We Built a $335 Million Power Plant in Afghanistan that Can Barely Turn on Lightbulb
USAID is denying that a $335 million “vital component” of their mission to aid the massive energy deficit in Kabul, Afghanistan is an utter failure, but a new report contradicts that claim.
A power plant built by U.S. Agency for International Development (USAID) is extremely underused and in danger of being wasted, according to the Special Inspector General for Afghanistan Reconstruction (SIGAR). USAID attempted to defend itself by saying the plant was only built to provide occasional backup and insurance for Kabul’s electrical grid, not for electrical power on a continuous basis. SIGAR’s report provides evidence that the plant was built for regular usage.
Related: U.S. Military Builds a $15 Million Warehouse That Nobody Wants
First, the basis of design was for a base load plant, built to operate 24 hours per day, 7 days a week. Also, the plant hasn’t made any impact on reducing Kabul’s massive energy deficit that USAID says is one of the plant’s main priorities. Not only is it not being used regularly, but it’s not even contributing additional electricity to increase the overall power supply in Kabul.
The Tarakhil Power Plant was built in July 2007 on the outskirts of Kabul, with the intention of supplying 18 diesel engines worth of operating power. Since Da Afghanistan Breshna Sherkat (DABS) – Afghanistan’s national power utility – assumed responsibility for the operation and maintenance of the facility in 2010, the plant has only performed at a shred of its total capability. Between July 2010 and December 2013, the USAID IG found that the plant performed at a mere 2.2 percent of its potential.
Since the Tarakhil Power Plant was used incorrectly and only on an intermittent basis, the plant has suffered premature wear and tear on its engine and electrical components. The damage is expected to raise already steep operation and maintenance costs.
It’s Official: No Government Shutdown – for Now
President Trump signed a short-term continuing resolution today to fund the federal government through Friday, December 22.
Bloomberg called the maneuver “a monumental piece of can kicking,” which is no doubt the case, but at least you’ll be able to visit your favorite national park over the weekend.
Here's to small victories!
Greenspan Has a Warning About the GOP Tax Plan
The Republican tax cuts won’t do much for economic growth, former Federal Reserve Chair Alan Greenspan told CNBC Wednesday, but they will damage the country’s fiscal situation while creating the threat of stagflation. "This is a terrible fiscal situation we've got ourselves into," Greenspan said. "The administration is doing tax cuts and a spending decrease, but he's doing them in the wrong order. What we need right now is to focus totally on reducing the debt."
The US Economy Hits a Sweet Spot
“The U.S. economy is running at its full potential for the first time in a decade, a new milestone for an expansion now in its ninth year,” The Wall Street Journal reports. But the milestone was reached, in part, because the Congressional Budget Office has, over the last 10 years, downgraded its estimate of the economy’s potential output. “Some economists think more slack remains in the job market than October’s 4.1% unemployment rate would suggest. Also, economic output is still well below its potential level based on estimates produced a decade ago by the CBO.”
The New York Times Drums Up Opposition to the Tax Bill
The New York Times editorial board took to Twitter Wednesday “to urge the Senate to reject a tax bill that hurts the middle class & the nation's fiscal health.”
Using the hashtag #thetaxbillshurts, the NYT Opinion account posted phone numbers for Sens. Susan Collins, Bob Corker, Jeff Flake, James Lankford, John McCain, Lisa Murkowski and Jerry Moran. It urged readers to call the senators and encourage them to oppose the bill.
In an editorial published Tuesday night, the Times wrote that “Republican senators have a choice. They can follow the will of their donors and vote to take money from the middle class and give it to the wealthiest people in the world. Or they can vote no, to protect the public and the financial health of the government.”
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Can Trump Succeed Where Mnuchin and Cohn Have Flopped?
President Trump met with members of the Senate Finance Committee Monday and is scheduled to attend Senate Republicans’ weekly policy lunch and make a personal push for the tax plan on Tuesday. Will he be a more effective salesman than surrogates in his administration?
Politico’s Annie Karni and Eliana Johnson report that both Democrats and Republicans say Mnuchin and chief economic adviser Gary Cohn have repeatedly botched their tax pitches, “in part due to their own backgrounds” as wealthy Goldman Sachs alums. “House Speaker Paul Ryan earlier this month asked the White House not to send Mnuchin to the Hill to talk with Republican lawmakers about the bill, according to two people familiar with the discussions — though Ryan has praised the Treasury secretary’s ability to improve the legislation itself,” Karni and Johnson write.