commercialization of DABM, investments in transmission and distribution to reduce losses, and, repair and maintenance of all power assets. Moreover, it is important to focus now on efficient use of energy and the enabling policy, legal and regulatory frameworks should address this issue. When this is considered against the Afghan Compact Goals, the importance of efficiency becomes even more important. By 2010 the number of connections to meet the AC goals will rise by 211 percent while capacity will increase only 194%, assuming that imports go according to plan. This means that unless there are changes in efficiency, the average kWh consumed per connection must go down. This is not a recipe for economic growth. Compounding the problem and not included in this analysis are that the demand for power will actually rise and that with more connections the cost of un-served energy will rise. While it is imperative that additional infrastructure be added, it is even more important that the IROA focus on efficiency. While much can be done by the Government, the real solution lies in creating and expanding a meaningful role for the private sector. To illustrate this gravity of the problem, the cost of losses has been estimated. Because of the state of the infrastructure and the familiar short comings of Government owned and operated energy provision, losses are enormous. Losses in 2005 amounted US$ 128.5 million.