The Saudi Fund for Development (SFD) inked a USD 100 mn development finance agreement yesterday with Tajikistan to fund the construction of the Rogun hydropower project in the landlocked Central Asian country, according to two separate statements (here, and here). The 3.6 GW project is set to provide renewable energy to meet local demand.

Where the funds are going: The loan will finance the construction of a 335-meter-high clay core rockfill dam on the Vakhsh River in the Rogun district. The dam will have six turbines of 600 MW each with a total installed capacity of 3.6 GW. The loan will also finance the construction of four hydraulic tunnels for diversion and drainage, providing flood protection. The project aims to “enhance energy, food, and water security, and foster sustainable development in the country,” according to the SFD.

The fund isn’t new to Tajikistan: The SFD has previously financed 13 development projects worth over USD 290 mn in Tajikistan in sectors of healthcare, education, energy, water sanitation, and road infrastructure.

About SFD: The state-owned fund was established by a Royal Decree in 1975 to provide soft loans and grants to promote sustainability in developing countries. SFD has funded more than 800 development projects worth USD 20 bn in over 100 countries.

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