Completed Development AidData Chinese Aid

China Eximbank provides RMB 546 million government concessional loan for 500 kV Power Transmission Lines from Rogun Hydropower Plant to Dushanbe Project

¥546K RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Tajikistan Ministry of Finance
Country	Tajikistan
Start Date	Sep 01, 2017
End Date	Jun 17, 2032
Duration	5,403 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`53787`

Grant Description

China Eximbank provides RMB 546 million government concessional loan for 500 kV Power Transmission Lines from Rogun Hydropower Plant to Dushanbe Project On September 1, 2017, the Export–Import Bank of China and the Ministry of Finance of the Republic of Tajikistan signed an RMB 546,032,200 government concessional loan (GCL) agreement for the 500 kV Power Transmission Lines from Rogun Hydropower Plant to Dushanbe Project.

The GCL agreement was ratified by the Tajik parliament in December 2017.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 25-year maturity

📅 Maturity25 years

⏳ Grace Period7.5 years

💹 Interest Rate1.5%

The loan's (principal) amount outstanding was TJS 0 as of December 31, 2017, TJS 618,614,000 as of December 31, 2018, TJS 756,691,000 as of December 31, 2019 and TJS 945,345,000 as of December 31, 2020. The Government of Tajikistan used the proceeds from the PBC to on-lend -- through subsidiary loan agreement No.

TAJ-2017-02 (BT-039), dated September 29, 2017 -- to Open Joint Stock Holding Company (OHSHC) “Barqi Tojik” at a 3% interest rate between December 29, 2017 and August 21, 2042.

As of OHSHC “Barqi Tojik” was a state-owned enterprise in Tajikistan responsible for the generation, transmission, and distribution of electricity and thermal energy.

The project involved the construction of two 500 kV, high voltage power transmission lines with a length of approximately 100 km from the Rogun hydropower plant in the town of Obi Garm (within the district of Rogun) to Dushanbe.

The Dushanbe-Obigarm project was designed to improve reliability and quantity of supplied energy and reduce losses in the Rasht Valley of Tajikistan, where the Nurabad, Rasht, Tajikabad, Tavildara and Lakhsh districts are located.

The Dushanbe-Obi Garm 500-kV power transmission line would also help increase the export of Tajik electricity to neighboring countries.

The connection between the power grids of Districts of Republican Subordination and the southern power grid would also be improved.

According to the 03/29/2019 Sputnik article, the transmission lines were to pass through the territories of Faizabad, Vahdat, Rudaki and Varzob. A substation, Dushanbe-500 substation, was also to be constructed as part of the project. Tebian Electric Apparatus Stock Co., Ltd. (TBEA) was contracted to implement the project.

In addition, Hubei Engineering Company Engineering Construction Company was involved in the project's implementation. Construction began on October 1, 2017.

The project was completed and put into operation on November 16, 2018, according to Tajikstan's Ministry of Energy and Water Resources.

There are some indications that the China Eximbank loan for the 500 kV Power Transmission Lines from Rogun Hydropower Plant to Dushanbe Project may have underperformed vis-a-vis the original expectations of the lender.

According to a 2021 IMF report, ‘[OHSHC “Barqi Tojik”] has significant arrears to the government on [foreign exchange] denominated loans.

The government on-lends concessional [foreign exchange] loans […] from multilateral and bilateral agencies to [OHSHC “Barqi Tojik”] on non-concessional terms. These loans are denominated in [foreign exchange] and are intended to develop the energy infrastructure.

However, these debts are not serviced fully, resulting in [foreign exchange] arrears to the government.’ A 2021 report by the International Energy Agency (IEA) elaborated on this point, explaining that ‘[a] high rate of uncollected payments for electricity use due to illegal connections, power theft and outdated metering infrastructure contribute to the worsening financial health of Barki Tojik.’ Then, in March 2023, the IMF published a report, which noted that ‘[I]n 2021 the SOE sector […] kept accumulating debt service losses, where within a year the amount of debt overdue payments […] increased from TJS 14 billion to TJS 17 billion (17.1 percent of GDP).

Some 93 percent of accumulated overdue debt belongs to [OHSHC “Barqi Tojik”].’

