The Government of Tajikistan has instructed the Ministry of Finance (MoF) to replenish the authorized capital of the Open Joint Stock Company (OJSC) Roghun NBO with money from the Stabilization Fund for Economic Development (SFED).
The Fund will provide 200 million somonis (equivalent to some 20 million U.S. dollars), says the Justice Ministry’s official website for legal information.
Relevant government’s decree issued on November 11 was posted on the Justice Ministry’s official website for legal information on November 24.
OJSC Roghun NBO is instructed to ensure timely and targeted use of the provided funds and submit the expense report to a MoF.
In accordance with Article 16 of the country’s law on the budget for 2022, the SFED’s is replenished due to overfulfillment of the revenue part of the republican and local budgets. The Fund’s money is directed, first of all, to the development of the energy sector, to ensure food security of the country, the development of social sectors and ensure timely service of the state external debt.
Recall, Tajikistan founded OJSC NBO Roghun for completing the construction of the Roghun HPP in April 2008 after it formally revoked a contract with Russia's RusAl aluminum company for the construction of the Roghun hydroelectricity power plant (HPP) in August 2007. The Tajik government accused the Russian company of failing to fulfill the contract signed in 2004. Tajik authorities and RusAl became bogged down in the hydroelectric plant’s dam model and height, crucial factors in its capacity.
To raise funds to complete construction of the Roghun HPP the government started to sell shares in Roghun to people on January 6, 2010. Tajikistan has reportedly issued 6 billion somonis worth of 5 million Roghun shares.
In 2016, construction duties on Roghun were assigned to Italian company Salini Impregilo (currently Webuild).
The project is broken down into four components, with the most expensive one involving the building of a 335-meter-high clay core rockfill dam — the tallest in the world — which will entail costs of around $1.95 billion. Construction of the Roghun hydropower plant is expected to be completed in 2033.
Two of the six turbines have already started producing energy for sale to raise funding to complete it. The first turbine went into service in November 2018 and the second one was introduced into operation in September 2019.
The MoF noted in early August this year that 37.7 billion somonis have been spent for construction of this hydropower plant since 2008.
If built as planned, the Roghun hydropower plant is expected to end chronic power shortages in Tajikistan and allow it to export electricity to neighboring countries.
