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This project demonstrates landmark cooperation among the Kyrgyz Republic, Tajikistan, Pakistan, and Afghanistan.

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Electricity. It’s essential for development, economic growth, job creation, and modern life. Without it, poverty endures.

The Kyrgyz Republic and Tajikistan are two countries in Central Asia endowed with some of the world’s most abundant clean hydropower resources with water cascading from the mountain ranges and filling the rivers every summer. Both of these countries have a surplus of electricity during the summer. Nearby in South Asia, Afghanistan and Pakistan suffer from chronic electricity shortages while trying to keep pace with a fast-growing demand for it. Pakistan cannot meet its citizens’ electricity needs, especially during the sweltering summer months, leading to frequent power cuts that hurt industrial production, sometimes close small businesses, and lead to job losses. Meanwhile millions of people still live without electricity altogether.

 

A new electricity transmission system to connect all four countries, called CASA-1000, would help make the most efficient use of clean hydropower resources in the Central Asian countries by enabling them to transfer and sell their electricity surplus during the summer months to the deficient countries in South Asia. The CASA-1000 project would also complement the countries’ efforts to improve electricity access, integrate and expand markets to increase trade, and find sustainable solutions to water resources management.

What’s New

October 11, 2014: Next Step in Energy Trade between Central and South Asia

Afghanistan, Pakistan agree on transit fees for electricity trade

Afghanistan and Pakistan signed an agreement on electricity transit fees between the two countries, taking an important step forward for energy trading between Central and South Asia.

The agreement was signed during the Annual Meetings of the World Bank and IMF in Washington DC by the Minister of Finance and National Economic Advisor for Afghanistan and the Minister of Finance for Pakistan. It helps to establish the commercial arrangements for 1,300 megawatts (MW) of sustainable, regional electricity trade between Kyrgyz Republic, Tajikistan, Afghanistan and Pakistan as part of the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000).

"Now that we have agreed on a transit fee for the electricity, I hope we can move forward quickly on this transformational project," said Ishaq Dar, Minister of Finance for Pakistan.

"We are ready to realize the CASA-1000 vision and improve energy security and trade for our countries and region," said Omar Zakhilwal, Minister of Finance for Afghanistan and National Economic Advisor.

CASA-1000 will build more than 1,200 kilometers of electricity transmission lines and associated sub¬stations to transmit excess summer hydropower energy from existing power generation stations in Tajikistan and the Kyrgyz Republic to Pakistan and Afghanistan. To oversee the complex, four-country process, an Inter-Governmental Council has been established to supervise the design and implementation of the project.

In March 2014, the World Bank Group approved financing for the engineering design, construction, and commissioning of transmission lines and three new converter stations. The project would build upon existing power generation stations that will provide the energy to be traded over CASA-1000.

The commercial and operating framework for CASA-1000 is specifically based on "open access" principles that will allow additional energy supplying countries to connect with wider regional transmission networks. CASA-1000 will enable the development of the Central Asia South Asia Regional Electricity Market (CASAREM) - a long-term plan for regional energy trade.

 

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