In a report released at news conference in Dushanbe, the Minister of Energy and Water Resources Daler Juma noted on January 30 that negotiations between Tajikistan and partners for financing of the Roghun hydropower project (HPP) are under way.
He reminded that the World Bank’s Board of Executive Directors on January 12 approved US$15 million in grant financing from the International Development Association (IDA) for the Technical Assistance for Financing Framework for Roghun HPP in Tajikistan (TA).
According to him, a consortium has been set up to attract funds from international donors for completion of the construction of the Roghun hydropower plant. “The World Bank is coordinating its work,” the minister said.
“The results of the work that is currently under way will be available once the work is completed,” said Mr. Juma. “We need much money to complete the construction of the Roghun hydropower plant.”
The minister did not specify how much money is needed.
Top managers of the Ministry of Energy and Water Resources (MoEWR) had earlier noted that at least 5 billion US dollars are needed to complete the construction of the Roghun hydropower plant.
However, it is to be noted that the cost of such large long-term projects increases over the years due to reassessment of some works and services as well as inflation.
Recall, to complete the construction of the Roghun hydropower plant, Tajikistan founded OJSC NBO Roghun in April 2008 after it formally revoked a contract with Russia's RusAl aluminum company in August 2007. 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 Ministry of Finance noted in early August last year that 37.7 billion somonis have been spent for construction of this hydropower plant since 2008.
In his address to a joint meeting of parliament, President Emomali Rahmon said on December 23 last year that the construction activities at the site for construction of the Roghun hydropower plant are ongoing dynamically. To this end TJS3.2 billion (equivalent to 315 million U.S. dollars) were channeled in 2022.
To-date, spending on the construction of the Roghun hydropower plants has reportedly exceeded 40 billion somonis 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.
