DUSHANBE: The regional integration between Central Asia and South Asia is entering the implementation phase in terms of energy and road connectivity as import of electricity from CASA-1000 MW project with estimated cost of close to $1 billion for providing electricity in peak summer season to power deficient Pakistan will materialise by mid June 2018.
The Asian Development Bank (ADB) has arranged a press tour comprising of journalists from regional countries including Afghanistan, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Pakistan and Tajikistan to show them Nurek Hydropower Project, one of the largest hydropower having capacity of over 3,000 MW and Ayni-Uzbekistan border road project which is part of historic Silk Road from August 23 to 25, 2016 with the objective to improve regional connectivity.
The ADB along with other multilateral donors including European Bank for Reconstruction and Development, International Monetary Fund, Islamic Development Bank, United Nations Development Programme and the World Bank had already invested $27.7 billion on different development projects under its initiative of Central Asia Regional Economic Cooperation (CAREC) from 2001 to December 2015. Now it is planned to invest more billions of dollars on CAREC initiative in years to come. The CAREC member countries are Afghanistan, Azerbaijan, China, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan and Uzbekistan.
For Nurek Hydropower Project, the ADB provided $54.77 million grant and Tajikistan contributed $12.13 million as counterpart financing for 500 KV switchyard reconstruction project. The Nurek Hydropower Plant is the largest power plant of the country with total installed capacity of over 3,000 MW produces more than 70 percent of Tajikistan electricity. Under CASA-1000 MW project, Kyrgyz Republic and Tajikistan will provide surplus power in peak summer season after construction of power connection line.
When complete, the full CASA-1000 transmission lines will move electricity at high voltages between the Kyrgyz Republic and Tajikistan (the first 477 kilometers) and from Tajikistan to Afghanistan and Pakistan (the next 750 kilometers). Even without adding any new power generation to the system, sufficient quantities of surplus electricity are available in the Central Asian countries to supply these transmission lines.
The CASA-1000 Project is ambitious but achievable. When compared with the 340,000-kilometer North American grid or the 230,000-kilometer European power system, the 1,222-kilometer CASA-1000 transmission project seems quite achievable but it will take time, long-term planning, and cooperation.
The project cost, excluding IDC, is estimated at US$ 873 million based on current market conditions which may change over time in response to market volatility.
According to feasibility study of CASA-1000 project, the basis of the project cost includes the cost of the 500 kV, 750 km HVDC interconnection link with conversion capacity of 1,300 MW at Sangtuda, 300 MW at Kabul and 1,300 at Peshawar; The costs of relocating the existing 220 kV line closer to the mountain on steel tubular poles with insulated arms and shorter spans to limit the conductor swing; and route the proposed HVDC line on steel tubular poles (option 1 of the three options proposed in section 7.2) are included in the HVDC interconnection link costs above; costs of ground electrodes at Sangtuda, Kabul and Peshawar; costs of the 500 kV, 477 km HVAC Interconnection between Kyrgyz republic (Datka substation) and Tajikistan (Khoujand substation); costs of the country network reinforcements; and costs of environmental and social mitigation measures.
The cost estimates provided in this feasibility study have included provision for mitigation measures related to security, technical considerations, operational issues and routing issues. Interest during construction (IDC) calculated at a 5% annual interest rate amounts to $80 million.
