World Bank Approves New $300 Million Grant for Tajikistan’s Rogun Hydropower Project

The World Bank’s Board of Executive Directors has approved a second phase of financing for Tajikistan’s Rogun Hydropower Plant, providing a $300 million grant to support construction of what is expected to become the largest power station in Central Asia. According to the World Bank, the new funding from the International Development Association will finance civil works, electromechanical equipment for electricity generation, project implementation support, and environmental and social measures, including resettlement assistance and livelihood restoration for affected households. The financing will also support reservoir monitoring, forecasting systems, and flood-risk management for downstream communities. The Rogun project is expected to generate 14,400 gigawatt-hours of renewable electricity annually, equivalent to roughly 60% of Tajikistan’s current electricity generation. The World Bank said the plant will help reduce the country’s chronic winter electricity shortages, improve access to reliable power for around 10 million people, create more than 30,000 direct and indirect jobs, and enable electricity exports to Kazakhstan and Uzbekistan. “In addition to reducing chronic power shortages, increased access to reliable electricity from the Rogun HPP will help power economic transformation and create jobs in Tajikistan,” said Najy Benhassine, the World Bank’s director for Central Asia. “By increasing the supply of clean electricity, this transformational project will help power homes, businesses, and public services, creating employment opportunities in the country.” The World Bank also said increased electricity exports would strengthen regional energy trade. “By facilitating electricity exports, the Rogun HPP will help revitalize the regional power market, allowing Central Asian countries to use their energy assets more efficiently,” said Charles Cormier, the bank’s director for infrastructure in Europe and Central Asia. “Enhanced regional connectivity is expected to reduce supply constraints in the region and contribute to improved reliability and energy security.” At the request of the government of Tajikistan, the World Bank is coordinating international support for the project through the Rogun Coordination Group. The group includes development partners that have approved or expressed interest in supporting the project, including the Asian Development Bank, Asian Infrastructure Investment Bank, European Investment Bank, Islamic Development Bank, OPEC Fund, and several Gulf-based development funds. The latest financing comes as the project continues to face environmental scrutiny. Last year, The Times of Central Asia reported that the World Bank’s Inspection Panel had registered and reviewed a complaint concerning the bank’s involvement in the Rogun project. The complaint was submitted by the environmental coalition Rivers Without Boundaries on behalf of communities living downstream in Uzbekistan and Turkmenistan. The complainants argued that the project’s environmental and social assessments were outdated and did not fully evaluate potential downstream impacts. Environmental groups warned that filling the Rogun reservoir could reduce water flow to the Amu Darya delta, potentially accelerating desertification, increasing soil salinity, and affecting livelihoods in Uzbekistan and Turkmenistan. In November 2025, environmental groups criticized the World Bank Board after it declined to authorize a full investigation, despite an Inspection Panel recommendation for a comprehensive review. The World Bank has said the project is subject to environmental and social safeguards,...