BAKU, Azerbaijan, October 21. The Asian Development Bank (ADB) plans to allocate $500 million to finance the Rogun hydropower plant in Tajikistan, including $200 million in grants and $300 million in concessional loans.
According to the Ministry of Finance of Tajikistan, the issue was discussed during two trilateral meetings in Bangkok, Thailand, attended by Tajikistan’s Minister of Finance Faiziddin Qahhorzoda, World Bank Vice President for Europe and Central Asia Antonella Bassani, and ADB Vice-President for Sectors and Themes Wempi Saputra.
The meetings were held on the sidelines of the annual meetings of the World Bank Group and the International Monetary Fund.
Furthermore, the parties discussed the participation of the two international financial institutions in financing the project and coordinating their activities to ensure the timely implementation of the Rogun hydropower plant construction.
Particular attention was paid to applying the concept of full mutual trust in the area of co-financing, which entails using unified requirements and procedures for project appraisal, procurement, and implementation monitoring. This approach is aimed at preventing the duplication of procedures and accelerating the mobilization of funding.
According to Trend’s calculations, the $500 million ADB plan matches the amount Tajikistan asked the bank to provide in early 2025, which suggests the parties have moved from reviewing the request to shaping the package: $200 million in grants (40%) and $300 million in concessional loans (60%).
If approved, it would cover about 8% of the cost of completing Rogun, which is estimated at $6.2-6.4 billion. Together with the World Bank’s approved $650 million and the Asian Infrastructure Investment Bank’s $500 million, financing from these three lenders would reach about $1.65 billion, or roughly a quarter of the estimated cost.
