The European Bank for Reconstruction and Development and the Green Climate Fund (GCF) have agreed to provide an $88m financing package to upgrade the Qairokkum hydropower plant (QHPP) and improve electricity supply in Tajikistan.
The $88m financing package comprises of a $38m EBRD loan, a $27m GCF loan and a $23m GCF grant to state-owned power utility Barki Tojik.
Created in 2010 by 194 countries who are parties to the United Nations Framework Convention on Climate Change (UNFCCC), GCF supports the efforts of developing countries to respond to the challenge of climate change.
The new funding will be used for the completion of the second and final phase of the rehabilitation and modernisation of the six-decade-old QHPP.
The QHPP upgrade will see the installation of hydraulic steel components, turbines and electromechanical equipment for the four hydropower units, as well as concrete dam works.
With the financing from EBRD, Austria and the UK, in addition to the Climate Investment Funds’ Pilot Programme for Climate Resilience, the QHPP upgrade project was initiated in 2014.
Upon completion, the plant capacity is expected to be increased from 126MW to 174MW, and will also see the introduction of new climate resilience measures, which allow the plant to cope with the expected impact of climate change on the hydrology of the country.
The new measures will also allow the Tajik hydropower operator to anticipate, assess and manage climate-related risks.
Tajikistan is reported to be one of the most vulnerable countries in the world to climate change.