Authorities of Tajikistan increased authorized capital of Rogun HPP

237 views Economy 0

The government of Tajikistan has instructed the country's Ministry of Finance to allocate 100 million somoni (over $9.1 million) from the Stabilization Fund for the Development of the Economy to replenish the charter capital of the Open Joint-Stock Company (OJSC) Rogun HPP, Asia Plus reports.

According to the government resolution published on the legal information portal of the Ministry of Justice of Tajikistan, this funding is allocated from the Stabilization Fund for the Development of the Economy. The Fund, in turn, receives these funds from the republican budget of Tajikistan through the following revenues:

- the remainder of the current account of dividends from state-owned shares (60 million somoni);
- the remainder of the current account of funds for interest payments from the net profit of state-owned enterprises received for financial obligations in 2022 (23 million somoni);
- the remainder of the current account of fines from the surveillance camera system of the "Safe City" (17 million somoni).

The Stabilization Fund for the Development of the Economy of Tajikistan is replenished through the overfulfillment of the revenue part of local and republican budgets. The funds from this Fund are primarily directed towards the development of the fuel and energy sector, ensuring food security in the country, developing social sectors, and timely servicing the state external debt.

At the beginning of this month, the Ministry of Energy of Tajikistan reported that $1 billion annually is needed for the completion of the Rogun HPP, and a total of $6.2 billion is required for the full implementation of the project by 2029.

The Minister of Finance of Tajikistan, Fayziddin Kakhkhorzoda, stated that the government plans to allocate 5 billion somoni ($456 million) for financing the Rogun project during the current year. He noted that 2.2 billion somoni is expected to be allocated through attracting external financing, and the remaining portion through internal sources.

The minister stated that a credit agreement with the Saudi Development Fund has been signed and ratified by the parliament, which implies providing $100 million. "This is a concessional loan - only 1.5% per annum for 30 years with an 8-year grace period," the minister said.

He expressed hope that access to financing for the Rogun project through the World Bank funds will be available within this year.

The minister highlighted that negotiations are currently underway to attract funds from other financial institutions, including the Islamic Development Bank, Kuwait Development Fund, Qatar Development Fund, Abu Dhabi Fund, and others.

Kakhkhorzoda emphasized that with emerging opportunities, project financing is expected to increase throughout the year.

According to official data, since 2008, when the resumption of the Rogun project implementation began, more than 40 billion somoni have been allocated for the completion of the station.

President of the country Emomali Rahmon, during his address to the country's parliament on December 28 of the previous year, announced that the next hydro unit of the Rogun HPP is planned to be commissioned in 2025.

The first two units of the station have been operating at low capacity (100-200 MW) since 2018 and 2019, respectively.

In total, six units with a design capacity of 600 MW each are planned to be installed in the machine room of the station. The launch of the last unit of the station is scheduled for 2029.

It is expected that the Rogun HPP will become the largest hydroelectric power station in Central Asia, with an installed capacity of 3,600 MW.

The annual volume of electricity generation after the station's full commissioning will be up to 17 billion kilowatt-hours.

February 19, 2024