Tajikistan will send reserves of the National Bank for the construction of the Rogun Dam
The Lower House of the Parliament of Tajikistan has approved a bill allowing the use of funds from the reserve fund of the National Bank of the country to finance the construction of the Rogun Dam. The main purpose of this decision is to mobilize domestic resources for the implementation of a strategically important energy project and reduce dependence on external borrowings, Asia Plus reports.
The Minister of Finance of Tajikistan Fayziddin Kakhhorzoda, speaking to parliamentarians, explained the details of the financing mechanism. According to the adopted law, the balance of the reserve fund of the National Bank, formed based on the results of financial activities for 2024, will be transferred to the state budget. We are talking about an amount of 916 million somoni, which is equivalent to about $ 100 million. These funds will be targeted for the continuation of construction work at the facility.
The authorities of the republic emphasize that this step is necessary to achieve full energy independence of the country, which is planned by 2027. The state budget for 2026 has already provided about 15 billion somoni (over $ 1.6 billion) for the development of the fuel and energy complex, and the lion’s share of these allocations is intended specifically for the completion of the Rogun hydroelectric power station. According to official data, since 2008, more than 48.1 billion somoni have already been spent on the implementation of the Rogun Dam project.
In parallel with the use of domestic reserves, the Government continues to work with international financial institutions. Agreements worth more than $2 billion have been signed with development partners to complete the construction. This package includes grants from the World Bank, loans from the Asian Infrastructure Investment Bank, the Islamic Development Bank and funds from Arab funds. Negotiations are also underway to attract additional financing in the amount of $ 1.7 billion.
The international rating agency Standard & Poor’s, in its justification of Tajikistan’s sovereign rating, notes that external financing, in particular from the World Bank, comes as certain conditions are met. Analysts of the agency estimate the remaining cost of the construction of the Rogun Dam at $ 6.4 billion. It is assumed that half of this amount will be covered by a consortium of international partners, and the second part will be provided by the state budget and revenues from the project itself. Experts also point out that part of the grant support depends on Tajikistan’s status as a “least developed country”, which may be revised in 2026.
The Rogun Dam with a design capacity of 3,780 MW is to become the largest hydroelectric power station in Central Asia. It is planned to install six units with a capacity of 630 MW each in the engine room. Currently, two units have been put into operation, launched in 2018 and 2019, respectively. According to the Ministry of Energy of Tajikistan, in 2024, the Dam generated over 1.2 billion kWh of electricity. Full commissioning of the facility and the launch of the last unit are expected by 2029, after which the annual output should exceed 14.5 billion kWh.
Original (in Russian): Таджикистан направит резервы Нацбанка на строительство Рогунской ГЭС
