Baztab News

Preliminary Survey & Route Map of Casa-1000 Completed

06 Jan 2020 Wadsam Afghanistan Business News

Construction work of the Central Asia-South Asia power project (CASA-1000) is going to begin soon.

In an exclusive interview with Radio Liberty, Afghan Ministry of Energy and Water spokesperson, Seyar Nikzad, said the construction work involves excavation for foundation, installation of electricity poles and transfer of equipment.

“The construction of the project will take around 3 years to complete and we are optimistic that it will be completed in due time,” said Nikzad.

Nikzad also said that the preliminary survey and the route map of the power transmission line have been completed and the equipment are ready for transfer.

Insecurity has been a major factor behind the delay in the completion of 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.

Original Link:

Open Original News

More from Wadsam Afghanistan Business News

  • Afghanistan’s Economic Growth Expected To Reach 3.3% In 2020 1 Day

    According to a World Bank report, Afghanistan’s economy has grown by 2.9% in 2019 and is expected to reach 3.3% in 2020.  “Navigating a Sea of Uncertainty”, the latest edition The post Afghanistan’s

  • Helmand Food Zone: Illusion of Success-Research Paper By AREU 20 Jan 2020

    The Afghanistan Research and Evaluation Unit (AREU) presented the findings of its recent research synthesis paper, “The Helmand Food Zone: The Illusion of Success”, at a high-profile event in Kabul The

  • Entrepreneur of the Month: Hameda Safi 20 Jan 2020

    Hameda Safi is the founder and owner of Tokma Fashion—one of the leading fashion designing companies based in Kabul. Ms. Safi has obtained her bachelor’s degree in Journalism and master’s The post

  • Balkh Sees Significant Hike In Sesame & Linseed Production 19 Jan 2020

    Office of Agriculture, Irrigation and Livestock in Balkh have reported about significant increase in the production of sesame and linseed in the province.  According to the officials, sesame production

  • Bakhtar Aviation Company Relaunches Operations With Domestic Flights 17 Jan 2020

    Bakhtar aviation company, owned by Ariana Airlines, has relaunched its operations after receiving two small airplanes from the government. The two airplanes—Dash-8 Q300 with a capacity of 30-40 passengers–were

  • Afghan Transit Trade Starts at Gwadar Port 15 Jan 2020

    Afghan Transit Trade officially starts at Gwadar port after arrival of first ship carrying an Afghan shipment on Tuesday. The shipment included 20-food containers containing 54 tons of bagged fertilizers, The

  • 15% Hike In Kandahar’s Raisin Production 14 Jan 2020

    Officials of the Afghan Ministry of Agriculture, Irrigation and Livestock in Kandahar province have reported a 15% hike in the province’s raisin production. With the establishment of new raisin houses The

  • Marble Production Up By 57% in Maidan Wardak Province 11 Jan 2020

    Production of marble has increased by 57% in Maidan Wardan province, the Afghan Ministry of Mines and Petroleum reports. In an interview with Voice of America (VoA), the ministry’s spokesperson The post

Latest News: