Inter-Governmental Council (IGC), comprising ministers of partner countries, is scheduled to hold two day parlays in Dubai starting from May 16, 2012 to review the 'slow' Central Asia South Asia (CASA) 1000 MW project, official sources told Business Recorder. Minister for Water and Power Naveed Qamar, sources said, would lead the Pakistani delegation.
The CASA-1000 project will transmit 1000 MW of surplus electricity from Tajikistan and Kyrgyzstan to Pakistan with power transit through Afghanistan. The total length of transmission line is 750 km while the project is planned to be on Public Private Partnership basis with the support of the WB, IFC, ADB and IDB. The project cost is estimated at around $865 million.
The Council will discuss tariff issues, options for creating a legal entity for IGC and identification of jurisdiction and project operation schedule. The IGC secretariat budget, besides analysing achievements up to date would explore ways to expedite decision making.
"Pakistan is far ahead of other partner countries in implementation of decisions. The IGC will review the progress on decisions taken so far," said an official on condition of anonymity. The fifth meeting of the CASA 1000 Working Groups (WGs), held in Almaty, Kazakhstan on April 12-13, 2012 was attended by all four countries (Afghanistan, Kyrgyz Republic, Pakistan and Tajikistan). The representatives of the World Bank, Islamic Development Bank, USAID, IFC and IGC Secretariat also joined the meeting.
The Afghanistan Working Group reported that ToRs had been prepared and finalised by the Ministry of Energy and Water of Afghanistan. Next steps are planned to be coordinated with the World Bank office in Afghanistan and hiring of the country advisors are expected to be completed by June 30, 2012. The Kyrgyz Republic Working Group reported that financing for the legal and commercial advisors has been identified. The existing emergency recovery project of the World Bank will be restructured to accommodate financing of the Kyrgyz country advisors.
Hiring of the advisors is expected by June 30, 2012. The Tajikistan Working Group revealed that ToRs for legal and commercial advisors have been finalised and that the hiring of international Country Advisors will be completed by June 30, 2012. The hiring of the local advisors will be completed in May, 2012. Meanwhile, the advisor provided by the RESET Project commenced his work in Tajikistan.
Pakistan Working Group reported that the USAID funding for two Country Advisors (legal and commercial) has expired. The Ministry of Water and Power has submitted to the WB a proposed restructuring plan for the on-going Energy Distribution and Transmission Improvement Project that would enable Pakistan to fund country advisors on a regular basis.
The JWG reviewed and recommended for approval by the IGC the functions and responsibilities of the Executive Director of the IGC Secretariat. The JWG reviewed and approved a set of design criteria to be used to develop operating policies and procedures for the secretariat. The JWG requested the RESET project to begin developing the rules of business for the Secretariat.
The JWG reiterated that in order to meet the project timelines, decision making needs to be more expeditious. The JWG requested the WB to prepare an analysis of achievements to date and suggest ways to speed up project preparation. The JWG agreed that it would use "the approval by circulation" mechanism to make timely decisions. The JWG also requested the RESET project to develop an inventory or matrix of( a) issues that have been decided and those that need to be resolved and b) analyses and studies that need to be done to decide on these issues.
The IFC confirmed receipt of letters of intent from all four countries. All four delegations indicated that they expect to be ready to sign the IFC contract by the end of May, 2012. The IFC clarified that all four contracts would be substantively identical with minor differences, if any, that reflects national laws. The IFC continues to solicit several donors to cover the transaction costs.
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