Russia Writes Off Tajikistan’s $297 mln Electricity Debt

Russia and Tajikistan have agreed to gradually write off a $297 mln debt owed by the Tajik energy company Barki Tojik to the Sangtuda Hydroelectric Power Plant, according to the Khovar news agency.

On June 16, the lower chamber of Tajikistan’s parliament, the Majlisi Oli, approved amendments to the intergovernmental agreement on the plant’s operation. Under the revised agreement, the investment return period has been extended to 2048.

The debt will be written off in stages until 2034. Additionally, the electricity purchase tariff from the Sangtuda HPP will drop from 3.2 cents to 1.5 cents per kWh.

However, the tariff will gradually increase and reach 3.3 cents per kWh by 2033. This rate will remain effective until 2048.

The parties valued the combined stakes of Russia and Tajikistan in the Sangtuda plant at $847 mln. Russia owns 75% of the project, while Tajikistan holds the remaining 25%.

The plant’s installed capacity is 670 MW, producing around 12% of Tajikistan’s total electricity output.

Previously, Kursiv Uzbekistan reported that the Asian Development Bank may allocate $150 mln for the construction of the Kambar-Ata Hydropower Plant.