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    Afghanistan

    Taliban clears $627mn electricity debt with neighboring countries

    Taliban clears $627mn electricity debt with neighboring countries

    On February 1st, Tajikistan's Energy and Water Resources Minister, Daler Juma, announced that Afghanistan had settled its outstanding debts for the electricity it received from Tajikistan. This development comes after Kabul's struggles to fully clear its dues, despite regularly making partial payments, eurasianet reported.

    Photo: Afghan, Tajik power officials agreeing on a new supply contract for 2024
    Source: eurasinet
    Juma states that Tajikistan exported 2.7 bn kilowatt-hours of electricity in 2023, amounting to $110.4 mn in revenue. While Tajikistan exports power to Afghanistan, Kazakhstan, and Uzbekistan, Juma highlighted that most of the electricity is supplied during spring and summer, leveraging excess capacity from hydropower facilities. Notably, Afghanistan continues to receive electricity year-round, albeit in smaller quantities to maintain critical infrastructure, although the exact tariff structure remains undisclosed.

    On February 7, Sputnik Afganistan reported that the official representative of the Afghan energy company DABS, Hikmatullah Maiwandi stated that Iran, Turkmenistan, Uzbekistan and Tajikistan collectively received $627 mn. Hikmatullah says that these funds were owed by the republican government before the Taliban seized power, and now for the first time Afghanistan has paid for electricity in advance

    Afghanistan and Tajikistan relations

    The cooperation in electricity trading comes against the backdrop of Tajikistan's cautious stance towards Afghanistan, particularly since the Taliban's rise to power. President Emomali Rahmon has been vocal in expressing skepticism towards recognizing the Taliban government, citing concerns about the representation of Tajik minority groups in Afghanistan's governance.

    Despite political reservations, economic dialogue between Tajikistan and Afghanistan persists. In 2023, trade turnover between the two nations amounted to $98 mn, although it represented a 12% decline compared to the previous year. The foundation of their economic ties lies in a 2008 agreement for Tajikistan to supply electricity to Afghanistan until 2028, with annual renewal protocols determining the terms of electricity supply.

    In December, representatives from Tajikistan's state power company and Afghanistan's Da Afghanistan Breshna Sherkat (DABS) met in Turkey to sign an electricity purchase agreement for 2024. This meeting also paved the way for discussions on potentially extending a new 500-kilovolt transmission line from Tajikistan to Afghanistan.

    Moreover, Afghanistan has expressed interest in advancing the implementation of CASA-1000, a regional energy project backed by Western stakeholders. CASA-1000 aims to connect hydroelectric power-rich countries like Kyrgyzstan and Tajikistan to Afghanistan and Pakistan, facilitating cross-border electricity trade and fostering regional energy security.

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    07.02.2024, 12:10   Comments (0)   4250
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    On this topic

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