The IDB is ready to increase financing for the construction of the Rogun Dam
The Islamic Development Bank (IDB) intends to increase the volume of financing for the construction of the region’s largest hydroelectric power station “Rogun” and other priority areas of the economy of Tajikistan. The corresponding agreement was reached following the meeting of the Tajik delegation headed by the Minister of Economic Development and Trade of the Republic Zavki Zavkizoda with the President of the bank Mohammed Suleiman al-Jaser, held as part of the annual meeting of the IDB Group in Algeria.
According to the press service of the Ministry, Zavkizoda requested to increase funding for the development of green energy, in particular, for the construction of the Rogun Dam, as well as for the construction of roads, educational institutions, logistics centers, irrigation of farmland, the creation of textile enterprises, the production of halal products, the development of trade, tourism, banking system, strengthening export potential countries, private sector development and climate change mitigation. In response, the head of the IDB “expressed his readiness to increase the financing of projects in these areas, as well as to strengthen further cooperation.” In addition, the parties agreed to continue ensuring the implementation of the partnership strategy between Tajikistan and the IDB for 2023-2026.
The IDB, founded in 1973, is an international financial organization. Tajikistan joined the bank in 1996. According to the Ministry of Economic Development of the Republic, since the beginning of cooperation, the IDB group has invested more than $916 million in the national economy. In April 2024, the bank’s board of directors approved the financing of the construction of the Rogun Dam in the amount of $550 million, including $150 million from its own funds, and $400 million from Arab development funds.
The construction of the Rogun Dam, located 110 km from Dushanbe on the Vakhsh River, began in 1976, but was mothballed after the collapse of the USSR. Later, Tajikistan continued work on the construction of Dams, of the six units with a capacity of 600 MW envisaged by the project, two have been launched so far, the launch of the third is scheduled for 2025. After commissioning of all six units, the plant’s capacity will be 3.6 GW, and the dam with a height of 335 meters will become the highest in the world.
In December 2024, the President of Tajikistan Emomali Rahmon, in a message to the parliament, noted that over the past two years, about $826 million has been allocated from the state budget for the construction of Dams. Earlier it was reported that about $ 6.2 billion is needed to complete the construction of the station. According to the Ministry of Finance of Tajikistan, by the end of 2024, $1.5 billion of funds from international financial institutions were attracted for the construction of Dams, of which $350 million were grant funds.
