The Eurasian Development Bank (EDB) has declared its intention to participate in the financing of the Rogun Hydroelectric Power Plant (HPP) construction project in Tajikistan in 2024. Nikolai Podguzov, Chairman of the Board of the EDB, announced this at a press conference in Almaty.
Describing the Rogun HPP as a pivotal and large-scale project for Tajikistan, Podguzov expressed the bank's commitment to financing the project.
"We are actively working with the government of the Republic of Tajikistan and potential international syndicate participants, which is currently being formed," He stated.
Podguzov indicated that negotiations with the Ministry of Finance of Tajikistan are scheduled for this project. However, he mentioned that several conditions and issues still need to be agreed upon.
The Rogun HPP, situated 110 km from Dushanbe on the Vakhsh River, is considered the largest in the region. Construction began in 1976, paused after the USSR's collapse, and resumed later. Of the six 600 MW units in the project, two have been launched so far. Between 2008 and 2021, nearly $3bn was allocated for the reconstruction, construction, and installation. After completion, the station's capacity will reach 3.6 GW, and its 335-meter dam will be the world's tallest.
The EDB, an international financial organization operating in the Eurasian region, includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. Tajikistan became a full member in 2009. As per Tajikistan's Ministry of Economic Development and Trade, the EDB and its structures have implemented 13 investment projects, totaling over $266mn in various sectors of the country's economy. The accumulated investment volume represents about 1% of the bank's country portfolio.
In September 2023, Uzbekhydroenergo, the state holding company, reported a crisis at the Rogun HPP site, citing challenges such as diminishing glaciers, reduced Vakhsh River flow, a chronic shortage of funds, and a lack of investor demand.
Rogun HPP: Transforming Tajikistan's Energy Landscape
The Rogun HPP, situated on the Vakhsh River as part of the Vakhsh cascade, is set to become the largest hydroelectric power plant in Central Asia upon completion. The dam's anticipated height of 335 meters will make it the tallest in the world, with a projected capacity of 3600 MW. The project, known as "Nerugohi barqii obii Rogun" in Tajik, is a crucial component of Tajikistan's infrastructure development.
Earlier reports from Daryo indicated that the government of Tajikistan is allocating approximately TJS 5bn (around $460mn) for the Rogun HPP construction in 2024. Furthermore, the Islamic Development Bank (IsDB) and Tajikistan have said to collaborate on the Rogun Dam project to enhance the country's overall infrastructure. The partnership between IsDB and Tajikistan has yielded total approvals of $726.4mn, spanning sectors like education, energy, and transportation. The Saudi Development Fund has also pledged $100mn for the construction of the Rogun HPP. This funding represents 50% of all financial assistance provided by the fund to Tajikistan since 2002.
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