EBRD invests in transmission system upgrade in Tajikistan
The EBRD is providing a US$ 110 million loan to national power
utility of Tajikistan, Barki Tojik to finance construction of the
power converter station and related infrastructure in Tajikistan,
as part of the high-voltage transmission line project Central Asia
South Asia Electricity Transmission and Trade, otherwise known as
CASA-1000.
The Bank reported that as part of CASA-1000 project, Tajikistan and
the Kyrgyz Republic shall benefit from the currently limited
opportunity to sell available summer electricity surplus while
Afghanistan and Pakistan shall access the much needed sources of
reliable electricity supplies. The project will help unlock the
untapped hydropower potential of Central Asia with a significant
overall reduction of carbon emissions in the region.
The overall CASA-1000 project involves a number of international
financial institutions and donors, including the World Bank and the
European Investment Bank. The total cost of the project is expected
to be over US$ 1 billion.
The EBRD financing will be conditional on the state-owned power
utility undertaking a series of reforms. As part of the reform
agenda, third-party access rules for the cross-border transmission
line will be set out and an independent energy regulator will be
established.
EBRD President, Sir Suma Chakrabarti, said: “We are proud to
support this programme that will benefit the whole of Tajikistan.
Importantly, it enables a strategic cross-border project, which has
the potential to become a ‘game-changer’ in this troubled region.
CASA-1000 demonstrates the crucial importance of cooperation of
international financial institutions for global development. This
cooperation is especially important in Central Asia where markets
do not offer funds for strategic cross-border projects”.
Previously, as part of its focus on the electricity sector in
Tajikistan, the EBRD arranged a financing package of US$ 75 million
for modernisation of the Qairokkum Hydropower Plant in the north.
The project includes an innovative climate resilience
mechanism.
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