The governments of Tajikistan and Uzbekistan are establishing a joint-stock company for joint construction of two hydroelectric power plants on the Zarafshon River in the Tajik northern province of Sughd.

According to a draft government-to-government agreement on this subject, Tajikistan will own 50 percent of the shares plus one share and Uzbekistan will assumes the 50% ownership interest minus one share in this company.  It is expected that the draft agreement will be agreed and signed by the parties in the near future.

Independent international consulting company will be invited to conduct techno-economic assessment and environmental and social impact assessment studies for the project.  

It is allowed to raise funds for implementation of the project from international financial institutions or government agencies.  

Recall, Uzbek Energy Minister Alisher Sultanov told Uzbekistan’s news agency on June 11 that the construction of hydropower plants in the Zarafshon River basin of Tajikistan will be carried out in two stages.

In the first stage, the Yovon hydroelectric power plant with capacity of 140 megawatts will be constructed. An estimated budget for construction of this hydropower plant is 282 million U.S. dollars.  

In the second stage, the possibility of the construction of the Fondaryo hydroelectric power plant with capacity of 135 megawatts will be studied.  An estimated budget for construction of this hydropower plant is 270 million U.S. dollars.  

All electricity generated by these hydropower plants is expected to be purchased by Uzbekistan.