The World Bank has expressed its willingness to finance the Central Asia-South Asia Electricity Transmission and Trade Project (CASA-1000) amid concerns among the participating countries including Kyrgyzstan, Tajikistan, and Pakistan, who feel the risk of $ 1 billion of stranded assets. However, the WB said the resumption would only take place within a ring-fenced structure that would ensure all construction payments and future revenue are managed outside of Afghanistan and do not involve the Islamic Emirate government. Meanwhile, the Bank demanded the appointment of international consultants to supervise progress and third-party monitoring to verify progress and contractors’ payments.
The decades-old CASA-1000 (Central Asia South Asia Electricity Transmission and Trade Project) is a multilateral project aimed at transmitting surplus electricity from hydropower plants in Kyrgyz Republic and Tajikistan to Afghanistan and Pakistan. The project is a magnificent endeavour to overcome energy shortages and reduce dependency on fossil fuels in Afghanistan and Pakistan. The project attaches bulk economic benefits, job opportunities, regional connectivity and cooperation not in all participating nations but will perform a bridging role in economic and trade integration of South Asia with Central Asian Republics (CARs) and broader Eurasia regions at a later stage.
There is an acute shortage of power in South Asia, wherein the CASA-1000 project has been a ray of hope for both south asian nations to fulfil their biting energy requirements on ready to use basis. However, the project is subject to political and security risks in the region, which could impact its operation and effectiveness.
Meanwhile, high construction cost, security hazard, geographical concerns and availability of financiers remained major hurdles in construction of the project. The project was approved by the World Bank board in March 2014 with financing from the International Development Association (IDA), but in Afghanistan it was paused in the wake of the return to power of the Taliban regime.
Fortunately, the World Bank Group (WBG) has announced its readiness to restart construction work on the CASA-1000 energy project while the Islamic Emirate also lauded the World Bank’s decision and ensured security of the project within the premise of its country. Historically, the Pak-Afghan region is one of the most backward territories and power deficiency has seriously obstructed the pace of development in both countries. As all parties are currently ready to implement the project on ground.
Hopefully, the CASA-1000 project will be the commencement of economic revival, social development and affluence in the AfPak region in the future.