📋 Staff Comments

This project is also known as the 500-kV transmission line Dushanbe-Obi Garm Project or the Project 'Reconstruction and construction of 500 kV power transmission line in the republican subordination.' The Russian project title is Линия электропередачи 500 кВ «Душанбе-Рогун» or проекта реконструкции высоковольтной 500-киловольтной линии электропередачи районов республиканского подчинения.
Note that Rogun Hydropower Plant is sometimes also referred to as Roghun Hydropower Plant.
Some sources, including press releases from Tajik government ministries, denominated the loan amount in USD ($79 million USD). However, China Eximbank government concessional loans are always denominated in RMB. The loan for the 500 kV Power Transmission Lines from Rogun Hydropower Plant to Dushanbe Project is also denominated in RMB in the audited financial statements of Open Joint Stock Holding Company (OHSHC) “Barqi Tojik”.
The loan identification number in the audited financial statements of Open Joint Stock Holding Company (OHSHC) “Barqi Tojik” is TAJ 2017-02 (БТ-039).
The loan's maturity (25-years), grace period (7.5-years), and interest rate (1.5%) are drawn from the World Bank's International Debt Statistics. See https://www.dropbox.com/scl/fi/xcffgcc5mm4hg49i9u7di/February-2025-IDS-Extraction-Tajikistan-s-Official-Sector-PRC-Borrowings-and-Borrowing-Terms.xlsx?rlkey=cq2kfom6b7ajq6njzram1q1sa&dl=06. On July 12, 2022, President of Tajikistan Emomali Rahmon visited the Rogun plant. Transformer unit 6, built by TBEA, was in use at that time.

📚 Sources & References

Tajikistan: Country Economic Update Fall 2017
Country Economic Update Fall 2017 Tajikistan
Tajikistan: President Returns From China Trip With $310M
Information about the current state investment projects
China to allocate $79 mln to Tajikistan for rehabilitation of high-voltage electrical transmission line
President signs new co-operation agreements with China
Results of President Rahmon’s visit to China; China to allocate $230m for construction of Tajik parliament
China to allocate $230 mln grant and $79 mln soft loan to Tajikistan
China,Tajikistan : Tajikistan to receive $230 million grant and $79 million soft loan from China
Tajikistan seeks Chinese investment in energy projects
进出口银行与塔吉克斯坦财政部签署援外优惠贷款协议
塔吉克斯坦500千伏输电线路工程送电成功, Пресс-релизы : Подписание Кредитного соглашения между Республикой Таджикистан и Китайской Народной Республикой
Export-Import Bank and Tajikistan Ministry of Finance sign foreign aid preferential loan agreement, 'tbea.com' tajikistan 'rogun'
TBEA продолжает реализацию проекта по строительству ЛЭП 500 кВ в Таджикистане, Таджикистан вернет Китаю кредит за ЛЭП 'Рогун-Душанбе' через 25 лет Читать далее, Церемония пуска первого агрегата Рогунской гидроэлектростанции
Tajikistan must repay loan provided by China Exim Bank within 25 years Read more: https://asiaplustj.info/en/news/tajikistan/economic/20190329/tajikistan-must-repay-loan-provided-by-china-exim-bank-within-25-years
Rogun Dam, Подписание ряда соглашений о сотрудничестве между Республикой Таджикистан и Китайской Народной Республикой
Program Appraisal Document on a Proposed Grant in the Amount of SDR97.2 Million (US$134 million equivalent) to the Republic of Tajikistan for a Power Utility Financial Recovery Program for Results, ЛЭП 500 кВ «Душанбе-Оби Гарм» обеспечивает надежную передачу электроэнергии в единую энергосеть Таджикистана
Consolidated financial statements for the year ended December 31, 2018 and independent auditors’ report
驻塔吉克斯坦大使岳斌赴中资企业承建的塔输变电项目巡视考察
China's TBEA continues construction of 500 kV transmission line in Tajikistan
塔吉克斯坦直辖区500千伏输变电项目竣工投运
特变电工精品工程造福“一带一路”沿线国家
China's Global Energy Finance Tajikistan, Аудит отчетности ОАХК 'Барки Точик' по МСФО за 2020 год
REPUBLIC OF TAJIKISTAN SELECTED ISSUES
Cross-Border Electricity Trading for Tajikistan: A Roadmap
Republic of Tajikistan: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Tajikistan
Consolidated financial statements for the year ended December 31, 201 8, Сафари кории Пешвои миллат ба шаҳри Роғун, ПРЕЗИДЕНТ, «РОҒУН» ВА ХАЛҚ – РУҲИ ЯГОНА Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.