The government has written off the country’s power utility company’s debt in the amount of 10 million U.S. dollars (USD). The amount written off will be included in the company’s authorize capital.
Government’s decree on financial support for Barqi Tojik (Tajikistan’s power utility company), in particular, say the part of Barqi Tojik’s debt to Open Joint-Stock Company (OJSC) Sangtudinskaya GES-1, which operates the Sangtuda-1 hydroelectric power plant (HPP), is written off by reducing the plant’s tax debt balance.
The government writes off Barqi Tojik’s debt in the amount of about 98.5 million somoni (equivalent to more than 10 million USD) and the amount written off is included in Barqi Tojik’s authorized capital.
Tajikistan’s power sector is comprised of the vertically integrated energy company, Barqi Tojik, three independent power producers (IPPs), and a concession in the Gorno-Badakhshan Autonomous Region (GBAO) combining power generation and distribution.
Barqi Tojik is a vertically integrated power utility fully owned by the Government of Tajikistan. It manages and operates most of the electricity generating plants and is also responsible for electricity transmission, dispatch, and distribution services to more than 8 million people in all regions of the country except for GBAO.
Two of the IPPs – Sangtuda-1 and Sangtuda-2 hydropower plants (HPPs) – were constructed with investments from Russian and Iranian state-owned companies, and supply electricity to Barqi Tojik under 20-year power purchase agreements (PPAs). Third IPP – Roghun HPP – is under construction.
Pamir Energy Company (PEC) generates and supplies electricity to more than 200,000 people in GBAO under 25-year concession agreement.
Barqi Tojik is now in a difficult financial state, suffering from weak operational and economic management systems and a worsening financial position. This severely impacts its ability to undertake its critical functions of planning, implementing, and supplying good quality reliable power to the consumers of Tajikistan.
