Fresh avenues for trade: Russia gets the go-ahead to export 5,000MW

Central Asian states allow Moscow to utilise CASA project transmission lines


Zafar Bhutta October 04, 2014

ISLAMABAD:


Tajikistan, Kyrgyzstan and Afghanistan have agreed to allow Russia to utilise the power transmission lines to be laid under the Central Asia South Asia-I (CASA) electricity trade project and export 5,000 megawatts to Pakistan, a move that will open new avenues of bilateral trade between the two countries.


“In a new development, Russia, Central Asian states, Afghanistan and Pakistan will be connected through a power corridor, which will meet energy needs of Pakistan,” said the senior government official while talking to The Express Tribune.

The development came in the wake of a Russian offer to Pakistan about a year ago in September 2013 that it was interested in investing in energy projects and export of 5,000 megawatts of electricity via transmission lines coming from Central Asia.

Apart from the CASA project, Pakistan is going to clinch power plant deals with China in a bid to generate over 10,000MW of electricity.

Such big schemes will help bridge power deficit in the country, which has been facing hours-long outages for the last many years. The electricity shortfall has disrupted industrial production and ordinary life as well as erased 3% off economic growth annually.

According to the government official, the Russian proposal for electricity export could not be pushed through for a year as the countries that were part of the CASA project had some reservations and they did not allow Moscow to have a stake in the transmission lines.

“Russia had offered to provide finances for the CASA project in return for getting a contract for laying the transmission lines, but the countries involved in the project turned down the offer,” the official said.

Under the CASA scheme, Tajikistan will supply electricity to Pakistan and Afghanistan for five months in the summer and beyond whereas in the remaining period transmission lines will be available for others, if any, to export electricity.

Officials point out Russia has already developed infrastructure with Kyrgyzstan and could smoothly export electricity to Pakistan. It could supply electricity for seven months when transmission lines would be lying idle without any load.

In September last year, a Russian delegation, led by the deputy minister of energy and comprising representatives of major energy companies, paid a visit to Pakistan and discussed cooperation in the energy sector. It offered to cooperate with Pakistan in the import of electricity, liquefied natural gas, natural gas, production of coal-based power and exploration of oil and gas.

Russian investors also offered 100% technical and financial assistance for Jamshoro and Muzaffargarh power plants and expressed interest in pumping money into the Gadani Power Park.

The delegation suggested that initially Moscow would export 1,000MW, which would be increased later to 5,000MW and the power supply would be available throughout the year.

Russia is also building hydroelectric power plants in Kyrgyzstan and Tajikistan including a 3,900MW project in Kyrgyz Republic and is looking for new markets to export cheap electricity.

Published in The Express Tribune, October 5th, 2014.

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COMMENTS (14)

Shah | 9 years ago | Reply

@Sandip: Russians Are Offering Gransts and Easy Payment Terms.Thank You For Your Concern Now Go Back To Your Country and Take Care of Your Naxalites

Sandip | 9 years ago | Reply

@syedpk: How will your bankrupt government pay for it? Last I knew, russians aren't in the mood for filling up kashkols.

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