Pakistan

Pakistan Saves Over $27 Million in CASA-1000 Negotiations

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Abdul khalique

ISLAMABAD: Pakistan has secured a major financial success in the CASA-1000 project, saving over USD 27 million after successfully negotiating down contractor claims.

The EPC Contractor, M/s Hitachi–Cobra JV, had escalated its Care & Custody claim to approximately USD 32.9 million for Pakistan and USD 28.5 million for Tajikistan.

A high-level meeting held from 9–10 March 2026 in Ludvika, Sweden, with participation of the Additional Secretary, Ministry of Energy (Power Division), Mr. Syed Imtiaz Hussain Shah, and the Managing Director, National Grid Company (NGC), Altaf Hussain led to successful negotiations.

The parties agreed to cap the total Care & Custody cost at USD 9.0 million (shared between Pakistan and Tajikistan) up to February 2028, resulting in savings of over USD 27 million for Pakistan, while ensuring the health, integrity, and operational readiness of critical HVDC assets during the interim period. A limited extension of up to three months beyond February 2028 has also been agreed upon, if required, subject to 5% monthly escalation.

The CASA-1000 Project, linking Central Asia with South Asia for electricity trade, has faced delays due to geo political situation in Afghanistan. Consequently, commissioning of the HVDC system is now expected by September 2027, requiring interim Care & Custody arrangements.

Abdul khalique

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