The government plans to spend 5 billion somonis (equivalent to 4.6 million US dollars) next year on completion of the construction of the Roghun hydroelectric power plant (HPP), the Minister of Finance Faiziddin Qahhorzoda noted while presenting the draft law on the national budget for 2024 to lawmakers.
According to him, the budget earmarks 2.8 billion somonis for completion of the Roghun hydropower plant and another 2.2 billion somonis will be provided through investment projects.
“4.3 billion somonis (equivalent to about 395 million US dollars) have been spent on the construction of the Roghun hydropower plant over the first ten months of this year.
Recall, the consortium for attraction of funds of international donors for completion of the construction of Roghun hydropower plant was established last year. The World Bank coordinates its activities.
In mid-August this year, an official source within the Ministry of Finance of Tajikistan said that direct negotiations of the government with potential investors will begin before the end of the year.
According to him, the Tajik authorities have already reached an agreement with the Asian Infrastructure Investment Bank (AIIB) on attraction of a soft loan of US$500 million.
Besides, the Islamic Development Bank (IsDB) reportedly “intends to increase financing of this hydropower facility from US$150 million to US$250 million.”
In late October this year, the Saudi Fund for Development (SFD) has announced its readiness to provide a concessional loan of 375 million riyals (equivalent to 100 million US dollars) for completion of the construction of the Roghun hydropower plant.
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 3.2 billion somonis (equivalent to 315 million U.S. dollars) were channeled in 2022.
To-date, budget spending on the construction of the Roghun hydropower plants has reportedly exceeded 35 billion somonis since 2008.
The Roghun HPP is one of the largest projects in the region that can become an important factor of development of Tajikistan and the Central Asian region as a whole. It will contribute significantly to the country’s sustainable development by efficiently utilizing natural resources, including “green” energy.
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 US$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.
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.
