The ministers of four countries on Monday inked a resolution to proceed further with the Central Asia/South Asia Regional Electricity Market (Casarem) project envisaging transmission of 1,300 MW from Tajikistan and Kyrgyzstan to Afghanistan and Pakistan; but further commitment to the project will be linked to the availability of financing.
"It''s a resolution not any agreement or Memorandum of Understanding," said one of the participants of an internal meeting. Most of the participants including Water and Power Secretary Ismail Qureshi were of the view that it was a difficult project and the concerned governments needed to proactively take it to the next stage.
The participating countries will have to negotiate commercial term sheets by the end of November as they have committed to go forward with the project subject to the bids received being consistent with the agreed cost estimates.
Though the writ of the Afghan government is reportedly limited to Kabul, yet the minister representing Afghanistan guaranteed security of the proposed transmission line, which continues to remain a serious cause of concern. The Central Asia-South Asia (Casa) 1,000 Project is anticipated to be commissioned by 2013. The project would go a long way in overcoming power shortages in Pakistan (1,000MW) as well as Afghanistan (300 MW).
The two-day Inter-Governmental Council (IGC) meeting of Casarem was held on 3-4 August 2008, in Islamabad, which was attended by ministers and delegates from Afghanistan, Kyrgyz Republic, Pakistan and Tajikistan along with the International Financial Institutions (IFIs), ie Asian Development Bank, Islamic Development Bank and World Bank, besides a project consultant.
The Inter-Governmental Agreement was extensively debated and after incorporating the changes/modifications agreed upon, it was signed by Water and Power Minister Raja Pervez Ashraf, from the Pakistan side, Alhaj Mohammad Ismail Khan, Minister for Energy and Water, Afghanistan, Saparbek Balkibekov, Minister for Industry, Energy and Fuel Resources, Kyrgyz Republic and Farrukh Hamraliev, Chairman, State Committee for Investments and State Property Management, Republic of Tajikistan.
Raja Pervez Ashraf dispelled the impression that Casarem was a substitute for the Iran-Pakistan-India (IPI) gas pipeline by categorically stating that talks on IPI were proceeding separately.
The Casa 1000 MW power transmission project comprises developing, designing, procuring, financing, constructing and operating electricity transmission lines and related facilities to enable the trade of electricity among the four countries.
"1300 MW of electricity will be imported from Kyrgyz Republic and Tajikistan of which 300 MW will be for Afghanistan and remaining 1000 MW for Pakistan," said the Water and Power Minister in reply to a question after the signing of agreed minutes.
The transmission line will consist of 477-km of 500 kV AC line from Kyrgyz Republic to Tajikistan and 750-km of 500 kV high voltages DC between Tajikistan and Pakistan via Kabul," said an official statement.
IGC Secretariat will be established at Kabul and hopefully would become operational with immediate effect. The meeting also approved the appointment of Qazi Naeemuddin of Pakistan as the first Executive Director of IGC Secretariat.
The success of the project is extremely important, as it will set a new era of mutual co-operation on electricity trade amongst Casa countries, Pervez Ashraf concluded.