The World Bank and Italian state lender Cassa Depositi e Prestiti have signed a co-financing agreement to support the construction of the Rogun hydropower plant in Tajikistan. Under the deal signed on July 23 in Dushanbe, Italy will contribute $150 million from its national climate fund to help finance the project. The agreement marks the first joint financing partnership between the World Bank and the Italian institution.
The Italian funds will be managed by Cassa Depositi e Prestiti on behalf of Italy’s Ministry of Environment and Energy Security. The project relies on a financing structure combining Tajikistan’s state budget, future energy revenues, and concessional loans from a consortium of 12 international financial institutions.
The World Bank leads the international financing group and has approved $650 million in grant funding through the International Development Association. This includes an initial $350 million tranche allocated in December 2025 and a second $300 million portion approved on June 30. The Asian Infrastructure Investment Bank has also provided technical assistance alongside the World Bank since 2023.
Located on the Vakhsh River, the Rogun hydroelectric facility will feature six generation units of 600 megawatts each, bringing total installed capacity to 3,600 megawatts. Once completed, the plant is expected to generate approximately 14.4 terawatt-hours of electricity annually.
The dam is designed to reach a height of 335 meters, which would make it the tallest in the world upon completion. Construction originally began in 1976 but stalled following the collapse of the Soviet Union before resuming in the early 2000s. Italian contractors have been involved in major construction works in recent years alongside other international partners, including the Asian Development Bank, European Investment Bank, Islamic Development Bank, and several Middle Eastern development funds.
