Tajikistan will achieve full energy independence by 2027, the country’s President Emomali Rahmon said in his message to parliament. He said that the construction of the Rogun hydroelectric power station has been completed by more than 50%.
According to him, over the past two years, over 9 billion somoni ($825 million) have been allocated from the state budget of Tajikistan for the implementation of this strategically important project.
The President thanked international financial organizations and other development partners for supporting the further completion of the Rogun hydroelectric power station.
He emphasized that to complete the construction of this important facility, nine agreements have already been concluded with six donors for a total amount of 10 billion somoni (about $915 million), of which more than 3 billion ($275 million) are provided in the form of grants.
Emomali Rahmon called this support and attention «very important for the people of Tajikistan».
Funding for the next phase of construction is planned for 2025.
It is the completion of the Rogun hydroelectric power station that will ensure Tajikistan’s energy independence by 2027.
«This may be the last winter you experience a similar situation. This coming winter, these difficulties will decrease, and in 2027 this situation will remain in the history of », — said Emomali Rahmon.
Let us note that until now, financing for the construction of Rogun is carried out exclusively from public funds.
The government of Tajikistan expected to allocate 5 billion somoni (about $460 million) for the implementation of the Rogun project this year. Over the first 9 months of this year, 4.3 billion somoni (about $395 million) were allocated for the construction of Rogun.
In total, more than 40 billion somoni were allocated for the construction of this facility.
Let us remind you that earlier the president announced that the next hydraulic unit of the Rogun hydroelectric power station is planned to be put into operation in 2025.
The station’s first two units, which are currently operating at low power, were commissioned in 2018 and 2019.
In total, 6 units with a capacity of 600 MW each will be installed in the station’s turbine room. The launch of the last unit is expected in 2029.
With an installed capacity of 3,600 MW, Rogun Hydroelectric Power Station is expected to become the largest hydroelectric power station in Central Asia.
Once fully operational, annual electricity generation will range from 13 to 17 billion kWh, equivalent to 65-85% of the country’s annual electricity generation.
We need another $6.4 billion
To fully complete the Rogun hydroelectric power station project for the period until 2035, $6.4 billion is needed. This is stated in the Rationale for the sovereign rating of Tajikistan by the international rating agency Standard & Poor’s Global Ratings.
The rating was prepared on the basis of official information provided to the agency by the relevant ministries and departments of the country.
The document notes that the government of Tajikistan is negotiating with a consortium of multilateral and bilateral creditors to provide it with a financing package that will cover about 50% of these costs, and another half of the financing is expected to come from the state budget and from the income of the hydroelectric power station under construction.
«The preliminary external financing package includes $1.73 billion in semi-preferential loans, $850 million in grants and $390 million in concessional loans», — S&P analysts emphasize.
S&P specialists emphasize that the Rogun hydroelectric power station already generates electricity in the amount of about 10–15% of the total capacity. They expect revenue from electricity sales to be $1.1 billion in 2024–2035. and will be invested in the further construction of this hydroelectric power station.
How the cost of the Rogun hydroelectric power station changed
In 2008, when the Rogun project was resumed, its cost was estimated at $3 billion.
In 2016, during an international tender to select a general contractor for the construction of the dam, the cost of the facility was announced at $3.9 billion.
In 2022, the Ministry of Energy of the Republic of Tajikistan announced that the completion of Rogun would require over $5 billion.
In early February 2023, the energy department reported that $6.2 billion would be needed to complete this station, according to recent estimates.
At the same time, during this period, more than 40 billion somoni (about $4 billion) were allocated for the completion of Rogun, including through the sale of shares of OJSC «Rogun hydroelectric power station (890 million somoni), Eurobonds ($500 million), and the remaining part – at the expense of the state budget.
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