OPEC Fund Provides Loan To Propel Tajikistan's Rogun Hydropower Project

10/13/2024 3:10:26 PM

(MENAFN- Trend News Agency) DUSHANBE, Tajikistan, October 13. The OPEC Fund for International Development has announced a $25 million loan to support the construction of the Rogun hydropower plant (HPP) in Tajikistan, Trend reports.

This loan represents the first tranche of a larger $100 million financing facility dedicated to the project, which is anticipated to have a significant impact on the broader Central Asian region.

OPEC Fund President Abdulhamid Alkhalifa highlighted Tajikistan's vast hydro energy potential, stating, "Tajikistan has enormous hydro energy potential, and tapping into this natural wealth will strengthen energy security, independence, and export capacities. The Rogun HPP is not only a monumental engineering project but also a crucial step in securing Tajikistan's energy future. The OPEC Fund is committed to supporting sustainable energy solutions that contribute to local and regional development".

Tajikistan's Minister of Finance, Fayziddin Sattor Qahhorzoda, emphasized the project's importance, saying, "The Rogun Hydropower Plant plays a crucial role in Tajikistan's growth and the region's shift towards green energy. It addresses power shortages and expands renewable energy access in rural areas, establishing Tajikistan as a prominent contributor to clean energy exports. We greatly appreciate our collaboration with the OPEC Fund and its contribution to turning this vision into reality."

The Rogun HPP is designed as a multi-purpose dam that will generate electricity, regulate water flow, and mitigate the risks of floods and droughts. Standing at 335 meters, it will be the tallest dam in the world, with a total generation capacity of 3,780 MW. The facility aims not only to satisfy Tajikistan's energy demands but also to produce electricity for export to neighboring countries, thereby promoting renewable energy use and reducing carbon emissions.

The $25 million loan follows the signing of a Framework Financing Memorandum in June 2024, formalizing the $100 million financing facility in support of the Rogun HPP. To date, the OPEC Fund has financed 18 public sector projects in Tajikistan across various sectors, including transportation, healthcare, and education, with cooperation between the two entities steadily increasing in recent years.

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