There is an acute shortage of land for genuine investors in Herat’s biggest industrial township in Guzara district. Killid found tens of plots lying vacant that belong to the rich and the powerful.
There is only a low wall around 96 plots allotted between 2003 and 2009 in the current three-part Herat Industrial Township. The owners are either high-ranking government officials or individuals linked to former jihadist commanders in the West or current police commanders.
Afghanistan Investment Support Agency (AISA) officials say there is no land available in parts one and two of the township, spread over some 3,850 jeribs (770 hectares).
Shafiq Ahmadi, head of AISA in Herat, says there are plots available in a proposed part four of the township, but that is still on paper.
Under the rules, potential investors have to provide proof of intent when they apply for a plot in the township. The investor permit, which states the purpose of investment, also includes finer details like the level of mechanisation and list of tools.
The application is forwarded for scrutiny to the High Commission of Investment Review in Kabul.
According to Ahmadi, the Ministry of Commerce handed over the management of the industrial township to AISA under a presidential decree dated Jan 30, 2013. But the distribution of plots remains the ministry’s responsibility. Many plots in parts one, two and three of the township are in the possession of “powerful and influential individuals”, and no action has been taken against defaulters who have failed to build, Ahmadi says.
Not negotiable
Under the rules for industrial parks, an investor has to set up the factory and install the machines within 18 months of allotment failing which the plot would be confiscated. The authorities can give a six-month extension on the deadline but only for “justifiable reasons”.
Meanwhile, the Herat Chamber of Commerce and Industries also says 1,000 jeribs (200 hectares) were distributed to non-business investors. Siros Alaf, deputy director at the chamber told Killid these individuals have neither business nor manufacturing experience.
Officials in the provincial government say hundreds of jeribs that are lying vacant in the industrial township will be confiscated. Asiludin Jami, the acting governor of Herat, said the plots would be taken back at the start of the Afghan new year (Mar 21) and distributed among “deserving” investors. According to Jami, this is the responsibility of the Ministry of Commerce.
However, the ministry has a different understanding.
Musafer Quqandi, the spokesperson, told Killid that since all the land in the industrial parks prior to 1973 were handed over to AISA under the 2013 presidential order the High Commission of Investment Review would decide allotments. The commission comprises of representatives from eight ministries including finance, agriculture, urban affairs and justice.
Killid has a copy of a document that lists the names of 52 individuals who acquired possession of 96 plots between 2003 and 2009 but have not put it to use.
Mohammad Rafeeq, an industrial affairs expert in Herat blames the government. “The government is corrupted, and so it has not been able to restore the vacant lands from powerful individuals in the Herat Industrial Township,” he says.
Who’s who
The list of defaulters includes Saad Khatibi, chief of the Herat Chamber of Commerce and Industries whose five plots that were acquired in 2007 are still empty. All he has constructed are boundary walls.
In an interview with Killid, Khatibi said he was waiting for the security situation to improve before investing his money. Park authorities have also not been able to provide reliable power and water supplies or security in the Herat Industrial Township, he says. He claims he has ambitious plans for the plots, worth 4-5 million USD. Khatibi owns 12.5 jeribs (2.5 hectares) in the township, and a motorcycle factory called Shahab Cycle, employing 150 workers.
Another name on the list is of Mohammad Yasar, the head of the Ministry of Foreign Affairs’ representation office in Herat. He is the son of the former Water and Energy Minister, Ismail Khan, a powerful warlord who was governor of Herat until 2004, the year he acquired ownership of eight plots in the Herat Industrial Township. At first Yasar denied he owned the plots, and later changed his statement to say lack of infrastructure in the township caused him to lose interest in investing. He claimed he had roped in “some companies” to set up factories. According to Yasar, should the definitely invest”.
Mohammad Salim Taraki, the former mayor of Herat is also on the list. He acquired four plots in 2005. Killid was unable to interview Taraki as he had traveled to Turkey. Neither could we find the contacts to interview Mohammad Ehsan, the son of Mohammad Juma Adeel, the chief commander of border zone 705 in the West. Ehsan owns one plot.
Meanwhile, potential investors in the Herat Industrial Township are being told there is no land available. Plots will be available only after part four of the township is established. The process of land delineation has not started.
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