Russia gets the go-ahead to export 5,000 MW

**Great development …

Govt should exercise all diplomatic means to make this project working on ground as soon as possible … **

Fresh avenues for trade: Russia gets the go-ahead to export 5,000MW

By Zafar Bhutta
Published: October 5, 2014

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Russia has already developed infrastructure with Kyrgyzstan and could smoothly export electricity to Pakistan. PHOTO: STOCK IMAGE

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ISLAMABAD: **Tajikistan, Kyrgyzstan and Afghanistan have agreed to allow Russia to utilise the power transmission lines to be laid under the Central Asia South Asia-I (CASA) electricity trade project and export 5,000 megawatts to Pakistan, a move that will open new avenues of bilateral trade between the two countries.

“In a new development, Russia, Central Asian states, Afghanistan and Pakistan will be connected through a power corridor, which will meet energy needs of Pakistan,” said the senior government official while talking to The Express Tribune.

The development came in the wake of a Russian offer to Pakistan about a year ago in September 2013 that it was interested in investing in energy projects and export of **5,000 megawatts **of electricity via transmission lines coming from Central Asia.

Apart from the CASA project, Pakistan is going to clinch power plant deals with China in a bid to generate over 10,000MW of electricity.

Such big schemes will help bridge power deficit in the country, which has been facing hours-long outages for the last many years. The electricity shortfall has disrupted industrial production and ordinary life as well as erased 3% off economic growth annually.

According to the government official, the Russian proposal for electricity export could not be pushed through for a year as the countries that were part of the CASA project had some reservations and they did not allow Moscow to have a stake in the transmission lines.

“Russia had offered to provide finances for the CASA project in return for getting a contract for laying the transmission lines, but the countries involved in the project turned down the offer,” the official said.

Under the CASA scheme, Tajikistan will supply electricity to Pakistan and Afghanistan for five months in the summer and beyond whereas in the remaining period transmission lines will be available for others, if any, to export electricity.
Officials point out Russia has already developed infrastructure with Kyrgyzstan and could smoothly export electricity to Pakistan. It could supply electricity for seven months when transmission lines would be lying idle without any load.

In September last year, a Russian delegation, led by the deputy minister of energy and comprising representatives of major energy companies, paid a visit to Pakistan and discussed cooperation in the energy sector. It offered to cooperate with Pakistan in the import of electricity, liquefied natural gas, natural gas, production of coal-based power and exploration of oil and gas.

**Russian investors also offered 100% technical and financial assistance for Jamshoro and Muzaffargarh power plants and expressed interest in pumping money into the Gadani Power Park.
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The delegation suggested that initially Moscow would export 1,000MW, which would be increased later to 5,000MW and the power supply would be available throughout the year.

Russia is also building hydroelectric power plants in Kyrgyzstan and Tajikistan including a 3,900MW project in Kyrgyz Republic and is looking for new markets to export cheap electricity.
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Published in The Express Tribune, October 5[SUP]th[/SUP], 2014.*

Re: Russia gets the go-ahead to export 5,000 MW

Dar for Russian participation in energy sector

**** Finance minister says outstanding matters regarding CASA-1000 project will be taken up with new Afghan govt for settlement


  • October 02, 2014

http://www.dailytimes.com.pk/print_images/456/2014-10-02/dar-for-russian-participation-in-energy-sector-1412195638-7587.jpg

ISLAMABAD: Finance Minister Senator Ishaq Dar urging Russian participation in energy sector said the government would provide all possible facilitation to reach an amicable solution on longstanding dispute between trade and business concerns of both countries regarding settlement of payments/dues.

During meeting with Ambassador of Russian Federation Alexey Dedov and other officials from the Russian Embassy on Wednesday Dar said Pakistan encouraged foreign investment in the energy projects. He said with all its expertise and know-how, the Russian side could contribute in energy sector development. He welcomed Russian participation in energy sector in Pakistan.

They discussed with the Finance Minister modalities about the Pak-Russia Inter Governmental Commission (IGC) meeting. Alexey Dedov said it was important to develop bilateral ties on strong economic footing with due emphasis on investment and trade. Both sides expressed hope IGC meeting would help attain this objective and forge overall economic cooperation. Alexey said they looked forward to Finance Minister’s visit to Russian Federation to take part in the IGC.

