyzed relevant legislation to 

identify the legislative requirements for AIP implementation. We held meetings with DOD, State, and 

USAID officials, as well as congressional staff, to discuss the status of legislative requirements. To 

determine the timeliness of and challenges associated with the development and submission of 
SIGAR Audit-12-12 Infrastructure Page 20

legislatively mandated reports and notifications to inform appropriate congressional committees of a 

forthcoming obligation, disbursement, or transfer of funds for AIP projects, we reviewed and analyzed

reports, memoranda, presentations, e-mails and other correspondence used by DOD, State, and USAID

during the planning and development of these reports or notifications to inform appropriate congressional 

committees of a forthcoming obligation, disbursement, or transfer of funds for AIP projects.

We assessed internal controls over procedures for the obligation and disbursement of funds through 

interviews, site visits, and review of purchase and delivery verifications processes. We also reviewed 

project files and interviewed decision makers to assess the transparency and impartiality of the AIF 

project selection process.

We conducted work in Washington, D.C., and in Kabul and Kandahar, Afghanistan, from November 

2011 to June 2012 in accordance with generally accepted government auditing standards. These 

standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide 

a reasonable basis for our findings and conclusions based on our audit objectives. We believe the 

evidence obtained provides a reasonable basis for our findings and conclusions based on our audit 

objectives. The audit was conducted by the Office of the Special Inspector General for Afghanistan 

Reconstruction under the authority of Public Law No. 110‐181, as amended, the Inspector General Act of 

1978, and the Inspector General Reform Act of 2008.
SIGAR Audit-12-12 Infrastructure Page 21

APPENDIX II: FISCAL YEAR 2011 AND 2012 AFGHANISTAN INFRASTRUCTURE 

FUND PROJECT NOMINATION AND APPROVAL PROCESS

No prescribed nomination process existed for fiscal year 2011 Afghanistan Infrastructure Fund (AIF) 

projects, however, projects required agreement between the Department of Defense (DOD), Department 

of State (State), and the U.S. Agency for International Development (USAID) officials at various levels, 

including the Joint Program Committee (JPC), the U.S. Embassy’s Infrastructure Working Group (IWG), 

the U.S. Embassy’s Executive working Group (EWG), the Commander of U.S. Forces-Afghanistan 

(USFOR-A), and the U.S. Ambassador to Afghanistan, through to the Secretaries of Defense (SECDEF) 

and State (SECSTATE). See Figure I for the fiscal year 2011 AIF project nomination and approval 

process.

Figure I: Fiscal Year 2011 AIF Project Nomination and Approval Process

Source: SIGAR analysis of DOD, State, USAID data and information.

For fiscal year 2012 projects, however, DOD, State, and USAID formalized the nomination and approval 

process and required projects be nominated by the DOD Regional Commands and State Department 

Regional Platforms. Approved project lists would then proceed through a process similar to that of fiscal 

year 2011. 

By May 30, 2011, regional commands and regional platforms nominated 27 projects with a combined 

estimated cost of approximately $2.5 billion. Based on these proposals, DOD and State selected the fiscal 

year 2012 AIF projects. In fiscal year 2012, the AIF received an appropriation of $400 million, of which 

42 percent is planned to be committed to continuing/completing fiscal year 2011 AIF projects. Thus, 52 

percent of available fiscal year 2012 funding went for these new projects nominated by regional 

commands and regional platforms. 
SIGAR Audit-12-12 Infrastructure Page 22

APPENDIX III: PLANNED CONTRIBUTION TO COUNTERINSURGENCY

STRATEGY OF FISCAL YEAR 2011 AFGHANISTAN INFRASTRUCTURE FUND 

PROJECTS

The authorizing legislation for the Afghanistan Infrastructure Program (AIP) and subsequent 

appropriating legislation for the Afghanistan Infrastructure Fund (AIF) require the Secretary of Defense 

to notify Congress not less than 30 days before obligating funds for AIF projects. This notification is 

required to include a description of how each project supports the counterinsurgency (COIN) strategy in 

Afghanistan. Summaries of the planned COIN strategy contributions for fiscal year 2011 AIF projects 

provided in the congressional notification are shown in Table I. 

