Islamabad has announced a major financial achievement in the ongoing CASA-1000 power transmission project, having secured savings exceeding $27 million after intense negotiations with the project’s EPC contractor. The discussions, held during a high-level meeting in Sweden, focused on reducing the substantial Care & Custody claims initially presented by the Hitachi–Cobra joint venture, the consortium responsible for engineering, procurement, and construction of the project’s critical infrastructure.
Originally, the contractor had submitted Care & Custody claims amounting to approximately $32.9 million for Pakistan and $28.5 million for Tajikistan. These claims pertained to the costs associated with maintaining and safeguarding the high-voltage direct current (HVDC) transmission assets during the project’s interim period. The negotiations took place over two days, from March 9 to 10, 2026, in Ludvika, Sweden, with key representatives from Pakistan’s Ministry of Energy (Power Division) and the National Grid Company (NGC) actively participating to ensure a fair and sustainable agreement.
After thorough deliberations, both parties reached a consensus to cap the total Care & Custody expenses at $9 million, a figure to be shared between Pakistan and Tajikistan until February 2028. This agreement not only represents a significant reduction from the initial claims but also guarantees the continued protection and operational readiness of the vital HVDC infrastructure during the extended interim period. Furthermore, the contract allows for a limited extension of up to three months beyond the February 2028 deadline, subject to a 5% monthly cost increase, providing flexibility to accommodate any unforeseen delays.
The CASA-1000 project, designed to facilitate electricity trade between Central and South Asia, has encountered delays primarily due to the complex geopolitical landscape in Afghanistan. These challenges have pushed the expected commissioning date of the HVDC system to September 2027, necessitating interim arrangements to maintain the infrastructure’s integrity. Despite these setbacks, the successful outcome of the recent negotiations underscores the commitment of all involved nations to advance regional energy connectivity and cooperation.
It is important to note that earlier statements from Tajikistan’s First Deputy Minister for Energy and Water Resources, Jamshed Shoimzoda, had projected the completion of the CASA-1000 project by December 2026, with the capability to supply up to 1,000 megawatts of electricity to Pakistan. This ambitious initiative, valued at approximately $1.2 billion, involves collaboration between Tajikistan, Pakistan, Kyrgyzstan, and Afghanistan. Its primary goal is to enhance cross-border electricity transmission, promote clean energy, and foster economic integration across the region.
In summary, Pakistan’s successful negotiation in Sweden marks a critical milestone in the CASA-1000 project’s progress, delivering substantial cost savings while ensuring the protection of essential infrastructure. This development not only reflects prudent financial management but also reinforces the shared vision of participating countries to strengthen energy ties and support sustainable development in Central and South Asia.
