The EBRD has plans to investing approximately US$75.7 million to cover the first phase of the Tajikistan’s Qairokkum hydropower plant modernization project.
The US$75.7 million financing package includes US$21 million in donor funds, a US$10 million loan and a US$11 million grant from the Pilot Programme for Climate Resilience.
A further US$4.7 million in technical cooperation grants has been provided by Austria and the United Kingdom and the EBRD’s Shareholder Special Fund.
Ramses Ruziev, the project’s Operation Leader, stated:
The financing structure required close cooperation with the donors and we are very grateful for their support in this critical project. We also developed a comprehensive reform programme together with IFI partners to support the much needed re-structuring of the power sector.
The investment will cover the first phase of the plant’s modernisation, the bank’s largest and most complex project to date in Tajikistan, and will involve rehabilitation of two of the plant’s six turbines, increasing capacity from 126MW to 142MW.
In addition, financing will be used for the ongoing restructuring of Barki Tojik, a state-owned power company responsible for generation, transmission and distribution of electricity. The funds will help to improve the operational and financial performance of the company.
Aida Sitdikova, Director for Energy and Natural Resources, commented:
Increased efficiency means increased capacity in an area of Tajikistan where interruptions of energy supply are endemic. Upgrading the plant will provide more energy using the same amount of water. Modern, safer equipment also means fewer wasteful water spills.
The country has a total installed capacity of 5,157 MW, the lion’s share of which is in hydropower. Yet only 57 per cent is currently available to produce electricity, indicating an urgent need for further modernisation and rehabilitation.