CASA-1000 To Supply Electricity to Afghanistan, Pakistan in 2 Years

by Wadsam | July 19, 2018 10:33 am

A Tajik diplomat announced on Wednesday that the Central Asia-South Asia power project (CASA-1000) was in full swing and would be completed in two years to supply electricity from Tajikistan and Kyrgyzstan to Pakistan and Afghanistan.

The first Secretary of the Embassy of Tajikistan, Bahodour Buriev, said Taliban have assured that they would not harm the CASA-1000 transmission line and Afghanistan was responsible for providing security to the project.

The flagship project is the first of its type, connecting Afghanistan, Pakistan, Tajikistan and Kyrgyzstan in electricity grid.

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

Source URL: http://wadsam.com/afghan-business-news/casa-1000-supply-electricity-afghanistan-pakistan-2-years-232/