Eib Considering Involvement In Rogun Hpp Project In Tajikistan (Exclusive)


(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 15. The European Investment bank (EIB) is considering a potential involvement in the Rogun Hydropower project in Tajikistan, a source at the EIB told Trend .

It was noted that the EIB is cooperating closely with other International financial Institutions (IFIs), in particular with World Bank (WB), on an extensive review of the Rogun HPP project.

"A Panel of Experts and Environmental and Social experts are reviewing technical, economic, and financial aspects of the project, including social safeguards around the significant resettlement of some 42,000 people. Given the scope and complexity of the project, multiple IFIs and bilateral financiers will be involved," the source at the EIB specified.

The source pointed out that the bank's financing in Tajikistan supports development of the energy sector, including energy transmission and rehabilitation of power plants to increase the safety and efficiency. As per the information provided to Trend, the bank's loans in Tajikistan amount to 107 million euros as now.

"In Tajikistan, similar as in other countries of the Central Asia, the EIB operations focus, In line with the EU priorities, on the support of sustainable connectivity and the transition towards a sustainable, climate-neutral growth model. In Central Asian region, EIB's support to climate action is focused on financing green infrastructure projects - energy efficiency, renewable energy, energy transmission, water supply and sanitation as well as improvement of the access to finance of local SMEs support," the source said.

Minister of Finance of Tajikistan Fayziddin Kakhkhorzoda announced in August that the country's government is set to initiate direct negotiations by the end of this year with potential investors to secure additional financing for the construction of the Rogun HPP.

Aside from the WB, the head of the Ministry of Finance mentioned the EIB, the Asian Development Bank (ADB), and others as potential investors for the project.

The installed capacity of Rogun HPP is planned at 3,600 MW. Following the plant's full commissioning, the annual electricity generation is expected to range from 13 to 17 billion kilowatt-hours. The completion of the power plant's construction is anticipated by 2033.

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Trend News Agency

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