A trio of initiatives aimed at modernizing the infrastructure of oil-rich Kazakhstan—while simultaneously benefiting U.S. consulting firms—was unveiled, albeit without without fanfare, by the federal government. The U.S. Trade & Development Agency (USTDA) late last week began its search for Kazakh project vendors at a time when the U.S. increasingly is becoming embroiled in a tempestuous controversy between the Kazakh President and his exiled son-in-law.
According to The New York Times, Rakhat Aliyev, son-in-law to President Nursultan Nazarbayev, has taken his case to Washington in search of safe passage to the United States. Aliyev, whom Kazakh authorities had accused of kidnapping an oil company executive, is intent on recovering $2 billion allegedly stolen from family members—or simply is trying to smear his father-in-law’s reputation on the global stage, the Times reported (NYT, May 29, “Feud in Kazakh President’s Family Spills Into U.S."). Aliyev reportedly is hiding in an undisclosed European nation, while both he and President Nazarbayev concurrently strive to gain favor in the U.S., the Times says:
With billions of dollars at stake, plenty of people here have been willing to play bit roles in the Nazarbayev family drama, including teams of corporate lawyers, Capitol Hill lobbyists, a former American ambassador to Kazakhstan and the sister of a lawmaker. The dueling lobbyists have appealed to more than three dozen members of Congress, either to condemn the Kazakh government or help form pro-Kazakhstan caucuses. (One congressman even nominated the president for the Nobel Peace Prize.)
While there is no direct link between the timing of U.S.-funded projects and these revelations, nonetheless within three days of the Times report USTDA issued several Requests for Proposals for various consulting contracts, U.S. Trade & Aid Monitor discovered via routine database research. The initial cost of these endeavors does not include potential, subsequent financing to execute the Kazakh projects.
The Rail Signaling and Train Control Systems Project (Solicitation #2010-81027A-1) needs a U.S. consulting firm to carry out a “feasibility study” on behalf of Kazakhstan Temir Zholy, also known as KTZ or Kazakhstan Railways. The study, to be made possible with a $655,000 agency grant, will:
1. Evaluate the current status of KTZ's Rail signaling and train control systems;
2. Evaluate current technologies to determine the best fit for KTZ's current and future train control and rail signaling plans;
3. Develop technical specifications for updating KTZ's equipment on a system wide or rail corridor by corridor basis;
4. Develop cost estimates of the above recommended systems.
The Kazkahstan Monitoring and Diagnostic Systems Technical Assistance Project (Solicitation # 2010-81028A-1) requires a U.S. consulting firm to offer “technical assistance” to the Kazakhstan Electricity Grid Operating Company (KEGOC), which is “100% owned by the national state holding company, Samruk-Kazyna,” according to the solicitation (#2010-81028A-1). This technical assistance, which the agency will fund with a $392,000 grant, will:
1. Evaluate the current status of KEGOC's transmission line monitoring equipment and program;
2. Evaluate current technologies to determine the best fit for KEGOC's current and future monitoring and diagnostic plans;
3. Develop technical specifications for updating the KEGOC's equipment, and guidelines to update KEGOC's monitoring and inspection routines;
4. Prepare tender documentation for procuring the above systems.
The Definitional Mission for Kazakhstan: Gas Utilization and Coal Bed Methane Project (Solicitation #RFQ-CO201161209) seeks a vendor to assess whether the U.S. should provide financing for future modernization initiatives. The estimated cost is $35,000.
Separately, the Monitor discovered today (June 7) at deadline that the U.S. Agency for International Development (USAID) issued a call to the private sector for an Almaty, Kazakhstan-based Strategy and Program Office Director. The position, which pays an annual salary in the $99,628-$129,517 range, will help to oversee an estimated $115 million in annual programs via USAID’s Regional Mission for Central Asian Republics, according to the solicitation (#27-2011).
Indeed, USAID has provided the bulk of aid for contracts awarded in support of ventures in Kazakhstan. USAID in 2010, for example, awarded contracts to vendors for the following endeavors:
Oct. 4; Regional Trade Liberalization and Customs Project; $16.1 million contract to AECOM International Development, Inc.
Sept. 28; Parliamentary-Strengthening-Program; sole-source, non-competitive $3.25 million contract to Development Alternatives, Inc.
Sept. 13; Quality Health Care Project for Central Asia; $72 million contract to Abt Associates.
July 13: Business Environment Improvement Project; sole-source, non-competitive $20.5 million contract to The Pragma Corporation.
USTDA-funded Kazakhstan initiatives in 2010 include:
May 6; Definitional Mission for Kazakhstan and Azerbaijan Rail Sector Projects; $50,000 contract to The Seneca Group, LLC.
March 1; Definitional Mission: Kazakhstan/Azerbaijan Maritime Vessel Traffic Systems/Port Security Projects; $38,000 contract to Telematics Engineering Corp, a Reston, Va., firm (no website could be found).
Feb. 26; Definitional Mission: Kazakhstan/Kyrgyzstan Aviation Projects; $49,000 contract to Airline Capital Associates, Inc., (d/b/a ACA Associates, Inc.)
USAID and USTDA, plus several other U.S. government entities, have awarded dozens of additional contracts to vendors for Kazakh projects since 2002, a search of federal procurement records show. The numbers of contracts awarded annually, however, increased significantly in the past two years.
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