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Uzbekistan denies reports of lowered electricity export rates to Afghanistan

The National Electric Networks of Uzbekistan says no plans have been made to amend the tariffs of electricity exported to Afghanistan

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Uzbekistan’s electricity supply company has said there has been no changes to tariffs for electricity exports to Afghanistan. 

According to a statement issued by the National Electric Networks of Uzbekistan, no plans have been made to amend the tariffs although an agreement was reached to expand the project to build the Surkhon-Pul-e-Khumri 220-500 kV power transmission line by constructing additional substations and networks.

Last months, “a delegation headed by the acting Deputy Prime Minister of Afghanistan, Mullah Abdul Ghani Baradar, visited our country.

“During the bilateral meetings, issues of further expansion of mutually beneficial relations, consistent development of cooperation in trade, economic, energy, transport and other spheres were discussed in detail,” the statement read.

“As a result of the project optimization and the increase in the share of localized materials in construction, a preliminary agreement was reached to reduce the construction cost from 252 million to 222 million US dollars. 

“The contract is currently in the process of being agreed upon and will be signed after the negotiations are completed.

“At the same time, no official changes were made to the tariffs for electricity supplies to Afghanistan,” the statement read.

In December last year Uzbekistan extended its agreement to export electricity to Afghanistan for 2025.

After talks in Afghanistan, Uzbekistan’s energy company Uzenergosotish and Afghanistan’s DABS signed a power purchase agreement for electricity supplies this year.

The sides also conducted “comprehensive and detailed” technical discussions regarding the construction of the Surkhan to Pul-e-Khumri to Kabul power line. 

Once operational, the project is expected to supply Afghanistan with 24 million kWh of electricity daily, amounting to 6 billion kWh annually. 

The transmission line will span 245.6 kilometers, with 45 kilometers on Uzbekistan’s side and 200.6 kilometers within Afghanistan.

Currently, Afghanistan produces only 20% of its electricity domestically, importing the remaining 80% from Uzbekistan, Tajikistan, Turkmenistan and Iran. 

Agreements with Tajikistan and Turkmenistan were renewed in late November and early December, respectively.

In September 2019, Uzbekistan’s National Electric Networks signed a 10-year contract with DABS for electricity exports. At the time, deputy energy minister Sherzod Khodjaev stated that initial supplies would amount to 4.2 billion kWh annually, with plans to increase the volume to 6 billion kWh over time.

Uzbekistan has been supplying electricity to Afghanistan since 2002. Over the years, the volume of supplies has grown significantly, from 62 million kWh in the initial years to 2.6 billion kWh by the end of 2019. 

In 2023, Uzbekistan exported 1.82 billion kWh of electricity to Afghanistan, valued at $91.18 million (approximately 5 cents per kWh).

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Afghanistan, Uzbekistan sign 13 trade MoUs worth over $100 million

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Thirteen trade and investment memorandums of understanding (MoUs) worth more than $100 million were signed between private sector representatives of Afghanistan and Uzbekistan during a conference held in Kabul on Saturday.

The conference, which brought together business leaders and officials from both countries, focused on expanding bilateral economic cooperation, increasing trade volume, and identifying new investment opportunities.

Speaking at the event, Nooruddin Azizi, Minister of Industry and Commerce of Afghanistan, said economic relations between Afghanistan and Uzbekistan have gained notable momentum in recent months. He stressed that Afghanistan is actively working to strengthen regional trade ties and create a more favorable environment for investors.

Azizi added that Afghanistan offers significant investment potential, particularly due to its available workforce and emerging opportunities across multiple sectors, and is ready to welcome joint ventures with foreign partners.

Officials from the Ministry of Industry and Commerce of Afghanistan said the government has facilitated around $2 billion in investment across various sectors over the past year, reflecting growing investor interest in the country’s economy.

The Uzbek delegation also reiterated its commitment to expanding economic relations with Afghanistan, describing the agreements as an important step toward deeper regional cooperation.

Amanbay Orynbayev, head of Uzbekistan’s Karakalpakstan delegation, said his country places strong emphasis on long-term, transparent, and reliable economic partnerships. He encouraged Afghan traders to take advantage of joint investment opportunities to access new regional markets.

The Afghan private sector welcomed the agreements, expressing hope that increased trade engagement and business exchanges will further strengthen economic ties between the two neighboring countries.

Officials noted that the total value of agreements signed between Afghanistan and Uzbekistan has now exceeded $1.5 billion. If implemented effectively, these commitments are expected to contribute to increased trade flows and broader economic growth in Afghanistan.

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New Afghanistan-China transport corridor launched via Turkmenistan

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A new multimodal freight corridor linking China and Afghanistan via Turkmenistan has been officially launched, aiming to improve the speed and efficiency of overland cargo transportation across Central Asia.

According to the Turkmenistan Embassy in London, the country has become part of a newly established route designed to accelerate freight deliveries between China and Afghanistan.

The corridor, developed with the involvement of Uzbekistan Railways’ subsidiary Uztemiryulcontainer, covers approximately 7,400 kilometers and is expected to reduce transit time to around 30 days, improving overall logistics efficiency.

Under the new route, containers are transported by rail from China through the Altynkol station in Kazakhstan, continuing via Uzbekistan to a logistics hub in Bukhara. From there, cargo is transferred to road transport and moved across Turkmenistan before reaching Herat in Afghanistan.

Officials say the new system integrates rail and road networks into a unified logistics chain, making transport more predictable and efficient.

 

 

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Uzbekistan launches new cargo corridor linking China and Afghanistan

From Uzbekistan, shipments will be transferred onto trucks and transported across Turkmenistan en route to Herat in western Afghanistan.

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Uzbekistan’s national railway operator has announced the launch of a new multimodal freight route designed to strengthen logistics links between China and Afghanistan via Central Asia.

According to Trend news agency the new corridor will see container used goods transported by rail from China through Kazakhstan’s Altynkol station into Uzbekistan. Cargo will then be handled at the Bukhara logistics centre, operated by Uztemiryulkonteyner, before continuing its journey by road.

From Uzbekistan, shipments will be transferred onto trucks and transported across Turkmenistan en route to Herat in western Afghanistan.

Previously, freight along this trade corridor was largely routed via sea from China to Iran’s Bandar Abbas port, before continuing overland into Afghanistan. The new overland alternative is expected to streamline logistics and improve reliability.

Covering approximately 7,400 kilometres, the route is projected to reduce transit times to around 30 days, offering a more efficient option for regional cargo movement between East Asia and South Asia.

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