ISLAMABAD: Pakistan has secured a major financial win in the CASA-1000 initiative, achieving savings of over $27 million after successfully negotiating contractor claims during high-level discussions in Sweden.
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The talks, held on March 9–10 in Ludvika, involved officials from Pakistan’s Ministry of Energy (Power Division) and the National Grid Company (NGC), as well as representatives from the EPC contractor, Hitachi–Cobra JV. The negotiations focused on finalising the Care & Custody framework, which covers operational readiness and safety of critical HVDC infrastructure during project delays.
Originally, the contractor had raised Care & Custody claims amounting to $32.9 million for Pakistan and $28.5 million for Tajikistan. Following the talks, both sides agreed to cap the total cost at $9 million—shared between Pakistan and Tajikistan—until February 2028. This milestone results in a net saving of more than $27 million for Pakistan. The agreement also allows for a limited three-month extension beyond February 2028, subject to a 5% monthly cost escalation.
The CASA-1000 project, valued at $1.2 billion, aims to facilitate electricity trade between Central and South Asia by transmitting up to 1,000 MW of power from Tajikistan and Kyrgyzstan to Pakistan and Afghanistan. The project has faced delays due to geopolitical challenges in Afghanistan, pushing the expected commissioning of the HVDC system to September 2027.
Tajikistan’s First Deputy Minister for Energy and Water Resources, Jamshed Shoimzoda, noted that the project will enhance regional energy connectivity and promote clean energy cooperation once completed.
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The successful negotiation underscores Pakistan’s commitment to cost efficiency while ensuring the safety and operational integrity of the CASA-1000 infrastructure, marking a significant step toward regional energy integration.