ISLAMABAD: The World Bank (WB) is to despatch its Implementation Support Mission to Islamabad and Lahore for the Central Asia South Asia (CASA) -1000 electricity Transmission and Trading Project from October 28 to November 1, 2024, sources in Economic Affairs Division told Business Recorder.
The Mission which will engage with National Transmission and Despatch Company (NTDC) and CASA team to resolve and follow-up on the outstanding issues will be led by Dmytro Glazkov (Senior Energy Specialist/ Task Team Leader), and Ghulam Murtaza Uqaili, Country Coordinator Pakistan for CASA- 1000 Project, Babar Naseem Khan (Senior Social Development Specialist) along with other team members will join the Mission. The Mission will also meet the contractors of the project.
The Central Asia-South Asia Electricity Transmission and Trade Project (CASA-1000) is a $1.2 billion regional power project designed to bring the benefits of interconnectivity to four countries Kyrgyz Republic, Tajikistan, Afghanistan and Pakistan.
CASA-1000 suddenly gets new lease of life?
The project was suspended due to stoppage of funding by the World Bank due to Taliban’s regime; however, the World Bank approved funding of $300 million available outside the control of Taliban Da Afghanistan Breshna Sherkat (DABS), after which work has commenced.
According to sources, work in the three countries; i.e., Pakistan, Kyrgyzstan and Tajikistan is near completion. Supply period for electricity to Pakistan is from May to September each year.
Lines have bi-directional transmission capability to utilise the transmission system in winter for export of electricity from Pakistan to CARS (subject to commercial agreement). It will contribute to renewable energy capacity in the generation mix and reduce basket price of the country.
The sources further stated that energy payment is on unit delivered basis and tariff is inclusive of generation and transmission. The project has 10 contracts including five Indian companies, awarded through international competitive bidding and payments made through direct disbursement by the funding agencies after verification by the consultant and companies.
During a meeting held in Dubai on 4-5 December 2023, Ministers of three countries urged Word Bank to re-engage in Afghanistan; otherwise, the assets created in other countries will remain stranded.
Sources revealed that during Joint Working Group meeting held in Istanbul on 7-8 March 2024, the World Bank confirmed that its Executive Board on February 15, 2024 has endorsed a new approach under which funds of $ 300 million could be made available outside the control of Taliban controlled Da Afghanistan Breshna Sherkat (DABS) and confirmed endorsement of the condition.
The sources said, DABS is in coordination with the contractors and provided timeline for resumption and completion of works and has issued Force Majeure withdrawal letters to its contractors and consultants, adding that 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 restarted the activities after the payment of arrears and confirmation of agreed forward funding. Out of outstanding arrears of $ 50 million, $ 44 million has been paid to the contractors; 100 % material is already stored in Afghanistan and is in good condition. The transmission line is expected to be completed prior to 2026.
Copyright Business Recorder, 2024