The Government of Tajikistan has instructed to reduce Barqi Tojik’s debt to Open Joint-Stock Company (OJSC) Sangtudinskaya GES-1, which operates the Sangtuda-1 hydropower plant in Tajikistan, by 282.4 million somonis (TJS), which is equal to 28 million U.S. dollars.
By Government’s regulation, issued on December 20, this amount is credited to the authorized capital of Barqi Tojik (Tajikistan’s state-run power utility company) “as a contribution of the founder.”
The document, posted on the Justice Ministry’s website for legal information, says this amount is treated as payment of part of Barqi Tojik’s debt to OJSC Sangtudinskaya GES-1 for electricity generated by the Sangtuda-1 hydropower plant.
According to Sangtudinskaya GES-1’s official website, Barqi Tojik now owes about 2.592 billion somonis (equivalent to more than 254 million U.S. dollars) to this company.
As it had been reported earlier, Barqi Tojik’s to OJSC Sangtudinskaya GES-1rose nearly 30 percent in a year to October 27, 2022, reaching more than 2.545 million somonis (equivalent to about 250 million U.S. dollars).
Over the first ten months of 2022, an average rate of payment for electricity generated by the Sangtuda-1 hydropower plant has reportedly been only 33 percent.
It is to be noted that Barqi Tojik is the only buyer of electricity generated by the Sangtuda-1 hydropower plant.
Initially, the rate was set at US$0.0169 per 1 kWh (VAT not included). Since 2010, the agreement has provided for annual 4-percent increase in the rate for the domestic market of Tajikistan.
Russian-Tajik OJSC Sangtudinskaya GES-1 was established to complete the construction of the Santuda-1 hydropower plant. Russia’s Inter RAO YeES and the Ministry of Energy and Industries of Tajikistan signed an agreement on the establishment of the company in Dushanbe on February 16, 2005.
Russia owns 75% percent of the shares minus one share and Tajikistan assumes the 25% ownership interest plus one share in Sangtudinskaya GES-1.
The Sangtuda-1 hydropower plant was officially commissioned on July 31, 2009. The plant now reportedly provides around 15% of Tajikistan’s electricity output.
Established debt collection system?
It is to be noted that cancelation of Barqi Tojik’s debts under this scheme is already systematic and such a practice is carried out almost on an annual basis.
Experts consider this practice unacceptable and unfair, calling it a kind of "cross-subsidization", when one is forgiven for obligatory payments, while others are fined for the slightest delay in payments.
As of July 1, 2022, a total debt of Barqi Tojik has amounted to 32 billion somonis (equivalent to about 3.1 billion U.S. dollars). Meanwhile, Barqi Tojik’s receivables have reportedly amounted to more than 3.4 billion somonis as of July 1, 2022, including population’s debt for electricity consumption amounting to 1.3 billion somonis.
One of the main arguments in which the company's management explains its difficult financial situation is electricity low rates.