Table I: Planned COIN Contributions of Fiscal Year 2011 AIF Projects

Project Title and Description Planned Contribution to COIN Strategy

Kandahar Bridging Solution

Fuel, operations, and maintenance

Providing fuel for the generators will enable DABS to provide electricity 24 hours/day in 

Kandahar City, thereby promoting security and stability, public confidence in the Afghan 

Government, economic development, industrial output, and improved quality of life. 

Demonstrating the Afghan Government’s capability and capacity to provide basic services 

and improve living conditions is expected to further isolate the insurgency from the 

population and diminish popular support.

Southeast Power System

Transmission lines and substations 

from Kandahar City to Durai 

Junction, and Lashkar Gah to Kajaki

The intended impact of this project is to improve security and stability, to demonstrate the 

Afghan Government’s capability and capacity to meet the needs of the local population, 

and to promote economic development in Kandahar and Helmand. This project supports 

COIN efforts by increasing basic services provided by the Afghan Government in 

Kandahar and Helmand in direct contradiction to insurgency propaganda. 

Northeast Power System

Transmission lines and substations 

from Chimtala to Ghazni

This project supports COIN by demonstrating the Afghan Government’s ability to build 

and sustain energy availability for the people of Afghanistan, reinforcing the Afghan 

Government’s legitimacy with its populace by meeting the needs of the local population 

thus increasing security and stability. In addition, the project will promote and support 

economic development in Wardak and Ghazni.

Northeast Power System

Transmission lines and substations 

from Chimtala to Gardez

This project supports COIN by demonstrating the Afghan Government’s ability to build 

and sustain energy availability for the people of Afghanistan, reinforcing the Afghan 

Government’s legitimacy with its populace by meeting the needs of the local population 

thus increasing security and stability. In addition, the project will promote and support 

economic development in Gardez and Paktiya.

Nawa to Lashkar Gah Road 

Pave road from Nawa district center 

to Helmand provincial capital of 

Lashkar Gah

The construction of this roadway—a critical artery in the province for trade and 

commerce—will provide safe and secure freedom of movement, thereby promoting 

economic development, as well as, agricultural development and market access.

Provincial Justice Centers (PJCs)

Infrastructure, equipment, 

furnishings, and one-year 

sustainment package for 5 Provincial 

Justice Centers

Providing a functioning dispute resolution and criminal justice system for major 

populations and strategically important centers in Afghanistan will contribute significantly 

to COIN efforts, promoting stability and security throughout Afghanistan. Specifically, the 

intended impact of the PJCs is to increase access to justice and improve public 

perception of the Afghan Government’s commitment to rule of law and good governance 

by providing a fair and transparent judicial system.

Source: DOD and State Fiscal Year 2011 AIF Congressional Notification, May 20, 2011.
SIGAR Audit-12-12 Infrastructure Page 23

APPENDIX IV: REQUIRED REPORTS AND FISCAL YEAR 2011 CONGRESSIONAL 

NOTIFICATION TIMELINE 

As shown in table II, the authorizing legislation for the Afghanistan Infrastructure Program (AIP)

47 and

the appropriating legislation for the Afghanistan Infrastructure Fund (AIF)

48 require annual and quarterly 

reporting and congressional notification for fiscal year 2011 AIP and AIF projects.

