The World Bank is reviewing the terms of financing the Rogun Dam

The World Bank has published a document on the restructuring of financing for the construction of the Rogun hydroelectric power station in Tajikistan. The main purpose of the revision of the conditions was to ensure strict compliance with environmental and social standards, as well as labor protection standards against the background of ongoing construction work. According to the restructuring plan, despite the progress in the construction of the dam, international creditors insist on making changes to key contracts to minimize the risks associated with the safety of personnel and the impact of the Rogun Dam on the environment.

The document notes that the construction of the waterworks is progressing: by mid-December 2025, the construction of the main dam (Lot 2) was completed by 46 percent, and the reservoir level was raised to 1100 meters above sea level. However, to start financing the project from the International Development Association, which has allocated a grant of $ 350 million, the Government of Tajikistan must fulfill a number of deferred obligations. The key obstacle remains the need to bring the contract for the construction of the main dam in line with the requirements of environmental and social standards of the World Bank.

Special attention in the framework of the restructuring is paid to the issues of labor protection and safety. An audit conducted in October 2025 revealed gaps in the risk management system at the construction site. In response, the World Bank requires the customer, JSC Rogun Dam, to implement measures to improve the supervision of incidents, as well as to ensure protection against the use of child and forced labor from primary suppliers. Until the contract with the contractor of the main dam is officially amended to meet these requirements, payments of funds for construction work in the main categories will be suspended. This condition is designed to ensure that the acceleration of the pace of construction will not go to the detriment of the safety of workers.

The Rogun Dam construction project carries significant risks for the entire Central Asian region, therefore, the requirements for the preparation of contingency plans have been expanded: now they should cover not only the territory of Tajikistan, but also the coastal zones of neighboring states, which, according to bankers, should increase the level of regional security.

To strengthen control over the implementation of the project, a new position of technical advisor to creditors is being introduced. The work of this independent expert will be paid for by the World Bank jointly with the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB). The tasks of the adviser will include monitoring the quality of construction, compliance with the budget, as well as the fulfillment of environmental and social obligations. According to creditors, such a step is designed to reduce the burden on local management structures and ensure transparency of reporting to a consortium of ten international development partners.

In addition to technical and environmental issues, the restructuring also affects social aspects, including programs for the resettlement of residents from the flood zone of the Rogun Dam. It is assumed that the allocation of funds for these purposes, as well as advance payments for electromechanical equipment, will become possible only after the conditions for the revision of contracts are fulfilled. The World Bank also indicates that the Government of Tajikistan should continue to work on the financial rehabilitation of its energy sector, including measures to improve the payment discipline of large consumers, such as Tajik Aluminum Company OJSC (TALCO), and the introduction of social protection mechanisms for vulnerable segments of the population when adjusting tariffs.

Recall that in anticipation of the receipt of funds from international donors, the government of Tajikistan has already spent $ 900 million from the state budget on the construction of the Rogun Dam in 2025.

Daria Syrskikh (Rivers.Help!)

Original (in Russian): Всемирный банк пересматривает условия финансирования Рогунской ГЭС