DUSHANBE, Tajikistan, December 19. The World Bank (WB) has approved a $350 million grant through the International Development Association (IDA) as part of the first phase of a program to assist Tajikistan in completing the Rogun Hydroelectric Power Plant (HPP) construction, Trend reports via the WB.
Antonella Bassani, World Bank Vice-President for Europe and Central Asia, stated that the project would help Tajikistan and Central Asia transition to clean energy, promote economic growth, and strengthen climate resilience..
"Once completed, the project will provide households and businesses with an uninterrupted, affordable, and clean energy supply. The World Bank brings substantial knowledge and experience to a project of this scale, from economic reforms to implementing large infrastructure projects under robust environmental and social standards," she said.
The World Bank also emphasized that due to the complexity of the project, enhanced oversight will be implemented to ensure it meets international standards for sustainability in financial, environmental, and social practices.
To support vulnerable communities during the construction phase, the Tajik government has committed to allocating 3 percent of electricity sales to a nationwide Benefit Sharing Program (BSP). This allocation will increase to 5 percent after the construction period, with funds directed toward social support programs for vulnerable populations.
The Rogun HPP is estimated to cost $6.29 billion to complete, with financing sourced from project revenues, domestic resources, and international development partners. This includes $2.97 billion in grants and concessional financing from a group of partners, including the World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), European Bank for Reconstruction and Development (EBRD), and other international organizations.
The Rogun HPP, located on the Vakhsh River, is expected to consist of six units, each with a capacity of 600 MW. Two units are already operational, and a third is set to come online by 2025. When completed, the plant will generate over 17 billion kWh of electricity annually, significantly boosting Tajikistan's energy supply.
Once operational, the Rogun HPP will improve electricity access for nearly 10 million people in Tajikistan, alleviating regular winter electricity shortages. Additionally, around 70 percent of the electricity generated will be exported at affordable rates to Kazakhstan and Uzbekistan.