Table II: Required Congressional Notifications and Reports for AIP and AIF

Type Due Includes Reference

Project 

Notification1

Not fewer than 30 days 

before obligating, 

expending, or 

transferring AIF funds to 

implement a project

Details of the proposed project, including—

(1) A plan for sustainment

A description of how the project supports the 

COIN strategy

P.L. 111-383

Obligation or 

Transfer 

Notification2

Not fewer than 15 days 

prior to making transfers 

to or from, or obligations 

from the AIF

Details of the transfer or obligation P.L. 112-10

Quarterly 

Report2

Not later than 45 days 

after the end of the 

fiscal quarter

(1) The use of all funds on a project-byproject basis for AIF funds obligated prior 

to the submission of the report

Proposed use of appropriated funds on a 

project-by-project basis, for which 

obligation of funds is anticipated during 

the 3-month period

P.L. 112-10

Annual 

Report1

30 days after the end of 

the fiscal year

(1) The allocation and use of funds under the 

program during the fiscal year

A description of each project for which funds 

were expended or transferred during the fiscal 

year

P.L. 111-383

The Office of the Secretary of Defense (OSD) and U.S. Central Command (CENTCOM) also attributed 

the delay of the fiscal year 2012 AIF Congressional notification to project scope adjustments required 

after the Senate Committee on Appropriations reduced fiscal year 2012 AIF funding from the requested 

$475 million to $400 million on September 15, 2011. Two months after the funding reduction, U.S. 

Forces Afghanistan (USFOR-A) provided OSD and CENTCOM with a revised project list including 

scope adjustments for the $400 million funding level. DOD submitted the fiscal year 2012 AIF 

notification to Congress on February 24, 2012, as shown in figure II. 

 

47P.L. 111-383 §1217. 48P.L. 112-10.
SIGAR Audit-12-12 Infrastructure Page 24

Figure II: Timeline for Congressional Notification of the Fiscal Year 2012 AIF Project List

Source: SIGAR analysis of DOD, State, and USAID data and information, and applicable legislation. 

Notes: RCs/RPs = DOD Regional Commands/State Regional Platforms; JPC = Joint Program Committee; IWG = U.S. Embassy 

Kabul’s Infrastructure Working Group; EWG = U.S. Embassy Kabul’s Executive Working Group; JPIO = USFOR-A Joint 

Program Integration Office; OIEE = USAID Office of Infrastructure, Energy, and Engineering. 
SIGAR Audit-12-12 Infrastructure Page 25

APPENDIX V: COMMENTS FROM THE DEPARTMENT OF STATE
SIGAR Audit-12-12 Infrastructure Page 26 

Now 

recommendation 

9
SIGAR Audit-12-12 Infrastructure Page 27

APPENDIX VI: COMMENTS FROM THE U.S. EMBASSY KABUL
SIGAR Audit-12-12 Infrastructure Page 28
SIGAR Audit-12-12 Infrastructure Page 29
SIGAR Audit-12-12 Infrastructure Page 30

See app. VIII, SIGAR 

comment 2.
SIGAR Audit-12-12 Infrastructure Page 31

Now 

recommendation 6

Now 

recommendation 7

Now 

recommendation 8

Now 

recommendation 9
SIGAR Audit-12-12 Infrastructure Page 32

APPENDIX VII: COMMENTS FROM THE U.S. AGENCY FOR INTERNATIONAL 

DEVELOPMENT 
SIGAR Audit-12-12 Infrastructure Page 33
SIGAR Audit-12-12 Infrastructure Page 34
SIGAR Audit-12-12 Infrastructure Page 35
SIGAR Audit-12-12 Infrastructure Page 36
SIGAR Audit-12-12 Infrastructure Page 37

See app. VIII, SIGAR 

comment 2.

Now 

recommendation 6
SIGAR Audit-12-12 Infrastructure Page 38

Now 

recommendation 7

Now 

recommendation 8
SIGAR Audit-12-12 Infrastructure Page 39
SIGAR Audit-12-12 Infrastructure Page 40

APPENDIX VIII: COMMENTS FROM THE U.S. FORCES AFGHANISTAN
SIGAR Audit-12-12 Infrastructure Page 41
SIGAR Audit-12-12 Infrastructure Page 42

See SIGAR 

comment 1.
SIGAR Audit-12-12 Infrastructure Page 43
SIGAR Audit-12-12 Infrastructure Page 44

See SIGAR 

comment 2.

