English | دری

CASA-1000 power project to launch on May 12th

in Afghan Business

CASA-1000 power project to launch on May 12th

The much awaited Central Asia South Asia electricity import project (CASA-1000) is slated for inauguration on May 12.

The Afghan Ministry of Foreign Affairs (MoFA) made the announcement on Saturday and said the inauguration ceremony would take place in Tajikistan in the presence of delegations from partner countries: Afghanistan, Tajikistan, the Kyrgyz Republic and Pakistan.

The statement from MoFA adds that technical level issues concerning the project have been resolved among the ministers of the partner countries.

Chief Executive Officer (CEO) Abdullah Abdullah would represent Afghanistan at the ceremony, according to the statement.

A U.S. government-backed and World Bank-led project, CASA-1000 is a $1.17bn transformational project that hopes to address the energy needs of South Asia by directing some of the energy resources from Central Asia, which is endowed with some of the world’s most abundant clean hydropower cascades, through Afghanistan. Lacking access to sea, Central Asia has no option but to get linked to neighboring states. Owed to its strategic location, Afghanistan is the only possible route option for the CASA-1000 project. It offers the most direct route for transfer of energy from the Kyrgyz Republic and Tajikistan to the energy-hungry Pakistan. Bypassing Afghanistan would add a strenuous cost dimension to the project that could make it prohibitive.

The project involves transferring 1000 Megawatts of electricity to Pakistan through Afghanistan and 300 Megawatts of electricity to Afghanistan. In addition to receiving the 300 Megawatts of electricity, Afghanistan will generate revenue from the transit fee–a tax levied on energy that passes through the country. Afghanistan and Pakistan agreed on 1.25 cents per kilowatt for the transit fee on the transfer of electricity between the Kyrgyz Republic, Tajikistan and Pakistan through Afghanistan in October 2014. This was one of the first foreign policy achievements of the National Unity Government (NUG) of Afghanistan led by President Ashraf Ghani and Chief Executive Officer Abdullah Abdullah. Former Afghan President Hamid Karzai’s insistence over 2.5 cents per kilowatt was a stumbling block in the CASA-1000 agreement for over a long period of time. President Ghani halved the transit fee which marked an important step in linking Afghanistan with the region and fostering Afghan-Pak bilateral relations. This deal will bring in over USD 45mn in revenue to the Afghan government. Afghanistan could use the additional 300 megawatts of electricity to meet its domestic needs or re-export to Pakistan and generate further revenue.


Tags assigned to this article:
Afghanistan electricityCASA-1000

Related Articles

Afghan Foreign Minister to Attend the World Economic Forum in Turkey

Foreign Minister Zalmai Rassoul is going to attend the World Economic Forum on Middle East, North Africa and Eurasia in

Yet another report on Afghanistan's corruption unveiled

A report by the Afghan Independent Media Consortium (AIMC) and 8am Newspaper has revealed extensive corruption and misuse of power

Herat Factories Struggling to Compete with Imports

Around 300 factories in Herat have recently gone bankrupt or are headed for bankruptcy of around 400 which used to

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*