1. DRAFT PRE-DECISIONAL April 19, 2012 Afghanistan Resource Oversight Council

2. Afghanistan Resources Oversight Council Agenda – April 19, 2012 Opening Comments – 5 minutes Lead – AROC Co-Chairs AFGHANISTAN INFRASTRUCTURE FUND (AIF) Long-Term Plan for Kandahar Power – 20 minutes Lead – USAID and USFOR-A Execution – 15 minutes FY 2011 Execution; FY 2012 Planned Execution; FY 2013 Plans and Project Sustainment by Sector Lead – USFOR-A and USAID AIF Draft Funding Guidance Memo with project templates (read ahead) COMMANDERS EMERGENCY RESPONSE PROGRAM (CERP) Gor Tepa Road Project and CERP Projects over $1M– 5 minutes Lead – CERP Management Cell FY 2012 Execution/FY 2013 Plan – 10 minutes Lead – USFOR-A Wrap up and Next meeting – 5 minutes 2

3. DRAFT PRE-DECISIONAL Lead- USAID and USFOR-A Long-Term Plan for Kandahar Power

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16. DRAFT PRE-DECISIONAL Lead-USFOR-A and USAID Execution FY 2011 Execution; FY 2012 Planned Execution; FY 2013 Plans and Project Sustainment by Sector

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26. DRAFT PRE-DECISIONAL (Hard Copy Read Ahead will be provided) AIF Draft Funding Guidance Memo with Project Templates

27. DRAFT PRE-DECISIONAL Lead – CERP Management Cell Gor Tepa Road Project and CERP Projects over $1M

28. Gor Tepa Road – Project Details 28 DESCRIPTION: 14.6 km paved road with associated drainage and shoulders. The road will provide reliable year-round access from rural villages in the Kunduz District to the Provincial Capital, Kunduz City. Approximately 15,000 people live near the road. COIN EFFECT: Improve access to commerce and healthcare, support better governance, build local capacity ESTIMATED TIMELINE: August 2012 – April 2013 (Approximately 270 Days) ESTIMATED COST: $8.8M USD CERP CATEGORY: Transportation FINISH START 28

29. Gor Tepa Road – Approval Status 29 CENTCOM submitted the project on 4 Apr 12 CERP Management Cell (CMC) prepared a draft DepSecDef approval memo 1 and circulated for coordination on 5 Apr 12; Coordination not complete Fully coordinated package will be sent to DepSecDef following AROC and other coordination Congressional notification will follow DepSecDef approval 1 CERP projects ≥$5M require DepSecDef approval and Congressional notification 29

30. FY12 CERP Projects ≥ $1M 30 - Approved, but not obligated, in FY11. Reapproved in FY12. CIDNE Project No. Project TitleProvince Date CENTCOM Approved Total Cost ($M) 140706Gor Tepa Road Improvement (Pending Approval)Kunduz3 Apr 12$8.8M 071311Imam Sahib to Aq Masjed RoadKunduz26 Mar 12$1.1M 112900Bamyan Connector RoadBamyan27 Feb 12$3.9M 110554Regional Teacher Training CollegeZabul13 Feb 12$2.4M 110002Hairatan Materiel Handling Equipment MaintenanceBalkh13 Feb 12$1.5M 052251Hairatan Materiel Handling Equipment PurchaseBalkh13 Feb 12$1.4M 062756Highway 1 Sarkari Bridge RepairKandahar13 Feb 12$1.4M 090328Almar Bazaar to Badghisi Aggregate RoadFaryab13 Feb 12$1.1M Totalvvv$21.6M 30

31. FY11 CERP Projects ≥ $1M 31

32. FY11 CERP Projects ≥ $1M 32

33. FY11 CERP Projects ≥ $1M 33

34. FY11 CERP Projects ≥ $1M 34

35. CERP Review and Approval Level s  DSD Management Memo and Decision Memo (2010) Considered SD/DSD Approval Threshold between $1M and $20M CSC (AROC) Recommended and DSD approved o <$1M CDR, USFOR-A approval o $1M – < $5M CDR, USCENTCOM approval, CMC review o ≥$5M SD/DSD approval, CSC (AROC) review and recommendation  FY2011 Legislative Limits $5-$20M, SD/DSD approval, Congressional Notification Individual CERP project cannot exceed $20M 35

36. Afghanistan CERP Projects ≥ $1M  FY 2008: 84($1M ≤ 65 < $5M)  FY 2009: 84($1M ≤ 50 < $5M)  FY 2010: 13($1M ≤ 6 < $5M)  FY 2011: 45($1M ≤ 40 < $5M)  FY 2012: 8 * ($1M ≤ 7 < $5M) * Includes the $8.8M Gor Tepa Road Project which is pending approval 36

37. DRAFT PRE-DECISIONAL Lead - USFOR-A CERP FY12 Execution/ FY13 Plan

38. CERP Execution Overview Current USFOR-A CERP funding level is $166M Current funding will likely meet FY12 program requirement Committed $62M, obligated $36M – supporting 5,600+ projects 98% of projects are below $50K FY12 execution strategy consistent w/ intent of CERP Focus is on small projects w/ immediate impact (COIN impact) Fewer development and infrastructure projects FY12: Four projects above $500K – less than 1% of total projects; FY11: 97 projects were above $500K (40% of projects) Future Strategy: Carefully planned and executed CERP projects designed to build capacity and mitigate economic impact of retrograde FY13 Legislative Engagement FY 13 PB request $400M – revised forecast is less than $200M Language authorizing CERP “transfer in authority” will allow crucial program flexibility 38