The Taliban-run Ministry of Water and Energy announced Saturday that the CASA-1000 project will soon resume in Afghanistan, with high-level discussions ongoing with the World Bank.
Earlier this year, the World Bank confirmed that the CASA-1000 project would proceed at the request of the three neighboring countries involved. The World Bank emphasized that all construction payments and future revenues will be managed externally, minimizing Taliban interference.
However, the Taliban-run Ministry of Water and Energy claimed that once the project is activated, Afghanistan will earn $65 million annually from electricity transit.
Economists have raised concerns about the potential misuse of national projects by the Taliban. Despite expectations that the project would begin in Afghanistan two months ago, officials from the Taliban-run Ministry of Water and Energy stated at a press conference in Kabul on Saturday that discussions are still ongoing. They indicated that an agreement to implement the CASA-1000 project has been reached.
“The World Bank projects previously implemented by the Ministry of Water and Energy include the CASA-1000 project. Our cooperation with Breshna Company [state power supply company] is ongoing, as is our engagement with the World Bank,” said Farhad Mahmudi, head of Energy Programs at the Taliban-run Ministry of Water and Energy.
The CASA-1000 project is anticipated to be completed by 2026.
Following the Taliban’s takeover, the World Bank halted projects worth $4.5 billion in Afghanistan. The Taliban-run Ministry of Water and Energy reported that the World Bank’s office in Afghanistan has reopened and that the World Bank has been settling accounts and paying off debts to companies.
Rafiullah Stanikzai, head of the department of Coordination and Planning within the Taliban-run Ministry of Water and Energy, stated that they are negotiating with the World Bank to resume all projects, including water projects.
“Their current program is to settle accounts for completed projects and pay off debts. The Ministry of Water and Energy has negotiated with them in various meetings to complete unfinished water projects and jointly implement new plans and projects,” he said.
Economists, meanwhile, have warned of potential misuse of national projects by the Taliban. “They can work on major infrastructure projects like CASA-1000, electricity transmission, railways, and road construction that existed before,” said Amanullah Ghalib, former head of Breshna Company. “I am sure that if the World Bank ensures cooperation from the government, they can invest in infrastructure and their money won’t go to waste. Slowly, they will start their projects.”
On Thursday, the World Bank announced the appointment of Faris Hadad-Zervos as its new Country Director for Afghanistan, effective immediately. Hadad-Zervos succeeds Melinda Good, who has transitioned to a new role within the organization. Previously, Hadad-Zervos served as the Country Director for Maldives, Nepal, and Sri Lanka.
