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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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Uzbekistan approves feasibility study agreement for Trans-Afghan Railway

The agreement builds on a tripartite document signed on July 17, 2025, which outlined cooperation on preparing a feasibility study for the Termez–Kharlachi railway corridor.

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Uzbekistan has ratified an international agreement to prepare a feasibility study for the Naybabad–Kharlachi section of the Trans-Afghan Railway, formalizing its participation in the project.

President Shavkat Mirziyoyev signed a decree on February 4 approving the agreement.

The framework agreement involves the transport ministries of Uzbekistan, Afghanistan and Pakistan and provides for joint work on a feasibility study for the proposed railway line between Naybabad and Kharlachi. The section forms part of the wider Trans-Afghan Railway project aimed at strengthening transport links between Central and South Asia.

Under the decree, Uzbekistan’s Ministry of Transport has been designated as the competent authority responsible for implementing the agreement. The Ministry of Foreign Affairs has been tasked with notifying Kabul and Islamabad that Uzbekistan has completed the internal procedures required for the agreement to enter into force.

The agreement builds on a tripartite document signed on July 17, 2025, which outlined cooperation on preparing a feasibility study for the Termez–Kharlachi railway corridor.

The planned route is expected to run through Termez, Naybabad, Maidanshahr, Logar and Kharlachi, providing a transit corridor through Afghanistan.

The feasibility study will be commissioned by the Tripartite Project Office for the Development Strategy of International Transport Corridors under Uzbekistan Railways.

Established in Tashkent in May 2023, the office also operates branches in Kabul and Islamabad to coordinate the project.

First proposed in 2018, the Trans-Afghan Railway was initially projected to carry up to 20 million tons of cargo annually at a cost of about $5 billion. Cost estimates have since been revised.

In July 2022, Uzbekistan Railways cited an estimate of $4.6 billion with a construction period of up to five years, while Pakistan’s Ministry of Railways put the cost at $8.2 billion in December 2024.

More recent assessments have placed the overall cost at around $7 billion, with a public-private partnership under a Build-Operate-Transfer model among the options under consideration.

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Afghanistan seeks expanded ties with Russia in energy, mining and infrastructure

TASS reported that Kabul is also prepared to cooperate with Moscow in the extraction of mineral resources.

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Afghanistan has expressed strong interest in broadening trade and economic cooperation with Russia, with a particular focus on energy, mining and infrastructure projects, according to Russia’s TASS news agency.

In an interview with TASS, Afghanistan’s Ambassador to Moscow, Gul Hassan, said Kabul is keen to import oil and gas from Russia as part of efforts to deepen bilateral economic ties.

He noted that trade relations between the two countries are progressing and that, if key obstacles—especially banking restrictions—are addressed, Afghanistan could also import medicines, industrial goods, grain, vegetable oils and other commodities from Russia.

In return, the ambassador said Afghanistan is ready to export fresh and dried fruits, vegetables, medicinal plants, carpets and mineral resources to the Russian market, adding that expanding export-import operations could significantly increase bilateral trade volumes.

He also revealed plans to open an exhibition of Afghan products in Moscow, which he said would help boost trade turnover.

TASS reported that Kabul is also prepared to cooperate with Moscow in the extraction of mineral resources.

Hassan described the economy as a central pillar of Afghanistan’s foreign policy, emphasizing the government’s goal of positioning the country as a key link in regional economic integration and attracting foreign investment.

He noted that Russian companies have long shown interest in Afghanistan’s industrial, mining and infrastructure sectors.

The ambassador further told TASS that Russian firms are already in talks with relevant Afghan authorities on the construction of small hydroelectric power plants.

Representatives of several Russian companies have reportedly visited Afghanistan and held meetings with officials and technical experts.

According to Hassan, practical steps toward cooperation in the energy and power generation sectors are expected in the near future, pointing to a potential new phase in Afghan-Russian economic relations.

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Pakistan, China plan to extend CPEC to Afghanistan, revive trilateral framework

The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics.

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Pakistan and China are moving forward with plans to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan, a strategic step aimed at bolstering regional connectivity and economic cooperation. The expansion, along with the revival of the Pakistan-China-Afghanistan trilateral framework, was discussed in a recent briefing to the Pakistani Senate Standing Committee on Foreign Affairs.

According to Pakistan Today, officials from Pakistan’s Ministry of Foreign Affairs outlined the details during a session in Islamabad, where they reviewed key aspects of Pakistan’s foreign relations, regional developments, and economic diplomacy.

Officials emphasized that Pakistan’s relationship with China remains strong, underscoring the “all-weather” strategic partnership between the two nations. Strengthening ties with Beijing, they stated, continues to be a cornerstone of Pakistan’s foreign policy. This includes unwavering support for China’s position on regional and international issues, particularly the One-China policy and matters related to territorial integrity.

The briefing also touched upon China’s consistent backing of Pakistan in various areas, including sovereignty, economic stability, counter-terrorism, and support for Pakistan’s exit from the Financial Action Task Force (FATF) grey list.

The Kashmir issue was also addressed, with officials noting that China considers it an unresolved matter and advocates for a peaceful resolution in line with UN Security Council resolutions.

The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics. Officials stated that reviving the trilateral framework is part of broader efforts to foster greater cooperation and connectivity in the region, with an eye on long-term stability and prosperity.

The move also reflects both countries’ desire to further integrate Afghanistan into the regional economic landscape, a key element in fostering peace and development.

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