The Government of Tajikistan has ordered to channel 800 million somonis (equivalent to about 78 million U.S. dollars) to replenish the authorized capital of the Open Joint-Stock Company (OJSC) NBO Roghun.
By government’s decree of February 2, posted on the Justice Ministry’s website for legal information, the Ministry of Finance is instructed to replenish the authorized capital of OJSC Roghun NBO with money from the Stabilization Fund for Economic Development (SFED).
OJSC NBO Roghun is obligated to ensure timely and targeted use of the allocated funds and submit an expense report to the Ministry of Finance.
Recall, the Minister of Energy and Water Resources Daler Juma told reporters in Dushanbe on January 30 that negotiations between Tajikistan and partners for financing of the Roghun hydropower project are under way.
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.
Tajikistan founded OJSC NBO Roghun with an authorized capital of 116 million somonis 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 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 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.
Members of Tajikistan’s lower house (Majlisi Namoyandagon) of parliament on January 16, 2020 voted for endorsement of amendments proposed by the government to the country’s law on privatization of state-owned properties that will allow foreign investors to buy shares in the Roghun hydropower plant, an ongoing project upon which the government has pinned the nation’s future.
