Opinion

CASA — a transformational project

CASA-1000 will ease electricity shortages in Pakistan during the peak summer season

Annette Dixon May 11, 2016

The writer is Vice President for the South Asia Region of the World Bank

The opening ceremonies in Dushanbe, Tajikistan that started on May 11 for construction work on the CASA-1000 project mark an important milestone. The project could bring a trade in sustainable electricity between Central and South Asia; address energy shortages in Afghanistan and Pakistan; and provide financing for new investments and improve winter energy supplies for Central Asian countries.

This ambitious project, costing $1.17 billion, is based on a simple idea. In the summer months, the Kyrgyz Republic and Tajikistan have more electricity than they need as their hydropower dams fill to the brim with water from melting mountain snow. Much of this excess water simply overflows and is not used to generate electricity. Once built, the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000) will generate 1,300MW of electricity from this surplus summer supply and send it through transmission lines to Afghanistan and Pakistan from May to September.

This has benefits for all. For Afghanistan and Pakistan, CASA-1000 will ease electricity shortages during the peak summer season when demand is at its highest. A shortage of energy is cited as the main and most binding constraint to business operations, expansion and job creation. CASA-1000 will also help reduce the countries’ dependency on costly, polluting oil-based power generation. Both countries have major gaps between what they generate and what they currently use in electricity. CASA-1000, while not solving their problem completely, will go some way towards making this problem a smaller one.

In addition to reducing energy shortages in Afghanistan, CASA-1000 also has another important benefit for that country. It could help establish Afghanistan as a viable transit country, initially for electricity and perhaps later for other exchanges, as the transmission lines will cross through its territory into Pakistan. This could improve the country’s growth and stability prospects by strengthening ties to neighbours and the wider region.

For Kyrgyz Republic and Tajikistan, the project could provide financing for new investments, including for infrastructure and improved services. It will also improve winter energy because these two countries will be able to import electricity through the line in winter from other Central Asian countries and Russia.

CASA-1000 will give a much-needed boost to energy security, improved connectivity and trade across the two regions at a critical time. The project is the first step towards creating the Central Asia-South Asia Regional Electricity Market, leveraging Central Asia’s significant energy resources to help alleviate South Asia’s energy shortages on a mutually beneficial basis. As a transformational project, CASA-1000 demonstrates the power of regional cooperation through four countries reaching agreement on a project that is a win-win for all involved. The project also helps to revive the Silk Road, the ancient route linking the East and West, in a region that used to be separated by hard borders. Like all such ventures, CASA-1000 is not one without risks. But these are worth taking as the gains for Central and South Asia could be immense.

Published in The Express Tribune, May 12^th, 2016.

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COMMENTS (5)

Rex Minor | 8 years ago | Reply @sterry: Former US Defense Secretary Chuck Hegal pointed out that India uses Afghanistan as a base to do cross border violence and trouble in Pakistan. The only thing Pakistan will get from Afghan trade route is more refugees, guns, smuggling, terrorism and prostitution Chuck Hagel was fired by the President because the old vietnam vetren Senator was incompetent. The Afghan route has been used for centuries for the supply of opium and timber wood without the involvment of the Kabul government whereas the guns are manufactured since the colonial times in the Afridi tribal territory for direct delivery to almost all Pakistani cities. India gets its share of opium from the Punjab crossing into India which is strictly controlled, however, most of opium supplies are reported to be routed from the karachi port to the rfor the est of the world. This is not to say that India is not ready to intervene militarily if and when necessary to defend Afghanistan as they did in Bangla Desh? Rex Minor

sterry | 8 years ago | Reply @roadkashehzada: Pakistan should not agree to transit agreement with Afghanistan because it will allow more terrorists and agents from India and Kabul to infiltrate Pakistan. Former US Defense Secretary Chuck Hegal pointed out that India uses Afghanistan as a base to do cross border violence and trouble in Pakistan. Indian agents are always turning up in Karachi like Yadav. No amount of supposed trade is worth insecurity. Tajikistan will press Afghanistan to let it sell energy to Pakistan. If not, Pakistan can find another source of electricity now that CPEC projects with Chinese are gaining traction. The only thing Pakistan will get from Afghan trade route is more refugees, guns, smuggling, terrorism and prostitution. Even Europe is tired of the hundreds of thousands of Afghan refugees smuggling themselves there to live in state assistance. Hopefully the policy makers realize this reality before opening the door to any Afghan trade.

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Rex Minor | 8 years ago | Reply The project also helps to revive the Silk Road, the ancient route linking the East and West, in a region that used to be separated by hard borders. Like all such ventures, CASA-1000 is not one without risks. But these are worth taking as the gains for Central and South Asia could be immense. Not East and West, madam but Russian expansion to the East through Central Asian countries. The risk is related to the Taliban factor which controls the transit route in Afghanistan. Rex Minor

roadkashehzada | 8 years ago | Reply i will be surprised if CASA is successful as afghanistan is interested in only transit. in return they might ask for transit of indian goods to afghanistan and paperless border crossing for afghanis.

SHAH | 8 years ago | Reply Very well explained. But, i want to add some sentences from my sides on what is success of the project based on. First, and the foremost, Relation between Pakistan and Afghanistan. Relations must be friendly if we want to yield the results. If the relation remains strained, the project would be a failure; and huge amout of money i.e $1.7 bn would go in vain. I would suggest the governments of Pakistan and Afghanistan to defuse the intense relations before hoping for having the energy deficit problem resolved.

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