ISLAMABAD - Federal Minister of Water and Power here on Wednesday said that all the hurdles in CASA 1000 electricity import project from Kyrgyzstan and Tajikistan has been removed and Pakistan will get imported electricity in 2018 at a rate of 9.40 cents.

After one month of hard work, we were able to resolve all issues and finalised tariff and transit fee and inked an agreement this month, said Khawaja Asif while talking to journalists.

He said 1300 megawatts of electricity would be imported, out of which 70 percent would come from Tajikistan, while 30 percent would be from Kyrgyzstan. Asif was referring to the final agreement inked last week between electricity-selling countries of the Kyrgyz Republic, Tajikistan and buying countries of Afghanistan and Pakistan was signed on Wednesday in Istanbul, Turkey. Although conceived long ago, the government took the initiative to expedite the project and convened a meeting of the Inter-Governmental Council of CASA-1000 in September 2013 in Islamabad that discussed various aspects of the project.

Under this project 300MW would be for Afghanistan, while remaining 1000MW would be for Pakistan. Under the deal, Pakistan will be importing electricity for five months (May to September) of the summer season every year. However, Asif said that the government has received hints that may be Afghanistan would not use all 300 MW. He said in that case Pakistan would get the remaining electricity also. Asif believes that meeting lead to the finalisation of the project, which has been hanging in air from last many years due to security transit fee and electricity cost issues. Kabul is already receiving electricity from Tajikistan, we would install transmission set up at Torkham, a HVDC station, which would materialise electricity flow to national grid by 2018, he said. He said his government was able to finalise the tariff at a very reasonable rate of 9.40 cents per kilowatts hour.

According to the reports the estimated cost of the project is $1.17 billion. World Bank will provide $900 million funding for the project.