EBRD and EU helping to tackle energy losses in Tajikistan

• EBRD providing loan of up to €28 million to Tajikistan’s power distribution utility
• Project is supported by EU investment grant of €15 million
• STB to improve sustainability and efficiency and offer inclusive employment

The European Bank for Reconstruction and Development (EBRD) is helping to enhance the sustainability and efficiency of Tajikistan’s electricity distribution network by organising a financing package of up to €43 million for Shabakahoi Taqsimoti Barq (STB) – the country’s state-owned power utility responsible for electricity distribution.

The EBRD is providing a sovereign loan of up to €28 million, which will be supported by a European Union (EU) investment grant of €15 million under the EU’s Asia Pacific Investment Facility. This financing will help to upgrade STB’s billing and metering infrastructure in nine towns across the Sugd and Khatlon provinces of Tajikistan.

The existing electricity distribution infrastructure in those two regions is characterised by ageing equipment, high electricity losses and ineffective billing systems, which are undermining the company’s financial performance and efficiency.

The project will also support STB’s digitalisation efforts, including the implementation of cybersecurity measures to safeguard the company’s power distribution grid. This will benefit from technical assistance provided by the EU and the EBRD.

In addition, STB is also committed to developing human capital through the introduction of special training programmes on green skills for young people and women. This will strengthen the local talent pool and enhance the employability of young and female professionals.

To date, the EBRD has invested more than €1 billion in Tajikistan through 188 projects.