The Asian Infrastructure Investment Bank ( AIIB ) has approved a US$270 million loan ( phase 1 ) for the completion of the Rogun Hydroelectric Power Plant in Tajikistan.

With a projected installed capacity of 3.78 gigawatts, Rogun HPP will provide improved electricity access to about 10 million people, alleviating persistent winter power shortages in the Central Asian country.

The project is being co-financed by the World Bank, via a US$350 million International Development Association ( IDA ) grant, and there will be potential additional contributions from a global consortium of donors.

The AIIB loan is part of a multiphase programme with a total financing envelope of US$500 million. Further phases of development will be reviewed at a later stage by assessing the progress to date.

Rogun HPP is located on the Vakhsh River ( a tributary of the Amu Darya River ), 110 kilometres from the capital city of Dushanbe, upstream of the Nurek Hydropower Plant.

Construction is in progress. The facility has a designed generation capacity of 3,780 megawatts, a 335-metre-high dam, a reservoir area of 170 square kilometres, and a total reservoir capacity of 13.3 cubic kilometres.

The large reservoir can provide seasonal regulation, supplying energy during the winter season and reliable electricity to meet growing domestic demand at an affordable cost. Furthermore, it has the potential to export clean energy to other countries in the region.

Energy demand in Central Asia is expected to grow by 40% by 2030 and triple by 2050, AIIB estimates, making the development of renewable energy in the region an urgent priority. Tajikistan is ranked eighth in the world for hydropower potential, but only about 4% of this potential is currently exploited. 

“This project will significantly contribute to the green energy transition and energy security of Central Asia,” says Konstantin Limitovskiy, AIIB's chief investment officer, public sector ( region 2 ) & project and corporate finance ( global ) clients. “Investing in sustainable energy infrastructure is not merely about meeting today’s demands, but about empowering future generations with clean, reliable power that drives transformative growth, strengthens resilience and unlocks the full potential of the region."