Energy Loss Reduction - Phase II

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The Bank intends to provide a sovereign loan of up to €32 million to the Republic of Tajikistan, with the proceeds on-lent to OJSC "Shabakahoi Taqsimoti Barq" ("STB" or the "Company"), the implementing entity. The financing will support the upgrade of billing and metering infrastructure, targeted distribution network improvements and related cybersecurity investments across 10 towns and districts in the Sugd and Khatlon regions.

Project ID 55945

Status Passed Final Review, Pending Approval

Location

Tajikistan

Industry Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

SHABAKAHOI TAQSIMOTI BARQ OJSC
taqsimoti.barq@gmail.com
+992 37 229 5411
https://shtb.tj/
64 Ismoil Somoni Ave Dushanbe, 734026 Tajikistan

Project ID 55945

Status Passed Final Review, Pending Approval

Location

Tajikistan

Industry Sector

Energy

Notice Type

State

Environmental Category

Approval Date

04 Nov 2026

Disclosure date

09 Mar 2026

PSD Translation (Russian) (PDF, 0.23MB)

Project Description

Project Objectives

The Project will address technical and commercial losses and improve the reliability of electricity supply in the target areas. Its principal objectives are to: (i) replace priority ageing distribution and metering infrastructure; (ii) reduce distribution losses, increasing financial and COi savings; (iii) introduce modern billing and advanced metering systems to improve payment discipline, cash collection and revenue management. The Project will strengthen the operational efficiency, financial sustainability and cybersecurity resilience of the Company.

Transition Impact

ETI score: 68

Resilient (primary): The Project is expected to deliver the Resilient transition quality by strengthening the efficiency, reliability and cybersecurity of Tajikistan's electricity distribution network through investments in advanced metering infrastructure, billing systems, distribution network improvements and cybersecurity measures. The Project is expected to strengthen STB's operational and financial performance by reducing electricity losses, improving revenue management and collection practices, and enhancing the resilience of the electricity distribution system. It will also support measures to strengthen STB's cybersecurity posture and align its cybersecurity framework with international good practice.
Green (secondary): The Project is expected to contribute to the Green transition quality by reducing electricity distribution losses and improving the efficiency of the electricity distribution network, resulting in energy savings and a reduction of COi emissions.

Client Information

TAJIKISTAN SOVEREIGN

Borrower: Republic of Tajikistan

Project Entity: OJSC "Shabakahoi Taqsimoti Barq" ("STB" or the "Company") is Tajikistan's national electricity distribution company. It was established following the unbundling of the vertically integrated power company Barqi Tojik and commenced operations in 2021. STB is responsible for supply of electricity and operation and maintenance of the electricity distribution network in Tajikistan. The company is 100 per cent owned by the government.

EBRD Finance Summary

EUR 32,000,000.00

Up to €32 million long-term sovereign loan to the Republic of Tajikistan with loan proceeds to be on-lent to the company, the implementing entity.

Total Project Cost

EUR 42,000,000.00

Up to €32 million sovereign loan to the Republic of Tajikistan with loan proceeds to be on-lent to OJSC "Shabakahoi Taqsimoti Barq" (the "Company"), the implementing entity. The Project will be co-financed by an investment grant of €5 million from the EBRD Shareholder Special Fund (SSF) and by contribution of €5 million from STB, the implementing entity.

Additionality

Financing structure: Long-term funding from local commercial sources is not available for projects in the power sector. The EBRD offers a tenor which is necessary to structure the project.
Risk mitigation: The Project will strengthen the Company's cybersecurity resilience through the implementation of cybersecurity improvements designed to enhance the security of its operational, billing and metering systems and support alignment with international good practice.
Standard-setting: The EBRD will support the adoption of international best practice in procurement, environmental and social management and project implementation. Procurement under the Project will be carried out in line with the EBRD's Procurement Policies and Rules and through the EBRD Client e-Procurement Platform (ECEPP).
Knowledge, innovation and capacity building: Building on the Bank's experience from previous energy loss reduction projects in Tajikistan, the Project will benefit from dedicated implementation support and transfer of international expertise to support the timely and effective delivery of the investment programme, including through the engagement of an experienced Project Implementation Support consultant.

Environmental and Social Summary

Categorised B (2024 ESP).Environmental and social risks associated with the procurement and installation of advanced metering infrastructure ("AMI"), electricity smart meters, associated billing systems and related digitalisation and cybersecurity investments across selected districts in Khatlon and Sugd regions of Tajikistan were assessed through environmental and social due diligence ("ESDD"). The assessment confirmed that these risks are site specific and can be effectively managed through the implementation of an Environmental and Social Action Plan ("ESAP"). The competent authorities have confirmed that the Project does not require an Environmental Impact Assessment under national legislation.

