The construction of the new Sebzor hydropower plant (HPP) on the Shokhdara River of the GBAO, with a planned capacity of 11 megawatts, is expected to help close the supply gap and provide an affordable electricity supply for the region. The purpose of the Project is to improve the access of the rural population (both women and men) in GBAO to sustainable, reliable and affordable electricity and to increase the reliability of the energy supply in GBAO by reducing the risk of electricity interruptions through natural disasters. Furthermore, the project aims to stabilize the power supply in the province and to provide the medium-term projected additional demand of about 5% to 6% per year until 2027.

The target groups are the electricity consumers in the GBAO region who are connected to the Pamir Energy (PE) power grid. In 2018, there were approximately 215,000 inhabitants living there. Projections for 2023 predict about 240,000 inhabitants. Due to the low subsidized tariffs, poorer segments of the population will benefit from the project as well as those segments of the population whose jobs depend on electricity consumers or who use the social and public facilities.

The estimated total cost of the project is expected to be around EUR 39.7 million. Together with the European Union, the German Development Cooperation is providing a total of around EUR 35.6 million for the construction of the HPP as well as for consulting services. For this, a grant agreement in the amount of EUR 17.0 million, provided by the German Financial Cooperation, and a grant agreement of around EUR 18.6 million, provided by the European Union, have been signed with the Republic of Tajikistan. Both grants are managed by the German Development Bank, the Kreditanstalt für Wiederaufbau (KfW). The project is executed by the Pamir Energy Company, assisted by an international implementation consultant and a project implementation unit.

Power supply bottlenecks occur in Tajikistan, especially in winter, which is a core problem for the country. A key feature of Tajikistan's electricity consumption is that electricity is mainly used for lighting, cooking and heating. Therefore, when electricity supply is insufficient in winter, people often must resort to burning dung and wood. In addition to the negative impact on climate, environment, and health, there is also not enough firewood in the Mountain Badakhshan Province to fully meet winter demands. This shortfall will be exacerbated by the projected increased demand for electricity in the future. The HPP in Sebzor also contributes to the provision of public services in rural areas and thus enables the creation of new jobs and the generation of income for the rural population.

From an economic point of view, the new Sebzor HPP can help meet the increasing demand for electricity in the province of GBAO and parts of northern Afghanistan and reduce existing supply gaps, especially in the winter months. By increasing the availability of electricity, the project thus promotes economic development, the creation of new jobs and the generation of income for the rural population. Additional local employment opportunities will be created through the construction and operation of the hydropower plant. Since the hydropower plant will be built on the separate Shokhdara River, it is not subject to the external risk factors as the two existing larger hydropower plants in the GBAO. In this way, risks are diversified and resilience to climate change is increased. Ecologically, by providing additional electricity, the project can reduce demand for fossil fuels, such as diesel and coal, and especially for unsustainably managed firewood in the already severely degraded forest stand in the GBAO. This will also reduce CO₂ emissions and other air pollution. The project thus generates positive environmental impacts. Among other things, the plan provides for an ecological minimum flow in the natural riverbed and a fish ladder, thus maintaining the ecological continuity of the river.

The project is aligned with the current European Union and Central Asia Strategy for a New Partnership and the Connecting Europe and Asia - Building blocks for an ED Strategy. The promotion of renewable energy is also part of Tajikistan's energy strategy. The Sebzor HPP project therefore supports the government in implementing its national strategies. In addition to the HPP in Murgab, the project represents another German Financial Cooperation financing for the construction of a HPP in Tajikistan.

Currently, preparatory measures for the project are already being financed from EU funds, and further preparatory construction measures are to be implemented this year. These include, for example, the construction of an access road, a power line and a drinking water supply system as part of the project-related resettlement measures.