See SIGAR 

comment 3.

Now recommendation 

6 and 7
SIGAR Audit-12-12 Infrastructure Page 45

See SIGAR 

comment 4.

Now 

recommendation 8
SIGAR Audit-12-12 Infrastructure Page 46

Now 

recommendation 9
SIGAR Audit-12-12 Infrastructure Page 47

SIGAR Responses to USFOR-A Comments 

1. Although USFOR-A stated that USAID, U.S. Embassy Kabul, and USFOR-A meet on a regular basis 

to coordinate infrastructure projects, USFOR-A did not explain why it did not fully concur with 

our recommendation to define lead and secondary agency roles and responsibilities for the 

implementation of AIP projects. Similarly, USFOR-A stated that working from a single data 

platform, as previously recommended by SIGAR and GAO, would pose numerous logistical and 

information management security challenges, but it did not explain why the U.S. government 

could not overcome those challenges. Moreover, USFOR-A agreed that having access to project 

data would contribute to better project planning, eliminate overlap, and allow agencies to 

leverage each other’s resources more effectively. Requiring the inclusion of AIP project 

information in an existing or developing database would meet the intent of our 

recommendation and should minimize agency burden or costs.

2. In commenting on our draft report, USFOR-A disagreed with a recommendation to reassess the 

feasibility of allowing ADB to complete the NEPS project, thus allowing USFOR-A to put the $86 

million in AIF funds to better use. During our fieldwork, we found that ADB had funding 

available and was already designing and preparing to implement the project when it learned, 

unexpectedly, that the U.S. government intended to implement the project. USFOR-A stated 

that the project design was completed and the project was advertised in May 2012. As a result, 

we have deleted the recommendation from our report. However, we note that USFOR-A missed 

an opportunity to allow another donor to continue financing the project, particularly after the 

donor had already completed the design and preparation phase. USFOR-A further noted that 

the ADB did not plan to construct the project for 2 or 3 years after the estimated completion 

date of the AIF-funded project. However, the ongoing delays that USACE has experienced in 

executing the project, combined with a new phased acquisition strategy consisting of a base 

contract-plus options, may result in further delayed execution timeframes and increased costs. 

Given AIF project delays, it is uncertain whether the ADB project would have been completed 2 

or 3 years later. In deciding to fund this project, the U.S. government missed an opportunity to 

put to better use the $86 million committed to the execution of the Dast-i-Barchi to Gardez line. 

3. In commenting on recommendations 6 and 7, USFOR-A made general statements about its 

perception of COIN benefits but did not challenge our recommendations, state why it did not 

fully concur with them, or outline steps and timeframes for implementation. 

4. USFOR-A partially concurred with recommendation 9 and stated that doing so was “the 

responsibility of GIRoA and not the JPIO.” We disagree with this position and note that 

appropriating legislation requires all AIF projects to have a sustainment plan and for the 

sustainment plan to be included in congressional notifications. Further, we note that while 

USFOR-A and State provided required sustainment plans to Congress, those plans were 

inadequate for a variety of reasons stated in the report. 
SIGAR Audit-12-12 Infrastructure Page 48

APPENDIX IX: COMMENTS FROM THE OFFICE OF THE SECRETARY OF 

DEFENSE 
SIGAR Audit-12-12 Infrastructure Page 49
SIGAR Audit-12-12 Infrastructure Page 50

See SIGAR 

comment 1.

See SIGAR 

comment 2.

See SIGAR 

comment 3.
SIGAR Audit-12-12 Infrastructure Page 51

See SIGAR 

comment 4.

See SIGAR 

comment 5.

See SIGAR 

comment 6.

