CASA-1000 power transmission system: JWG holds meeting with World Bank, IFI reps in Turkiye today

ISLAMABAD: The Joint Working Group (JWG) on CASA-1000 is scheduled to meet with the World Bank and other IFIs and donors on November 21-22, 2024 in Istanbul (Turkiye), well-informed sources told Business Recorder.

The main objective of this JWG meeting will be to discuss a number of significant issues related to advancement towards construction completion of the CASA-I000 power transmission system and the way forward on other related matters.

The CASA-1000 began in 2006 and member countries signed the agreement at Islamabad in 2008. It envisages transportation of surplus electric power available from May01 to Sep 30, each year from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan and includes development, financing, construction, ownership and operation of AC and DC facilities.

CASA-1000: World Bank mission due today to remove bottlenecks

The financial institutions include World Bank, USAID, IDB ($ 1.2bn) Pakistan ($ 220m).Lines have bi-directional transmission capability to utilize the transmission system in winter from Pakistan to CARS (subject to commercial agreement). Energy payment is on unit delivered basis and tariff is inclusive of generation and transmission.

The CASA has 10 contracts including with 5 Indian companies, awarded through competitive bidding and payments made through direct disbursement by funding agencies after verification by the consultant. The situation in Afghanistan limits the donors’ direct assistance and withholding of funds by World Bank and USAID to the IAG caused stoppage of construction and development work.

A video conference between Minister of Power and Minister for Energy Tajikistan andrepresentatives from World Bank and CASA Secretariat was held on Nov 3, 2023 to discussagenda items of WG meeting held in Istanbul on 12 Jun 2023 regarding restart of activities in Afghanistan.

Tajikistan mentioned that CASA countries except Afghanistan are pursuing the activities in their respective areas for completion. The developments in Afghanistan have resulted in suspension of funding by World Bank, repayment of financing on debt has started in the CASA countries and contractors are seeking compensation.

The Ministers of three countries during a meeting in Dubai on 4-5 Dec 2023 urged World Bank to re-engage in Afghanistan, otherwise the assets created in other countries will remain stranded. The international financial institutions have continued their funding and a substantial debt repayment already made. However, it will not generate the expected benefits until power transmission is activated. This depends upon the World Bank for resumption of activities and release of funding for Afghanistan.

The World Bank during WG meeting in Istanbul on 7-8 March 2024, confirmed that its Executive Board on Feb 15, 2024 has endorsed a new approach under which funds of USD 300 million could be made available outside the control of Taliban. Da Afghanistan Breshna Sherkat (DABS) confirmed endorsement of the condition. DABS is in coordination with the contractors to provide timeline for resumption and completion of works and has issued Force Majeure withdrawal letters to its contractors and consultants.

The date for completion of construction work will be proposed by the contractors upon completion of assessment of the situation. The EPC contractors (KPTL and KEC) have indicated they will restart activities as soon as payment of arrears and confirmation of forward funding is agreed. Out of USD 50 million, USD 44 million has been paid to the contractors.

The sources said 100% material is stored in good condition in Afghanistan. The work in Afghanistan is to resume within months and completion of the transmission line is likely by 2026.

Copyright Business Recorder, 2024