86375
                  Afghanistan, Kyrgyz Republic, Pakistan, Tajikistan

    Central Asia South Asia Electricity Transmission and Trade Project (CASA 1000)

                                  Chair Summary*

                                   March 27, 2014

      The Executive Directors approved a grant in the amount of SDR 206.3
million (US$316.5 million equivalent) to Afghanistan; a credit and grant in the
amount of SDR 25 million (US$38.25 million equivalent) and of SDR 4.4 million
(US$6.75 million equivalent), respectively, for the Kyrgyz Republic; a credit in the
amount of SDR78.3 million (US$120 million equivalent) for Pakistan; and a grant
in the amount of SDR 29.4 (US$45 million equivalent) to Tajikistan, for the
Central Asia South Asia Electricity Transmission and Trade Project (CASA 1000)
on the payment terms and conditions set out in the President’s Memorandum.

       Directors supported this important and transformational project which is
expected to contribute to the future growth and stability of these regions. They
acknowledged the importance of sustaining the institutional arrangements agreed
among the four countries for the successful implementation of the project including
the Inter-Governmental Council and its Secretariat. Directors encouraged an
ongoing dialogue on regional energy and water issues with all countries in the
regions, including Uzbekistan. Directors noted the governments’ commitments
towards regional cooperation and trade for the benefit of their people and towards
integration of the electricity markets of two sub-regions of Central Asia and South
Asia.

        Directors welcomed the project’s development objectives, notably, to
facilitate electricity trade by putting in place the required commercial and
institutional arrangements among these countries, and the construction of
transmission infrastructure. They noted the challenges and risks ahead related to
the construction and implementation of this project in a difficult geopolitical
environment, and stressed the importance of strengthening institutional capacity,
oversight and accountability to ensure future operational sustainability. Directors
also underlined the importance of learning and sharing knowledge from this high-
risk high-reward project, particularly with respect to regional cooperation and the
design of the commercial and operating framework of this project.

      Directors welcomed the implementation of targeted Community Support
Programs which are aimed to improve the livelihoods of the corridor communities
in line with the World Bank Group’s goals to reduce poverty and shared
prosperity. These Community Support Programs will also help to manage security
risks.

       Directors were pleased to note the collaboration among IDA and IFC during
the project preparation and the World Bank Group partnerships with other
development partners including the Islamic Development Bank, the Arab
Coordination Group and bilateral donors. Finally, Directors look forward to
remaining informed regularly on progress in the implementation of this
transformational project.




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*This summary is not an approved record.