The Government of Tajikistan, by its resolution, instructed the relevant structures to approve and sign a draft agreement with the Government of Kazakhstan on cooperation in the field of electric power.

The draft document, which envisages the supply of electricity from the Rogun hydroelectric power station to Kazakhstan, has been published on  the legal information portal  of the Ministry of Justice of the Republic of Tajikistan.

Main details of the agreement

  • Duration : The agreement is for 20 years with the possibility of extension for another 10 years.
  • Price : The cost of electricity will be $0.034 per kilowatt-hour excluding VAT, but with an additional surcharge for transit, which will be determined by the seller’s costs.
  • Payment period : Kazakhstan will be given 35 days to pay for each delivery period.

It states that the planned supply of Rogun electricity is carried out via interstate power transmission lines, based on the technical capabilities of neighboring countries to carry out transit.

The Settlement and Financial Center for Support of Renewable Energy Sources, which is a subordinate organization of the Ministry of Energy of Kazakhstan, in accordance with the agreement, concludes an agreement on the supply of electricity with Rogunskaya HPP OJSC.

The term of the agreement is 20 years with the possibility of extension for 10 years.

The supply of planned electric power from the Rogun HPP is carried out exclusively during hours of deficit in the North-South zone of the Unified Electric Power System of Kazakhstan. The approximate volume of supply of planned electric power, which will be specified in the contract, will not be the basis for the emergence of financial or other obligations between the seller and the buyer.

Transit of electricity to the border of Kazakhstan is provided by Rogun Hydroelectric Power Station OJSC.

The cost of the supplied planned electricity from JSC Rogun HPP will be determined based on the calculation of 3.4 US cents per 1 kilowatt-hour (including VAT paid at a zero percent rate) to the sum of the volumes in accordance with the approved daily supply schedules.

The cost of transit is determined based on the costs incurred by the seller in carrying out the transit of electricity in the neighboring countries of Central Asia to the border of Kazakhstan (subject to confirmation of the costs incurred by the seller).

The indexation of the cost of electric energy from JSC Rogunskaya HPP is carried out on the basis of the price index of American producers, published by the US Department of Labor and the US Bureau of Statistics, once a year, starting from the second year of supply.

Export as a condition for foreign investment

It should be noted that the existence of agreements on the supply of electricity to Kazakhstan and Uzbekistan  is one of the conditions for  external financing of the Rogun HPP project.

Standard & Poor’s Global Ratings’ recent Sovereign Rating Justification for Tajikistan says  the government is in talks  with a consortium of multilateral and bilateral lenders to provide a financing package that would cover about 50% of the Rogun project’s costs. The rest of the funding is expected to come from the state budget and revenues from the hydropower plant under construction.

S&P analysts emphasize that the preliminary package of external financing includes $1.73 billion in semi-concessional loans, $850 million in grants and $390 million in concessional loans. External financing will become available after Tajikistan completes electricity supply agreements with Kazakhstan and Uzbekistan.

Earlier it was reported that the government of Tajikistan expects to allocate 5 billion somoni (about $460 million) for the implementation of the Rogun project this year, including 2.8 billion somoni from budget funds and 2.2 billion somoni from investment projects. Over the first 9 months of this year,   4.3 billion somoni (about $395 million) were allocated for the construction of Rogun .

About Rogun HPP

The Rogun HPP with an installed capacity of 3,600 MW will be the largest hydroelectric power station in Central Asia. Once fully commissioned, the annual electricity generation volume will be from 13 to 17 billion kWh, which is equivalent to 65-85% of the country’s annual electricity generation.

The station’s machine room will house 6 units with a capacity of 600 MW each. The launch of the last unit is expected in 2029.

Currently, two units of the Rogun HPP, which were commissioned in 2018 and 2019, are operating at low capacity.

According to Barki Tojik OJSC, about 600 million kWh of electricity was purchased from Rogun HPP OJSC in the first half of this year, which is almost 360 million kWh less than in the same period in 2023. Rogun electricity accounted for only 5.8% of the total electricity generated in the republic.

https://asiaplustj.info/ru/news/tajikistan/economic/20241118/na-kakih-usloviyah-kazahstan-budet-priobretat-energiyu-rogunskoi-ges