Tajikistan plans to attract about €315 mln for completion of Rogun HPP

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The government of Tajikistan intends to attract about €314 million in 2023 to continue the construction of the Rogun hydro power plant (HPP), Avesta reports. .

These will be credit funds attracted at interest rates acceptable for Tajikistan.

Earlier, securities (Eurobonds) in the amount of $500 million were put up for sale to raise funds for the completion of the Rogun HPP.

Government bonds of Tajikistan by investor type were sold to fund managers (85%), hedge funds (9%), banks and other financial institutions (6%).

The European Union plans to become the largest investor in the construction of the Rogun hydroelectric power station in Tajikistan, media reported in the summer of 2022.

The European Investment Bank (EIB) may act as a potential investor of the Rogun hydropower plant.

An EIB spokesman told Reuters at the time that the European Commission had asked the bank to become the "biggest investor" in the project.

An EU official, who declined to be named because he was not authorized to speak to the media, said the main reason the EU became the main investor in the hydroelectric dam was to make Tajikistan and its neighbors independent of Russian energy.

The EU is interested in achieving "Central Asia's energy independence from Russia," the official said.

The funding will be part of the EU's Global Gateway strategy. In December, Brussels unveiled a €300 billion global infrastructure spending plan, an EU official said.

On November 11 of this year, the government of Tajikistan, by its decree, instructed the Ministry of Finance to allocate 200 million somoni to replenish the authorized capital of the Rogun HPP Open Joint Stock Company.

It was also instructed, taking into account the allocation of additional funds, to regulate the financing plan for Rogun HPP OJSC in the republican budget for 2022.

Rogun HPP Open Joint Stock Company was instructed to ensure the timely and targeted use of the allocated funds and submit a report on the expenses incurred to the Ministry of Finance.

The construction of the Rogun HPP was resumed in 2008. Then it was reported that the implementation of the project would require about $3 billion. In 2016, the figure was $3.9 billion. Later, the Ministry of Energy of the Republic reported that $5 billion was needed to complete the construction of the station.

The Rogun hydroelectric power plant is the ninth cascade of hydroelectric power plants on the Vakhsh River, located 110 kilometers from Dushanbe. According to the project, the HPP consists of 6 units, the capacity of each of which is 600 MW.

The height of the rock-fill dam of the hydroelectric power plant will be 335 meters, which is the highest in the world (by its type). The Rogun HPP itself, with a production capacity of 3,600 MW (more than 17 billion kWh) of electricity, is considered the largest in Central Asia, Avesta reports. .

CentralasianLIGHT.org

December 6, 2022