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Afghanistan to Gain $26 Million Transit Duty Annually From CASA 1000 Project

Afghanistan to Gain $26 Million Transit Duty

KABUL – Officials from Breshna, Afghanistan’s national utility, said on Saturday that preliminary work on the CASA project is moving forward with full pace and soon the project would be up for bidding amongst international companies. The Tajikistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project and the Central Asia-South Asia electricity trade and transmission project (CASA-1000) are some current projects that have made Afghanistan a thoroughfare for energy transport.

The CASA-1000 project will transfer electricity from Kyrgyzstan and Tajikistan towards Pakistan through Afghan soil. Work has been done on several parts of the projects including signing of contracts and commercial principles, establishing financial and logistic committees for preparing documents and bidding for establishment of the project, technical assessments of the project and finalization of its transfer route from Kyrgyzstan to Pakistan and also locations for sub stations in Afghanistan and Pakistan.

Breshna officials have said that in the coming meeting which is expected to be held in coming days in Kyrgyzstan, the topics of transit duty and price of electricity would be discussed. “Our estimate shows that Afghanistan will receive $ 26 million annually as transit duty and we will also discuss the price of 100 megawatt electricity which we will purchase from this project,” said Mirwais Alimi, chairman of Breshna Commercial Company.

Works for implementation of CASA 1000 project initiated in 2006. The project is one of the most important regional projects on the basis of which 1,300 megawatts electricity would be transferred from Kyrgyzstan and Tajikistan via Afghanistan and onward to Pakistan. In addition to receiving transit duties, Afghanistan will also purchase 300 megawatts electricity from the project. The project will cost nearly $ 800 million and according to Breshna officials, the World Bank has pledged to pay Afghanistan’s share in the project. (Tolonews)

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