The Saudi Development Fund has allocated $100 million to finance the completion of the Rogun hydropower plant in Tajikistan. This was announced by the Ambassador Extraordinary and Plenipotentiary of the Kingdom of Saudi Arabia to the Republic of Tajikistan, Walid bin Abdulrahman Al-Rashidan, at a press conference dedicated to the 94th anniversary of the Kingdom of Saudi Arabia’s founding.
“This project is strategically important for the country, as it will ensure energy security and sustainable economic growth. The Rogun HPP is a key element of Tajikistan’s energy infrastructure; it will significantly increase electricity production and strengthen its position regionally,” Al-Rashidan said.
Saudi Arabia’s financial support strengthens bilateral cooperation in energy and economic relations.
The estimated cost of completing the construction of the Rogun HPP is $6.4 billion. Once it reaches full capacity, about 70% of the electricity generated will be exported to other Central Asian countries.
According to a report by the Eurasian Fund for Stabilization and Development (EFSD), the financing of the Rogun HPP is one of the main risks for Tajikistan’s budget and debt sustainability. A possible increase in the cost of hydropower construction could reduce funding for other essential infrastructure projects and social spending. Analysts emphasize that “in the face of uncertainty regarding funding sources, starting in 2025, the government of Tajikistan may have additional needs for budgetary support from international financial organizations.”
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