The European Bank for Reconstruction and Development (EBRD) is providing a $50 million loan to fund the first phase of the modernization of the Qairokkum hydropower plant in Tajikistan.
The EBRD announced on July 25 that the project is its largest in Tajikistan to date.
Built in 1957, the Qairokkum plant is the only electricity generating facility in northern Tajikistan and supplies energy to over 500,000 homes in the Sughd Province.
The total cost of the modernization project is approximately $75.7 million.
Tajikistan is extremely vulnerable to climate change impacts and experiences chronic electricity shortages during winter months, when demand exceeds supply by approximately 24 per cent.
The financing will also be used for the ongoing restructuring of Barqi Tojik, a state-owned power company responsible for generation, transmission and distribution of electricity.