The OPEC Fund for International Development has initiated a significant step toward enhancing renewable energy in Tajikistan by approving a $25 million loan for the construction of the Roghun Hydropower Plant (HPP). This financing marks the first tranche of a larger $100 million funding facility aimed at supporting this crucial renewable energy initiative, which is poised to have a transformative impact on the Central Asian region.
The loan agreement was signed on October 10 during a visit by a Tajik delegation led by Deputy Prime Minister Usmonali Usmonzoda to Vienna. The signing took place at the OPEC Fund’s headquarters, where Tajik Finance Minister Fayziddin Qahhorzoda and OPEC Fund President Abdulhamid Alkhalifa formalized the agreement.
During the signing ceremony, Abdulhamid Alkhalifa highlighted Tajikistan’s vast hydro energy potential, emphasizing the project’s importance in bolstering energy security, independence, and export capabilities. “The Roghun HPP is not only a monumental engineering project but also a crucial step in securing Tajikistan’s energy future,” he stated. Alkhalifa reiterated the OPEC Fund’s commitment to promoting sustainable energy solutions that foster local and regional development.
In his remarks, Finance Minister Qahhorzoda underscored the significance of the Roghun HPP in advancing Tajikistan’s growth and its transition to green energy. He noted that the project addresses power shortages and expands renewable energy access in rural areas, positioning Tajikistan as a key player in clean energy exports. “We greatly appreciate our collaboration with the OPEC Fund and its contribution to turning this vision into reality,” he added.
The Roghun HPP is designed as a multipurpose dam, aimed at generating electricity, regulating water flow, and mitigating 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 will not only meet domestic energy demands but is also expected to generate electricity for export to neighboring countries, thereby promoting the use of renewable energy and contributing to reduced carbon emissions.
This $25 million loan follows the signing of a Framework Financing Memorandum in June 2024, which established the $100 million financing facility in support of the Roghun HPP. The OPEC Fund has previously financed 18 public sector projects in Tajikistan, covering transportation, healthcare, and education, with collaboration steadily increasing in recent years.
Established in 1976, the OPEC Fund for International Development is the only globally mandated development institution that provides financing exclusively from member countries to non-member countries. The organization partners with developing country stakeholders and the international development community to stimulate economic growth and social progress in low- and middle-income nations. To date, the OPEC Fund has committed approximately $27 billion to development projects in over 125 countries, with a total project cost exceeding $200 billion. The organization has received strong ratings, including AA+/Outlook Stable from Fitch and AA+, Outlook Stable from S&P.
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