Rogun HPP - The Times Of Central Asia

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AIIB Commits $500 Million to Tajikistan’s Rogun Hydropower Project

The Beijing-based Asian Infrastructure Investment Bank (AIIB) has approved a multiphase program totaling $500 million, including an initial Phase 1 loan of $270 million, to support Tajikistan’s flagship Rogun Hydropower Plant (HPP) project. The announcement was made on January 6, following the financing approval on December 19, 2024. The Rogun HPP, located on the Vakhsh River — a tributary of the Amu Darya River — lies 110 kilometers from Dushanbe, Tajikistan’s capital. With a designed generation capacity of 3,780 MW, a 335-meter-high dam, and a reservoir spanning 170 square kilometers, the Rogun HPP is expected to deliver improved electricity access to around 10 million people. It aims to address Tajikistan’s chronic winter power shortages and position the country as a key regional energy supplier. The project is co-financed with the World Bank, with potential contributions from a global consortium of donors. It seeks to enhance the supply of clean, affordable, and climate-resilient hydropower, with the potential to export electricity to neighboring Central Asian countries. As Central Asia’s energy demand is projected to grow by 40% by 2030 and triple by 2050, the Rogun HPP will play a pivotal role in increasing reliability and reducing the cost of electricity supply across the region. Konstantin Limitovskiy, AIIB Chief Investment Officer, commented on the significance of the project, stating: "This project will significantly contribute to the green energy transition and energy security of Central Asia. Investing in sustainable energy infrastructure is not merely about meeting today’s demands, but about empowering future generations with clean, reliable power that drives transformative growth, strengthens resilience, and unlocks the full potential of the region." Tajikistan ranks eighth globally in hydropower potential, yet only about 4% of this capacity is currently utilized. The Rogun HPP is set to play a critical role in decarbonizing electricity grids across Central Asia, supporting the region’s ambitious Nationally Determined Contributions (NDCs) under the Paris Agreement.

Environmental Awareness Rogun HPP Renewable Energy Generation Energy Security

Rivers Without Boundaries Coalition Criticizes Rogun HPP Plans

Rivers Without Boundaries, an international environmental organization, has released a detailed report analyzing alternative strategies for completing the Rogun Hydroelectric Power Plant (HPP) in Tajikistan. This report has been submitted for review to the World Bank Board of Directors. The report highlights the importance of exploring alternative energy development options in Tajikistan before committing to the $6.4 billion Rogun HPP project. The coalition advocates for solutions that minimize environmental and social risks while maximizing long-term benefits for the region. Environmentalists caution that even if the World Bank approves the construction of the world's tallest dam, standing at 335 meters, many of Tajikistan's pressing challenges will remain unresolved. Persistent electricity shortages, for example, are projected to continue until at least 2036, despite the project’s completion. Additionally, the project poses significant threats to the UNESCO-listed Tigrovaya Balka Nature Reserve and the endangered shovelnose sturgeon in the Vakhsh River. Agricultural disruption is another major concern, as over seven million people across Tajikistan, Uzbekistan, Turkmenistan, and Afghanistan risk losing access to vital water resources for farming. The coalition proposes an alternative approach that combines a smaller Rogun HPP with the development of solar power plants. By reducing the dam’s height by 70 meters, the plan could substantially lower economic, social, and environmental risks. This modified strategy offers several benefits, including reducing the number of displaced residents from 40,000 to roughly 13,000. Moreover, integrating solar energy into the energy mix could enable Tajikistan to meet its winter electricity demands by 2030–31 while enhancing resilience to climate change. Diversifying the energy sector would also mitigate long-term economic vulnerabilities. Previously, Rivers Without Boundaries published a report titled “Rogun Hydroelectric Power Plant Project: Non-Compliance Report with World Bank Requirements,” which detailed how the Rogun HPP project violates the World Bank’s environmental and social standards in six critical areas: environmental assessment, biodiversity protection, resource efficiency, dam safety, public participation, and forced displacement. The coalition calls on the World Bank and Tajik authorities to consider alternative solutions that align energy development with environmental sustainability and social responsibility, ensuring a balanced and equitable approach to the region’s energy needs.

economic Finance Energy Export/Import hydroelectric Rogun HPP

Kazakhstan to Begin Purchasing Electricity from Rogun HPP

Kazakhstan has announced plans to purchase electricity from Tajikistan’s Rogun hydropower plant (HPP), a major facility currently under construction. According to a draft agreement published on Tajikistan's official legal information portal, the cooperation between the two countries is set to last for 20 years, with an option to extend for an additional 10 years. The price for the electricity is set at $0.034 per kilowatt-hour (excluding VAT), plus a transit surcharge determined by the seller’s costs. Payments are to be made within 35 days for each supply period. The supply will only occur during scheduled shortages and will be integrated into KEGOC’s national grid. Rogun HPP will handle transportation to the border, while the Settlement and Financial Center for Renewable Energy Support LLP will oversee control on the Kazakh side. Any disputes arising from the agreement will be resolved through the Singapore International Arbitration Center. Electricity agreements with Kazakhstan and Uzbekistan are a critical component for securing international financing for the Rogun HPP’s construction. Project costs have risen to $6.4 billion, according to recent estimates. To cover these costs, the Tajik government is negotiating semi-concessional loans worth $1.73 billion, $850 million in grants, and $390 million in concessional loans. The remainder will come from the government budget and revenues generated by the plant. This year, the Tajik government allocated 5 billion somoni (approximately $460 million) for the Rogun project, with 2.8 billion somoni coming from the state budget and 2.2 billion somoni from investment projects. By the end of September 2024, 4.3 billion somoni (about $395 million) had already been spent on construction. Once completed, Rogun HPP will become the largest hydropower facility in Central Asia, boasting a capacity of 3,600 MW and capable of producing up to 17 billion kWh of electricity annually. This output represents 65–85% of Tajikistan’s total electricity production. The plant will house six units of 600 MW each, with full commissioning expected by 2029. Currently, two units are operating at low capacity, having been commissioned in 2018 and 2019. The project serves as a landmark achievement for Tajikistan’s energy sector and a key driver of regional energy cooperation, promoting economic stability and resource-sharing throughout Central Asia.

