The Government of Tajikistan and the Government of the Kingdom of Saudi Arabia, represented by the Saudi Fund for Development (SFD), signed a loan agreement on December 4, allocating $100mn for the completion of the Roghun hydropower plant, SFD reported.
The loan agreement was signed by Faiziddin Qahhorzoda, Tajikistan's Minister of Finance, and Sultan Abdurahman Al-Marshad, CEO of the SFD. This financing is geared towards co-financing the construction of the Roghun hydropower plant's facilities, aiming to enhance the generation of renewable and "green" energy while promoting a sustainable and eco-friendly economy in Tajikistan.
Notably, the SFD had previously expressed its commitment in early November to provide a concessional loan of $100mn for the completion of the Roghun hydroelectric power plant, making it the first among global development funds to support this crucial project. The funds allocated for the Roghun hydropower plant constitute half of all financial assistance provided by the SFD to Tajikistan since 2002.
The Roghun hydropower plant stands as one of the largest projects in the region, holding the potential to be a transformative factor in the development of Tajikistan and Central Asia. It aims to contribute significantly to the country's sustainable development by efficiently utilizing natural resources, particularly "green" energy.
The initiative aims to enhance national energy security, promoting sustainable development in Tajikistan by providing renewable electricity, meeting local demands, and generating 3600 MW. The loan agreement includes funding for a 335-meter-tall dam, improving irrigation and supporting agriculture. Treatment of salt materials at the dam's base ensures long-term sustainability. The project features four hydraulic tunnels (1250-3600 meters high, 10-15 meters in diameter) for flood protection and drainage.
Desalination offers clean water, contributing to socio-economic development and job creation. This aligns with UN Sustainable Development Goals 2, 6, and 7. SFD CEO Sultan Al-Marshad expressed enthusiasm saying,
“Today’s signing marks a major milestone in our shared journey towards a more sustainable future. With this landmark development loan, SFD is not just supporting Tajikistan's energy future, but also its sustainable development and the well-being of its people. The Rogun Hydropower Project is a beacon of hope for a bright future that is powered by clean, renewable energy. It will propel Tajikistan towards environmental stewardship and prosperity.”
SFD has funded over 800 projects worldwide, including 13 in Tajikistan, totaling $290mn in sectors like healthcare, education, energy, and infrastructure
With total spending on the Roghun hydropower plant exceeding 40bn somonis (over $3.6bn) since 2008, the project, once completed, is poised to end chronic power shortages in Tajikistan and enable the country to export electricity to neighboring nations.
The Saudi Fund for Development, established in 1974, operates as a Saudi Arabian government agency dedicated to providing development assistance to developing countries. The fund's activities encompass development, finance, trade, and funding, aiming to enhance economic growth and employment opportunities in recipient countries. SFD commenced operations in 1975, consistently contributing to global development initiatives.
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