Indian company wins tender to construct CASA-1000 power project

An Indian company has won the tender for construction of 1000 Electricity Transmission and Trade Project for Central Asia and South Asia (CASA).

As per Tolo News, the company, which has won the tender Afghanistan's Ministry of Water and Energy (MoWE), said it will complete the construction of the project in three years.

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

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

This project was inaugurated last year by the Central Asian state leaders in Tajikistan.

The $1.2 billion, 750-kilometre-long transmission line expected to be complete by 2018 will allow Pakistan to import electricity from Tajikistan and Kyrgyzstan via Afghanistan to minimise its electricity shortage.

Pakistan will reportedly consume about 1,000MW of the exported energy while 300MW will be used by Afghanistan.

Since 2005, Pakistan, Afghanistan, the Kyrgyz Republic and Tajikistan have been pursuing the development of electricity-trading arrangements and the establishment of the Casa Regional Energy Market (CASAREM).

Afghanistan has given a sovereign guarantee to protect the section of the transmission line passing through it.

The Casa-1000 project will include a 750km high voltage direct current (DC) transmission system between Tajikistan and Pakistan via Afghanistan, together with associated converter stations at Sangtuda (1,300MW), Kabul (300MW) and Peshawar (1,300MW).

The 477km 500kV alternating current facility will run between the Kyrgyz Republic (Datka) and Tajikistan (Khoujand).