World Bank Group

01/15/2026 | Press release | Distributed by Public on 01/15/2026 06:29

Updated Q&A on CASA-1000 Resumption in Afghanistan

What is the CASA-1000 Project?

The Central Asia-South Asia Electricity Transmission and Trade Project (CASA-1000) is a US$1.2 billion regional power project that is helping to deliver clean, reliable energy to people across four countries. The project approved on March 27, 2014, will create the conditions for sustainable electricity trade between the Central Asian countries of Tajikistan and the Kyrgyz Republic and the South Asian countries of Afghanistan and Pakistan. The project facilitates supply of 1,300-megawatt (MW) of surplus renewable (hydro) power from Central Asia to South Asia during the summer supply months of May to September while allowing open access for electricity trade during October to April -helping build a brighter, more sustainable future for millions of people.

What are the important benefits of the project?

Access to electricity is a fundamental human right and the foundation of development. Without it, businesses can't create jobs and produce goods, hospitals can't refrigerate medicines or deliver life-saving services, and children cannot study at night and grow.

CASA-1000 will help develop the energy trade in Tajikistan, the Kyrgyz Republic, Afghanistan, and Pakistan, while providing better and more sustainable access to energy for people and businesses.

In addition, the project creates a steady revenue stream to the Kyrgyz Republic and Tajikistan that would help them meet the energy deficit they face during winter months for the duration of the power purchasing agreements. CASA-1000 also supports the World Bank and donor partners in achieving financial sustainability for the power sector in these two countries. By enabling utilities in the Krygyz Republic and Tajikistan to recover costs and strengthen their financial position through timely repayments, the project builds a more resilient energy system for the future.

The project also helps the people of Afghanistan and Pakistan gain access to electricity during critical moments, supporting essential services and improving daily life. At the same time, it enables the people of Central Asia to address energy shortages during harsh winter months, helping to alleviate hardship and enhance their well-being.

CASA-1000 will also help reduce emissions by providing opportunities for the development and use of clean, renewable hydropower. By supplying surplus renewable energy from Kyrgyz Republic and Tajikistan, the project will replace expensive, fuel-based power generation in Pakistan and Afghanistan, while also encouraging further growth of renewable energy in these countries.

The project will benefit all four countries, and is expected to set the stage for expanded energy trade between Central Asia and South Asia, boosting regional cooperation and stabilization, first through electricity and subsequently also in the digital sector (Digital CASA)[1], which could enable use of digital technology to reach international standard of access to health and education to remote people in all four countries.

The completion of all project facilities is expected to create additional opportunities for regional integration, potentially allowing for more Central and South Asian countries to participate in the broader Central Asia-South Asia regional electricity trade. This expansion could occur in various forms and arrangements, further increasing the overall value of and benefits of the project.

What is the current status of the CASA-1000 project in Afghanistan and other participating countries?

The CASA-1000 project in Afghanistan was paused and all implementation activities stopped following the political change in August 2021. At the time of the pause, approximately 18% of the towers for the Afghanistan section of the transmission line had been erected and more than 90% of the necessary materials and equipment for completion had been delivered to the country. Work resumed in Afghanistan in December 2024 after safeguards were put in place. Currently, all contractors are actively working, and as of December 2025, 310 towers (23%), 79 new foundations (8.4%), and 18.16 kilometers (3.4%) of stringing have been completed from the remaining tasks since resumption. The project is expected to be fully implemented by the end of 2027.

The Kyrgyz Republic, Tajikistan, and Pakistan have largely completed the construction of facilities in their respective countries. They are currently waiting for the completion of Afghanistan transmission line, after which testing of High-Voltage Direct Current (HVDC) system can be finalized and project operations can begin.

Why was it important to resume the CASA-1000 project in Afghanistan?

The CASA-1000 project cannot operate unless the Afghanistan section of the transmission line is completed, because Afghanistan serves as the central link connecting all four participating countries. Without this infrastructure in place, electricity cannot flow between Central Asia and South Asia. While the Kyrgyz Republic, Tajikistan, and Pakistan have started to repay loans to the World Bank and other financiers for their respective CASA-1000 infrastructure, the entire system will remain idle until the Afghan segment is finished. If CASA-1000 is not completed and becomes operational, the three countries risk incurring significant economic and financial losses, with about US$1 billion worth of stranded infrastructure assets. Recognizing these risks, participating countries requested the World Bank's urgent support to finish the Afghanistan portion, to ensure the project's success and to avoid these negative consequences.

What other options had been explored to resume CASA-1000 activities in Afghanistan?

