The World Bank's Board of Executive Directors has granted an additional $18.3mn in funding for Kyrgyzstan under the ongoing Central Asia-South Asia Power Transmission and Trade (CASA-1000) project, as reported by the bank's Kyrgyz Republic office.
These funds are designated for the Regional Interconnection Initiative, aimed at facilitating the export of 1,300MW of surplus hydroelectricity from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. The CASA-1000 project, which received support from multiple donors and international financial institutions, was originally approved in March 2014 and became operational in January 2018.
Navid Hassan Naqvi, head of the World Bank office in Kyrgyzstan, emphasized that the successful implementation of the CASA-1000 project is expected to bring significant positive changes to the energy sector in Kyrgyzstan and the other participating nations. It will also contribute to economic stability and regional cooperation.
Key benefits of the project include:
- Enhancing and ensuring sustainable access to energy resources for the population and businesses, thereby promoting social development and economic growth.
- Contributing to global climate change mitigation efforts through the use of renewable hydropower resources.
- Facilitating electricity trade under mutually beneficial terms by integrating the energy systems of Central and South Asia successfully.
For Kyrgyzstan, the CASA-1000 project involves the construction of 500-kV alternating current power lines spanning approximately 456km. As of now, 1,243 supports have been installed, and work on suspending wires along 287km of power lines has been completed.
Dmytro Glazkov, World Bank Senior Energy Specialist and Project Team Leader, confirmed that the project's scope remains unchanged, and the additional financing is intended to bridge gaps in funding due to factors such as rising commodity and transportation costs resulting from the COVID-19 pandemic and the broader economic crisis.
The extra funding for the CASA-1000 project in Kyrgyzstan is sourced from the International Development Association (IDA), the concessional lending division of the World Bank, in the form of a 50-year interest-free loan with a 10-year grace period. The project, expected to conclude by March 2025, will be executed by OJSC National Electric Grid of Kyrgyzstan in strict adherence to international standards, encompassing procurement and financial management regulations and anti-corruption principles.
The overall investment package for the CASA-1000 project in Kyrgyzstan amounts to $216mn, with contributions of $85mn from the European Investment Bank, $63mn from the Islamic Development Bank, and $68mn from the World Bank and the Multi-Donor Trust Fund. These funds will enable the construction of high-voltage electricity transmission infrastructure and establish the necessary conditions for sustainable electricity trade.
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