Tajikistan, 20 January 2008. Today, RAO UES of Russia brought on line the first hydroelectric power unit at Sangtudinskaya GES-1, located on the Vakhsh River, Tajikistan. The ceremony was attended by Tajikistani President Emomali Rahmon, Deputy Chairman of the Russian Government Sergey Naryshkin, RAO UES Management Board Chairman Anatoly Chubais, and Chairman of the FGC Management Board Andrey Rappoport.

The capacity of the plant's first hydropower unit is 167.5 MW. The unit was brought into operation three months ahead of schedule. The Russian side agreed to accelerate the construction on the request of Tajikistani President Emomali Rahmon in order to reduce electricity shortages in Tajikistan, which in the winter months reach 4,000 MW. In winter, electricity is supplied to a significant majority of Tajikistani consumers, including households, only six hours a day. The station will start operating at full capacity (670 MW) also ahead of schedule, in late 2008/early 2009.

The project to construct the plant was launched in the late 1980s. By the early 90s, twenty percent of the construction works had been completed. However, the project was suspended due to the lack of funds and the hostilities in Tajikistan.

Negotiations between Russia and Tajikistan on the completion of Sangtudinskaya GES-1 started in 2003. In June 2004, this issue was discussed during the meeting of Russian President Vladimir Putin with Tajikistani President Emomali Rahmon. As a result, the Russian Government and Tajikistani Government signed an intergovernmental agreement on 16 October 2004. Under the agreement, the total cost of the project is estimated at USD720 million. Russia will invest USD450 million drawing on different sources of finance. RAO UES entities will invest USD127.5 million in funds in the project. Tajikistan's contribution in the form of the hydropower facilities under construction is valued at USD121 million.

Sangtudinskaya GES-1 is the largest investment project financed by the Russian Government and Russian companies in CIS countries. Some Russian companies, such as Power Machines, Chekhovsky Zavod Gidrostal, ChirkeiGESstroy, Zarubezhvodstroy, Zagranenergostroymontazh, Hydromontazh Trust, and others, act as contractors and equipment suppliers for the project. Over 4,500 people are currently engaged on the Sangtudinskaya GES-1 site, of which 3,600 people are citizens of Tajikistan.

When brought on line, Sangtudinskaya GES-1 will ensure electricity supply to the domestic market of Tajikistan. Moreover, the power plant will be able to regulate the stream flow of the Vakhsh River on a daily basis, which will help optimize the use of water resources. The hydropower plant will thus play a key role in regulating the water balance of the entire region.