World Bank and Italy Sign Financing Deal for Tajikistan’s Rogun Dam

The World Bank and the Italian state bank Cassa Depositi e Prestiti (CDP) signed a co-financing agreement for the construction of the Rogun hydropower plant on July 23, 2026. The ceremony was held at the Ministry of Finance of Tajikistan in Dushanbe. The Italian Climate Fund will allocate $150 million to the project – assets managed by CDP on behalf of the Italian Ministry of Environment and Energy Security.

This marks the first joint financing agreement for a specific project between the World Bank and the CDP. Italy is part of a consortium of twelve international entities – a group providing collective support for the plant’s construction. Through the International Development Association, the World Bank has approved a total of $650 million in grant financing for the project. This includes $350 million allocated for the first phase and an additional $300 million for the second phase, which received approval from the board of directors in late June 2026.

The Rogun hydropower plant is situated on the Vakhsh River and belongs to the Vakhsh cascade. The project involves the installation of six units with a capacity of 600 MW each. Upon completion, the dam is projected to reach a height of 335 meters – making it the tallest in the world. Construction began in 1976 but was suspended following the collapse of the Soviet Union, resuming in the early 2000s. Work has intensified in recent years, involving several Italian contractors.