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CASA-1000 pact inked in Turkey

in Afghan Business

CASA-1000 pact inked in Turkey

Core project agreements of the long-awaited Central Asia South Asia 1000 (CASA 1000) were signed on April 23 in Istanbul, Turkey.

The agreements consist of Four Power Purchase Agreements (PPAs) between respective countries: a Master Agreement between all four parties; an Account Bank Agreement; Technical Code; Co-ordination Agreement between Kyrgyz Republic and Tajikistan and Host Government Agreements.

Based on agreement between Kabul and Islamabad in October of last year, Afghanistan will receive a transit fee of 1.25 cents/kWh which will bring in USD 45mn in revenue to the Afghan government.

Other tariff components of the projects are: transmission tariff of 2.98 cents/kWh to Tajikistan, Kyrgyzstan and Afghanistan and energy tariff of 5.15 cents/kWh payable to sellers.

The project will be implemented as a contractual joint venture in which all four participating countries will own the parts of the projects located in their respective countries.

In addition to the commitment of these four countries, CASA-1000 has the support of the World Bank Group, Islamic Development Bank, United States Agency for International Development (USAID), US State Department, United Kingdom Department for International Development (DFID), Australian Agency for International Development (AusAID), and other donor communities.

The transmission lines would pass through Kunduz, Baghlan, Kabul and Nangarhar provinces of Afghanistan.


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