Rogun Coordination Group
The construction of the Rogun hydropower project (Rogun HPP) was formally initiated by Tajikistan in 2017 with the selection of the contractor to build the main dam. Facing challenges in financing the project through public resources, the government of Tajikistan in 2021 requested the World Bank to assess how the project could be financed within a sustainable fiscal framework.
In response, the World Bank analyzed viable financing options and under separate World Bank technical assistance to Tajikistan, complemented by support from the Asian Infrastructure Investment Bank (AIIB), conversations with development partners were initiated to explore the possibility of pooled financing of the completion of the Rogun HPP.
At the request of the government of Tajikistan, the World Bank now leads the Rogun Coordination Group (RCG), a group of development partners that have approved or have expressed interest in supporting the completion of the project.
Along with the World Bank, the RCG comprises the Asian Development Bank (ADB), AIIB, European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), European Union (EU), Islamic Development Bank (IsDB) and Arab Funds (OPEC Fund for International Development, Saudi Fund, Abu Dhabi Fund, Kuwait Fund), as well as other development partners.
Together with the World Bank, these institutions could mobilize up to US$3 billion in concessional support conditional on project preparation and implementation meeting international standards.
The RCG platform serves as a coordination mechanism to provide joint oversight of project preparation and, later, implementation. It also ensures overall consistency and alignment regarding strategic advice provided to the government on key issues related to the project, as well as on broader energy sector reforms and financial sustainability.
Energy Sector Management Assistance Program (ESMAP)
ESMAP has been instrumental in developing the Rogun Hydropower Project. It provided a $400,000 grant in fiscal year (FY) 2022 to enable the World Bank project team to conduct due diligence and to finance preparatory activities, and a $300,000 grant in FY2024 to ensure the readiness of the project for potential financing from the World Bank and other financial institutions cited above. Specifically, the grants supported activities related to economic and financial assessments, dam construction quality and safety, alignment with the World Bank’s Environmental and Social Framework, and the development of a benefit sharing mechanism (see also the FAQ tab above).