See SIGAR 

comment 7.
SIGAR Audit-12-12 Infrastructure Page 52

See SIGAR

comment 8.
SIGAR Audit-12-12 Infrastructure Page 53

Now 

recommendation 6

Now 

recommendation 7

Now 

recommendation 8
SIGAR Audit-12-12 Infrastructure Page 54

See SIGAR 

comment 9.

See SIGAR 

comment 10.

Now 

recommendation 9
SIGAR Audit-12-12 Infrastructure Page 55

See SIGAR 

comment 11.

See SIGAR 

comment 12.

See SIGAR 

comment 13.

See SIGAR 

comment 6.
SIGAR Audit-12-12 Infrastructure Page 56

See SIGAR 

comment 5.

See SIGAR 

comment 14.

See SIGAR 

comment 15.

See SIGAR 

comment 16.

See SIGAR 

comment 17.
SIGAR Audit-12-12 Infrastructure Page 57
SIGAR Audit-12-12 Infrastructure Page 58

SIGAR Responses to OSD Comments 

1. We conducted this audit early in the program’s implementation so that any problems or 

opportunities for improvement could be identified and addressed prior to the withdrawal of U.S. 

and coalition troops. We also focused our assessment on what DOD and State reported as the 

COIN benefits that would be achieved by these projects. We did not try to interpret COIN 

doctrine, but rather assessed whether the COIN benefits they identified were being achieved or 

would be achieved given project delays and the length of time needed to complete projects.

2. Although Congress did not authorize or appropriate funds for the Afghanistan Infrastructure 

Program until fiscal year 2011, OSD requested the $400 million in fiscal year 2011 AIF funding in 

November 2010; DOD notified Congress of its spend plan in May 2011; and DOD received that 

appropriation on April 15, 2011—7 months before the initiation of this audit. Furthermore, we 

specifically designed this audit to occur during the first year of the program, so that any 

problems or opportunities for improvement could be identified and addressed early. We 

believe this approach can be useful because it helps agencies make necessary course corrections 

during program implementation, rather than after programs have neared completion. 

3. We disagree. The findings presented in the report provide sufficient, relevant, and reliable 

evidence that raise serious concerns about project execution delays and the sustainability of 

fiscal year 2011 AIF projects.

 

4. OSD states, “Under the program, DoS and USAID must identify ESF-funded AIP projects before 

DOD approves AIF projects and provides notification to Congress. In congressional briefings 

supporting the FY11 notification process, DOD, DoS, and USAID identified all AIP projects-funded 

by either ESF or AI F-and their relationship to each other.” However, OSD did not provide SIGAR 

with a final list of ESF-funded projects supporting AIP. Further, these projects were not included 

in either the congressional notification for fiscal year 2011 AIP projects or the annual report 

issued by DOD on the implementation of the AIP. Notably, U.S. Embassy Kabul, USAID, and 

USFOR-A all concurred with our first recommendation that agencies should define and identify

all infrastructure projects that compose AIP, including projects funded by AIF and ESF, and 

include this information in required congressional reports.

5. We agree that the project execution schedules were estimated, as reflected in the title of figure 

1, “Fiscal Year 2011 AIF Estimated Project Execution Schedules.” We also agree, as stated in our

draft report, that acquisition and funding delays postponed project execution schedules and 

that security concerns contributed to the acquisition delays. 

6. Our findings regarding delayed COIN benefits are based on an assessment of the specific 

contributions to the COIN strategy that DOD identified in its fiscal year 2011 AIF congressional 

notification (reproduced in appendix III of this report). Most of these stated benefits depend on 

completed projects, which in most cases are years away. For example, the notification states 

that the northeast power system project “supports COIN by demonstrating the Afghan 

Government’s ability to build and sustain energy availability for the people of Afghanistan...” 
SIGAR Audit-12-12 Infrastructure Page 59

Because this project has experienced significant delays and the Afghan government has not yet 

been able to demonstrate an ability to build and sustain energy availability for the people of 

Afghanistan, the COIN benefits identified in the Congressional notification have not yet been 

achieved. If there are additional COIN benefits as a result of these projects, as suggested in 

OSD’s comments, those benefits should be included in AIF congressional notifications. 

