September Elements of success behind CASA-1000

2 Objective: Facilitate sustainable electricity trade of 1300 MW between the Central Asian countries of Tajikistan and the Kyrgyz Republic and the South Asian countries of Afghanistan and Pakistan Main Project Components: km of 500 kV transmission lines - 3 Convertor Stations - Technical Assistance and Project Implementation Support - Community Support Programs Cost: About US$1.2 billion Briefly about CASA

Current Status  Commercial Deal  Negotiations on main commercial agreements and prices are completed. The Master Agreement and four Power Purchase Agreements, the core of the project were signed between all the parties on April 24,  Procurement  Procurement of key packages under process at varying stages, namely, HVDC converter stations; Afghanistan HVDC line packages (longest of the line segment); and Owner’s Engineers for HVAC and HVDC systems.  Procurement for the remaining components would follow these.  Financing  More than 90 % financing approved (WB, USG, ARTF, EIB, DFID, IsDB, EBRD). Remaining expected to be filled soon.  The Financing Agreements have been signed between the World Bank and all four countries. Preparation for signing of Financing Agreements between the countries and other IFIs is in progress 3

Some of the remaining key actions 4  Signing of the PPA between Afghanistan and Pakistan  Finalization of alternative transmission line route by Afghanistan for the Salang section of the originally planned route.  Signing of Coordination Agreement between entities designated by governments of the Kyrgyz Republic and Tajikistan; and  Signing of agreement between each Government and its designated entities (Host Government Agreements)

Elements of Success 5  A successful institutional and governance mechanism  Strong ownership for the project  An exemplary patience, collaboration and hard work  Innovative design of commercial framework that lays the foundation for common cost and risk sharing principles  A community support program during construction  Unique internal arrangement for the World Bank teams to work seamlessly across two regions  And a solid foundation laid for development of bigger regional projects

6 Thank You. Questions?