Officials of the Ministry of Energy and Water Resources (MoEWR) believe that attracting an international management company will contribute to organization of transparent and sustainable activity of the country’s energy sector.
The Government of Tajikistan is initiating attraction of private investments in the country’s energy sector.
MoEWR officials believe that participation of the private sector could help improve the financial activity of the sector.
The ministry is currently considering various mechanisms of collaboration with the private sector, in particular invitation of international management companies.
The ministry experts suppose that participation of the private sector would assist with reorganization of the transmission and distribution enterprises.
Recall, the process of restructuring of Barqi Tojik power holding (Tajikistan’s national integrated power company) has been going on since 2012, and Mr. Rustam Majidzoda, the head of the Barqi Tojik Main Finance Directorate, told Asia-Plus in an interview in February this year that the process of restructuring of Barqi Tojik is expected to be completed this year.
According to him, joint-stock companies “Transmission Business” and “Distribution” were supposed to begin operating this year after appointment of heads and members of Supervisory Boards of these companies.
The process of restructuring of Barqi Tojik began in 2012 and Barqi Tojik was expected to be divided into three independent companies in late 2018: (i) generation; (ii) transmission business; and (iii) distribution.
The main objective of the restructuring of Barqi Tojik is in ensuring transparency in the country’s energy system.
It is to be noted that Tajikistan’s power utility is now in a difficult financial state. As of January 1, 2020, Barqi Tojik’s total debts reportedly amounted to 26 billion somoni.
Tajikistan’s power sector is comprised of the vertically integrated energy company, Barqi Tojik, three independent power producers (IPPs), and a concession in Gorno-Badakhshan Autonomous Region (GBAO) combining power generation and distribution.
Barqi Tojik is fully owned by the Government. It owns and operates most of the electricity generating plants and is also responsible for electricity transmission, dispatch, and distribution services to around 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 around 200,000 people in GBAO under 25-year concession agreement.
