The government of Tajikistan has initiated a series of measures to stabilize the financial health of the state-run energy company Barqi Tojik. These efforts, implemented during the first half of 2025 under a government resolution, were outlined by the company's deputy head, Rustam Majidzoda, at a news conference in Dushanbe on July 30.
One of the most significant developments was a debt restructuring agreement reached in April with OJSC Sangtudinskaya GES-1, which operates the Sangtuda-1 hydropower plant (HPP). The deal includes the partial cancellation of Barqi Tojik’s outstanding debt — totaling US$297 million — to that company.
“This debt will be written off in annual installments of US$25 million from 2025 to 2033, provided that current electricity deliveries are paid for in full and on time,” Majidzoda explained. He added that the overall debt figure has remained unchanged since the start of the year.
As part of the agreement, the cost of electricity generated by Sangtuda-1 HPP was reduced from 3.2 cents to 1.5 cents per kilowatt-hour. A protocol was also signed amending the bilateral agreement between Tajikistan and Russia on the operation of the plant. It extends the investment recovery period for both sides from 20 to 35 years, pushing the final deadline to 2048.
In a related move, Barqi Tojik reached a separate agreement with the Iranian-built Sangtuda-2 HPP to extend the payment deadline for its outstanding debt. According to Majidzoda, the company currently owes the Sangtuda-2 HPP approximately 3.7 billion somonis for previously delivered electricity.
Further financial relief came in the form of a partial debt write-off by the Ministry of Finance. This involved loans previously issued under government guarantees for various energy infrastructure projects. As a result, Barqi Tojik’s debt to the ministry has been reduced to 12 billion somonis.
Despite these efforts, the company continues to struggle with arrears. As of July 1, Barqi Tojik owed the OJSC NBO Roghun 1 billion somonis for electricity supplied by the still-under-construction Roghun hydropower plant.
The restructuring and relief measures are part of a broader government strategy to stabilize Tajikistan’s energy sector and restore the financial solvency of its key electricity provider.
Barqi Tojik now operates just as power generation company. Recall, OJSCs Power Distribution Networks and Power Transmission Networks were established on the basis of the national power utility company (Barqi Tojik) in summer 2020
The process of restructuring of Barqi Tojik began in 2012 and Barqi Tojik was divided into three independent companies: (i) generation; (ii) transmission business; and (iii) distribution.
The main objective of the restructuring of Barqi Tojik is in ensuring transparency in the country’s energy system.
