Russia to invest $500 million in Asian electricity project

Russia to invest $500 million in Asian electricity project

2011-01-22 05:55:43 GMT+7 (ICT)

MOSCOW, RUSSIA (BNO NEWS) -- Russia on Friday announced that it will invest $500 million in a Central Asian electricity project that will provide energy to Afghanistan, RIA Novosti news agency reported.

Russian Prime Minister Vladimir Putin announced the electricity project following a meeting with Afghan President Hamid Karzai. The total cost of the CASA-1000 project is estimated at $680 million.

The project consists in the construction of electricity lines to supply power from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. The $550 million will be invested by Russian state-controlled power trader Inter RAO.

However, Inter RAO has to be designated as operator of the project first. Russia is the largest shareholder in Kyrgyzstan and Tajikistan's electricity generation plants. The Afghan government is expected to make a decision shortly.

"If our company, Inter RAO, is granted the right to be the operator, we could take an active part in the construction of a high-voltage electricity line as part of the CASA-1000 project and our investment in this case could account for $500 million," said Putin.

The two leaders met on Friday at the Prime Minister's residence outside Moscow. According to the PM, other Russian companies are also ready to participate in other infrastructure projects in Afghanistan.

The other projects include restoring irrigation systems of Afghanistan and the reconstruction of a strategic tunnel under the Salang Pass. The tunnel will connect the northern and the southern part of the country.

Karzai said that his country welcomed Russia's desire to invest and added that theya re also interested in increasing fuel trade with Moscow. Russian-Afghan trade turnover increased by 60 percent last year.

The Afghan leader arrived to Russia for a two-day visit. On Friday morning, he met his Russian counterpart Dmitry Medvedev in order to discuss bilateral relations.

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