DUSHANBE, September 18, 2014, Asia-Plus – Over the first eight months of this year, 473.3 million somoni (equivalent to some 95 million U.S. dollars) has been spent for implementation of the Roghun hydroelectricity project, which is 202 million somoni (more than 40 million U.S. dollars) more than in the same period last year, according to the Agency for Statistics under the President of Tajikistan.

In all, 1.4 billion somoni has been spent for construction of hydropower facilities in the country over the same eight-month period, which is 33 percent more than in the same period last year.

We will recall that Tajikistan founded Open Joint-Stock Company (OJSC) NBO Roghun with an authorized capital of 116 million somoni for completing the construction of the Roghun hydroelectric power plant (HPP) in April 2008 after it formally revoked a contract with Russia''s RusAl aluminum company for the construction of the Roghun HPP in August 2007.  The Tajik government accused the Russian company of failing to fulfill the contract signed in 2004.  Tajik authorities and RusAl became bogged down in the hydroelectric plant''s dam model and height, crucial factors in its capacity.

To raise funds to complete construction of the Roghun HPP the government started to sell shares in Roghun to people on January 6, 2010.  Tajikistan has reportedly issued 6 billion somoni worth of 5 million Roghun shares.

According to the Ministry of Finance, 804.7 million somoni have been raised from the sale of shares.

2.2 billion U.S. dollars are reportedly needed for completion of the construction of the Roghun hydroelectric power plant.

By president’s decree issued in February this year the construction of the Roghun hydroelectric power plant is exempted from paying taxes.  The president, in particular, decrees to exempt the Roghun HPP construction owner and general contractor from paying value added tax (VAT), road tax, wealth tax, profit tax, transport tax, social tax for foreign nationals engaged in construction of the plant, and state duties for registration of emission prospects of non-state securities during the period of constriction of the plant.