DUSHANBE, December 28, 2011, Asia-Plus  -- The World Bank is currently considering the possibility of providing a preferential loan of 200 million U.S. dollars for implementation of the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000), the source in the Ministry of Energy and Industries says.

According to him, the loan will be distributed among Tajikistan, Kyrgyzstan, Afghanistan and Pakistan.

“A total cost of the CASA-1000 electricity project is 953 million U.S. dollars, including incidental expenses as well as expenses on strengthening of domestic power transmission networks and the preliminary expenses of social and environmental nature,” the source added.

Each of the countries participating in the project is expected to allocate funds for financing of facilities located in its territory.

“Expenses are distributed among the countries as follows: Afghanistan – 309 million U.S. dollars; Kyrgyzstan – 196 million U.S. dollars; Pakistan – 197 U.S. dollars; and Tajikistan – 251 million U.S> dollars,” the source said.

Meanwhile CASPIONET reports Mr. Alex Kremer, the head of the World Bank office in Bishkek, stated at the Seminar on Kyrgyzstan’s Energy Development in Bishkek on December 22 that the World Bank plans to allocate 200 million US dollars to Kyrgyzstan within the framework of the CASA-1000 project.   According to him, Kyrgyzstan will be able to fully return the loan issued by the World Bank within 5 years of participation in this project. If Kyrgyzstan invests 200 million US dollars in the construction of power lines under the project, the country’s annual income will be from 40 to 55 million US dollars.

It was also noted that the World Bank plans loan of $250 million to Tajikistan, $350 million to Afghanistan and Pakistan $200 million as part of CASA-1000 project.

The Central Asia South Asia Electricity Transmission and Trade Project (CASA 1000) is dedicated to develop the necessary physical infrastructure and create the institutional and legal framework to transmit surplus power available from existing generation facilities in Tajikistan and Kyrgyzstan to Afghanistan and Pakistan.  The physical infrastructure for CASA 1000 is likely to include: a 500 kV High Voltage Direct Current (HVDC) transmission system between Tajikistan and Pakistan through Afghanistan; an AC transmission link from Kyrgyzstan and Tajikistan to connect to the HVDC line from Tajikistan to South Asia; and the necessary electricity sub-stations in Kabul, Peshawar and Sangtuda (in Tajikistan).