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AIIB provides financing for implementation of Tajikistan’s Rogun HPP project

Tajikistan Materials 4 February 2023 09:52 (UTC +04:00)
AIIB provides financing for implementation of Tajikistan’s Rogun HPP project

BAKU, Azerbaijan, February 4. Asian Infrastructure Investment Bank (AIIB) has decided to provide a $5 million grant for the implementation of Tajikistan’s Rogun Hydropower Development Project, Trend reports with reference to the Bank.

The grant will support the financial and commercial sides of the project, provide consulting services on improving the security of the damp in correspondence with international standards, as well as, support the social and ecological sustainability of the project.

The grant also aims to provide consultancy services in order to help the Tajik side to organize the financial structure of the project and negotiate long-term agreements on power purchases from the HPP.

The Bank hopes that ecologically clean energy provided by the Rogun HPP will be exported to neighborhood countries, and will eliminate the dependence of Central Asia energy systems on fossil fuels.

Earlier, in January 2023, the World Bank (WB) also announced the allocation of funds worth $15 million for technical assistance of the Rogun HPP.

Rogun HPP is under construction on the Vakhsh River in the Pamir Mountains in Tajikistan, with an estimated capacity of 3,780 mW. It will be the biggest hydropower station in the country. The power plant is planned to achieve full operational capacity in 2028 and generate 13,300 GWh of electricity per year.

According to the Ministry of Energy of Tajikistan, the realization of the Rogun HPP project will cost more than $5 billion. As Tajik President, Emomali Rahmon, noted in December 2022 more than 3.2 billion somni ($315 million) were allocated to the project. The overall foundation of the project has totaled more than 40 billion somni (more than $3 billion) from the beginning of financing in 2008.

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