DUSHANBE, October 2, Asia-Plus  -- The Government of Tajikistan hopes to get affirmative answer from Iran’s Sangab on its proposal to reduce construction term for the Sangtuda-2 power plant from 3½ to 3 years, Asia-Plus has learned at the Ministry of energy and Industries (MoEI).

The source at a MoEI said that Iranian contractor, Sangab Company, had already begun constructing infrastructure of the plant.  “They are currently constructing a building of the station.”  Once the station’s building is finished, they will start construction of other facilities, including tunnels, water-intake facilities and dam. 

“Work at the site is carried out in accordance with schedule; however, it is necessary to speed up the construction work in order to build the station not in 3½ but in three years,” the source said, noting that Tajikistan had made an appropriate proposal on this issue to the Iranian side.   

We will recall that under an agreement that the two countries’ energy ministries signed in Tehran in June 2005, Iran contributes $180 million and Tajikistan $40 million. 

The 220-megawatt station will have two generators that will allow it generating up to one billion kWh of electrical power per year.      

Iran’s Iran Daily (September 9, 2006) said that the Export Development Bank of Iran (EDBI) had agreed to finance a dam and power plant construction project to be implemented by an Iranian company in Tajikistan as part of efforts to boost the export of technical and engineering services.  According to Fars news agency, the bank provides funds from the Foreign Exchange Reserve Account.

The bank reportedly meets 70 percent of the cost of the $256-million project.  The Iranian contractor, Sangab Company, will repay the credit in 20 installments over a 10-year period.

Upon the completion of the project, Iran will operate the station during 12 ½ years and then transfer to Tajikistan.   

            It is also supposed that after construction of the Sangtuda-2 hydropower a power grid will be built from Tajikistan via Afghanistan to Iran.