EBRD channels €55.4 million to infrastructure projects in Tajikistan

• EBRD providing sovereign loans of up to €55.4 million for infrastructure projects
• Loan of €49.2 million to help upgrade a road in the Khatlon region
• Loan of €6.2 million to help complete a water and wastewater project in Kulob

The European Bank for Reconstruction and Development (EBRD) is stepping up its contribution to the development of sustainable infrastructure in Tajikistan by helping to finance the upgrade and expansion of the road from Baljuvon to Sari Khosor, as well as an ongoing water and wastewater project in the city of Kulob.

The EBRD’s financing package of up to €55.4 million consists of:

• A sovereign loan of up to €49.2 million for upgrades to a 56 km section of the road in the country’s Khatlon region. This will help to establish a year-round transportation link between 19 local communities with a combined population of nearly 6,000 people. Impassable in winter and spring due to seasonal flooding, the road is currently a significant bottleneck to trade and mobility. The project will also help to enhance the resilience of ecosystems with nature-based measures such as bioengineering and riverbank protection. It will benefit from grant funding of up to €4.2 million provided by the Bank and to be used for various purposes ranging from project implementation to road safety advisory services.
• An additional sovereign loan of up to €6.2 million towards the completion of a major ongoing water and wastewater project in the city of Kulob. The project will provide uninterrupted access to clean water for more than 100,000 people and save millions of cubic metres of water annually. The funds will be used to upgrade the water supply and sewage network, including water mains, intakes and pumping stations. They will also help to modernise the city’s wastewater treatment plant and network, as well as facilitate the procurement and installation of water meters. It will benefit from the Bank’s grant of up to €3.4 million, which will support project implementation. The new funding will supplement previous loans and grants of €16.5 million provided by the EBRD and the European Union.

These are the first projects signed under a memorandum of understanding recently concluded between the Ministry of Finance of Tajikistan and the EBRD. It established a cooperation framework until 2030 and linked the EBRD's investment pipeline in Tajikistan with policy reform, project preparation and technical cooperation. In the context of this partnership, Tajikistan’s infrastructure and energy sectors could attract up to €750 million of the Bank’s investment over the next five years.

To date, the EBRD has invested more than €1 billion in Tajikistan through 200 projects.