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ISLAMABAD: In a major breakthrough, Pakistan is set to sign a power purchase agreement with Tajikistan in Istanbul, Turkey on April 24, which will bring surplus electricity from Central Asia to South Asia.
Under the project, known as Central Asia South Asia Electricity Transmission and Trade (Casa-1000), Pakistan will be provided 1,000 megawatts of clean energy at 9.35 cents per unit including all charges.
Initial agreement on hydroelectric power supply was signed by Kyrgyz Republic, Tajikistan, Afghanistan and Pakistan in Turkey in December last year.
“We have finalised all aspects of the power purchase agreement, which will be signed in Istanbul on April 24,” a senior government official said.
Tajikistan appears to be a strategic partner of Pakistan, especially in energy supplies, which will connect Pakistan with the Central Asian region. The two countries are working on different projects including power supply, transit trade and a transit route for oil supply through Pakistan.
Although the proposal was coined long ago, the current government of Pakistan Muslim League-Nawaz (PML-N), which had promised to voters in its election campaign that it would overcome power shortages swiftly, stepped up work to push ahead with the project.
Casa-1000 is scheduled for completion by 2018 under the umbrella of the World Bank. Tajikistan’s share in electricity export will be 70% while Kyrgyzstan will contribute 30% of supplies.
Afghanistan will consume 300MW of exported electricity while Pakistan will get 1,000MW. The project is expected to give a boost to energy trade in the region, leading to sustainable development.
In addition to Casa-1000, Pakistan and Tajikistan are set to study prospects of supplying another 1,000MW by laying a transmission line to Chitral in northern areas in an effort to put to use surplus energy and help Islamabad mitigate its energy crisis.
“We have the capacity to export an additional 1,000MW through the Chitral route that will help our brotherly country overcome the energy crisis,” a Tajik embassy official said.
Tajikistan is the world’s third largest producer of hydroelectric power after the US and Russia. Hydroelectric power generation accounts for 76% of the total energy production in the country.
A proposal for oil transport to Tajikistan via Pakistan is also under consideration. The government has welcomed Tajikistan’s plan for crude oil import from Kuwait and its processing in Pakistan into refined products.
Tajikistan is a landlocked country and is interested in importing crude oil from Kuwait via the Karachi Port. First, the imported oil will be processed in Pakistan and then refined products will be sent to Tajikistan. The Central Asian state has sought help from the Pakistan government to press on with this plan.
Power purchase: Pakistan to sign accord with Tajikistan this month - The Express Tribune