At Rogun HPP. Photo: neftegaz.ru
The Tajik government has signed agreements with international partners to finance the construction of the Rogun Hydropower Plant (HPP) for a total of $812 million, Finance Minister Faiziddin Kahhorzoda announced at a press conference in Dushanbe on February 14, as reported by Asia-Plus.
Of the total amount, $462 million consists of loans, while $350 million comes in the form of grants. All loans secured are highly concessional and long-term, with repayment periods ranging from 25 to 30 years. Kahhorzoda expressed confidence that Tajikistan will repay the funds on time once the project is completed.
The government continues active negotiations to attract additional funding for the completion of Rogun HPP. According to the minister, financing terms are currently being discussed with the Italian government, the European Investment Bank, the Abu Dhabi Fund for Development, the Asian Development Bank, and other potential donors.
According to Standard & Poor’s Global Ratings, the full completion of the project will require approximately $6.4 billion. In his December address to parliament, Tajik President Emomali Rahmon emphasized the importance of sustained funding for the Rogun project and cooperation with international financial organizations. He stated that the government plans to raise 33 billion somoni (approximately $3 billion) to complete construction, including grants totaling 12.5 billion somoni ($1.15 billion).
ℹ️ Rogun HPP is Tajikistan’s largest energy project. The six units of the power plant will generate more than 13.1 billion kWh annually. Construction is expected to be completed by the end of 2031. Until recently, the project was financed exclusively through state funds. Between 2008 and 2024, Tajikistan allocated 42.5 billion somoni (approximately $4 billion) for the construction of Rogun HPP.
In February 2023, the Saudi Fund for Development announced its readiness to provide a loan of 375 million Saudi riyals ($100 million) for the project’s completion, with an agreement signed in December. In May of the same year, the Asian Infrastructure Investment Bank (AIIB) pledged to allocate $500 million in concessional funding for the same purpose. Other banks and development funds have also shown interest in the project.
Currently, two power units at Rogun HPP are operational, each with a capacity of 600 MW. The launch of a third unit is planned for 2025. Once completed, Rogun HPP is expected to become the largest hydropower plant in Central Asia, with an installed capacity of 3,600 MW and an annual electricity output of between 13 and 17 billion kWh.
