Pakistan saves $27m in CASA-1000 talks in Sweden

Islamabad: Pakistan has achieved a significant financial breakthrough in the CASA-1000 project, saving more than $27 million after successfully negotiating down contractor claims during high-level talks in Sweden.

The EPC contractor, Hitachi–Cobra JV, had earlier raised its Care & Custody claims to approximately $32.9 million for Pakistan and $28.5 million for Tajikistan.

A key meeting was held on March 9–10, 2026, in Ludvika, with participation from Pakistan’s Ministry of Energy (Power Division) and the National Grid Company (NGC). The discussions focused on finalising the Care & Custody framework for the project.

Following negotiations, both sides agreed to cap the total Care & Custody cost at $9 million—shared between Pakistan and Tajikistan—until February 2028. This agreement results in savings of over $27 million for Pakistan while ensuring the safety, integrity, and operational readiness of critical HVDC infrastructure during the interim period.

The parties also agreed to allow a limited extension of up to three months beyond February 2028, if required, subject to a 5% monthly cost escalation.

The CASA-1000 project, which aims to facilitate electricity trade between Central and South Asia, has faced delays due to the geopolitical situation in Afghanistan. As a result, commissioning of the HVDC system is now expected by September 2027, necessitating interim Care & Custody arrangements.

Despite these delays, the successful outcome of the negotiations marks an important step toward operational readiness and reflects the continued commitment of participating countries to strengthen regional energy connectivity.

Earlier, Tajikistan’s First Deputy Minister for Energy and Water Resources, Jamshed Shoimzoda, had stated that the CASA-1000 project is expected to be completed by December 2026 and will supply up to 1,000 MW of electricity to Pakistan.

The CASA-1000 initiative is a $1.2 billion regional energy project involving Tajikistan, Pakistan, Kyrgyzstan, and Afghanistan, aimed at enhancing cross-border electricity transmission and promoting clean energy cooperation.