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S&P Estimates That Rogun Hydroelectric Power Plant Will Cost Over $6 Billion To Finish

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.

Atomic Energy Energy Pollution Nuclear Energy public opinion

Poll Shows Over Half of Kazakhstanis Support Proposed Nuclear Plant

The Kazakhstan Institute for Strategic Studies has announced the results of a telephone survey concerning the proposed construction of a nuclear power plant in Kazakhstan. In his address to the nation on September 1, 2023, President Kassym-Jomart Tokayev emphasized the economic and political importance of the development of nuclear energy, and proposed resolving the issue of building the country’s first nuclear power plant through a nationwide referendum. In June 2024, Tokayev announced that the referendum on building a nuclear power plant would be held this fall, adding that the Cabinet of Ministers would set the exact date. The survey was conducted from August 7 to August 18 this year, among 1,200 respondents aged 18 and older from Kazakhstan’s 17 regions and the cities of Astana, Almaty, and Shymkent. Over half of respondents (53.1%) supported building a nuclear power plant, agreeing that it will help solve the problem of electricity shortages by 2030. 32.5% of the respondents oppose the construction of nuclear power plants, mainly because they fear possible accidents and their environmental consequences. 14.4% were uncertain of their stance. During the survey, 42.6% of the respondents expressed a firm intention to participate in a referendum on the issue of nuclear power plant construction, 16.4% said they are likely to participate, 25.3% do not plan to take part, 8.9% are unlikely to participate, and 6.8% are unsure. The Ministry of Energy estimates the cost of building a nuclear power plant at $10-12 billion. Energy Minister Almasadam Satkaliyev said that the nuclear power plant would be built by a foreign company that wins the tender — providing that the issue is approved in the referendum. In addition to companies from China, Russia, France, and South Korea, the ministry is considering companies from the United States and Japan as potential bidders. The proposed location of the nuclear power plant is the village of Ulken in the Karaganda region.

low income Energy Electricity supply Legislation Social Solar Energy

Free Solar Panels for Uzbekistan’s Low Income Households

Uzbekistan has launched a program to install solar panels in the homes of low-income families in the Tashkent Oblast. The key aim of the initiative, implemented with the participation of ACWA Power, an enterprise engaged in regional energy projects, is to reduce electricity costs for vulnerable sectors of the population. Under the plan, some 20,000 low-income households, especially those with air conditioning, will receive free photovoltaic panels with a 1.5 to 2 kW capacity, to reduce energy costs during the summer. The project is part of the government's broader strategy to transition to renewable energy. The country has already taken steps in this direction, including the construction of solar and wind farms, which in recent years, have enabled Uzbekistan to reduce its electricity imports from more than 4 billion kWh to less than 3 billion kWh and even begin to export electricity. The initiative is also a continuation of the Solar Home Program which was introduced in 2023 to encourage the installation of solar panels in private households across the country.

Finance Hydro power Investments Energy Economy Industry World Bank Rogun HPP

World Bank Considers Loan for Tajikistan’s Rogun Hydropower Plant

Tajikistan's Deputy Minister for Finance, Yusuf Majidi, has announced that the World Bank will consider financing the development of the Rogun hydroelectric power plant. According to him, the bank can allocate $650 million for this project in September this year. $250 million has been allocated as preferential loans; starting in 2025, the station's construction will be financed by other investments. Majidi specified that the construction of the hydroelectric power plant (HPP) is also financed by the Islamic Development Bank and Arab funds; according to preliminary data, this is about $550 million. When the Rogun HPP reaches full capacity, about 70% of the electricity produced will be exported to other Central Asian countries. According to the Eurasian Fund for Stabilization and Development (EFSD), financing the Rogun HPP is one of the main risks to Tajikistan’s budget and debt sustainability. The EFSD notes that a possible increase in the cost of hydropower construction could reduce funding for other critical infrastructure projects and social spending. Rogun is located 110km from Dushanbe on the Vakhsh River, and is the largest in the region. Its construction began in 1976, but it was destroyed after the collapse of the USSR. Later, Tajikistan continued work on the construction of hydroelectric power plants at its own expense and with the help of international funds and organizations, and so far, two of the six units with a capacity of 600 MW provided for in the project have been put into operation. The third is scheduled for 2025.

transboundary water Irrigation Strategy Security Central Asia Energy Hydro power

Uzbekistan to Supply Extra Water to Kazakhstan for Irrigation

Kazinform has reported that following a meeting in Astana between Kazakh Minister of Water Resources and Irrigation, Nurzhan Nurjigitov, and Uzbek Minister of Water Management Shavkat Hamroev, Uzbekistan is to provide Kazakhstan with an additional 500 million cubic meters of water until the end of the irrigation season. Since April 1, Uzbekistan has supplied more than 4 billion cubic meters of water to Kazakhstan through the Syr Darya. It had been previously agreed that Uzbekistan would provide Kazakhstan with 3.7 billion cubic meters of water within six months but the Uzbek side fulfilled its obligation in just 4 months. The report states that the key goal was to fully satisfy the demand for irrigation water from farmers of Kazakhstan's southern regions and today, the Shardara Reservoir holds 1.5 billion cubic meters of water, almost 500 million more than last year. A total of 4 billion cubic meters of water entered the Shardara reservoir. Commenting on the success of the project, the official representative of the Ministry of Water Resources and Irrigation of Kazakhstan, Moldir Abdualieva stated, “Due to the preliminary agreement with our neighbors on the working order of the Toktogul and Bahri-Tajik reservoirs, water regularly flows to the Kazakh part of the Dostlik interstate canal. Now, 90 cubic meters of water per second comes to the country through this channel. This is enough to fully supply the farmers of the Turkestan region with irrigation water,”

Electricity supply Finance Investments Energy Strategy Security Central Asia

Kyrgyzstan and Tajikistan to Test Facilities Prior to Launch of CASA-1000

On August 9, Ministers of Energy of Kyrgyzstan and Tajikistan agreed to a plan to test overhead lines, transformers, and substations prior to launching the Central Asia-South Asia (CASA-1000) electricity transmission project, scheduled for completion by the end of 2024. The construction of a 500 kV transmission line with a length of 456 kilometers is now nearing completion in Kyrgyzstan. All of the supports have been installed and 428 km of the 456 km of the transmission line have been strung. The remaining section will be finished before the end of August 2024. The CASA-1000 project aims to connect the energy systems Kyrgyzstan and Tajikistan with those of Afghanistan and Pakistan and through the new infrastructure, transport 1,300 megawatts of surplus electricity from Central Asia to high-demand electricity markets in South Asia. With spring and summer rainfall and significant water flow from the mountains, hydropower-rich Kyrgyzstan and Tajikistan produce surplus electricity during the summer. At the same time, neighboring South Asia, Afghanistan and Pakistan experience chronic electricity shortages, especially during the summer months. By connecting the four countries through a shared electricity transmission system, Kyrgyzstan and Tajikistan can sell clean hydropower-produced surplus electricity in the summer months to Afghanistan and Pakistan.