The Asian Infrastructure Investment Bank is considering a 220 million dollar sovereign loan to Tajikistan to help finance the second phase of the Nurek hydroelectric power plant modernization. The proposal has passed initial concept reviews and is awaiting final board approval.
The planned financing will support an extensive overhaul of generation and civil infrastructure at Nurek, the largest hydropower facility in Central Asia. Engineering works will focus on modernizing five generating units in two successive stages, beginning with two turbines and later expanding to the remaining three. The project also covers the inspection and repair of high-pressure penstocks, replacing deteriorated pipeline sections, and installing a new intake service gate.
Beyond power generation equipment, the project scope includes the refurbishment of the powerhouse, auxiliary structures, and local transport links. Contractors will rebuild a road bridge in the town of Nurek to route heavy construction vehicles away from residential areas, alongside the procurement of heavy specialized machinery.
The second phase relies on a syndicated financing structure led by multilateral lenders. The World Bank, which approved 115 million dollars in grant funding for the second phase between 2020 and 2022, is co-financing the works. The Eurasian Fund for Stabilization and Development is expected to finance dam reinforcement measures once technical assessments conclude. The project also provides training for personnel at state power utility Barqi Tojik to manage the upgraded facility and oversee dam safety operations.
Tajikistan, which relies on hydropower for the bulk of its electricity, has pursued the phased rehabilitation of the Soviet-era Nurek facility since 2019. The first phase received joint backing from the World Bank, the AIIB, and the Eurasian Development Bank. Tajik authorities expect the plant upgrades to stabilize domestic supply during winter peak demand and low summer river flows, while expanding power export capacity.
