OPEC Fund provides first tranche of $25 mln to Tajikistan for Rogun HPP project
DUSHANBE. Oct 11 (Interfax) - The OPEC Fund for International Development or OPEC Fund has signed an agreement with Tajikistan on providing the first $25 million to build the Rogun hydropower plant from the Fund's overall sum of $100 million in financing, the Tajik Finance Ministry's press service said.
The document was signed by Tajik Finance Minister Faiziddin Qahhorzoda and OPEC Fund head Abdulhamid Alkhalifa at the organization's headquarters in Vienna.
"The total sum allocated by the OPEC Fund for this project is $100 million, and it will be used in four stages, as part of separate agreements for sums of $25 million," it said.
The goal of the project is to contribute to Tajikistan's energy security and economic development by increasing electricity production for supplying the domestic market and exporting it to the region's countries.
The 3.6 GW Rogun HPP, which is being built on the Vakhsh River, will be the largest hydroelectric power plant in the region. It will consist of six 600 MW units. The total volume of water in the reservoir will reach 13.3 cubic kilometers and its useful volume will be 10.3 cubic kilometers. It is planned that the reservoir will be filled with water within 15-17 years.
The first unit was put into operation on November 16, 2018 and the second on September 9, 2019.
Tajik President Emomali Rahmon said at a meeting with the hydropower plant's builders at the end of September that the Tajik government had allocated 5.2 billion somoni, or $488 million at the current exchange rate, for the Rogun HPP's construction.
The Tajik government is taking measures to attract additional financing together with the World Bank and other development partners in addition to regular financing for the HPP's construction through the state budget, he said.
Currently, loan agreements on preferential terms have already been signed with the Islamic Development Bank for $150 million and the Saudi Development Fund for $100 million. In addition, decisions have been reached on the allocation of $100 million by other Arab funds, including the Kuwait Development Fund and the Abu Dhabi Fund, as well as the Italian Savings and Trust Fund.
Negotiations with these organizations aimed at concluding loan agreements are at the final stage. Efforts to attract grant funding from the Asian Development Bank and preferential loans from the European Investment Bank as well as a Qatari fund are ongoing.
Negotiations are also ongoing on signing an agreement for a $650 million World Bank grant and a $500 million loan from the Asian Infrastructure Investment Bank.