GrCF3W2 - Dushanbe District Heating, Extension

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The initial sovereign-guaranteed loan of US$ 5.0 million, co-financed by an investment grant of US$ 5.0 million from the Shareholder Special Fund (SSF), was signed in 2021 to finance the rehabilitation of district heating (DH) infrastructure in Dushanbe, under the GrCF2W2-Dushanbe District Heating project (Project ID 49375). The PIP included:

- Procurement of operational and maintenance equipment and machinery (Lots 1-3).
- Installation of 16 smart meters and rehabilitation of 16 DH pumping stations.
- Rehabilitation and extension of DH network (Lots 1-2).

Due to high inflation that followed the project's technical and economic feasibility assessment, the PIP had to be adjusted based on the results of open procurement process. Specifically, the contracting of Lot 2 of the "Rehabilitation and extension of the DH network" had to be postponed due to the lack of available financing. The additional sovereign-guaranteed loan of up to US$ 3.0 million and investment grant of up to US$ 3.0 million as an extension to the Project ID 49375 are now required to address cost overruns to achieve the project objectives.

Project ID 56738

Status In Exploratory, Pending Final Review

Location

Tajikistan

Business Sector

Municipal Infrastructure

Notice Type

State

Project timeline

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

Company Contact Information

Sunatullo Kodirov
kodirov-sunatullo@mail.ru
+992 91 865 4809
Borbad Street 48-a, city of Dushanbe, Republic of Tajikistan

Project ID 56738

Status In Exploratory, Pending Final Review

Location

Tajikistan

Business Sector

Municipal Infrastructure

Notice Type

State

Approval Date

09 Sep 2025

Disclosure date

09 Sep 2025

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Project Objectives

The additional funding is an extension of the Bank's first engagement in the DH sector, which was a trigger investment for the City under the Bank's Green Cities programme. The initial project includes technical cooperation (TC) which was funded by the SSF and comprised of (i) the Project Implementation Support, Engineering Design and Contract Supervision (PIS), and (ii) the Corporate Development Programme (CDP) services. The project (i) promotes the Green transition quality by reducing CO2 emissions, creating significant water savings, and developing a Green Cities Action Plan, and (ii) supports the Well-Governed transition objective by implementing the CDP and improving the awareness of female students about career opportunities in technical professions in the sector and promote their employment opportunities.

Transition Impact

ETI score: 70

Project ID 49375 has already demonstrated progress towards the achievement of its transition objectives. Following latest monitoring review, its current score is 86.

In line with the Framework objectives, the project contributes to the following transition qualities:

Primary TI Quality: Green

The project will significantly reduce greenhouse gas (GHG) emissions and air pollution from the City's DH system. It also supports the City to develop a Green City Action Plan (GCAP) that identifies its environmental challenges and sets verifiable targets.

Secondary TI Quality: Well-governed

The project will facilitate the development and adoption of a Public Service Contract (PSC).

Client Information

DISTRICT HEATING COMPANY OF THE CITY OF DUSHANBE

The borrower is State Enterprise "District Heating Company of Dushanbe", which provides heat distribution services in the city of Dushanbe. It is wholly owned by the city.

EBRD Finance Summary

USD 3,000,000.00

The transaction is a follow-on sovereign-guaranteed loan of up to US$ 3.0 million to be complemented by a follow-on investment grant of the same amount to complete the priority investment programme (PIP) under the original operation. The follow-on loan will maintain the same first principal repayment (November 2025) and the final repayment date (May 2036) as those under the original loan.

Total Project Cost

USD 6,000,000.00

Additionality

The Bank is additional because of its:

Financing Structure: long-term financing terms that are not available in the market. The Bank's loan will play a key role in ensuring the project's physical delivery and the Company's improved debt service capacity.

Risk mitigation: mitigate carbon transition risks and take climate action, such as to move along a low carbon transition pathway.

Policy, sector, institutional, or regulatory change: development of GCAP for the City and implement of follow-up projects promoting significant environmental benefits.

Standard-setting helping projects and clients achieve higher standards: support the Company to achieve best international procurement standards.

The project is Gender Additional. The Company is committed to address some of the gender equality-related gaps in its workforce. They are committed to hire a total of 10 interns annually for three consecutive years, from 2026 to 2028, with a targeted indicator of at least 50 per cent of female interns annually.

Environmental and Social Summary

Categorised B (2014 ESP). The Project is expected to improve the quality and reliability of DH in the City, increase the efficiency of operations, and reduce local air pollution and greenhouse gas emissions from the existing network. Environmental and social due diligence (ESDD) was carried out as part of the Feasibility Study by independent consultants. It included an analysis of the proposed PIP, a review of the Company's current operations as well as E&S corporate management systems and capacity to implement the Project in accordance with the Bank's PRs. The due diligence also considered an assessment of affordability risks from a social dimension especially relating to vulnerable groups. An Environmental and Social Action Plan (ESAP) has been developed for the Project and was agreed with the Company prior to the signing. Stakeholder Engagement Plans (SEP) and a non-technical summary (NTS) have also been developed and will be disclosed.

The Company has assigned H&S and HR personnel with a good understanding of national legal requirements related to their operations; however, it needs to assign environmental responsibilities and raise capacity in relation to systematic approach to management. The Company is operating in compliance with national legislation and related permits (where issued) with some non-compliances to be addressed with corrective measures in the ESAP.

The PIP addresses investment related to increasing operating efficiency and reliability of the heating source and extension of the heating network. The ESDD has shown that the Project increases water use efficiency and improves the reliability and quality of current heating services. As the Project will be carried out within the confines of the current boiler houses and within the current distribution network of the Company, no land is planned to be purchased or acquired. The negative impacts are predominantly short-term in nature and relate to the construction/ rehabilitation works. The Project may restrict local access to businesses, open public spaces and shops due to route diversions and potential increased traffic; however, these impacts will be managed under the relevant plans included in the ESAP.

The ESAP developed for the Company includes: improvements to EHS management systems, aligning technical specifications under PIP with EU standards, inclusion of ES requirements in the tender documents, requirements for development of a detailed Construction Environmental and Social Managements Plan (CESMP) to minimize any impacts related to the construction stage; review and formalisation of HR policies, implementation of internal grievance mechanism, establishment of contractor management and monitoring system and implementation of the SEP. The ESAP also addresses other aspects of the Company's operations (not directly linked to PIP) to align them with PR requirements, these include among other: securing relevant environmental operational permits, undertaking an asbestos survey, testing transformers oil for presence of PCB.

The Bank will continue to monitor the implementation of the Project and the ESAP as well as the Company's E&S performance by reviewing the Company's AESR and undertaking monitoring visits as needed.

Technical Cooperation and Grant Financing

The following TC assignment is envisaged as part of this extension and is complimentary to TC assignments under Project ID 49375:

TC 1: PIS, extension: US$ 200,000.00 proposed to be financed by an international donor or the SSF.

Company Contact Information

Sunatullo Kodirov
kodirov-sunatullo@mail.ru
+992 91 865 4809
Borbad Street 48-a, city of Dushanbe, Republic of Tajikistan

PSD Last Updated

09 Sep 2025

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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GrCF3W2 - Dushanbe District Heating, Extension

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

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)