Tajikistan and Saudi Arabia has signed an agreement on financing the completion of the construction of the Roghun hydroelectric power plant (HPP), according to the Ministry of Finance of Tajikistan (MoF).
A loan agreement for 100 million US dollars was reportedly signed here on December 4 between the Government of Tajikistan, represented by Faiziddin Qahhorzoda, Minister of Finance, and the Government of the Kingdom of Saudi Arabia, represented by Sultan Abdurahman Al-Marshad, Chief Executive Officer (CEO) of the Saudi Fund for Development (SFD).
This loan is allocated for co-financing the construction of the Roghun hydropower plant’s facilities to provide the renewable energy, increase generation of “green” energy and promotion the “green” economy in Tajikistan.
Recall, the SFD in early November announced its readiness to provide a concessional loan of 375 million riyals (equivalent to 100 million US dollars) for completion of the construction of the Roghun hydroelectric power plant (HPP) in Tajikistan.
Thus, SFD becomes the first among the world development funds to express a desire to finance the Roghun hydropower project.
The funds that can be allocated for completion of the construction of the Roghun hydropower plant make up half of all financial assistance provided by the SFD to Tajikistan since 2002.
It is noted that the Roghun HPP is one of the largest projects in the region that can become an important factor of development of Tajikistan and the Central Asian region as a whole. It will contribute significantly to the country’s sustainable development by efficiently utilizing natural resources, including “green” energy.
To complete the construction of the Roghun hydropower plant, Tajikistan founded OJSC NBO Roghun in April 2008 after it formally revoked a contract with Russia's RusAl aluminum company in August 2007. To raise funds to complete construction of the Roghun HPP the government started to sell shares in Roghun to people on January 6, 2010. Tajikistan has reportedly issued 6 billion somonis worth of 5 million Roghun shares.
In 2016, construction duties on Roghun were assigned to Italian company Salini Impregilo (currently Webuild).
The project is broken down into four components, with the most expensive one involving the building of a 335-meter-high clay core rockfill dam — the tallest in the world — which will entail costs of around US$1.95 billion. Construction of the Roghun hydropower plant is expected to be completed in 2033.
Two of the six turbines have already started producing energy for sale to raise funding to complete it. The first turbine went into service in November 2018 and the second one was introduced into operation in September 2019.
In his address to a joint meeting of parliament, President Emomali Rahmon said on December 23 last year that the construction activities at the site for construction of the Roghun hydropower plant are ongoing dynamically. To this end 3.2 billion somonis (equivalent to 315 million U.S. dollars) were channeled in 2022.
To-date, spending on the construction of the Roghun hydropower plants has reportedly exceeded 40 billion somonis since 2008.
If built as planned, the Roghun hydropower plant is expected to end chronic power shortages in Tajikistan and allow it to export electricity to neighboring countries.
Established in 1974, the Saudi Fund for Development (SFD) is a Saudi Arabian government agency that provides development assistance to developing countries by financing social and infrastructure projects. The fund seeks to support the economies of recipient countries by enhancing economic growth and promoting job opportunities. SFD began operations in 1975. SFD's activities include development, finance, trade, and funding.
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