The OPEC Fund for International Development (the OPEC Fund) is providing a first US$25 million loan to support the construction of the Roghun hydropower plant (HPP), a key project of Tajikistan’s strategy for renewable energy development and energy security. The loan is the first tranche of a US$100 million OPEC Fund financing facility for the project, which is expected to have a transformative impact on the wider Central Asian region, according to OPEC Fund.
Tajik state-run news agency Khovar says a loan agreement was signed during a visit of a Tajik delegation led by Deputy Prime Minister Usmonali Usmonzoda to Vienna on Thursday October 10. The document was reportedly inked by Tajik Finance Minister Fayziddin Qahhorzoda and OPEC Fund President Abdulhamid Alkhalifa at the OPEC Fund's headquarters in Vienna.
OPEC Fund’s official website reports that OPEC Fund President Abdulhamid Alkhalifa said during the agreement signing ceremony: “Tajikistan has enormous hydro energy potential and tapping into this natural wealth will strengthen energy security, independence and export capacities. The Roghun HPP is not only a monumental engineering project but also a crucial step in securing Tajikistan’s energy future.” According to him, the OPEC Fund is committed to supporting sustainable energy solutions that contribute to local and regional development.
Tajik Finance Minister Fayziddin Qahhorzoda, for his part, reportedly: "The Roghun hydropower plant plays a crucial role in Tajikistan’s growth and the region’s shift towards green energy. It tackles power shortages and expands renewable energy access in rural areas, establishing Tajikistan as a prominent contributor to clean energy exports. We greatly appreciate our collaboration with the OPEC Fund and its contribution to turning this vision into reality."
The Roghun HPP is a hydropower complex designed as a multi-purpose dam for generating electricity, regulating water and reducing the risk of floods and droughts. With a height of 335 meters, the dam will be the tallest in the world, and the HPP will have a total generation capacity of 3,780 MW. In addition to meeting Tajikistan’s energy demand, the facility is also expected to generate electricity for export to neighboring countries, promoting the use of renewable and clear energy and reducing carbon emissions.
The US$25 million loan follows the signing of a Framework Financing Memorandum for the US$100 million tranche finance facility in support of Roghun HPP between the OPEC Fund and the government of Tajikistan in June 2024. The OPEC Fund has financed 18 public sector projects in Tajikistan in transportation, healthcare and education to date, with cooperation steadily increasing in recent years.
Established in 1976, the OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The Fund’s work focuses on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has reportedly committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P.
