ISLAMABAD: The Central Asia-South Asia-1000 (CASA-1000) is reportedly facing a delay of two years as the World Bank and USAID have withdrawn their funding after regime change in Afghanistan, well-informed sources in EAD told Business Recorder.
Sharing the details, sources said, a meeting, to discuss the progress of CASA-1000 project, was held under the chairmanship of Secretary, Economic Affairs Division wherein all issues related to the project came under threadbare deliberation.
NTDC/CASA officials gave a presentation on the project, which covered the geographical spread and updated progress of the different sections of the project implemented in Tajikistan, Kyrgyzstan, Afghanistan and Pakistan. The project, after completion, would provide a transmission line to transmit electricity from Kyrgyzstan, across Tajikistan and Afghanistan to Pakistan.
Afghan side of CASA-1000: Pakistan, Tajikistan discuss financing options
A study is also being conducted by M/s Hitachi to look into the option of flow of surplus energy from Pakistan to the Central Asian Republics in the winter season.
Regarding progress, the forum was informed that with respect to Pakistan physical progress on converter station is 74.4% and transmission line is 67.3 %, highlighting the progress to be 7% ahead.
The meeting was informed that in Afghanistan, the project is at a halt due to withdrawal of funds/non-extension of grant amounting to $ 245 million, by the World Bank, after regime change in Afghanistan, causing delay in the completion of the project.
The forum was further informed that USAID has also withdrawn its funding meant for meeting the expenses of CASA-1000 secretariat, which is another major setback for the project.
The meeting was informed that the different issues faced by the project including those of funding would be discussed in the JWG and then IGC for a viable and mutually agreed solution.
The progress regarding foundations for towers, installation of towers laying of transmission line and land acquisition were discussed in detail. The representative of NTDC noted that for 113 kms length of transmission line, a total of 376 towers are to be installed within the boundaries of Pakistan (Nowshera to Torkham border). Out of these 376 towers, foundations for 320 towers have been laid, whereas 300 towers have been erected.
The meeting was informed that the project is delayed by at least two years and discussions are underway with the World Bank for extension in the project period from March 2023 to December 2025. The loan component of IsDB also needs to be extended beyond June, 2023, for which a request is being made to IsDB.
Similarly, request for additional financing of $ 7.5 million is also under process.
The Chief Engineer, CASA-1000 flagged the risk of payment of idle charges to the contractors employed by NTDC, if the project is not completed and tested timely due to the situation in Afghanistan. The forum was further informed that the World Bank had asked the other participating countries to work out a loan arrangement for Afghanistan to complete the work.
He maintained that this option seems viable but may not be feasible for Afghanistan as it would be a shift from grant to loan. This issue would also be discussed in the upcoming meetings of JWG and IGC.
Chief Engineer CASA-1000 informed that a request has been made to the World Bank to either waive off the interest on the $185 million loan for Pakistan or convert it into a grant since the project delay is due to the situation in Afghanistan. He further stated that a revised PC-1 would be submitted for the approval of ECNEC once decisions are made in the JWG/1GC.
Secretary EAD, while appreciating the efforts of all involved in the project, directed to make good preparations for the upcoming meetings of JWG and IGC.
The issues related to the project in Afghanistan and those of funding which it was agreed must be properly raised in the relevant fora, so that the project is completed and Pakistan could reap the benefits of the project to the fullest. Representatives of the NTDC and Power Division were also directed for a comprehensive write-up on the project and its related issues.
Copyright Business Recorder, 2023
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