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Pakistan signs loan agreements with World Bank for CASA-1000 project [free access]

November 27, 2019

In a bid to improve power supply and civil services in the city of Karachi, Pakistan has signed loan agreements with the World Bank for five projects worth USD787 million, including USD65 million for the Central Asia–South Asia Electricity Transmission and Trade (CASA-1000) power project.


The components of the project include the construction of a 475-km-long, 500 kV high voltage alternating current (HVAC) line from Datka (Kyrgyz Republic) to Khudjand (Tajikistan); a 1,300 MW high voltage direct current (HVDC) converter station each at Sangtuda (Tajikistan) and Nowshera (Pakistan); and an 800-km, ±500 kV HVDC transmission line connecting Sangtuda and Nowshera via Afghanistan. Almost three-fourths of the latter line passes through Afghanistan.


The objective of the ongoing project is to facilitate the trade of 1,300 MW of electricity among four countries—Tajikistan, the Kyrgyz Republic, Afghanistan and Pakistan. In particular, it focuses on transporting surplus energy from hydroelectric power projects in Kyrgyzstan and Tajikistan to the power-deficit countries of Pakistan (1,000 MW) and Afghanistan (300 MW).


Apart from the World Bank, CASA has received financial aid from other funding institutions, such as the United States Agency for International Development (USAID), Islamic Development Bank (IsDB), Afghanistan Reconstruction Trust Fund, European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).


The loan agreement signed between Pakistan and the World Bank also includes loan provisions for urban mobility, urban management and service delivery, tourism, and improving water and sewerage services for the development of the city of Karachi in Pakistan.