The transaction, managed by CDP and co-financed by a consortium of 12 development banks led by the World Bank Group, with contributions from several industrial partners including the Webuild Group, will support Tajikistan’s energy security and the financial sustainability of its electricity sector
Supporting the energy development of the Republic of Tajikistan and promoting a greener electricity market across Central Asia through the expansion of strategic infrastructure for both the country and the wider region. This is the objective of the USD 150 million financing provided through the Italian Climate Fund (FIC), managed by Cassa Depositi e Prestiti (CDP) on behalf of the Italian Ministry of the Environment and Energy Security (MASE), in favour of Tajikistan.
The financing agreement was signed in Dushanbe by Giulio Dal Magro, Head of Sovereigns, Blending and Development Cooperation Operations Management at CDP, and H.E. Faiziddin Qahhorzoda, Minister of Finance of the Republic of Tajikistan, underscoring the strategic importance of the transaction within the framework of bilateral cooperation between Italy and Tajikistan.
Specifically, the financing will support construction works on the right bank of the Rogun Dam, which is set to become the backbone of Tajikistan’s electricity network. The infrastructure is co-financed by the World Bank Group, acting as lead financier, together with other multilateral development banks.
The project is being carried out by the Webuild Group, which has been awarded the contract to construct the main dam.
Once completed, the hydropower plant will provide a reliable supply of renewable, sustainable energy to meet growing domestic demand and reduce seasonal electricity shortages, particularly during the winter months. The project will also enhance the safety of the entire cascade of dams along the Vakhsh River—which already generates around 95% of the country’s electricity—by improving flood risk management.
Approximately 50% of the electricity generated will be exported to Kazakhstan and Uzbekistan, replacing electricity produced from fossil fuels and contributing to a more integrated regional energy market.
For CDP, the transaction marks its first co-financing operation with the World Bank Group and its first involvement in a regional initiative of this scale.
On the sidelines of the signing ceremony, CDP and the World Bank Group also signed the project co-financing agreement, marking a further step in strengthening their partnership in support of high-impact climate and sustainable development projects. The agreement reinforces CDP’s role as Italy’s Financial Institution for Development Cooperation and confirms its commitment to supporting the energy transition and economic stability of Central Asian countries.
CDP was advised by the law firm Dentons, acting as legal counsel to the transaction and supporting the structuring of the financing’s contractual and financial arrangements.