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KABUL – The World Bank has announced the resumption of the CASA-1000 electricity transmission project in Afghanistan, a pivotal development for regional energy cooperation. This decision follows requests from neighboring countries Kyrgyzstan, Tajikistan, and Pakistan, who expressed concerns over the potential loss of $1 billion in stranded assets due to the project’s suspension.
CASA-1000 is a $1.2 billion initiative designed to transmit clean hydroelectric power from Kyrgyzstan and Tajikistan through Afghanistan to Pakistan. The project aims to address power shortages in the region and promote sustainable development. Construction in the other participating countries is nearly complete, making the resumption of work in Afghanistan crucial to avoid economic and financial losses.
To ensure transparency and accountability, the World Bank has implemented a “ring-fenced” structure for the project’s implementation in Afghanistan. This approach ensures that all construction payments and future revenues are managed outside of Afghanistan, minimizing direct involvement with the current government. International consultants will oversee the project’s progress, ensuring adherence to global standards.
The resumption of the CASA-1000 project is expected to have significant economic and strategic benefits for the region. Afghanistan is anticipated to generate approximately $75 million annually in transit fees upon the project’s completion. The project will also address power shortages in Pakistan and enhance regional energy security. By facilitating the flow of clean energy, the project aims to promote sustainable development and foster economic ties among Central and South Asian nations.
Pakistan has expressed strong support for the resumption of CASA-1000, viewing it as a testament to the region’s commitment to collaborative energy solutions. The Pakistani government welcomed the World Bank’s decision, emphasizing the project’s potential to strengthen regional energy infrastructure.
The World Bank’s decision to resume the CASA-1000 project underscores a renewed focus on regional cooperation and sustainable development. As the project progresses, it is expected to serve as a model for future infrastructure initiatives in the region, demonstrating the benefits of collaborative efforts in addressing shared challenges.
