The Government of Tajikistan is in negotiations to attract funding for the implementation of the Roghun project, the Minister of Finance, Fayziddin Qahhorzoda, told reporters in Dushanbe on February 14.
He, in particular, noted that such discussions are taking place with the government of Italy, the European Investment Bank, the Abu Dhabi Development Fund, the Asian Development Bank, and other potential financial donors.
According to the minister, agreements have already been signed for the financing of the completion of construction of the Roghun hydropower plant (HPP) with several international donors and agencies for a total amount of US$812 million, of which US$462 million consists of loans and US$350 million are grants.
Qahhorzoda emphasized that all the loans attracted are highly favorable and long-term, ranging from 25 to 30 years.
The minister expressed confidence that after the implementation of the Roghun project, these funds would be repaid to the creditors on time.
It should be recalled that in his last address to a joint meeting of both chambers of parliament, President Emomali Rahmon stated that the government is taking constant measures using all available sources to ensure timely financing of this important strategic project.
“In this context, effective cooperation is being carried out with a number of international financial organizations and development partners to attract concessional funds totaling 33 billion somonis or 3 billion USD, including 12.5 billion somonis in grants or US$1.15 billion," the address states.
It is emphasized that by the end of 2024, agreements will be signed with six organizations for a total amount of 10 billion somonis (about US$1 billion), including 3.8 billion somonis in grants, and investments from these organizations will begin in 2025.
The address notes that over the last two years, more than 9 billion somonis (about US$830 million) has been allocated from the state budget for the completion of the Roghun HPP.
In total, over 40 billion somonis (about US$4 billion) have been allocated for the completion of the Roghun HPP, including 890 million somonis from the sale of shares of OJSC NBO Roghun, US$500 million from Eurobonds, and the remaining amount from the state budget.
To fully complete the Roghun HPP project by 2035, US$6.4 billion is required. This is stated in the Sovereign Rating Justification for Tajikistan by the international rating agency Standard & Poor's Global Ratings.
It should be noted that earlier the president announced that the next hydro unit of the Roghun HPP is scheduled to be commissioned in 2025. The first two units of the plant, which are currently operating at low capacity, were introduced into operation in 2018 and 2019.
Overall, six units with a capacity of 600 MW each will be installed in the plant’s powerhouse. The launch of the final unit is expected in 2029. It is expected that the Roghun HPP, with an installed capacity of 3,600 MW, will become the largest hydropower plant in Central Asia. After full commissioning, the annual electricity generation will range from 13 to 17 billion kWh, which is equivalent to 65-85% of the country's annual electricity production.
