AIIB Evaluates $220 Million for Nurek Hydropower Plant Modernization
The Asian Infrastructure Investment Bank (AIIB) is evaluating a $220 million sovereign financing package for the second phase of the Nurek Hydropower Plant reconstruction in Tajikistan. The project concept underwent initial review in the summer of 2026 and currently remains at the proposal stage – a final decision on the credit line has not yet been reached.
The modernization program for the Nurek Hydropower Plant focuses on restoring and increasing the generating capacity of five of the station’s hydraulic units. Engineers intend to carry out the work in stages: first updating two units, then – the remaining three. Beyond the machinery hall, the project encompasses the wider infrastructure of the hydroelectric complex. Plans include the inspection and repair of pressure conduits with the full replacement of specific sections, alongside the installation of a new operational gate at the water intake. The station buildings will be renovated, and the facility’s specialized vehicle fleet will be expanded.
The project budget specifically includes the reconstruction of a bridge in the city of Nurek. This logistical measure is intended to improve transport access to the station and allow heavy construction equipment to bypass residential areas.
The AIIB intends to finance these large-scale construction works in conjunction with the World Bank. Simultaneously, the Eurasian Fund for Stabilization and Development (EFSD) will join the project to fund measures aimed at enhancing dam safety. The specific scope of these works will be determined following the completion of technical expertise. The plan also incorporates technical support for the national energy company Barki Tojik – including training for specialists in project management, the operation of the modernized station, and the monitoring of hydraulic structures.
Projections indicate that the implementation of the second phase will improve turbine efficiency and increase overall electricity generation. The extensive modernization campaign at the Nurek Hydropower Plant began in 2019. During the first phase, which received sponsorship from the World Bank, the AIIB, and the Eurasian Development Bank, the station’s electrotechnical and hydromechanical equipment was replaced.
The World Bank has already allocated several tranches for the second phase, including a $50 million grant approved in 2020 and an additional $65 million in December 2021, with the corresponding agreement signed with the Tajik government in the spring of 2022. If approved, the AIIB’s $220 million package would represent the largest single source of financing for the completion of the current modernization stage.