CASA-1000 countries explored bringing in private investors or financial institutions to fund the remaining project activities in Afghanistan. However, there was no interest from private investors or banks. As a result, the participating countries requested the World Bank to resume the project in Afghanistan using the original IDA financing. The World Bank agreed to restart the CASA-1000 project under a ring-fenced approach.

What does a "ring-fenced approach" mean?

A ring-fenced structure ensures that all construction payments and future revenues are managed outside of Afghanistan, ensuring that no funds pass through or involve Interim Taliban Administration (ITA) systems. This method keeps project finances in offshore accounts and outside ITA control, both during construction and future operations. The approach also maintains the project's original implementation arrangements, including the engagement of additional experts for supervision and compliance monitoring as agreed when the project was approved in 2014.

How will the ring-fenced approach be monitored throughout the project?

Monitoring under the ring-fenced approach involves several safeguards to ensure transparency and compliance. The World Bank has appointed an international senior consultant and two local experts to oversee progress and monitor adherence to the Bank's environmental and social safeguards. In addition, a Third-Party Monitoring Agency, engaged by the World Bank, independently verifies progress and certifies contractor invoices. All payments to contractors and consultants during construction are made directly into offshore accounts, based on invoice verification by this agency. For the operations phase, offshore banking arrangements have been established in Abu Dhabi, requiring approval for any use of funds-including power purchases-so that all financial flows remain outside ITA oversight.

Has a Grievance Redress Mechanism (GRM) been established for the project?

Yes, a Grievance Redress Mechanism (GRM) has been reestablished by Afghanistan's national power utility, Da Afghanistan Breshna Sherkat (DABS), at all three levels (central, provincial and community level). The previously established GRM had ceased working after the pause of project implementation in August 2021.

Has the Resettlement Action Plan (RAP) for Afghanistan been updated?

Yes, the Resettlement Action Plan (RAP) has been updated and made publicly available. As part of the process, Da Afghanistan Breshna Sherkat (DABS) and the Land Department conducted a new assessment of the entire transmission line route, which included updated land valuations. According to the most recent data, 88.5% of all towers are located on government land and do not require any land acquisition. Compensation payments for the acquisition of private lands required for tower footings has been mostly completed. The final compensation payments to households affected by the CASA-1000 transmission line corridor are expected to be complete by March 2026.

How are security risks during the implementation of the project being managed?

Before work resumed in Afghanistan, a Security Risk Assessment (SRA) was conducted for all seven provinces through which the transmission line passes, and an updated Security Management Plan (SMP) was prepared and shared with the World Bank. Two Project Security Focal Points (SFP) have also been appointed by DABS. The SMPs of contractors were also reviewed and updated in accordance with guidance provided by the World Bank.

What measures are taken to ensure compliance on Sexual Exploitation and Abuse (SEA) and Sexual Harassment (SH)?

Under the ongoing World Bank-financed Afghanistan Community Resilience and Livelihoods (CRL) project, UNOPS has been tasked to put in place the required measures for Sexual Exploitation and Abuse and Sexual Harassment (SEA/SH) for the CASA-1000 project. UNOPS has developed a SEA/SH Action Plan specifically for CASA-1000 in Afghanistan, which is currently being implemented in coordination with contractors' workplans. This ensures that all required training courses are conducted before any construction activities resume on the ground.

The SEA/SH measures being implemented by UNOPS include: establishing an accountability and response framework; creating a dedicated SEA/SH Grievance Redress Mechanism; raising awareness in local communities about where and how to report incidents; providing training to contractors on SEA/SH issues; ensuring that all staff sign Codes of Conduct; and ongoing monitoring of compliance.

What supervision arrangements are in place to ensure compliance with safeguards?

To ensure robust and effective oversight of the CASA-1000 project, the World Bank has hired a Third-Party Monitoring Agent (TPMA) to conduct regular, independent monitoring of all project activities. In addition, the capacity of the Owners' Engineers has been strengthened through the recruitment of more staff, enabling more comprehensive supervision of the implementation of environmental and social safeguards. The project is further supported by a dedicated Project Implementation Unit within Da Afghanistan Breshna Sherkat (DABS), which is responsible for day-to-day management and coordination. The World Bank project team maintains continuous communication with DABS and other parties, providing ongoing technical support throughout the project's implementation.

[1] Digital CASA refers to initiatives aimed at enhancing digital infrastructure and services in Central and South Asia

Last Updated: Jan 15, 2026

World Bank Group published this content on January 15, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on January 15, 2026 at 12:30 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]