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CASA-1000 Energy Project revival: involving Afghanistan in the regional cooperation

Source: www.casa-1000.org
Source: www.casa-1000.org
The atmosphere of economic cooperation and political dialogue that has characterised Central Asia over the past eight years has made possible the achievement of another milestone: the resumption of work on the CASA-1000 Project (Central Asia–South Asia), a high-voltage transmission line designed to transport “clean” electricity generated in Kyrgyzstan and Tajikistan through Afghanistan and Pakistan.
The strategic importance of this project lies in the opportunity for Bishkek and Dushanbe to export surplus electricity during the summer (peak production) to the Afghan and Pakistani markets, which experience high levels of energy consumption. This creates the possibility for these hydrocarbon-deprived nations, dependent on gas and oil imports from Russia or neighbouring Central Asian countries, to strengthen their energy security by meeting domestic demand, while simultaneously establishing themselves as exporting countries, thereby fostering regional energy cooperation through a progressively integrated electricity grid.
To achieve their hydroelectric power generation objectives, Tajikistan and Kyrgyzstan are developing two large power plants: Rogun (a dam on the Vakhsh River) and Kambarata (a dam on the Naryn River). The Italian company WeBuild is involved in the construction of the Vakhsh River dam, regarded as the tallest in the world, which will double Tajikistan’s energy production (WeBuild, Progetto idroelettrico di Rogun, n.d.).
Although CASA-1000 is an “old” project conceived in the first decade of the century during the US and NATO military presence in the post-Soviet region following the events of 11 September 2001, a combination of insufficient investment, mutual vetoes among the Central Asian republics (which prevented the development of hydroelectric potential in Tajikistan and Kyrgyzstan), and the return of the Taliban to power in Afghanistan in August 2021 has significantly slowed its implementation.
Until 2016, the sharp opposition between water-rich Tajikistan and Kyrgyzstan and the downstream countries, that rely on water for cotton irrigation, blocked all initiatives to exploit this vast hydropower potential. Much of Central Asia’s water originates in the mountains of Kyrgyzstan and Tajikistan, leaving the downstream countries (Uzbekistan, Kazakhstan and Turkmenistan) dependent and anxious about the consequences of upstream hydropower projects. However, after Karimov’s death, the new Uzbek president, Shavkat Mirziyoyev, adopted a more conciliatory and pragmatic stance regarding the Rogun and Kambarata projects, aiming to establish an integrated Central Asian water system and to foster the development of a regional electricity market.
Source: Official map CASA-1000
 
Concerning Afghanistan, international investors became reluctant to provide financial support for the project due to stability risks and concerns about the Taliban’s political reliability. More broadly, the project had already been approved by the World Bank in 2014, with a total cost of over USD 1,2 billion (World Bank Group, Q&A: CASA-1000 Resumption in Afghanistan, 23 February 2024).
Nevertheless, unlike in the past, the new Kabul government appears willing to cooperate, while the Central Asian republics have pursued a regional foreign policy based on dialogue and efforts to include Afghanistan in regional connectivity and cooperation initiatives. These factors have paved the way for the launch of infrastructure works on Afghan soil. The Afghan segment of the project is valued at USD 260 million, of which USD 160 million has already been spent, with funding provided by the World Bank. It is expected to be completed between 2026 and 2027, generating approximately USD 50 million in transit royalties, crucial for supporting the Afghan Emirate’s national budget and for fostering economic development and stability.
According to current plans, Pakistan is expected to import 1 GW of electricity, while Afghanistan will import 300 MW, in addition to benefiting from transit rights for power lines across its territory (CASA-1000 Official Website, CASA-1000: Increasing Clean Energy Availability and Access in Central and South Asia). Alongside the World Bank, a coalition of international partners, including the Islamic Development Bank and the European Bank for Reconstruction and Development, are now involved in the project, attracted by the prospect of strengthening connectivity and promoting regional economic growth (S. Usmani, Regional Connectivity: Tajikistan’s Race to Finish CASA-1000 by 2026, Modern Diplomacy, 14 June 2025).
Given these positive developments, all stakeholders are now ready to expand cooperation, explore new opportunities to enhance connectivity, and promote greater regional energy integration, with the long-term goal of ensuring stability across wider Central Asia.

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