The Afghan government on Monday signed new contracts with the private firms for the execution of two major power projects having a total value of around $267 million.

The Office of the President, ARG Palace, said the contracts were signed in the presence of President Mohammad Ashraf Ghani, Chief Executive Abdullah Abdullah, and other high level government officials.

The contracts include execution of works for CASA-1000 power transmission line installation and construction of 500kV substation in Arghandi.

The contract value for CASA-100 (Afghanistan section) has a total value of $267.16 million which will be implemented by KPTL and KEC firms. Contracts were signed between Da Afghanistan Breshna Sherkt (State Power Utility Firm) and the two companies.

According to ARG Palace, the CASA-1000 power transmission line will have a length of 765 kilometer till its final destination in Pakistan but the major portion will pass through Afghanistan, having a length of 563 kilometers.

The KPTL will implement the phase-I of the project having a contract value of 76.9 million US Dollars, the Phase-II will have a contract value of 85.43 million US Dollars and will implemented by KEC along with the Phase-III which has a contract value of 72.83 million US Dollars.

The World Bank will fund the contract cost of the CASA-1000 project with the construction work expected to kick off in 2018 and will be completed over a period of three years.

ARG Palace says the CASA-1000 project will benefit 600 villages, 23 districts, and 6 provinces in the north and eastern parts of the country.

In the meantime, another contract was signed for the construction of 500kV substation in Arghani with Techno-RGM JV having a total value of around 32.2 million US Dollars.

The project will be funded by the Asian Development Bank and power transmission lines from the substation will be built from Kabul to South and Southeastern parts of the country once the project is completed.

The construction work of the substation will commence in January 2018 and will take two and half years to complete.

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