The Central Asia-South Asia power project, commonly referred to as CASA-1000, is a $1.16 billion initiative currently under construction, aimed at exporting surplus hydroelectricity from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. Unicon Ltd. entered into a World Bank-financed agreement with the Afghan Ministry of Energy and Water to support Afghanistan’s involvement in the broader CASA-1000 initiative.
Throughout the contract’s execution, Unicon faced persistent demands for bribes and extortion by Ministry officials. Despite repeated coercion, Unicon upheld its principles, maintaining a firm anti-corruption stance and refusing to succumb to these illicit demands. At one point, an audio recording documenting the extortion was presented to both the Afghan Government and the World Bank as incontrovertible evidence of the illegal practices employed against Unicon.
As a direct consequence of Unicon’s refusal to participate in corrupt activities, the Ministry unlawfully withheld its payments and erected artificial obstacles to hinder the contract’s proper execution, thereby creating a hostile working environment. This misconduct culminated in Unicon being denied payment for its completed work, despite the Afghan government’s clear contractual and legal obligations, and the minister’s assurances to resolve the matter.
The tribunal in ICC Case No. UNC 211/ELU found that Unicon was indeed a victim of the Afghan government’s unlawful and corrupt practices. It ruled that Unicon was entitled to compensation for its losses. Yet, instead of addressing the injustice, the World Bank withheld all the funds allocated for Unicon, effectively benefiting from the corrupt actions of Afghan state officials. This outcome has left Unicon severely financially damaged, despite its unreserved commitment to integrity and fair business practices.
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Documents:
- Final Award – ICC Case No. UNC 211/ELU (Unicon v. Afghanistan)
- Minister’s Letter
Media:
- Publication in Jus Mundi
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For further information, contact Rustam Davletkhan