Detailed discussion was held on long standing dispute between trade and business concerns of both countries regarding settlement of payments/dues.

Dar said though it was primarily a dispute between the private sector companies of the two countries yet government would provide all possible facilitation to reach an amicable solution.
Both sides observed this dispute had been impeding the growth of economic cooperation between the two countries and its early resolution was need of the hour.

CASA-1000: Meanwhile, Ishaq Dar said that since a new government had assumed power in Afghanistan, the outstanding matters regarding Central Asia South Asian (CASA-1000) project would be taken up with it for settlement on priority.

During a meeting with US Ambassador Robin Raphel on Wednesday Diamer Bhasha Dam with particular focus on generating much needed finances for the project came under discussion.

Dar apprised Robin Raphael about modalities of Pakistan-US Business Opportunities conference. Moot would be held as scheduled on October 8. He said the conference would serve as a useful forum to explore financial resources for Diamer Bhasha besides affording an opportunity to both Pakistani and US businessmen to interact and forge useful cooperation. Ambassador Robin welcomed holding of the conference and wished it all success.

Dar exchange views with Raphael about the CASA-1000 project. He said it had great significance keeping in view meeting the energy requirements of Pakistan. Raphel hoping early realisation of the project said it would help ease Pakistan’s energy problems.

Re: Russia gets the go-ahead to export 5,000 MW

Pakistan, Afghanistan sign landmark transit fee accord on CASA-1000

  • APP
  • October 11, 2014, 8:33 pm

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WASHINGTON** – Pakistan signed an agreement with Afghanistan on electricity transit fees, as Federal Minister for Finance and Economic Affairs Senator Ishaq Dar described it a major step towards closer partnership between the two countries with transmission of Central Asian energy to Pakistan.

World Bank President Jim Yong Kim and US Special Representative for Afghanistan and Pakistan Dan Feldman witnessed the signing ceremony at the World Bank Headquarters. “It’s a win-win for both countries,” Dar said, as Prime Minister Nawaz Sharif’s government successfully concluded the negotiations with Afghanistan on reaching an accord on 1.25 cent per KW transit fee for supply of Central Asian electricity to Pakistan through Afghan territory.

The accord, welcomed by the World Bank president as a success towards meeting Pakistan’s power requirements, helps to establish the commercial arrangements for 1,300 megawatts of sustainable, regional electricity trade between Pakistan Kyrgyz Republic, Tajikistan and Afghanistan as part of the Central Asia South Asia Electricity Transmission and Trade Project, known as CASA-1000.

Dar expressed appreciation for the World Bank, the US State Department and USAID for their support for the landmark project. “This marks a new beginning towards greater economic cooperation between the two countries - and Pakistan is committed to greater economic and trade cooperation with Afghanistan,” which just had a new government in Kabul, he said.

Pakistan’s Ambassador to the United States Jalil Abbas Jilani, Governor State Bank of Pakistan Ashraf Mahmood Wathra, Additional Secretary External Finanace Shahid Mahmood attended the ceremony. For his part, Afghan Finance Minister Omar Zakhilwal said Afghanistan was ready to realise the CASA-1000 vision and improve energy security and trade for the two countries and the region.

Meanwhile, Ambassador Jilani also said that the agreement marked an important achievement towards meeting Pakistan’s exponential energy requirements. “This is another vital step,” following US support for Diamer Basha Dam, to realise energy availability for Pakistan. CASA-1000 will build more than 1,200 km of electricity transmission lines and associated substations to transmit excess summer hydropower energy from existing power generation stations in Tajikstan and the Kyrgz Republic to Pakistan and Afghanisan.

To oversee the complex, 4-country process, an inter-governmental council has been established that will supervise the design and implementation of the project. In March 2014, the World Bank Group approved financing for the engineering design, construction, and commissioning of transmission lines and three new converter stations. The project would build upon existing power generation stations that will provide the energy to be traded over CASA-1000.

The commercial and operating framework for CASA-1000 is specifically based on open access principles that will allow additional energy supplying countries to connect with wider regional transmission networks. CASA-1000 will enable the development of the Central Asia South Asia Regional Electricity Market (CASAREM) – a long-term plan for regional energy trade.