Historic $243 Million Energy Deal Signed Between Uzbekistan and Afghanistan

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Kabul has witnessed the signing of one of the largest energy agreements in the history of relations between Uzbekistan and Afghanistan, valued at $243 million. The Afghan Ministry of Energy and Water Resources (DPMEA) confirmed the news.

The signing ceremony was attended by Taliban Deputy Prime Minister Abdul Ghani Baradar and Uzbek Minister of Energy Jura Bek Mirzamakhmudov.

The agreement covers four strategic energy projects aimed at transforming Afghanistan’s power infrastructure. The centerpiece is the construction of a 500-kilovolt high-voltage transmission line capable of delivering up to 1,000 megawatts of electricity. Alongside this, the Argandab substation will be upgraded to 800 megavolt-amperes (MVA), while a new 220-kV transmission line from Kabul to Sheikh Mesri and a new 126-MVA substation in Nangarhar Province will also be built.

According to Afghan officials, these projects will increase the country’s annual electricity imports to 800–1,000 MW — a critical development in a nation where only about 40% of the population currently has reliable access to power. All construction work is expected to be completed within 18 months.

This marks the largest energy cooperation agreement ever signed between the two nations. It strengthens Uzbekistan’s role as a key energy and transit hub in Central Asia while reducing Afghanistan’s dependence on power imports from Iran and Pakistan.

Beyond energy, Uzbekistan and Afghanistan are deepening collaboration in transport, trade, and humanitarian initiatives. Key joint projects include the planned Mazar-i-Sharif–Kabul–Peshawar railway, which will link Central Asia to Pakistani seaports. Bilateral trade exceeded $1 billion in 2023. Uzbekistan also provides humanitarian aid, including food and medicine, and offers educational scholarships to Afghan students.

This landmark energy deal represents a major step toward regional stability, economic integration, and long-term energy security in Central Asia.

CentralasianLIGHT.org
August 18, 2025