Pakistan achieved over $27 million in savings in the Central Asia–South Asia Electricity Transmission and Trade Project (CASA-1000) after negotiating down contractor claims.
The Engineering, Procurement, and Construction (EPC) contractor, a joint venture of Hitachi Energy and Cobra Instalaciones y Servicios, had initially claimed USD 32.9 million for Pakistan. Following high-level talks in Ludvika, Sweden, the total care and custody cost was capped at USD 9 million for both Pakistan and Tajikistan, covering operations up to February 2028.
This agreement ensures continued maintenance and operational readiness of critical high-voltage direct current (HVDC) assets while saving Pakistan significant costs. Interim arrangements may extend up to three months beyond February 2028, with a 5% monthly escalation if required. The HVDC system is now expected to commission by September 2027 amid regional geopolitical challenges.
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