World's Tallest Dam Project Gets New Life With Fresh World Bank Funding

Tajikistan’s long-stalled Rogun Dam project registered new momentum this year after the World Bank’s Board approved a $300 million grant in June, adding to an earlier $350 million award from December 2024. The World Bank’s Tajikistan office said that disbursement could not proceed until certain agreed conditions were met, which the bank reported were completed on December 22, 2025; the bank also stated there was no formal suspension of its participation. Construction activity has accompanied the fresh financing. WeBuild Group, the Italian firm contracted for major civil works, reported in August that it had kicked off Lot 2—a $2.3 billion segment of the project—and raised the dam crest to 1,155 meters above sea level. That increase allows operators to raise reservoir levels by 49 meters and expand generation from two of the six turbines already installed, the company said. Despite those advances, the project still faces significant funding and timeline demands. Tajik officials and multilateral lenders say the state has already invested more than $3 billion, and S&P Global estimated in mid-August that roughly $5.8 billion remains needed to finish the dam, with a target completion year of 2035. In addition to the World Bank tranche, the Abu Dhabi Fund for Development provided a $100 million loan in February and Italy’s Cassa Depositi e Prestiti pledged $150 million via the World Bank consortium; Tajikistan’s finance minister reported $1.5 billion in total commitments from international funders and said the government spent $400 million of revenue on Rogun in the first half of the year with a further $300 million planned for the second half. Opponents and civil society groups continue to raise environmental, social and fiscal concerns. Critics warn the reservoir will displace an estimated 50,000 people and stress water resources in the Amu Darya basin during filling. Rivers without Boundaries, an environmental NGO, argued the latest tranche came with reduced financial conditions tied to environmental and social safeguards and called for stronger oversight. The World Bank’s board summary described the program as a “high-risk, high-reward” undertaking that requires robust monitoring and oversight. The project also has geopolitical and domestic political dimensions: Tajik leaders portray Rogun as central to President Emomali Rahmon’s legacy and a route to energy independence and export revenue, while European and regional institutions weigh additional financing. Pending decisions include a potential $500 million from the European Investment Bank and another $500 million from the Asian Development Bank in concessional funds, both of which would shape the project’s financial structure going forward.