Indian company to build Afghanistan part of CASA-1000 power project

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KABUL (TCA) — Afghanistan’s Ministry of Water and Energy on August 15 said that construction of the Afghan part of the 1000 Electricity Transmission and Trade Project for Central Asia and South Asia (CASA-1000) will be launched soon by an Indian company which has won the tender, TOLOnews agency reports.

The ministry said that construction of CASA-1000 project in Afghanistan will cost $404 million, 20 percent of which will be paid by the Afghan government.

The ministry said the Indian company will complete the construction in three years.

Afghan energy and water minister Abdul Basir Azimi said the construction phase of the project will cost $404 million USD of which 80 percent will be funded by the World Bank and the remaining 20 percent will be paid by the Afghan government.

“The project can have a good result if the work on it in Tajikistan, Kyrgyzstan, Pakistan and Afghanistan is started at the same time,” he said. “Fortunately, we have established good cooperation and coherence (with CASA member countries). Surveys and other administrative activities of the project have moved forward at a good pace from Afghanistan’s side.”

CASA-1000 project was officially inaugurated last year.

Analysts say the increasing insecurity in Afghanistan is a hurdle for the electricity transmission project.

“Insecurity is the biggest obstacle on the way of investments and economic growth in the country. If the government can eradicate insecurity, especially on the route of CASA-1000, then we will benefit from the project,” said Nabi Sadat, an Afghan economic analyst.

CASA-1000 project will cost more than $1 billion USD and, if completed, will transfer 1,300 megawatts of power from Tajikistan and Kyrgyzstan to Pakistan through Afghanistan.

Afghanistan will get 300 megawatts of power annually from this project and at least $50 million as transit fees per annum.

Sergey Kwan

TCA