The World Bank has approved a $350mn International Development Association (IDA) grant to support the completion of the Rogun Hydropower Plant (HPP) in Tajikistan. This funding marks the first phase of a major initiative designed to provide sustainable electricity to the region. With an anticipated capacity of 3,780 Megawatts, the Rogun HPP is set to improve electricity access for approximately 10mn people in Tajikistan, addressing the power shortages that have plagued the country, particularly during the winter months.
The project will not only serve Tajikistan but also provide cleaner and more affordable electricity to neighboring countries, including Kazakhstan and Uzbekistan, with 70% of the electricity generated expected to be exported. This shift will replace fossil fuel-based energy generation, contributing to reduced greenhouse gas emissions and supporting the region’s clean energy transition.
"The Rogun Hydropower Project will accelerate the adoption of clean energy, boost economic growth, and enhance climate resilience in Tajikistan and across Central Asia," said Antonella Bassani, World Bank Vice President for Europe and Central Asia. "This project represents a major step forward in providing uninterrupted, affordable, and clean energy to households and businesses."
To ensure high-quality implementation, the World Bank will oversee the project with enhanced supervision arrangements, adhering to international standards in financial, environmental, and social practices.
The government of Tajikistan has committed to directing 3% of electricity sales from the Rogun HPP to a nationwide Benefit Sharing Program (BSP), which will help address the social needs of vulnerable populations during the construction phase. This contribution will increase to 5% after the project's completion, strengthening the country’s social safety nets.
The total cost of completing the Rogun HPP is estimated at $6.29bn, to be financed through project revenues, domestic resources, and development partners. In addition to the World Bank, other international organizations including the Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), and Islamic Development Bank (IsDB) are supporting the project, contributing to $2.97bn in grants and concessional funds.
This broad-based financial support aims to minimize the project’s burden on Tajikistan's national budget, ensuring that resources are available for economic development and essential services like healthcare and education. It also reduces the risk of debt distress, helping to secure the country’s long-term growth prospects.
“Rogun HPP is a key regional initiative,” said Charles Cormier, World Bank Director for Infrastructure in Europe and Central Asia. “Not only will it help alleviate energy shortages in Tajikistan, but it will also aid in decarbonizing the energy grids of fossil-dependent Kazakhstan and Uzbekistan. The project will play a crucial role in balancing intermittent energy sources like solar and wind, accelerating the region’s clean energy transition.”
In addition to its environmental benefits, the Rogun HPP will also strengthen regional water security and climate resilience. The project's storage capacity will help prevent extreme flooding and safeguard downstream hydropower operations, benefiting both Tajikistan and its neighbors.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)