Agreement signed in Kabul on electricity
transmission project that connects Central Asia with
South Asia
Nov 19, 2007 - The World Bank Group
Kabul - An agreement was signed in Kabul on November
16 to implement a US$500 million electricity connection
between Central Asia and South Asia. In its first
stage, the project would transfer around 1300 Megawatts
of electricity from Tajikistan and Kyrgyz Republic
to Pakistan and Afghanistan. Central Asia has abundant
hydropower resources and seasonal energy surpluses
that can provide lower cost power to Pakistan and
Afghanistan.
The third conference of the Central Asia South Asia
Regional Electricity Market (CASAREM) took place in
Kabul from 14-16 November 2007. This followed earlier
conferences held in Dushanbe and Islamabad. Participants
at the Kabul meeting reviewed reports on the technical
and economic feasibility and institutional aspects
of the project which had been prepared with support
from the Asian Development Bank and the World Bank.
At the end of their three day meeting, CASAREM member
countries: Kyrgyz Republic, Tajikistan, Pakistan and
Afghanistan made key decisions to move ahead with
the project, which could ultimately trigger much larger
development of energy resources of Central Asia and
expanded electricity trade with South Asia.
Through a Memorandum of Understanding signed at the
end of conference, all four countries confirmed the
feasibility and scope of the project which would comprise
a 750 km High Voltage Direct Current (HVDC) transmission
system between Tajikistan and Pakistan via Afghanistan;
a DC-AC converter station in Kabul; and an AC transmission
link between Kyrgyz Republic and Tajikistan to supply
Kyrgyz electricity to South Asia via Tajikistan; and
the overall institutional framework for this electricity
trade to take place. In this regard, the parties agreed
to establish an Intergovernmental Council (IGC) which
will provide the policy oversight and a Secretariat
under the IGC to shoulder the day to day responsibility
of developing the project further; and to establish
the Secretariat in Kabul.
International financial organizations such as the
Asian Development Bank, Islamic Development Bank and
the World Bank have been approached by CASAREM countries
to consider financing this project. The World Bank
welcomes the initiative and sees this as a step forward
in deepening regional integration and cooperation
in the interests of all the countries.
"The agreement of the four countries to implement
this project is a major step towards connecting South
Asia to the low cost, clean energy resources of Central
Asia," said Alastair J. McKechnie, World Bank Country
Director for Afghanistan. "We expect the project to
generate revenues for the poorer Central Asian countries,
reduce energy shortages by providing lower cost power
to Afghanistan and Pakistan, and to generate significant
economic gains for Afghanistan. The project demonstrates
the mutual benefits that the countries can achieve
by working together to further their economic interests"
For more information on the Bank's work in Afghanistan,
please visit http//www.worldbank.org.af/
Contact:
In Kabul Abdul Raouf Zia
Phone: 0700 280 800
Email: azia@worldbank.org
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