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CASA-1000 Likely to Be Discussed at IGC in Kyrgyzstan


The much delayed Central Asia South Asia Electricity Transmission and Trade (CASA-1000) project is likely to be discussed at a meeting of Pakistan –Kyrgyzstan Inter-Governmental Commission (IGC) during this week in Kyrgyzstan, well informed sources told Business Recorder.

Pakistani delegation will be led by caretaker Minister for Power and Petroleum, Muhammad Ali, who will be co-chair of the IGC to be held at Bishkek, Kyrgyz Republic.

The IGC will also hold discussions on trade, industries, Information Technology, Communications, Climate Change, Science and Technology and investment.

CASA-1000 is facing a delay of two years due to withdrawal of funding by the World Bank and USAID after regime change in Afghanistan.

However, in February 2023, in a major development, Taliban regime decided to honour all pacts related to CASA-1000 project signed by the previous Afghan government, aimed at becoming part of efforts to revive the stalled four-nation electricity trade project.

Afghan Ministry of Foreign Affairs has confirmed that only 72.6 per cent of implementation of the project has been completed whereas 27.4 per cent of the work has been delayed as it is a joint project of four countries: Afghanistan, Pakistan, Kyrgyzstan and Tajikistan.

On November 1, 2023, the World Bank’s Board of Executive Directors approved $18.3 million in additional financing to the ongoing CASA-1000 project for the Kyrgyz Republic. This additional financing complements the original CASA-1000 Project, a regional power interconnection initiative aimed at facilitating the export of 1,300 MW of surplus hydropower from the Kyrgyz Republic and Tajikistan to Afghanistan and Pakistan.

The original project, supported by several donors and international financial institutions, was approved in March 2014, and became effective in January 2018.

The country-specific CASA-1000 project for the Kyrgyz Republic involves the construction of approximately 456km of high-voltage alternating current (500 kV) transmission lines. The project is currently at an advanced stage of implementation, with 1,243 transmission towers installed (100 percent) and 287 km of stringing works (63 percent) completed.

The Additional Financing to the CASA-1000 project for the Kyrgyz Republic is provided through the International Development Association (IDA), the World Bank’s concessional lending arm, in the form of a zero-interest credit, with repayments spread out over 50 years and a 10-year grace period. The project will be implemented through March 2025 by the National Electrical Grid of Kyrgyzstan OJSC, in compliance with strict international standards including procurement and financial management regulations and anti-corruption guidelines.

The total combined investments in the amount of $216 million from European Investment Bank ($85 million), Islamic Development Bank ($63 million) and the World Bank and the Multi-Donor Trust Fund ($68 million) for the CASA-1000 –will enable Kyrgyz Republicto complete the construction of high-voltage transmission infrastructure in their country and create the conditions for sustainable electricity trade.

The sources said, there is strong hope that arrangement of entire funding of remaining project would materialize during the talks in Kyrgyzstan.

The Chief Engineer CASA-1000 flagged the risk of payment of idle charges to the contractors employed by NTDC if the project is not completed and tested timely due to the situation in Afghanistan. The forum was further informed that the World Bank had asked the other participating countries to work out a loan arrangement for Afghanistan to complete the work.

Source : Brecorder