Afghan Taliban government has decided to complete all pacts related to Central Asia-South Asia-1000 (CASA-1000) project signed by the previous Afghan regime. This will help to enforce and revive the stalled four-nation electricity trade pact.
The project was facing a delay of two years as the World Bank and USAID decided to withdraw funds after government change of regime in Kabul.
Ministry of Foreign Affairs, Afghanistan has sent a letter to Finance Ministry of Afghanistan, stating that CASA-1000 contract (grant No; H-927-Af), funded by the World Bank’s free aid, will lapse by March 31, 2023.
The Afghan Foreign Affairs Ministry confirmed that only 72.6 percent of implementation of the project has been executed whereas 27.4 per cent of the work has been postponed as it is a mutual project of four nations: Afghanistan, Pakistan, Kyrgyzstan and Tajikistan.
World Bank conveyed in an informal meeting with the Ministry of Finance of Afghanistan that the contract extension of CASA-1000 is conditional opon a joint proposal from the four nations.
Afghan Ministry of Foreign Affairs has sent its assurance to the member states that all the agreements signed by the former Afghan government on CASA-1000 project will be taken as valid and will be applicable.
Afghanistan government has also assured the four nations for implementation of CASA-1000 before expiry of the contract.
In a meeting in Pakistan, NTDC/CASA officials gave a detailed presentation on the project, covering the geographical spread and updated progress of the different sections of the project implemented in Tajikistan, Kyrgyzstan, Afghanistan and Pakistan. The project would provide a transmission line to provide electricity from Kyrgyzstan across Tajikistan and Afghanistan to Pakistan.
A study is also being conducted by M/s Hitachi to see the viability of supply of surplus energy from Pakistan to the Central Asian Republics in the winter season.
Regarding this progress, with respect to Pakistan’s progress on converter station is 74.4% and transmission line is 67.3 %, signifying the progress to be 7% ahead.
The meeting was told that in Afghanistan, the project is at a stop due to withdrawal of grant amounting to $245 million by the World Bank, after the regime change at Kabul, causing delays.
Similarly, USAID had also stopped its funds meant for bridging the expenses of CASA-1000 secretariat.
The representative of NTDC noted that for 113-km length of transmission line, a total of 376 towers are to be installed within the boundaries of Pakistan (Nowshera to Torkham border). Out of these 376 towers, foundations for 320 towers have already been laid, whereas 300 towers have been erected.
The project is delayed by at least two years and discussions are under way with the World Bank for extension in the project period from March 2023 to December 2025. The loan component of IsDB also needs to be extended beyond June, 2023, for which a request is being made to IsDB. Similarly, request for additional financing of $ 7.5 million is also under process.
