Key facts
- Tajikistan's Rogun Dam project has advanced with new funding and construction milestones.
- The World Bank approved a $300 million grant in June, its second round of funding.
- WeBuild Group began work on Lot 2 of the $2.3 billion project in August.
- The dam has been raised to 1,155 meters above sea level, allowing for reservoir level increases.
- The Tajik government has spent over $3 billion on the project since 2016.
- The World Bank stated its financing was not paused but contingent on completed conditions.
Construction on Tajikistan’s Rogun Dam project has advanced significantly, with the World Bank approving a $300 million grant in June, its second round of funding for the initiative. WeBuild Group, the Italian conglomerate building the dam, announced in August the commencement of work on Lot 2 of the project, valued at $2.3 billion, and has raised the dam structure to 1,155 meters above sea level. This elevation will permit an increase in the reservoir's water level by 49 meters, enhancing the generation capacity of the two operational turbines out of a planned six.
The Tajik government has been developing the Rogun Dam in the Vakhsh River Valley since 2016, investing over $3 billion to date. If completed to its full specification of 335 meters high, it would become the world's tallest dam. The hydropower plant is projected to generate a maximum of 14,400 gigawatt hours of electricity annually, which is approximately 60 percent of Tajikistan's current electricity production.
These recent developments follow reports from late summer 2025 in the Russian press and from S&P Global Ratings suggesting the World Bank had temporarily halted financing to review objections from civil society groups and concerns about the dam's fiscal viability. However, in a statement to Eurasianet on September 23, the World Bank Group Office in Tajikistan clarified that financing disbursement was contingent on the completion of certain agreed conditions, which were met on December 22, 2025. The bank stated there was "no temporary suspension or freeze of the Bank’s participation in the project."
Tajikistan's Finance Minister Faiziddin Qahhorzoda expressed confidence in achieving energy independence by 2027. The dam is a key project for President Emomali Rahmon, with hopes it will generate electricity export revenues and support industrial expansion. S&P Global Ratings estimated in mid-August that the government still requires approximately $5.8 billion to complete the project, with a target completion date of 2035.
Critics, including environmental NGO Rivers without Boundaries, have voiced concerns about potential ecological harm, socio-economic impacts on displaced residents, and the diversion of water from the Amu Darya River basin. Eugene Simonov, a coordinator at Rivers without Boundaries, noted that the latest funding tranche was accompanied by a reduction in financial conditions related to environmental and social safeguards. The NGO also expressed a lack of confidence due to perceived transparency issues.
In addition to the World Bank's funding, the Abu Dhabi Fund for Development provided a $100 million loan in early February for the current stage, and Italy's Cassa Depositi e Prestiti committed $150 million through the World Bank's consortium in late July. Negotiations are ongoing for a potential $500 million investment from the European Investment Bank and further financing from the Asian Development Bank. The European Union views the dam as a strategic asset to increase its regional influence.