Uzbekistan lowers electricity export project cost to Afghanistan by $30M

Mullah Abdul Ghani Baradar, Acting Deputy Prime Minister of Afghanistan, stated that lowering the project cost from $252 million to $222 million for transmitting 500 kV electricity from Uzbekistan to Dasht-e-Alwan is a significant achievement.

Uzbekistan has also agreed to increase electricity exports to Afghanistan during the summer while reducing tariffs.

As part of the agreements, Uzbekistan will lift restrictions on Afghan agricultural imports and open four trade centers in major cities of both countries.

Additionally, Uzbekistan and Afghanistan have reached an agreement on the construction of the Hairatan-Herat railway. Baradar noted that Uzbekistan will send a team to prepare a technical and economic feasibility study, with the initial assessment costs covered by Uzbekistan.

The railway project aims to expand the existing route from Hairatan, a key border city with Uzbekistan, through Mazar-i-Sharif to Herat in western Afghanistan.

In 2010, the first phase of the project saw the construction of a 75 km railway line linking Hairatan and Mazar-i-Sharif with financial support from the Asian Development Bank. This route has become a key element in strengthening trade relations between Afghanistan and Central Asia.

The planned expansion will further connect Mazar-i-Sharif to Herat via multiple provinces. The project is expected to establish a strategic transport corridor linking Central Asia with the Middle East, boosting regional trade and economic integration.

Earlier, Uzbekistan’s Prime Minister Abdulla Aripov held bilateral talks with Mullah Abdul Ghani Baradar to discuss the expansion of economic cooperation in trade, energy, transport, and other key sectors.

Before this, Baradar also met with Uzbekistan’s Deputy Prime Minister Jamshid Khodjaev. Their discussions focused on enhancing trade and transit relations and attracting Uzbek investment to Afghanistan. The Uzbek side expressed readiness to establish a joint trade zone at the border to promote bilateral trade.

The proposed trade zone will include facilities for processing pine nuts and cotton, packaging and logistics centers, and food production workshops.

Uzbek investors also expressed interest in Afghanistan’s oil and gas exploration and extraction, as well as industrial development, including the construction of a cement plant in Samangan province. Significant progress has been made in exploring the Toti Maydon gas field, with extraction expected to begin soon.

Uzbekistan aims to increase trade turnover with Afghanistan to $3 billion

On August 17, 2024, Prime Minister Abdulla Aripov visited Kabul to discuss expanding economic ties with Afghanistan. Talks focused on strengthening trade, energy cooperation, and joint projects in mineral extraction, transport, agriculture, water management, and education.

Officials emphasized that there was potential to increase bilateral trade turnover to $1 billion in 2024 and $3 billion in the near future.