Saturday, May 14, 2005

Afghan 'pipe dream' draws closer to reality

"This pipeline is an opportunity for Afghanistan, and we would like to keep Afghanistan a place that is open and attractive for foreign investment," says Sediq. "The foreign investment rate of return is 17.5 percent, based on the assumptions that the gas reserves in Turkmenistan are enough and the consumption rate in Pakistan remains high. Only security of the pipeline is left, and the government of Afghanistan is capable of providing security."
It wasn't so long ago that the pipeline was thought to be dead. Taliban attacks in the south appeared to be on the increase, and other sources of energy, such as Iran or Qatar, were more attractive. But growing Pakistani demand, increased Afghan stability, and higher energy prices for Turkmenistan have made the pipeline increasingly feasible. This week, President Hamid Karzai told donor countries the project was a top priority - on a par with the war on terror and opium eradication.

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