Dushanbe, (TDI): The Saudi Development Fund has pledged $100 million to help finance the completion of the Rogun hydropower plant in Tajikistan, according to the Saudi Ambassador to Tajikistan, Walid bin Abdulrahman Al-Rashidan.
The announcement was made during a press conference held in connection with the 94th anniversary of Saudi Arabia’s founding.
The ambassador highlighted the strategic importance of the Rogun hydropower project, stating that it would play a critical role in ensuring Tajikistan’s energy security and promoting sustainable economic growth.
“The Rogun HPP is a key part of Tajikistan’s energy infrastructure,” Al-Rashidan said.
“Once completed, it will substantially increase electricity production and enhance Tajikistan’s regional standing”.
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Saudi Arabia’s financial contribution marks a strengthening of bilateral ties between the two countries, particularly in the fields of energy and economic cooperation.
Rogun Hydropower Project
The Rogun hydropower project, which is vital for Tajikistan’s energy strategy, is estimated to cost $6.4 billion.
Upon reaching full operational capacity, about 70 percent of the electricity produced will be exported to other Central Asian nations.
However, a report by the Eurasian Fund for Stabilization and Development (EFSD) has raised concerns about the financial risks associated with the project.
The report warns that the heavy costs involved in completing the Rogun HPP could strain Tajikistan’s budget and threaten its debt sustainability.
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Analysts noted that any potential cost overruns could lead to a diversion of funds from other critical infrastructure and social programs.
“Given the uncertainties surrounding funding sources, from 2025 onward, Tajikistan may need additional support from international financial institutions to meet its budgetary obligations,” the EFSD report cautioned.
The Rogun hydropower plant is viewed as a linchpin in Tajikistan’s aspirations for energy independence and regional influence, but the financial challenges remain a significant concern for its completion.
