Audit firm Baker Tilly Tajikistan has reviewed the financial statements of Open Joint-Stock Company (OJSC) NBO Roghun for the year 2024, issuing a qualified opinion — confirming the report only partially due to a number of significant concerns and risks.
The financial statements reflect the company’s current status, the construction phase of the hydropower plant, investment volumes, and key risks. The report is available on company’s official website.
Baker Tilly Tajikistan is a registered audit and consulting firm in Tajikistan and part of the global Baker Tilly International network, present in over 140 countries and ranked among the world’s top 10 auditing networks.
Asset revaluation lacking
Auditors stated they did not participate in the year-end inventory of cash, fixed assets, or materials as of December 31, 2024. This limited their ability to verify the existence and condition of certain assets, increasing the risk of misstatements.
They also noted that the company’s fixed assets had not been revalued for a long time, despite indicators of a significant deviation between book and market values. Under IFRS, such assets must be revalued regularly.
Discrepancy of nearly $540 million
Auditors reported a discrepancy between the company’s charter capital recorded in its financial statements (40.03 billion somonis) and the Unified State Register (45 billion somonis) — a gap of about 4.97 billion somonis (~$540 million). Management failed to provide adequate documentation to confirm the reported figure, possibly understating capital.
Company’s financial position
As of December 31, 2024, the company’s total assets stood at 49.48 billion somonis. Most of this — 35.33 billion — relates to construction in progress, reflecting the active build phase. Fixed assets were valued at 9.28 billion somoni. In 2024, much of the spending went toward investments in equipment and construction.
Revenue and losses
The company earned 258.4 million somonis in revenue in 2024, primarily from electricity sales. However, the cost of sales exceeded revenue at 367.4 million somoni, resulting in a net loss of 277.3 million somoni — lower than 2023’s loss of 332.8 million. Losses are systemic, as the hydropower plant (HPP) remains under construction and has yet to reach full operational capacity.
Equity and liabilities
As of year-end, the company’s equity was 38.07 billion somoni with accumulated losses of 1.99 billion. Long-term liabilities reached 4.8 billion somoni, mainly from loans by the Ministry of Finance and the Social Protection Agency. Short-term liabilities amounted to 6.6 billion somoni, including debts to contractors and short-term loans.
Cash flows and government support
Despite losses, OJSC NBO Roghun generated over 3.2 billion somonis in positive operating cash flow in 2024, enabled by increased settlements with government bodies and founder contributions. The company’s operations rely heavily on government funding, with construction allocated funds in the national budget each year.
Uncertain future
Auditors highlighted substantial uncertainty regarding the company’s ability to continue as a going concern. Its sustainability hinges on completing construction, securing funding, and boosting electricity sales. Management views Roghun HPP as a long-term strategic project essential for national energy security and regional electricity exports.
About OJSC NBO Roghun
Tajikistan founded OJSC NBO Roghun with an authorized capital of 116 million somonis for completing the construction of the Roghun HPP in April 2008 after it formally revoked a contract with Russia’s RusAl aluminum company for the construction of the Roghun HPP in August 2007. The Tajik government accused the Russian company of failing to fulfill the contract signed in 2004. Tajik authorities and RusAl became bogged down in the hydroelectric plant's dam model and height, crucial factors in its capacity.
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 Roghun shares.
22,000 people are reportedly holders of the Certificates of Shares (the face value of one Certificate of Shares is 5,000 somonis) and nearly 2 million people are holders of shares of the face values of 100, 500 and 1,000 somonis.
About Roghun HPP
With a planned capacity of 3,780 MW, Roghun HPP is set to become the largest hydropower plant in Central Asia. Once completed, it will generate over 14.5 billion kWh annually. The powerhouse will host six units of 630 MW each, with final commissioning expected by 2029. Two units, launched in 2018 and 2019, are currently operating. In 2024, the plant generated over 1.2 billion kWh — about 5.5% of Tajikistan’s total electricity output.
