The Saudi Development Fund has allocated $100mn to support the completion of the Rogun hydropower plant (HPP) in Tajikistan. The announcement was made by Walid bin Abdulrahman Al-Rashidan, Saudi Arabia’s Ambassador to Tajikistan, during a press conference marking the 94th anniversary of the Kingdom of Saudi Arabia’s founding.
The Rogun HPP is a vital component of Tajikistan’s energy strategy, designed to improve the country’s energy security and promote economic growth. According to Ambassador Al-Rashidan, the plant will enhance electricity production and strengthen Tajikistan’s energy position within Central Asia.
The financial support from Saudi Arabia signifies increased cooperation between the two countries in energy and economic relations. The investment is part of broader efforts to deepen bilateral ties, especially in sectors critical to Tajikistan's development.
The estimated cost for completing the Rogun HPP stands at $6.4bn, with expectations that 70% of the electricity generated will be exported to neighbouring Central Asian countries. While this export potential strengthens Tajikistan’s regional role, there are financial risks associated with the project.
A report from the Eurasian Fund for Stabilization and Development (EFSD) highlights the challenges posed by the project’s financing, warning that any increase in construction costs could affect Tajikistan's budget and debt sustainability. The report also notes that by 2025, Tajikistan may require additional budgetary support from international financial institutions due to potential funding gaps for the Rogun HPP.
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