The Saudi Development Fund has allocated $100 million to aid the completion of the Rogun hydropower plant (HPP) in Tajikistan. This announcement was made by Walid bin Abdulrahman Al-Rashidan, Saudi Arabia’s Ambassador to Tajikistan, during a press conference celebrating the 94th anniversary of the Kingdom’s founding.
The Rogun HPP is a critical element of Tajikistan’s energy strategy, aimed at bolstering the nation’s energy security and fostering economic growth. According to Ambassador Al-Rashidan, the plant is expected to significantly boost electricity production and enhance Tajikistan’s energy standing within Central Asia.
This financial support from Saudi Arabia reflects a growing collaboration between the two countries in energy and economic sectors. It is part of broader efforts to strengthen bilateral ties, particularly in areas essential for Tajikistan’s development.
The total estimated cost for completing the Rogun HPP is approximately $6.4 billion, with projections indicating that 70% of the electricity generated will be exported to neighboring Central Asian nations. While this export potential could enhance Tajikistan’s regional influence, the project carries certain financial risks.
A report from the Eurasian Fund for Stabilization and Development (EFSD) has outlined the financial challenges associated with the project, cautioning that any rise in construction costs could impact Tajikistan’s budget and debt sustainability. Furthermore, the report suggests that by 2025, Tajikistan may need additional budgetary support from international financial institutions to address potential funding gaps for the Rogun HPP.