World Bank Eases Environmental Requirements for Tajikistan’s Rogun Dam
The World Bank has revised the financing terms for the Rogun Hydropower Plant (HPP) in Tajikistan. Updated project documentation indicates that the lending institution has softened environmental requirements for the continuation of construction work while simultaneously expanding financial oversight mechanisms. The board of directors is scheduled to consider the second phase of project financing on June 30, 2026.
The deadline for the final preparation of the Biodiversity Management Plan has been postponed to October 2026, though a tender for a consultant to lead this work has yet to be announced. In late 2025, experts from the environmental coalition Rivers without Boundaries and CEE Bankwatch submitted a detailed analysis to the World Bank highlighting significant flaws in the project’s environmental documentation. Although the bank had previously restricted funding for several contracts pending the adoption of the Biodiversity Management Plan, this restriction has now been lifted – allowing contractors to proceed with large–scale operations without a mitigation plan that meets established standards. To mitigate risk, a standard provision has been added to the credit agreement granting the bank the right to unilaterally terminate financing if implementation progress is unsatisfactory.
The economic model for the Rogun HPP has also undergone adjustments. Forecasts for greenhouse gas emission reductions and electricity exports to Uzbekistan were found to be overestimated and have been lowered in updated calculations. According to the revised data, the financial sustainability of the project is maintained provided that construction cost overruns do not exceed $1.8 billion.
Regarding the regional hydrological regime, a monitoring indicator has been introduced to track the seasonal shift of the Vakhsh River flow from summer to winter through 2029. However, the documentation does not clarify mechanisms for controlling this indicator once the large–scale Rogun reservoir is in full operation.
Occupational safety issues continue to be recorded at the construction site. Reports mention five labor–related incidents, one of which is currently being investigated for a direct link to the production process. Specialized consultants have been hired to address the situation, and recruitment is underway for more than 80 safety inspectors to serve across all contracting organizations.
The project has begun to partially account for local engineering and geological risks. The first phase of construction includes the building of mudflow–retention dams on the Obishur River to protect the site and downstream facilities from rockfall and debris flows.
Changes have also been made to the financing of the local resettlement plan. The funding limit for the Rogun HPP Flooding Zone Directorate has been increased to accelerate the process. In the autumn of 2025, non–governmental organizations submitted a report to the World Bank regarding improper planning and implementation of resettlement, citing high humanitarian risks associated with an accelerated timeline. Updated documentation does not indicate a revision of existing plans. Furthermore, the specific indicator for the number of displaced persons has been removed from performance tracking, replaced by broader metrics focused on gender composition and the total number of potential beneficiaries across the republic.