Financing

The agreement for the ownership structure was a concession agreement in which the government remains the principal owner of all physical assets. Pamir Private Power is responsible for all existing electricity generation, transmission and distribution facilities through a privately owned special purpose company operating under a 25-year concession agreement. The total cost of the project was $26 million, of which $2 million was interest during construction.

The financing mix was 45% through equity and 55% debt, which was provided by the International Finance Corporation (IFC) and the International Development Association (IDA). IFC provided $3.5 million in equity financing; the remainder, $8.2 million was provided by the Aga Khan Fund for Economic Development (AKFED), the private sector partner in the venture.