The World Bank Board of Executive Directors has approved the second phase of financing for the Rogun hydropower project in Tajikistan, marking a further step in the development of what is expected to become the country’s largest power generation asset.
The second financing phase includes a US$300m grant from the International Development Association (IDA), following a US$350m grant provided under the first phase of funding. The latest package will support civil works, electromechanical equipment for power generation and implementation support, including quality control, safety measures and environmental and social programmes such as resettlement and livelihood restoration for affected households.
The financing also includes measures to strengthen monitoring and forecasting systems to improve reservoir operations and flood risk management for downstream communities.
Rogun hydropower project is expected to create more than 30,000 direct and indirect jobs, improve access to affordable and reliable electricity for around 10 million people in Tajikistan, and increase renewable power generation capacity across Central Asia.
Once completed, the project – which is being built by Webuild – will generate 14,400GWh of renewable electricity annually, equivalent to around 60% of Tajikistan’s current electricity production. It is intended to address chronic winter power shortages while supporting electricity exports to Kazakhstan and Uzbekistan and strengthening regional electricity markets.
“In addition to reducing chronic power shortages, increased access to reliable electricity from the Rogun HPP will help power economic transformation and create jobs in Tajikistan,” said Najy Benhassine, the World Bank’s Director for the Central Asia region. “By increasing the supply of clean electricity, this transformational project will help power homes, businesses, and public services, creating employment opportunities in the country.”
“By facilitating electricity exports, the Rogun HPP will help revitalise the regional power market, allowing Central Asian countries to use their energy assets more efficiently,” said Charles Cormier, World Bank Director for Infrastructure in Europe and Central Asia. “Enhanced regional connectivity is expected to reduce supply constraints in the region and contribute to improved reliability and energy security.”
According to the World Bank, the Government of Tajikistan has committed to a benefit-sharing programme that will allocate a percentage of project revenues to support vulnerable populations and strengthen existing social protection measures.
The World Bank is leading the Rogun Coordination Group, which brings together development partners supporting the project’s completion, including multilateral lenders and regional development funds from Europe, the Middle East and Asia.
Cormier described the financing approval as “a major milestone” for the project, calling Rogun the “centrepiece of Tajikistan’s long-term energy vision”.
He said the project would become “the main pillar of Tajikistan’s power system”, with an expected installed capacity of 3870MW and generation equivalent to approximately 7% of current electricity production across Central Asia.
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