We agree that there may be some interim COIN benefits associated with fiscal year 2011 AIF 

projects, and the draft report acknowledges that progress in project execution may result in 

COIN benefits and a desire for future services. However, as noted in the report, that desire may 

create an expectations gap if AIF funding is cut or replacement sources for future services are 

not available. The draft report also acknowledged that some degree of COIN benefits may occur 

if implementing agencies are able to ensure that contractors employ local laborers. However, 

given the ongoing delays in executing most AIF projects, it remains unclear if contracts will 

contain such requirements.

7. Our report states that the sustainment of some fiscal year 2011 AIF projects relies on 

unidentified or unfunded projects with completion dates beyond 2014. Specifically, the success 

and viability of three projects, including the two SEPS projects and the Kandahar Bridging 

Solution, rely on (1) a three-turbine-strong Kajaki Dam, and (2) a yet-to-be determined second 

power source. The draft report acknowledges the immediate COIN benefits of the Bridging 

Solution. As acknowledged by OSD, however, this project relies on unidentified or unfunded 

projects with completion dates beyond 2014.

8. We specifically requested an exit conference with OSD officials on April 25, 2012, to discuss our 

preliminary findings and draft recommendations, but they did not respond to that request. We 

provided a draft report to OSD, along with various other agencies, on May 25, 2012, requesting 

formal and technical comments by June 14, 2012. On June 21, 2012, OSD provided draft 

comments on the report and, at OSD’s request, we went to their offices at the Pentagon to 

discuss these comments. On July 11, 2012, the Special Inspector General went to the Pentagon 

and met with a senior OSD official, again to request OSD’s formal comments on the report. At 

that time, OSD submitted a revised draft of its comments but did not submit final signed 

comments until July 13, 2012. 

9. The statement was revised for clarity. 

10. We maintain that there is a clear distinction between AIF and AIP. AIF is one funding 

component of AIP, the other being ESF. As stated in the report, “Congress intended AIP to be a 

whole-of-government approach in support of the COIN strategy to meet fundamental, shared 

objectives in infrastructure and development. Congress expected both DOD and State to 

commit resources to AIP”. OSD’s comment clouds the distinction between AIP and AIF. 

11. In their fiscal year 2012 Congressional Budget Justification, State and USAID requested ESF 

funding specifically for AIP. However, neither their fiscal year 2012 Congressional Budget 

Justification, the accompanying Executive Budget Summary, nor congressional notifications and 
SIGAR Audit-12-12 Infrastructure Page 60

reports for AIP identified ESF-funded projects supporting AIP or specified the amount of ESF 

funds that State and USAID planned to use to support AIP projects. We obtained draft 

documents that identified some ESF-funded projects and indicated that they may support AIP, 

but we were unable to obtain a final list of ESF-funded projects supporting AIP. Given OSD’s 

comments pertaining to ESF-funded projects being incorporated in multiple formal documents, 

we would expect OSD to concur with and implement our recommendation to “define and 

identify all infrastructure projects that compose AIP, including projects funded by AIF and ESF

and include this information in required congressional report s as part of AIP. This notification 

should illustrate the interrelationship of infrastructure projects.”

12. As noted in the report, “AIF guidance states that once DOD, State, and USAID identify project 

components and assign a lead implementing agency, the lead agency should form a JPDT to 

ensure joint project management, create transparency and accountability, and enable joint 

decision making.” However, we found that, in practice, these teams do not jointly implement 

AIF projects and agencies tend to use JPDTs, in one form or another, for large-scale, complex 

energy sector projects. Consistent with the guidance, both DOD and State/USAID should strive 

to replicate the type of joint implementation that we identified in the report as a model of 

effective collaboration. 

