KABUL - Energy and water minister says construction of CASA-1000 project in Afghanistan will cost $404 million, 20 percent of which will be paid by the Afghan government.
Officials from the Ministry of Water and Energy (MoWE) on Tuesday said construction of the 1000 Electricity Transmission and Trade Project for Central Asia and South Asia (CASA) will be launched soon by an Indian company, which has won the tender.
The ministry said the company will complete the construction of the project in three years.
The energy and water minister Abdul Basir Azimi said the construction phase of the project will cost $404 million USD of which 80 percent will be funded by the World Bank and the remaining 20 percent will be paid by the Afghan government.
“The project can have a good result if the work on it in Tajikistan, Kyrgyzstan, Pakistan and Afghanistan is started at the same time,” he said. “Fortunately we have established good cooperation and coherence (with CASA member countries). Surveys and other administrative activities of the project have moved forward at a good pace from Afghanistan's side.”
CASA-1000 project was officially inaugurated last year.
In July officials from the CASA-1000 member countries met in Tajikistan to discuss the project.
Economic affairs analysts said they are not very hopeful about the implementation of the project due to a lack of cooperation between the affected countries.
The analysts term the increasing insecurity in Afghanistan as another hurdle for the electricity transmission project.
“Insecurity is the biggest obstacle on the way of investments and economic growth in the country. If government can eradicate insecurity, especially on the route of CASA-1000, then we will benefit from the project,” said Nabi Sadat, an economic affairs analyst.
CASA-1000 project will cost more than $1 billion USD and if the project is completed, it will transfer 1,300 megawatts of power from Tajikistan and Kyrgyzstan to Pakistan through Afghanistan.
Afghanistan will get 300 megawatts of power annually from this project and at least $50 million USD as transit rights per annum. (Tolonews)