MayCap acted as advisor to the World Bank to assist with the development a Structured Finance strategy for the Rogun Hydro Power Project in Tajikistan, with potential offtake from Pakistan, Uzbekistan and other neighboring countries in the Central and South Asian region (2020-21).

The 3.78GW run-of-the-river Rogun Hydropower project, when constructed, will be one of the tallest dams in the world and will supply low-cost baseload electricity to Tajikistan and the CASA region.

The Project financing however faces challenges in the form of:

• Long gestation period (it will take another 17 years (until end 2039) for the Project to reach full generation capacity)
• Large capex requirement (c. $7.4bn, of which c. $2.3bn is already incurred)
• Government ownership in the form of SOE
• Weak credit profile of offtakers Fiscal constraints of GoT

• Significant structuring and financial modelling process undertaken by MayCap, working together with the World Bank team
• Objective was to get the most competitive financing for Rogun
• Several financial sources and instruments were considered including:
  • Export Credit Agencies
  • Commercial Banks
  • Capital Markets / Green bond financing
  • Receivables backed PPP structures
  • DFI loans and grants
• This process culminated into the development of a Financing Strategy Considerations report.

For further information, contact Abhay Ketkar at abhay.ketkar@maycapadvisors.com.