Rogun HPP - The Times Of Central Asia

Viewing results 1 - 6 of 9

Tajikistan Raises Over a Billion Dollars More for Rogun Hydropower Plant

Tajik President Emomali Rahmon, speaking at a meeting with the constructors of the Rogun hydropower plant, said that negotiations with the World Bank for a $650 million grant -- and with the Asian Infrastructure Investment Bank for a $500 million loan -- are in their final stages. Earlier, agreements on preferential lending were signed with the Islamic Development Bank for $150 million and the Saudi Fund for Development for $100 million. In addition, Arab development funds, such as the OPEC Fund, Kuwait Fund, and Abu Dhabi Fund, have already decided to allocate an additional $100 million. Negotiations are underway with the Asian Development Bank and the European Investment Bank to attract grants and preferential loans. Rahmon noted that from 2008 to 2024, more than 42.5 billion somoni (about $3.8 billion) from the state budget and other sources were allocated to construct the hydropower plant. He emphasized that Rogun is a crucial facility that ensures the country's energy independence and economic development. According to him, 7.5 billion kilowatt-hours of electricity have been produced since the launch of the first two units in 2018. More than 17,000 workers and engineers are currently employed in the plant's construction, and their number continues to grow. Rahmon also noted the need for strict adherence to the work schedule. The installation of the next hydro unit is planned for the fall of 2026. The Rogun hydropower plant is located 110 kilometers east of Dushanbe, and is one of Central Asia's largest and most strategically important hydropower projects. Once completed, it will be the highest dam in the world, at 335 meters. Construction of the project began in 1976 but was suspended after the collapse of the USSR. Work resumed in 2016, and two turbines are producing electricity. In the future, the hydropower plant will have six turbines with a total capacity of 3,600 MW. Once completed, it will generate 17.1 TWh of electricity per year. The project also addresses water supply issues; the reservoir will irrigate 300,000 hectares of land and reduce sedimentation at the downstream Nurek HPP. Part of the energy is planned to be exported to neighboring countries.

Afghanistan Energy Power generation Energy export Rogun HPP

Tajikistan Continues Electricity Supply to Uzbekistan and Afghanistan

It is being reported that Tajikistan delivered more than $82.3 million worth of electricity to neighboring countries from January to August of this year. The export of electricity is $2.8 million (3.3%) less than in the same period of 2023. During this period, Tajikistan's electricity production amounted to about 15.4 billion kilowatt-hours, of which about 1 billion kilowatt-hours (6.5% of the total production) were exported. More than 80% of electricity exports go to Afghanistan, and the remaining 20% to Uzbekistan. Tajikistan signed an agreement on the export of electricity for 2024 with these two countries. Electricity exports to Uzbekistan are carried out only in the summer, and supplies to Afghanistan will continue in the autumn-winter season, but in small volumes — “exclusively for the preservation of infrastructure.” For information, a memorandum of understanding has been signed between Tajikistan and Kazakhstan, providing electricity supply produced by the Rogun hydropower plant until 2032. Agreements on the supply of electricity to Kazakhstan and Uzbekistan are one condition for external financing of the Rogun project. The Times of Central Asia has reported that when the Rogun hydropower plant in Tajikistan reaches full capacity, about 70% of the electricity produced will be exported to other Central Asian countries.

Finance Energy Power generation Saudi Arabia Rogun HPP

Saudi Fund Contributes $100 Million Towards Rogun Hydropower Plant in Tajikistan

The Saudi Development Fund has allocated $100 million to finance the completion of the Rogun hydropower plant in Tajikistan. This was announced by the Ambassador Extraordinary and Plenipotentiary of the Kingdom of Saudi Arabia to the Republic of Tajikistan, Walid bin Abdulrahman Al-Rashidan, at a press conference dedicated to the 94th anniversary of the Kingdom of Saudi Arabia's founding. “This project is strategically important for the country, as it will ensure energy security and sustainable economic growth. The Rogun HPP is a key element of Tajikistan's energy infrastructure; it will significantly increase electricity production and strengthen its position regionally,” Al-Rashidan said. Saudi Arabia’s financial support strengthens bilateral cooperation in energy and economic relations. The estimated cost of completing the construction of the Rogun HPP is $6.4 billion. Once it reaches full capacity, about 70% of the electricity generated will be exported to other Central Asian countries. According to a report by the Eurasian Fund for Stabilization and Development (EFSD), the financing of the Rogun HPP is one of the main risks for Tajikistan’s budget and debt sustainability. A possible increase in the cost of hydropower construction could reduce funding for other essential infrastructure projects and social spending. Analysts emphasize that “in the face of uncertainty regarding funding sources, starting in 2025, the government of Tajikistan may have additional needs for budgetary support from international financial organizations.”

Germany Bilateral Cooperation EU Economic cooperation International Relations Rogun HPP

Rahmon Invites German Chancellor to Cooperate on Rogun HPP

During the summit of Central Asian countries and Germany on September 17 in Astana, Tajik President Emomali Rahmon spoke with German Chancellor Olaf Scholz on expanding Tajikistan’s cooperation with Germany and furthering Germany's business interests in the country. The president noted the significant contribution made by the German Society for International Cooperation and the German Development Bank to Tajikistan's implementation of its national strategies. With regard to future projects, the parties discussed developing effective cooperation in economy and trade, industry, hydropower, solar and wind energy, transport, and agriculture. The two leasers also exchanged views on mining and processing minerals and scarce earth metals, the expansion of bilateral cooperation in industry and agriculture, and the prospects of exporting products from Tajikistan to Germany. Talks also covered global problems related to drinking water, melting glaciers, climate change, and food security. Olaf Scholz confirmed Germany's interest in cooperating with Tajikistan in energy fields, including hydropower and other green energy sources, mining, environmental protection, and security, and emphasized, “we encourage cooperation with Tajikistan to global German companies." According to the president's press service, Emomali Rahmon recalled Germany’s contribution to the construction of the Tajikistan and Sebzor power plants in Badakhshan and the modernization of the Nurek hydroelectric power plant. Looking ahead, the president expressed confidence that such cooperation could continue on the Rogun power plant. The estimated cost of completing the construction of the Rogun HPP is $6.4 billion, and when fully operational, about 70% of the electricity produced will be exported to other Central Asian countries. The meeting closed with Rahmon inviting Scholz to come to Tajikistan on an official visit.

Finance Energy Industry Rogun HPP Standard & Poor's

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.

Rogun HPP World Bank Industry Economy Energy Investments Hydro power Finance

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.