Tajik energy company debt to Sangtuda HPP-1 to be written off gradually until 2033 at $25 mln per year

DUSHANBE. July 30 (Interfax) - Amendments to the agreement on the operation of the Russian-Tajik Sangtuda Hydropower Plant-1 provide for preferential electricity tariffs and gradual debt write-off of the state company Barki Tojik (Energy of Tajikistan) to the plant.

Based on the agreements reached in April in Moscow between the Tajik and Russian sides on revising the main terms of the Sangtuda HPP-1 project, a protocol was signed and changes were made to the existing agreement on its operation, Tajikistan's state energy company said.

"First, preferential electricity tariffs [for Barki Tojik] were established for the period from 2025 to 2032. The electricity tariff was reduced almost two and a half times," a company representative told Interfax.

During the same period, the debt of Barki Tojik to Sangtuda HPP-1 will be gradually written off, the representative said. As of January 1, 2025, the debt amounted to $297 million. "This debt will be written off from 2025 to 2033, annually in the amount of $25 million, subject to timely and full payments," the representative said.

Tajik Energy and Water Resources Minister Daler Juma previously said that the agreement on the Russian-Tajik Sangtuda HPP-1 signed by the parties ensures a full return on investment. "We extended the repayment terms of these investments. Debt has accumulated. The parties agreed on a phased write-off of this debt. But in order for it to be written off, very important conditions must be met by OJSC Barki Tojik [the state company Energy of Tajikistan] - the sole electricity purchaser [in the country] - namely, timely payment for the generated electricity on current accounts," Juma said, noting that the parties have been working under this scheme for seven months.

In addition, the restructuring "will significantly improve the financial situation of Barki Tojik as the sole electricity purchaser in Tajikistan, thereby ensuring the return on investment," he said.

According to the press center of OJSC Sangtuda HPP-1, the electricity supply in January-March 2025 amounted to 666.09 million kWh, which is 48.39 million kWh more than in Q1 2024. The plant's capacity utilization rate during this period was 46.3%.

According to the press center, the average payment level for current supplies by Barki Tojik since the beginning of 2025 stands at 34% of the cost of the delivered electricity. In Q1 2025, Barki Tojik's debt increased by 172.59 million somoni and totaled 3.43 billion somoni as of March 31, 2025.

OJSC Sangtuda HPP-1 was established in 2005 to complete construction and operate a hydropower plant on the Vakhsh river in Tajikistan. According to the HPP's website, Russian companies hold a 75% minus 1 share stake in the charter capital of the company, while Tajikistan holds 25% plus 1 share.

Sangtuda HPP-1 was built with funds from Russia and Russian energy companies as part of strategic cooperation with Tajikistan in the electricity sector. Russia's investment in the construction of the plant exceeded 16 billion rubles. The first turbine unit was commissioned in January 2008.

With an installed capacity of 670 MW, Sangtuda HPP-1 is the fifth stage of the Vakhsh hydropower cascade and ranks among the three largest hydropower plants in Tajikistan, along with the Nurek (3000 MW) and Baipazin HPPs (600 MW).

The official exchange rate on July 30 is 9.5385 somoni/$1.