13. As a general rule, and in accordance with standard practice, we do not list the names or 

personally identifiable information of agency officials with whom we meet because doing so 

may hinder frank discussions of key issues. Our statement is based on interviews with senior

officials with purview and responsibility for AIP/AIF in Washington, D.C., and in Kabul, Kandahar, 

and Helmand, Afghanistan. 

14. The draft report notes that agencies produced sustainment plans, as required, but that the 

sustainment plans were broad and inadequate. DOD and State neither adequately defined 

project sustainment costs, nor communicated sustainment costs to the Afghan government. 

Although some sustainment cost estimates were calculated, there were problems with those 

estimates. Congress voiced concern with the sustainment plans, and we propose a draft 

recommendation for improvement.

15. We do not state or imply in our report that project plans have been endorsed. Rather, our 

report states that there is ongoing planning to use AIF to fund the development of a second 

sustainable power source for Afghanistan’s south, should USAID not complete the NEPS to SEPS 

connection with ESF funds. We believe this is valuable information for the Congress. 

16. As indicated in the report, DOD, in conjunction with State had not provided Congress with 

required reports as of February 15, 2012. Further, although the appropriations act for fiscal year 

2012 does not include a requirement for AIF quarterly reports, the appropriations act for fiscal 

year 2011 does and, since 2011 AIF funds are still being used, that requirement remains in effect 

for those funds.
SIGAR Audit-12-12 Infrastructure Page 61

17. We disagree and remain deeply concerned that the success and viability of key AIF projects 

hinge, in part, on unidentified, unfunded infrastructure projects and the successful, timely 

completion of other projects that the U.S. government has been unable to complete for more 

than 7 years. Our statement is based on sufficient, relevant, and reliable evidence that raise 

serious concerns about project execution delays and challenges, sustainability, and viability of 

fiscal year 2011 AIF projects.
SIGAR’s Mission The mission of the Special Inspector General for Afghanistan 

Reconstruction (SIGAR) is to enhance oversight of programs for 

the reconstruction of Afghanistan by conducting independent 

and objective audits, inspections, and investigations on the use 

of taxpayer dollars and related funds. SIGAR works to provide 

accurate and balanced information, evaluations, analysis, and 

recommendations to help the U.S. Congress, U.S. agencies, and 

other decision-makers to make informed oversight, policy, and 

funding decisions to:

• improve effectiveness of the overall reconstruction 

strategy and its component programs;

• improve management and accountability over funds 

administered by U.S. and Afghan agencies and their 

contractors;

• improve contracting and contract management 

processes;

• prevent fraud, waste, and abuse; and

• advance U.S. interests in reconstructing Afghanistan.

Obtaining Copies of SIGAR 

Reports and Testimonies

To obtain copies of SIGAR documents at no cost, go to 

SIGAR’s Web site (www.sigar.mil). SIGAR posts all publically 

released reports, testimonies, and correspondence on its Web 

site.

To Report Fraud, Waste, and 

Abuse in Afghanistan 

Reconstruction Programs

To help prevent fraud, waste, and abuse by reporting allegations 

of fraud, waste, abuse, mismanagement, and reprisal contact 

SIGAR’s hotline:

• Web: www.sigar.mil/fraud

• Email: sigar.pentagon.inv.mbx.hotline@mail.mil

• Phone Afghanistan: +93 (0) 700-10-7300

• Phone DSN Afghanistan 318-3912 ext. 7303

• Phone International: +1-866-329-8893

• Phone DSN International: 312-664-0378

• U.S. fax: +1-703-601-4065

Public Affairs Public Affairs Officer

• Phone: 703-545-5974 

• Email: sigar.pentagon.ccr.mbx.public-affairs@mail.mil

• Mail: SIGAR Public Affairs

2530 Crystal Drive

Arlington, VA 22202