The Company is the national electricity distribution company of Tajikistan and a well-known client to the Bank. An ESDD was undertaken by an independent consultant retained by the Bank and included (i) a corporate Environmental and Social audit, (ii) review of management and monitoring systems, (iii) assessment of the Project's environmental and social impacts, and (iv) site visits to representative operational locations.

The ESDD confirmed that the Company has continued to strengthen its environmental and social governance arrangements through implementation of commitments under previous Bank-financed projects, including the establishment of environmental and social focal points, monitoring and reporting arrangements, stakeholder engagement and grievance management mechanisms, and integration of environmental and social requirements into project implementation and contractor management processes. The Company has reported to the Bank in a timely manner through the Annual Environmental and Social Reports ("AESRs") under previous Bank-financed projects. Further enhancement of the Company's Environmental and Social Management System (ESMS) is required to achieve full alignment with the EBRD Environmental and Social Requirements (ESRs) and will be addressed through the ESAP.

The Company manages labour and working conditions in line with national legislation and has established Human Resources policies and a collective agreement between the workers' organisation and the Employer. Workforce transition impacts associated with deployment of smart metering systems have been managed through mitigation measures broadly aligned with ESR2 principles, including advance notification and redeployment where feasible. Further enhancements, outlined in the ESAP, will focus on implementation and periodic update of a Retrenchment Plan aligned with ESR2 requirements, strengthening worker grievance mechanisms, formalising non-discrimination and equal opportunity commitments, and enhancing contractor and supplier alignment with ESR2.

The Project is not expected to generate significant water consumption, wastewater, air emissions, noise or vibration impacts. Key environmental risks relate to management of obsolete metering equipment, waste and hazardous materials, asbestos-containing materials, occupational health and safety, and contractor environmental and social performance during installation works. ESAP measures will focus on strengthening environmental management controls, contractor oversight and monitoring systems in line with ESR3 and ESR4 requirements.

The Project will not require additional land acquisition and is not expected to result in physical or economic displacement, as works will be undertaken within existing electricity distribution infrastructure and customer premises. The ESAP requires formalisation of land access and entry procedures, including documentation of access agreements, compensation arrangements where applicable, and strengthening of grievance management processes in line with ESR5 requirement.

As confirmed by the ESDD, the Project is not expected to affect protected areas, internationally recognised areas, natural habitats, critical habitat or priority biodiversity features. No impacts on cultural heritage are anticipated; however, contractors will be required to implement a Chance Finds Procedure as part of ESAP commitments.

A Stakeholder Engagement Plan ("SEP") and Non-Technical Summary ("NTS") have been developed for the Project in line with ESR10 and have been disclosed. Stakeholder engagement activities will focus on customer communication regarding smart metering deployment, billing arrangements, vulnerable consumers and implementation of accessible grievance mechanisms.

An ESAP for the Project has been developed and agreed by the Company. Key environmental and social management improvements include formalisation of the ESMS, strengthening labour and workforce transition management, enhancing worker and external grievance mechanisms, strengthening stakeholder engagement, improving contractor oversight, formalising land access management procedures, and strengthening environmental monitoring, reporting and management of waste and hazardous materials.

The Company will continue participating in EBRD technical cooperation activities aimed at strengthening environmental and social capacity, supporting implementation of its environmental and social management system, and enhancing labour and stakeholder management. In parallel, the Company will benefit from a dedicated cybersecurity programme focused on strengthening the resilience of its core operational, billing and metering systems, which will be closely coordinated with the Bank's environmental and social workstreams.

Green assessments

Paris Agreement alignment
The project is determined aligned with the mitigation and adaptation goals of the Paris Agreement based on the application of the EBRD's Paris alignment approach for directly financed investments.

The project is aligned with the mitigation goals of the Paris Agreement as it features on the joint-MDB aligned list under the category "Electricity transmission and distribution, including energy access, energy storage and demand-side management".

The project is aligned with the adaptation goals of the Paris Agreement as there are no materially relevant physical climate risks and does not contravene national policies for adaptation or the climate resilience of the wider system.

Green finance attribution
100% of the EBRD financing is classified as green finance, as it supports activities to achieve climate mitigation objectives. The attribution is made in line with the methodology to determine the green finance attribution of EBRD investments, and specific guidance for "Brownfield efficiency improvement or reduction of CO2e emissions in transmission or distribution of electricity".

Technical Cooperation and Grant Financing

The following technical co-operation ('TC') assignments are envisaged as part of this Project:

Environmental and Social Due Diligence, funded by Sustainable Infrastructure Fund.
Project Implementation Support to assist the Company's project implementation unit with procurement of goods, works and services for the project and to provide organisational and technical assistance, funding source to be confirmed.

Company Contact Information

SHABAKAHOI TAQSIMOTI BARQ OJSC
taqsimoti.barq@gmail.com
+992 37 229 5411
https://shtb.tj/
64 Ismoil Somoni Ave Dushanbe, 734026 Tajikistan

PSD Last Updated

28 Sep 2026

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Energy Loss Reduction - Phase II

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)