CASA-1000: A Long-Awaited Power Project Back from the Dead
Revitalized CASA-1000 Project Reignites Hope in Kyrgyzstan and Tajikistan
The stagnant CASA-1000 project, a mouthwatering opportunity for Afghanistan and Pakistan to get their hands on an astounding 1,300 megawatts of electricity from Tajikistan and Kyrgyzstan's leftover hydropower, is once again breathing life.
Last month, the World Bank decided to flip the switch back on, agreeing to rejoin the CASA-1000 extravaganza, following eager requests from Kyrgyzstan, Pakistan, and Tajikistan.
According to the World Bank, the construction in the three countries is virtually bug-free, and the requesters don't want the project to become a clunker due to a prolonged pause.
"Construction in the said countries is in the home stretch, and these countries have expressed their ardent desire for the CASA-1000 undertakings in Afghanistan to restart to forestall the risk of the project transforming into a turkey," the bank declared in a statement on February 15.
There's been a noticeable flurry of enthusiasm from key stakeholders. Over the weekend, Kyrgyzstan's Energy Ministry, along with Pakistan and Tajikistan, celebrated the World Bank's decision.
The joint statement praised the World Bank, reiterating their unwavering support to meet the conditions agreed with the World Bank Board for the resumption of construction.
"This is a giant leap forward for energy cooperation in the region," the March 2 statement voices triumphantly.
With Afghanistan's section of the project getting paused in August 2021, following the Taliban's grab for power, World Bank numbers reveal that around 18% of the transmission towers had already been erected by then.
According to the bank, approximately 97% of the equipment necessary to complete the project in the country had been distributed by then[2]. Yet, attempts to secure private funding to wrap things up flopped, pushing the three nations to ask the World Bank for another go.
To ensure revenues derived from the Afghanistan section won't fall into the wrong Taliban hands, the World Bank said payments will be directed to offshore accounts of international contractors and advisors, instead of passing through the Interim Taliban Authority's systems[2].
Speaking to the Bishkek-based Times of Central Asia, a representative of Kyrgyzstan's National Electric Grid Elzada Sargashkayeva predicts that Tajikistan will account for 70% of the electricity sold through the CASA-1000 grid, with Kyrgyzstan responsible for the rest[1].
While there have been murmurs for months that the World Bank would add some fuel to the Afghan section of the project, they didn't waste any time, approving a $21 million grant for Tajikistan in November 2022 for construction work and local governance strengthening[1]. The same month, Kyrgyzstan received a similar $13.8 million allocation for similar reasons from the World Bank[1].
Initiated in 2018, the idea behind CASA-1000 is for Tajikistan and Kyrgyzstan to market their surplus hydroelectric power in the sweltering summer months to electricity-deprived Afghanistan and Pakistan. Yet, experts wonder just how much spare power those countries will have[1].
Tajikistan's ambitions ride heavily on the completion of the gigantic Roghun dam project. Construction on the dam began in 2008 and was initially estimated to cost $3 billion. However, costs have escalated, with officials bumping the price up to $3.9 billion in 2016 and another hike to $5 billion in mid-2022[1].
This year, Energy Minister Daler Juma upped the ante, estimating the Roghun project would cost a whopping $6.2 billion[1]. Progress on the project, however, has been inconsistent. In 2018 and 2019, the first generating units went live, but progress since then has been bleak[1].
Kyrgyzstan faces a similar predicament. Their hopes lie with the completion of the Kambarata hydropower plant-1 (HPP-1). In March 2023, high-ranking World Bank representatives received a presentation from Kyrgyzstan's Prime Minister Akylbek Japarov on the Kambarata HPP-1 project, accompanied by a request for aid to fortify Kyrgyzstan's energy security and independence[1].
"We appeal to international institutions to lend support in this area," Japarov implored[1].
The World Bank's decision to rejoin the CASA-1000 project has sparked excitement among key stakeholders, as the project will provide an opportunity to tap into surplus hydroelectric power from Tajikistan and Kyrgyzstan. In a joint statement, the Energy Ministry of Kyrgyzstan, along with Pakistan and Tajikistan, voiced their support for the resumption of the CASA-1000 project, hailing it as a significant step forward for energy cooperation in the region.
