IsDB and Tajikistan Consolidate Cooperation in Hydropower Sector with US$150 Million Financing Agreement

Dushanbe, Tajikistan, 10 June 2024 –The Islamic Development Bank (IsDB) and the Government of the Republic of Tajikistan have signed financing agreements worth US$150 million for the Rogun Hydropower Plant Project.

The signing ceremony took place in the capital Dushanbe on Monday, marking an important  step in Tajikistan's journey towards sustainable development and energy resilience.

The event saw the presence of H.E. Mr. Zavqi Zavqizoda, Minister of Economic Development and Trade and IsDB Governor for the Republic of Tajikistan, and Tajikistan Finance Minister, Mr. Faiziddin Qahhorzoda, who met with IsDB President H.E. Dr. Muhammad Al Jasser.

During the meeting, the dignitaries reviewed the ongoing progress of IsDB-funded development projects in Tajikistan, with a particular focus on hydropower generation and transmission initiatives.

The Rogun Hydropower Project is another major venture underscoring this partnership. With a total financing of US$150 million from IsDB, the project aims to significantly boost Tajikistan's hydropower capacity, contributing to the country's energy security and economic growth.

The Rogun hydropower complex is designed as a multi-purpose dam for generating electricity, regulating water, and reducing the risk of floods and droughts. The Rogun HPP will produce sufficient environmentally friendly and clean electricity to fully satisfy Tajikistan’s electricity demand. It will also generate enough electricity to export to neighboring countries which presently use mostly fossil fuels for electricity.

Once completed, the plant will have 6 turbines of 600 MW each with a total installed capacity of 3,600 MW. The most significant impact of the new dam will be to make Tajikistan a point of reference for the energy sector in the region, doubling energy output in the country and strongly contributing to the reduction of power shortages suffered during the winter months.

Speaking at the signing ceremony, IsDB President, Dr. Muhammad Al Jasser emphasized the importance of the Rogun Hydropower Plant in Tajikistan's development strategy. “We are delighted to partner with the Government of Tajikistan in advancing the Rogun Hydropower Project. This initiative underscores our commitment to supporting sustainable energy solutions and fostering economic growth within our member countries,” IsDB President stated during the meeting. “The Rogun Hydropower Project not only promises to significantly enhance Tajikistan’s energy capacity but also plays a crucial role in regional energy cooperation and security. We look forward to witnessing the positive impacts of this project on the people of Tajikistan and beyond," Dr. Al Jasser added.

H.E. Mr. Zavqi Zavqizoda highlighted the collaborative efforts and shared vision of IsDB and the Government of Tajikistan. "The financing agreement for the Rogun Hydropower Plant Project marks a significant milestone in our partnership with IsDB. We are confident that this project will play a crucial role in advancing our national development goals and ensuring a stable energy supply for our people."