WASHINGTON, D.C., November 22, 2023 – Today the World Bank Board of Executive Directors approved additional financing for Tajikistan to continue implementation of two projects: The Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000) and CASA Community Support Project. The CASA-1000 project, which started in January 2018, is a regional power interconnection project aiming to facilitate the transfer of 1,300 MW of surplus renewable hydropower from Tajikistan and the Kyrgyz Republic to Afghanistan and Pakistan. The main objective is to enable electricity trade between Central Asia and South Asia to increase economic benefits and reliable access to energy supply for household and business consumers in these countries.
The additional financing for the two projects amounts to $21 million and is provided as grant funding from the International Development Association (IDA). The CASA-1000 project will receive $11 million to finance remaining activities needed for completion of construction works and commissioning of the transmission infrastructure in Tajikistan. Despite the challenges posed by the COVID-19 pandemic, 95% of the construction of the key infrastructure in Tajikistan has been completed and construction of the remaining infrastructure is expected to be completed by December 2024.
In addition, $10 million was approved to enable further implementation of the CASA Community Support Project, which aims to increase access to quality energy supply, improve social and economic infrastructure services, and contribute to strengthening of local governance in communities in the project catchment area within Tajikistan. This project started in April of 2020 to improve livelihoods of the communities impacted by the CASA-1000 transmission project. It facilitates reliable electricity supply by rehabilitation of local distribution systems in 65 villages of Sughd and Khatlon Regions, and Districts of Republican Subordination, located within the area of impact of CASA-1000 transmission line. Furthermore, it supports improvement of the basic community services in these areas, including 64 secondary schools, 11 kindergartens, 15 health centers, 8 water supply and irrigation systems, as well as roads and bridges in 4 villages.
“By providing additional financing, the World Bank helps close the financing gap on the CASA-1000 project. This electricity transmission and trade project, when completed, has the potential to boost regional cooperation, and transform the lives of people by giving access to more reliable year-round energy supply for communities and businesses,” said Ozan Sevimli, the World Bank Country Manager for Tajikistan. “I also want to emphasize the importance of the CASA Community Support Project as a way to engage citizens within the project area in inclusive community development activities and participatory decision-making so that we address local needs."
When the CASA-1000 project is fully operational, it will benefit the countries along the corridor in Central Asia and South Asia. The exporting countries would be able to bring a stable export revenue stream from electricity export, while importing ones will benefit households and businesses who experience power shortages. Additionally, the project is utilizing clean hydropower resources to complement the global efforts in addressing climate change. The communities on CASA corridor will continue to benefit from contributions from the revenues during the 15 years of project operation phase.
The World Bank is currently financing 27 projects in Tajikistan, totaling $1.67 billion. Since 1996, the World Bank has provided almost $2.94 billion in grants from the International Development Association (IDA), highly concessional credits, and trust funds for Tajikistan. The World Bank is committed to continuing its support as the country strives to improve lives of people and meet the aspirations of its young and growing population.
