Rogun Hydropower Project in Tajikistan is Transforming Energy Access
Tajikistan, a country blessed with vast hydropower potential, is embarking on an ambitious journey to reshape its energy future.
The World Bank has approved a $350 million International Development Association (IDA) grant to support the completion of the Rogun Hydropower Plant (HPP). This monumental project, with a projected installed capacity of 3,780 megawatts, is set to provide reliable electricity to 10 million people in Tajikistan, ending the recurring winter power shortages. Beyond its borders, Rogun HPP is expected to export 70% of its electricity to Kazakhstan and Uzbekistan, marking a significant step toward regional energy integration.
Antonella Bassani, the World Bank Vice-President for Europe and Central Asia, described the project’s transformative potential: “The Rogun Hydropower Project can help Tajikistan and countries in Central Asia to accelerate their path to adopting clean energy, boost economic growth, and enhance climate resilience. Once the project is completed, households and businesses will be able to rely on much-needed uninterrupted, affordable, and clean energy supply.”
Regional Cooperation and Decarbonisation
One of the standout features of the Rogun HPP is its role in decarbonising Central Asia’s energy grids. By exporting clean hydropower to neighbouring Kazakhstan and Uzbekistan, the project will displace fossil fuel generation, reducing greenhouse gas emissions and contributing to global climate goals.
Charles Cormier, World Bank Director for Infrastructure in Europe and Central Asia, highlighted its broader impact: “Rogun HPP can help balance services for intermittent sources like solar and wind to accelerate the clean energy transition in the region. Once completed, it will promote the development of a regional electricity market and enhance regional cooperation on energy.”
This initiative aligns with Central Asia’s growing focus on renewable energy, showcasing the potential for cross-border collaboration to address shared challenges such as energy security and environmental sustainability.
Funding and Strategic Partnerships
The Rogun HPP’s $6.29 billion price tag is being met through a combination of project revenues, domestic resources, and contributions from an impressive roster of development partners. Organisations such as the Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), and the Islamic Development Bank (IsDB) are pooling resources alongside the World Bank.
This collective financial backing ensures that the project doesn’t overburden Tajikistan’s national budget, leaving room for investments in critical services like healthcare and education. Importantly, it also mitigates the risk of debt distress, providing a sustainable pathway for Tajikistan’s economic growth.
Key Development Partners:
- Asian Development Bank (ADB)
- Asian Infrastructure Investment Bank (AIIB)
- European Investment Bank (EIB)
- Islamic Development Bank (IsDB)
- OPEC Fund for International Development
- Saudi Fund, Abu Dhabi Fund, Kuwait Fund, and others
Empowering Communities Through Benefit Sharing
While the infrastructure promises regional benefits, the Rogun HPP’s impact at the community level is equally profound. The Government of Tajikistan has committed to allocating 3% of electricity sales revenue to a Benefit Sharing Program (BSP) during construction, increasing to 5% post-construction. These funds will bolster social safety nets and address the needs of vulnerable populations.
This innovative approach ensures that the economic gains from the project are distributed equitably, fostering social inclusion and stability during the transition.
Strengthening Water Security and Climate Resilience
Beyond energy, the Rogun HPP will play a pivotal role in water management. Its reservoir’s storage capacity will mitigate extreme flooding downstream, protecting hydropower facilities and communities alike. This dual functionality underscores the project’s value in bolstering climate resilience across the region.
Moreover, the plant’s ability to regulate water flow positions it as a cornerstone for managing shared water resources in Central Asia, a region where transboundary water management has long been a sensitive issue.
Challenges and Oversight
Large-scale projects like Rogun HPP come with their share of challenges. To navigate these complexities, enhanced supervision measures have been implemented, ensuring compliance with international environmental and social standards. The World Bank’s expertise in managing infrastructure projects underpins this effort, offering robust oversight to safeguard financial, environmental, and social sustainability.
Antonella Bassani emphasised this commitment, noting the importance of adopting best practices to ensure long-term success: “The World Bank brings substantial knowledge and experience to a project of this scale, from economic reforms to implementing large infrastructure under robust environmental and social standards.”
A Bright Future for Central Asia
The Rogun Hydropower Project stands as a beacon of hope for Tajikistan and Central Asia. It promises not only reliable and clean energy but also economic growth, regional cooperation, and enhanced resilience against climate challenges. By addressing both local and regional needs, this initiative demonstrates the transformative power of sustainable development.
As Tajikistan moves closer to completing this landmark project, the benefits will ripple across borders, setting a precedent for how infrastructure investments can drive progress on multiple fronts. With robust partnerships and a clear vision, the Rogun HPP is poised to illuminate the path toward a brighter, more sustainable future.
