The Asian Infrastructure Investment Bank (AIIB) has decided to increase the financing of the Rogun hydroelectric power station to $500 million. This was reported by the press service of the President of Tajikistan following a meeting between Emomali Rahmon and AIIB President Jing Lijun on September 1 in Tianjin on the sidelines of a meeting of the Council of Heads of SCO member States.
The President of Tajikistan noted the bank's contribution to the development of sustainable infrastructure and strengthening the solidarity of the countries of the region. He stressed that the AIIB is involved in the implementation of four investment projects in Tajikistan totaling more than $430 million, including the construction of the Rogun hydroelectric power station and a 920-meter-long large automobile bridge in Nurabad district.
"The parties discussed wide opportunities for cooperation in the field of green energy, including the construction and modernization of power plants of various capacities, as well as the commissioning of solar and wind installations," – the statement said.
It is noted that the bank's financial support was recognized as necessary for the implementation of projects in the field of water resources management, reducing the risks of floods and landslides, as well as attracting modern control and monitoring technologies.
The parties also paid great attention to strengthening transport integration, developing appropriate infrastructure and modernizing public utilities.
The attraction of private investments, the development of innovative forms of financing and new financial instruments were identified as a promising area of cooperation.
Tajikistan and the AIIB signed an agreement at the end of December last year in the amount of $270 million (1.92 billion yuan) for the implementation of the “Rogun HPP Development Program, Stage 1.”
The Ministry of Finance announced at the time that the total amount of funding provided to the AIIB for the construction of the Rogun hydroelectric power station was $500 million, which would be allocated in two phases under separate agreements.
The President of Tajikistan said at a meeting with Rogun builders on August 27 this year that negotiations with the AIIB on signing a loan agreement worth $500 million were at the completion stage.
He stressed that agreements with development partners worth more than $2 billion have been concluded to finance the completion of Rogun, and negotiations are underway for another $1.7 billion, he said.
Meanwhile, the Justification of Tajikistan's sovereign rating, prepared by the international rating agency Standard & Poor's Global Ratings, states that financing of the Rogun HPP project by development partners, in particular the World Bank, is delayed until the remaining conditions are met.
It is noted that the remaining cost of the construction of the Rogun HPP is estimated at $6.4 billion.
"The government has agreed to finance half of this amount with a consortium of international partners, the rest should come from the budget and revenues from the project. The preliminary package includes $1.5 billion in non-concessional loans, $850 million in grants and $550 million in concessional loans. It is known that part of the grants depends on Tajikistan's status as a "least developed country", which may be reviewed in 2026," – S&P representatives emphasize.
According to the press service of the President of the Republic of Tajikistan, 4.3 billion somoni ($451 million) have been allocated from the budget since the beginning of 2025. In general, according to him, from 2008 to the present, over 48.1 billion somoni have been spent on the completion of the station from the state budget and other sources.
About the Rogun Hydroelectric Power Station
The Rogun HPP, with an installed capacity of 3,780 MW, will become the largest hydroelectric power plant in Central Asia. It is expected that after the complete commissioning of the HPP, the annual volume of electricity generation will exceed 14.5 billion kWh.
6 units with a capacity of 630 MW each will be installed in the engine room of the station. The launch of the last unit is expected in 2029.
Currently, two units of the Rogun HPP are operating at low capacity, which were commissioned in 2018 and 2019.
According to the Ministry of Energy, in 2024, the Rogun HPP generated 1.220 billion kWh of electricity. This represents 5.5% of the total electricity generated in the republic.
