Daily Times

The groundbreaking ceremony of the Central Asia South Asia Electricity Transmission and Trade Project, known as CASA-1000, was formally held on 12th May near Dushanbe, Tajikistan. The foundation stone of the project was jointly laid by Tajik President Emmolai Rahmon, Chief Executive Afghanistan Abdullah Abdullah, Kyrgyz Prime Minister Sooronbay Jeenbekove and Prime Minister Nawaz Sharif. The CASA-1000 represents landmark cooperation among Kyrgyz Republic, Tajikistan, Afghanistan and Pakistan.

The project is designed to transmit 1,300 MW of electricity from Kyrgyz Republic and Tajikistan to Afghanistan and Pakistan. However, initially only 1,000 MW will be provided, out of which Afghanistan and Pakistan will be receiving 300 MW and 700MW electricity respectively through a 1,222 kilometre transmission line. This transmission system envisages the creation of Central Asia-South Asia Regional Electricity Market that eventually would lead to inter-regional cooperation and integration. Designed on the pattern of 340,00-kilometre North American Grid and the 230,000 kilometre European Power System, the project enjoys the support of the World Bank Group, Islamic Development Bank, United States Agency for International Development (USAID), US State Department, United Kingdom Department for International Development (DFID), Australian Agency for International Development and other donor communities.

The project estimated to cost 1,170 million dollars includes the construction of 477 kilometres 500 KV line from Datka in Kyrgyz Republic to Khujand in Tajikistan; building of 1,300 MW AC-DC converter station at Sangtuda in Tajikistan; laying of 750 kilometres high voltage DC line from Sangtuda to Peshawar via Kabul, installation of 300 MW DC-AC converter station at Kabul and 1,300 MW DC-AC convertor station at Peshawar. An inter-governmental agreement was signed in August 2008 to govern and resolve issues critical to the implementation of the project. In October 2014, Afghanistan and Pakistan agreed on a transit fee of 1.25 dollar per kilowatt followed by a master agreement as well as power purchase agreement in February 2015. It has been agreed that Pakistan will purchase electricity at 9.35 dollar per kilowatt during the initial 15 years, which also includes the transit fee to be paid to Afghanistan.

The project is expected to be operative by the end of 2018. Needless to emphasise that energy and efficiently functioning electricity transmission system plays a pivotal role in developing a strong economy with an ever-expanding job market, modern infrastructure, proper social services and an inclusive growth. The CASA-1000 project is an important step in building a functioning, efficient electricity system across Central Asia and South Asia. The export of electricity by Central Asian states to Afghanistan and Pakistan would not only generate the required revenues to cater for the developmental needs of the former but would also help in generating tremendous economic activity in the latter by providing cheap and clean power.

The significance of the electricity from CASA for Pakistan can hardly be over-emphasised. The country has been in the grip of a debilitating power crisis for well over a decade. In May 2011 the shortfall of electricity had surpassed 7,000 MW. This crisis was a sequel to the apathy of the successive governments to the burgeoning energy needs and their failure to increase the power generating capacity. Resultantly, it badly affected the process of economic growth, as well as millions of households in the country, which led to political repercussions for the PPP government that had no answer to the problem.

The PML-N, which routed its political opponents in the 2013 general elections, owed its victory to a great extent to its pledge of overcoming the shortage of electricity. It has indeed given top priority to tackling the energy crisis and ensuring energy security in the years to come. Under the CPEC, energy projects with accumulated generating capacity of 10,600 MW have been set rolling, which are expected to be completed by the end of 2018. Work on the much-delayed Neelum-Jhelum project with the production capacity of nearly 900 MW has been expedited. Similarly, Bhasha Dam is also being given top priority. The government is also working on a number of power projects including a nuclear power station at Karachi, which would produce 2,200 MW of electricity. Plans are also afoot to produce electricity through renewable energy resources. The government has already added 3,000 MW electricity to the system during the last three years.

CASA-1000 project is part of the government strategy to build regional linkages for shared economic prosperity. This is an arrangement that rightly visualises economic integration of Central Asian and South Asian states, and creating peace in the region through a process of economic interdependence. It goes to the credit of the present government that besides focusing on power generation projects within the country, it has also exhibited unparalleled interest and commitment in pursuing the trans-regional projects like CASA-100 and TAPI. It has also vigorously worked on improving bilateral relations with the Central Asian states. Prime Minister Nawaz Sharif visited Belarus in August 2015, and Prime Minister Andrei Vladimirovich Kobyakov paid a return visit to Pakistan in November 2015. Prime Minister Sharif embarked on a visit to Kazakhstan in August 2015. During all these visits agreements and MOUs on enhancing bilateral cooperation in multifarious fields were signed.

Pakistan and Tajikistan with a view to enhance land-connectivity with each other have agreed to build three highways, which are: Gwadar-Peshawar-Kabul-Kunduz-Dushanbe, Khunjerab-Kalasu-Surghab and Chitral-Ashkham-Dushanbe. The agreement to this effect was signed during the visit of the Tajik president to Pakistan in November 2015. On December 13, 2015, Prime Minister Sharif also attended the groundbreaking ceremony of TAPI in southeastern Turkmenistan, which is likely to become operational by 2019. President of Turkmenistan visited Pakistan in March 2016, and the two countries signed eight agreements including security and cooperation in dealing with terrorism. Pakistan has also become member of the SCO, and relations with Russia have also attained new heights. Russia has signed a defence agreement with Pakistan under which state-of-the-art MI35 helicopter would be sold to Pakistan. Russia has also agreed to build a gas pipeline from Lahore to Karachi with an investment of two billion dollars. It is noteworthy that the Central Asian States and Russia are all interested in using Gwadar port for access to the Arabian Sea. That will make Pakistan a hub of economic activity in the entire region.

All the foregoing developments are a good augury for the future of the country, and coupled with the implementation of infrastructure projects under the CPEC will surely have a revolutionary impact on the economic profile of Pakistan as well as the whole region. The new narrative on foreign relations evolved by the present government, focusing on building regional connectivity, is a step in the right direction and must be pursued with unruffled determination. Pakistan’s security and economic progress is inextricably linked to the region.

The writer is a retired diplomat, a freelance columnist and a member of the visiting faculty of the Riphah Institute of Media Sciences, Riphah International University, Islamabad. He can be reached at ashpak10@gmail.com