Iran to Retain Control of Sangtuda-2 Hydropower Plant in Tajikistan Until 2032

Tajikistan and Iran have agreed to extend the repayment period for Iran’s investment in the Sangtuda-2 hydroelectric power plant by six years and four months. The extension will allow the Iranian side to recover its investment, after which full ownership of the facility will transfer to the Tajik government. The amendments to the electricity purchase agreement between Tajikistan’s state-owned power utility Barki Tochik and Iran’s Sangtuda Sangob company were ratified by the lower house of Tajikistan’s parliament in early October. The revised agreement was originally signed on May 29, 2025, in Dushanbe, following high-level negotiations between the two countries. Under the initial agreement, Iran was to recover its investment by August 2026, after which the hydropower plant would become Tajik state property. However, under the new terms, Iranian management of the plant will continue until the end of 2032. The total construction cost of the Sangtuda-2 hydroelectric plant was $256 million. Of this, the Iranian government contributed $180 million, Sangob invested $36 million, and the Tajik government provided $40 million. According to Tajikistan’s Ministry of Energy and Water Resources, between the plant’s launch in 2012 and the end of 2023, Barki Tochik purchased 8.9 billion kilowatt-hours of electricity worth $451.5 million. However, the power plant itself received only $122.5 million, roughly 27% of the total value. As a result, Tajikistan’s outstanding debt to Sangtuda-2 reached $329 million. Under the new agreement, this debt will be fully written off. In return, Dushanbe has committed to a new payment schedule over the next six years and four months. After this period, control of the plant will transfer to Barki Tochik. Sangtuda-2 is among the largest joint energy projects between Tajikistan and Iran. Construction began in 2006, with the first hydroelectric unit launched in September 2011 and the second in 2014. The plant is located in the Danghara district of the Khatlon region, on the Vakhsh River. It is the fifth stage of the Vakhsh cascade of hydroelectric stations.