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World Bank agrees to restart Afghanistan CASA-1000 power project

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The World Bank has announced that it has agreed to restart the Central Asia-South Asia Electricity Transmission and Trade Project (CASA-1000) in Afghanistan amid concerns among the other participating countries -Kyrgyzstan, Tajikistan and Pakistan – that they risk $1billion of stranded assets.

However, the WB said the resumption would only take place within a ring-fenced structure that would ensure all construction payments and future revenue are managed outside of Afghanistan and do not involve the Islamic Emirate government.

The structure would also mean a strengthened commitment to the use of international consultants to supervise progress and third-party monitoring to verify progress and certify contractor invoices, it said.

The $1.2bn CASA-1000 regional power project is designed to interconnect the power grids of the four participating countries, allowing for hydro power-generated electricity to be exported from the two Central Asian states to Afghanistan and to Pakistan via Afghanistan.

The project was approved by the World Bank board in March 2014 with financing from the International Development Association (IDA), but in Afghanistan it was paused, with all implementation activities stopped, in the wake of the return to power of the Islamic Emirate.

Before the project was paused, about 18% of the towers for the Afghanistan portion of the CASA transmission line had been erected and about 95% of the materials and equipment needed to complete the project in the country had been supplied, according to the World Bank.

Despite the Afghanistan pause, the Kyrgyz Republic, Tajikistan and Pakistan continued with the implementation of CASA-1000 and construction activities are nearly complete in all three countries, it added.

The ring-fenced resumption, said the World Bank, would be in two phases: construction, expected to take three years, and operations after that.

Its statement concluded: “During the project construction phase, the World Bank will make payments directly to the offshore accounts of international contractors and consultants, based on verification of invoices by the independent monitoring agency.

“For the operations phase, Offshore Account Bank (Abu Dhabi) arrangements are in place to ensure that payments and revenue are ring-fenced offshore as per commercial contractual agreements with requirements for no objection for use for specified purposes, including purchase of electricity from Tajikistan and Kyrgyz Republic under the CASA-1000 and other existing power purchase agreements.”

The IEA has repeatedly called for the resumption of stalled development projects in the country by international organizations and countries.

The Islamic Emirate of Afghanistan (IEA) says that, any project that is implemented in Afghanistan should be done once the Islamic Emirate of Afghanistan has been informed.

The IEA also said Afghanistan’s conditions should be taken into consideration.

“We are ready to cooperate. There is security in Afghanistan and there are facilities to implement the project and the system cooperates in the necessary sectors and will not be an obstacle,” said Zabiullah Mujahid, IEA’s spokesman.

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Afghanistan, Kuwait explore new investment and trade opportunities

The Afghan Embassy in Kuwait said the talks focused on Afghanistan’s security and stability, economic potential and available investment opportunities.

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Afghanistan and Kuwait have discussed expanding trade and investment cooperation during a meeting between Afghanistan’s Chargé d’Affaires in Kuwait, Mohammad Shafiq Khatib, and prominent Kuwaiti investor Ajeej Khalaf, along with a number of businessmen and investors.

The Afghan Embassy in Kuwait said the talks focused on Afghanistan’s security and stability, economic potential and available investment opportunities.

The sides stressed the importance of strengthening trade and economic ties and expanding investment cooperation between the two countries.

Khatib invited Kuwaiti businessmen and investors to visit Afghanistan, explore investment opportunities and consider investing in various sectors of the Afghan economy.

The meeting comes as Afghanistan seeks to attract more foreign investment and strengthen economic and commercial ties with regional and international partners.

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Azizi: Afghanistan ready to attract Chinese and Uzbek investment

On the sidelines of the conference, Azizi and his delegation visited an exhibition showcasing Uzbek products and manufactured goods.

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Afghanistan is ready to attract investment from Chinese and Uzbek companies across key sectors of the economy, Minister of Industry and Commerce Nooruddin Azizi said at a trade conference in Uzbekistan’s Termez.

Speaking at the Surkhandarya–China Trade Conference, Azizi said recent exchanges between Afghan, Uzbek and Chinese officials and business delegations had opened new opportunities for trade, transit and investment.

He described China as a key economic partner and an important player in strengthening regional connectivity, while emphasizing the need to increase Afghan exports to regional markets, particularly China.

Azizi said Afghanistan was prepared to facilitate investment by Chinese and Uzbek companies in mining, agriculture, food processing, energy, manufacturing, machinery and economic infrastructure.

He also called for the development of new transit corridors linking Central Asia with China, saying Afghan exports could be transported through Uzbekistan’s trade networks to China and other regional markets.

The minister said joint investment and the processing of Afghanistan’s raw materials inside the country could create sustainable and mutually beneficial economic opportunities across the region.

Officials from Afghanistan, Uzbekistan and China, as well as private-sector representatives, attended the conference.

Balkh Governor Mohammad Yousuf Wafa highlighted the longstanding friendly relations between Afghanistan and Uzbekistan and the investment opportunities available in Balkh province.

On the sidelines of the conference, Azizi and his delegation visited an exhibition showcasing Uzbek products and manufactured goods.

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Uzbekistan, Kazakhstan target Afghanistan in push to expand regional trade

According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent.

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Uzbekistan and Kazakhstan are seeking to deepen economic cooperation and jointly expand into new regional markets, including Afghanistan, as part of broader efforts to strengthen trade and investment across Central Asia and the Middle East.

According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent, where business leaders and trade associations from both countries explored opportunities to promote their products in third-country markets, particularly Afghanistan, Syria and Iraq.

Afghanistan featured prominently in the discussions, with participants noting that Kazakhstan’s exports to Afghanistan reached nearly $500 million during the first seven months of 2025—almost matching the country’s total exports to Afghanistan for all of 2024. Officials said the long-term goal is to increase exports to $3 billion.

The forum also highlighted growing imports of mineral raw materials from Afghanistan. Participants discussed a proposed agreement to supply Afghan zinc ore to the Almalyk Mining and Metallurgical Complex in Uzbekistan.

Beyond Afghanistan, delegates examined emerging business opportunities in Syria and Iraq, where reconstruction efforts are expected to drive demand for food products, construction materials and industrial goods.

The forum also focused on improving regional logistics. Officials discussed using available capacity on Turkish freight trucks transiting Uzbekistan, a move expected to reduce transport costs and improve access to regional markets.

At the conclusion of the forum, both sides agreed to organise joint business missions to third-country markets, including Aleppo, Syria, in late September and Erbil, Iraq, in early October, with the aim of strengthening commercial partnerships and identifying new investment opportunities.

The discussions reflect growing economic cooperation between Uzbekistan and Kazakhstan as both countries seek to expand regional connectivity, diversify exports and strengthen trade links with neighbouring markets, including Afghanistan.

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