Tajikistan to issue government securities for $1 billion to raise funds for Rogun power plant

DUSHANBE (TCA) — Tajikistan plans to issue government securities for a total of $1 billion for placing in international financial markets, Avesta news agency reported.

The lower house of Tajikistan’s parliament on June 21 approved the Government’s proposal to issue the securities, which will be used to raise financing for the country’s strategic project — construction of the Rogun hydro power plant.

Speaking in the parliament, Deputy Finance Minister Jamshed Nurmakhmadiyon said that half year ago, the government established a working group that had conducted talks with international financial institutions, rating agencies, securities and legal agencies on the planned issue.

In the first stage, the Government will issue securities for $500 million.

The sale of securities is planned for 2018.

The deputy finance minister said that securities will be sold to companies and private individuals, and their yield would be at 7.5-8 percent per annum.

Once completed, the dam of the Rogun hydropower plant (HPP) on the Vakhsh River would be the world’s tallest and should give Tajikistan a stable power supply.

Tajik President Emomali Rahmon gave an official start to the construction of the Rogun dam on October 29, 2016.

Tajikistan is heavily dependent on hydroelectric power and regularly experiences electricity outages.

Authorities say the Rogun HPP will be able to provide electricity for the whole country and could also provide parts of Afghanistan and Pakistan with cheap electricity.

Italian construction conglomerate Salini Impregilo won a $3.9 billion contract to build the structure.

Although it will take years to complete the project, the idea is to have two of the six turbines of the Rogun hydro power plant start producing electricity for sale by 2018 to raise funding to complete it. The first turbine is to go into service in August 2018, followed by the second one in October of the same year, the Italian company earlier said.

Once completed, the Rogun power plant will have 6 turbines of 600 MW each with a total installed capacity of 3,600 MW.

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Times of Central Asia