The ratings agency S&P has estimated the cost of completing the construction of the Rogun hrydroelectric power plant in Tajikistan at $6.4 billion.
The Tajik government is negotiating with a consortium of multilateral and bilateral creditors to provide a financing package covering about 50% of these costs. The other half of the financing is expected to come from the state budget and revenues from the plant.
S&P analysts said the initial external financing package includes $1.73 billion in semi-concessional loans, $850 million in grants, and $390 million in soft loans.
According to S&P, the Rogun hydroelectric power plant (HPP) already produces electricity at 10-15% of its total capacity. In 2024-2035, the income from electricity is expected to be $1.1 billion, which will be invested in further construction of hydroelectric power plants.
In 2016, during the international tender to select the main contractor for the dam’s construction, the plant’s value was announced as $3.9 billion.
In 2022, the Tajik Ministry of Energy announced that more than $5 billion would be required to complete the project.
In February 2023 the ministry estimated that the plant would cost $6.2 billion to complete. Then, more than $4 billion were allocated, including through the sale of shares of Rogun HPP OJSC (890 million TJS), Eurobonds ($500 million) and the remaining part from the state budget.
The Times of Central Asia has been reporting on the loans allocated for the plant’s construction.
