DUSHANBE, October 15, 2014, Asia-Plus – In a statement released on October 11, Ms. Jennifer Psaki, the spokesperson for the United States Department of State, noted that the  United States welcomes the agreement announced on October 11 between Afghanistan and Pakistan over transit pricing for the Central Asia South Asia electricity transmission project (CASA-1000).

This marks an important step in bilateral relations between Afghanistan and Pakistan, and one of the first foreign policy achievements of the new government of national unity in Kabul led by President Ashraf Ghani and Chief Executive Officer Abdullah Abdullah, she noted.

“When completed, CASA-1000 will enable the Kyrgyz Republic and Tajikistan to sell excess summer hydropower to fill supply gaps in Afghanistan and Pakistan.  The project forms an essential element of a regional energy market that connects suppliers with customers as a means to promote economic growth.  The transit price agreement represents a critical, final step towards completion of a power purchase agreement, and provides the momentum for remaining donors to commit to implementation of CASA-1000.

“The United States will continue to engage with the four CASA-1000 countries and our international partners to advance this project not only to link suppliers of clean, green hydropower with customers, but also to sustain our long-term commitment to stability, security and prosperity for Afghanistan, its neighbors and the broader region.”

We will recall that Pakistan and Afghanistan on October 11 agreed on electricity transit fees if 1.25 cents per kilowatt (KW) as part of the Central Asia-South Asia (CASA-1000) power project. The agreement would help establish commercial arrangements for 1,300 megawatts (MW) of sustainable regional electricity trade between Kyrgyzstan, Tajikistan, Afghanistan and Pakistan as part of the CASA-1000 electricity transmission and trade project.