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    Central Asia
     Oct 3, 2007
Page 2 of 3
Tajikistan struggles for power
By John Helmer

Tojik, the Tajik state power utility, Uzbekistan and Tajikistan reached an agreement that by September 2007, the energy grids of Uzbekistan would be restored and ready to transport energy.

Although Turkmen officials weren't present for this deal, they had already agreed to export 1 billion kilowatt-hours of electricity per year to Tajikistan for the winter season. Whether promises to restore all the necessary relay equipment have been met to



ensure that the new winter season will be warm remains an open question.

It is one of the key questions to be discussed when leaders from the three states, plus Russian President Vladimir Putin and heads of the other Commonwealth of Independent States (CIS) governments (minus the Baltic states, and possibly Georgia), convene in Dushanbe, Tajikistan, on Wednesday.

In the spring, at about the same time ordinary Tajiks were feeling the lack of light and heat from their neighbor's unwillingness to deliver, and their government's inability to do much about it, Rahmon launched an attack on the Russians, as if they were to blame. His initial target was Oleg Deripaska's Russian Aluminum (Rusal), Rahmon's partner in running Tajikistan's electricity gobbler and principal source of cash - Talco.

At the end of 2004, Deripaska had secretly agreed with Rahmon that if he evicted the management of Talco and allowed Rusal to operate the smelter and trade the metal, the two would share the profits, and Rahmon would allow Rusal to win a privatization tender for ownership of the plant itself.

There was a catch. Deripaska had to promise to invest the US$1 billion required to complete the Rogun hydroelectric power complex to feed the Talco smelter, and relieve the pressure on the rest of the country's energy supplies. Rogun was first planned in Soviet days, but construction was halted by the end of Soviet power, and the disintegration of Tajikistan into civil war. Because aluminum production is such a greedy consumer of electricity, the Talco takeover pact between Rahmon and Deripaska meant they grew rich, while Tajikistan's lights grew dim.

Deripaska and Rusal are good at promising to spend large sums of money. Asia Times Online has reported in detail on the litigations that have challenged Deripaska to honor his promises (Tajikistan mired in great power game, August 15); court testimony in London, Zurich, Nigeria and elsewhere suggests he is slow to spend. In Tajikistan, he didn't spend at all. Or at least two years after the Talco takeover, it suited Rahmon to say so.

A new feasibility study for the Rogun hydroelectric complex, on the Amu Darya River, was undertaken by German contractor Lahmayer International GmbH. This proposed a dam to be built to a height of 285 meters. The Tajik government then insisted on raising the dam wall by another 50 meters. An argument ensued in which Rusal said the extra work should be paid for by the Tajik government. Rusal also warned that the project should be coordinated with Uzbekistan. Both provisos were contract-killers.

And so, this April, it was announced in Dushanbe that Tajikistan had canceled its arrangement with Rusal to build the Rogun hydroelectric complex. "There is a [government] decision to bar Rusal from working in the country," said Sharifkhon Samiyev, adding that his government intended to create an international consortium to complete the power supply project. Russian companies, except Rusal, would be welcome to join, he also said.

Unified Energy Systems (UES), a Russian state power utility, stepped immediately into the breach, saying it would consider replacing Rusal to build Rogun. UES is already building the Sangtuda-1 hydroelectric power station in Tajikistan, but not quite fast enough for Rahmon's liking.

On April 26, Tajik news wires reported that Rahmon had met with Andrei Rappoport of UES. "During a meeting with the president [Rahmon], I was told that the country had prepared papers for an international tender to build the Rogun HPP [hydroelectric power plant]," Rappoport said. "As Rusal has no operations in Rogun right now, Tajikistan claims that the joint venture is no longer possible," he said. UES experts, he said, had met with Rahmon to communicate their own plans for the plant.

UES "is neutral, although we have our own interests there", said Rappoport, indicating they were waiting "for the political will of the Tajik leadership to appear". "Russia must be part of the [Rogun] project to complete Rogun as it is a strategic facility for Tajikistan and an important source of electricity exports to Russia," Rappoport added.

Rappoport hastened to assure everyone that Sangtuda-1 would be switched on in time for this winter.

With construction at Sangtuda running four months behind schedule, Rappoport was trying to reassure Rahmon that the new supply of power would be available before, not after the coming winter. But the president's problem is that life is too short for him to profit from the long term. In the short term, he and his family live off the aluminum smelter, and must guard that position by supplying enough electricity to the rest of the country, one winter at a time.

For fuel to burn, Tajiks are thin in terms of petro-resources, but they are fat with hydro. Their mountain rivers have a potential hydropower capacity estimated internationally at 527 billion kilowatt-hours of electricity a year; this is among the biggest in the world.

Experts in Moscow, Washington and Brussels all agree that there is a greater hydroelectric power capacity in Tajikistan than in any other country in Central Asia, but currently its turbines turn out only 16.5 billion kilowatt hours.

When Rahmon announced in May, after repudiating Deripaska and authorizing a lawsuit in London, charging Rusal with corruption, he said Tajikistan would build up to 80 new hydroelectric power stations. The only part of the promise he was exaggerating was the money to make it possible. According to Rahmon, he is hoping to attract up to $1 billion in foreign investment in an international financial and electric power consortium.

Exactly why foreign investors would trust Rahmon with the cash any more than Deripaska had remains a subtle question. This tricky question won't be on the agenda for discussion when the CIS heads meet on Wednesday. Nor when European Union foreign-policy head Javier Solana brings a troupe of EU officials to Dushanbe shortly afterwards. The issue of Rahmon's personal control of his country's cash is, nonetheless, the quiet sticking

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