The World Bank’s Board of Executive Directors approved today $18.3 million in additional financing to the ongoing Central Asia South Asia Electricity Transmission and Trade (CASA-1000) project for the Kyrgyz Republic. Office of the World Bank in the Kyrgyz Republic reports.
This additional financing complements the original CASA-1000 Project, a regional power interconnection initiative aimed at facilitating the export of 1,300 MW of surplus hydropower from the Kyrgyz Republic and Tajikistan to Afghanistan and Pakistan. The original project, supported by several donors and international financial institutions, was approved in March 2014, and became effective in January 2018.
«The successful implementation of the CASA-1000 project is expected to generate significant positive change in the energy landscape of the Kyrgyz Republic and the other participating countries, in addition to promoting economic stability and regional cooperation,» emphasized World Bank’s Country Manager for the Kyrgyz Republic Naveed Hassan Naqvi.
He also highlighted several other benefits expected form the project, including:
- Better and more sustainable access to energy for the people and businesses, which will further support social development and economic growth;
- Contribution to the global efforts in combating climate change by utilizing renewable hydro power resources;
- Mutually beneficial power trade resulting from the integration of Central Asia and South Asia’s power networks.
The country-specific CASA-1000 project for the Kyrgyz Republic involves the construction of approximately 456 km of high-voltage alternating current (500 kV) transmission lines. The project is currently at an advanced stage of implementation, with 1,243 transmission towers installed (100 percent) and 287 km of stringing works (63 percent) completed.
«The scope of existing project activities will not change. The additional financing will address the financing gap caused by various factors, including increased prices for goods and transportation as a result of the COVID-19 pandemic and the overall economic crisis,» said Dmytro Glazkov, World Bank’s Senior Energy Specialist and Task Team Leader of the Project.
The additional financing to the CASA-1000 project for the Kyrgyz Republic is provided through the International Development Association (IDA), the World Bank’s concessional lending arm, in the form of a zero-interest credit, with repayments spread out over 50 years and a 10-year grace period. The project will be implemented through March 2025 by the National Electrical Network of Kyrgyzstan OJSC, in compliance with strict international standards including procurement and financial management regulations and anti-corruption guidelines.
The total combined investments in the amount of $216 million from European Investment Bank ($85 million), Islamic Development Bank ($63 million) and the World Bank and the Multi-Donor Trust Fund ($68 million) for the CASA-1000 — Kyrgyz Republic Project will enable to complete the construction of high-voltage transmission infrastructure in this country and create the conditions for sustainable electricity trade.
The World Bank’s overall mission is to end extreme poverty and promote shared prosperity on a livable planet. The World Bank’s program in the Kyrgyz Republic currently consists of 22 projects supporting the modernization and development of various sectors, with commitments of over $1 billion.
