KABUL (Pajhwok Afghan News) — A Turkish Calik company would invest $1.6 bln on the electricity transmission line project involving Turkmenistan, Afghanistan and Pakistan (TAP) under an agreement signed on Wednesday.

The Memorandum of Understanding (MoU) was signed between Afghan acting energy and water minister Mohammad Gul Khulmi and head of the Turkish firm Calik Holding company, Ahmad Calik, at a ceremony held at the Presidential Palace in Kabul. At the MoU signing ceremony with the Turkish firm, President Ashraf Ghani and high ranking government figures were present. The Turkish firm would invest $1.6 bln on the power transmission line and set up two circuits with a capacity of 2,000 MWs and 500 kV substations in Afghanistan and Turkmenistan.

The 500 kV power line, which will cover 750 km in Afghanistan, is expected to be completed in three years. Afghanistan and Pakistan will receive each 1,000 MW of electricity from the line. Additionally, Afghanistan will receive $100 mln annually in transit fee. A trilateral agreement between Turkmenistan, Pakistan and Afghanistan on the project was signed in December 2015 in Ashgabat.

The Turkish firm head said his firm would first submit financial and technical proposals within six months to the Ministry of Water and Energy.

The construction of the transmission line would be started from Torghondi port and after passing through Herat, Farah and Kandahar provinces would reach Pakistan’s Quetta city through the Spin Boldak border district.