A Turkish firm has agreed to invest $1.6 billion in an electricity transmission line project involving Pakistan-Afghanistan and Turkmenistan.
The three parties signed a memorandum of understanding at a ceremony held in Kabul, which was presided over by Afghan President Ashraf Ghani, Afghan media reported.
As per the details, Pakistan and Afghanistan will be supplied 1000 megawatts of electricity through the transmission line every year. Moreover, Afghanistan will also receive $100 million as a transit fee every year.
The 500kv electricity-transmission line is estimated to take three years to complete. The line will start from Aghanistan’s Torghundi in Herat and would end at Quetta, Pakistan while passing through Spain Boldak in Kandahar.
A 1000 megawatts of electricity will be transmitted to Pakistan in lieu of which it will pay $100 million as a transit fee to Afghanistan.
While signing the MoU, the head of the Turkish firm said that the firm will first present the technical and financial proposals within six months to the Afghan Ministry of Water and Energy.
Notably, the Turkish company, Calik Holding, will invest in the power transmission line and establish two circuits having the capacity of 2000 megawatts and 500kv substations in Turkmenistan and Afghanistan.
It is pertinent to mention here that a trilateral agreement was signed between Pakistan, Afghanistan, and Turkmenistan in 2015 at Ashgabat, the capital city of Turkmenistan.