OPEC Fund backs Tajikistan’s energy transition with first US$25 million loan for landmark Rogun hydropower plant
The OPEC Fund for International Development (the OPEC Fund) is providing a first US$25 million loan to support the construction of the Rogun hydropower plant (HPP), a key project of Tajikistan’s strategy for renewable energy development and energy security. The loan is the first tranche of a US$100 million OPEC Fund financing facility for the project, which is expected to have a transformative impact on the wider Central Asian region.
OPEC Fund President Abdulhamid Alkhalifa said: “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.”
Fayziddin Sattor Qahhorzoda, Minister of Finance of Tajikistan said: “The Rogun Hydropower Plant plays a crucial role in Tajikistan’s growth and the region’s shift towards green energy. It tackles 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 a hydropower complex designed as a multi-purpose dam for generating electricity, regulating water and reducing the risk of floods and droughts. With a height of 335 meters, the dam will be the tallest in the world, and the HPP will have a total generation capacity of 3,780 MW. In addition to meeting Tajikistan’s energy demand, the facility is also expected to generate electricity for export to neighboring countries, promoting the use of renewable and clear energy and reducing carbon emissions.
The US$25 million loan follows the signing of a Framework Financing Memorandum for the US$100 million tranche finance facility in support of Rogun HPP between the OPEC Fund and the government of Tajikistan in June 2024. The OPEC Fund has financed 18 public sector projects in Tajikistan in transportation, healthcare and education to date, with cooperation steadily increasing in recent years.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.
