Kuwait Fund allocates first $16.7 mln tranche for Rogun HPP project in Tajikistan
DUSHANBE. Dec 19 (Interfax) - The Kuwait Fund for Arab Economic Development has allocated a first $16.7 million tranche of financing for the Rogun hydropower plant project in Tajikistan.
Tajik Finance Minister Faiziddin Qahhorzoda and Director General of the Kuwait Fund for Waleed Al-Bahar signed the loan agreement, the Tajik Finance Ministry said.
"The Fund will allocate $100 million of financing in six tranches of $16.7 million," the ministry said.
The purpose of the project is to promote national energy security and support Tajikistan's development.
The 3.6 GW Rogun HPP, which is being built on the Vakhsh River, will be the largest hydropower 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 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 around $500 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.
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. 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 plant from the Fund's overall $100 million in financing. The World Bank has approved a $350 million grant and decisions have been reached on the allocation of $100 million by other Arab funds, including the Abu Dhabi Fund, as well as the Italian Savings Trust Fund.