Environment World Bank Environmental Awareness Rogun HPP Energy Security

Rogun HPP Faces Criticism for Violating World Bank Standards

The international environmental coalition Rivers without Boundaries has released a report titled “Rogun Hydroelectric Power Plant Project: Non-Compliance Report with World Bank Requirements.” Outlining how the Rogun HPP in Tajikistan fails to meet the World Bank’s environmental and social standards, the report highlights violations in six key areas: environmental assessment, biodiversity protection, resource efficiency, dam safety, public participation, and forced displacement. It also highlights non-compliance with the bank’s policies on financing investment projects. The report’s authors point out that the situation worsened as a result of the World Bank taking responsibility for developing environmental and social safeguards for the Rogun HPP project on behalf of all financiers, including major banks like the AIIB, ADB, and EIB. In accepting this move, these institutions have effectively treated the World Bank's standards as their own. Therefore, if these standards are violated, the standards of other financial institutions are also breached. “We are convinced that the presented version of the Rogun HPP project does not comply with the social and environmental principles of the World Bank and should not be financed by international development banks in its current form,” said Evgeny Simonov, coordinator of the international environmental coalition 'Rivers Without Borders.' “Due to non-compliance with banking standards and procedures, the project includes many ineffective and risky elements that could lead to serious environmental and social damage during its implementation.” The report was created under the international Rogun Alert initiative, which represents environmental organizations worldwide. Last week, it was sent to all international development banks involved in the Rogun project. On October 23, an open letter signed by 124 public organizations, including Rivers Without Borders, highlighting the risks of financing large dam projects, including Rogun, will be presented to the World Bank management. According to the source, urgent international public consultations on the environmental and social impact of the construction of the Rogun HPP on the basin countries are planned for October 28 of this year.

Energy Infrastructure Rogun HPP OPEC Hydropower Finance

Tajikistan Signs First Stage of $100 Million Contract with OPEC Fund for Rogun HPP

On October 10, during a visit to the headquarters of the OPEC Fund in Vienna, a delegation from the Republic of Tajikistan, led by Deputy Prime Minister Usmonali Usmonzoda, signed a contract marking the completion of the first stage of the Credit Agreement between the two parties to finance the Rogun HPP (Lot 4) project. The project aims to promote the republic's energy security and economic development by increasing the production of electricity to supply the domestic market and its export to the region's countries. A total of $100 million allocated by the OPEC Fund for the project, will be implemented in four stages under separate agreements worth $25 million. The rating agency S&P has estimated the cost of completing the construction of the Rogun HPP in Tajikistan as $6.4 billion. According to S&P, the Rogun HPP currently produces electricity at 10-15% of its total capacity. In 2024-2035, income from electricity which is expected to reach $1.1 billion, will be invested in further construction of hydroelectric power plants. On September 17, during the summit of the Central Asian countries and Germany, in Astana, President of Tajikistan, Emomali Rahmon, invited German Chancellor Olaf Scholz to cooperate on the Rogun HPP. Since then, The Times of Central Asia has been reporting on loans allocated for the plant’s construction.

Rogun HPP Finance ADB Power Supply Energy Infrastructure Energy Security

ADB Allocates $15 Million to Tajikistan for Power Grid Reconnection in Central Asia

The Asian Development Bank (ADB) has approved a grant of $15 million for a project to reconnect Tajikistan’s power lines to the Central Asian unified electricity grid. The reconnection, it is reported, will be carried out through mutual relations with Uzbekistan. “Through the Central Asia Regional Economic Cooperation (CAREC) program, ADB actively promotes regional power trade among countries in Central Asia and beyond,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “Our support improves the sustainability of the regional power system and helps reduce greenhouse gas emissions in the region.” The additional funding will build a new 22-kilometer, 500-kilovolt power line in northern Tajikistan, connecting the Sughd substation to the New Syrdarya substation in Uzbekistan. This will increase the ability to send and receive electricity between Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan and improve the infrastructure to prevent blackouts. The project will also help ensure that Tajikistan’s energy system is ready to provide regulatory opportunities for the continued integration of renewable energy in the region. In the long term, it will become a key component of the electricity evacuation scheme for the Rogun hydropower plant in Tajikistan. Previously, ADB approved $17.5 million in grant assistance to improve women's agricultural skills and ensure food security in Tajikistan.