EBRD and EU help modernise electricity network in Tajikistan

By Anton Usov

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  • €35 million package by EBRD and EU to power distribution utility in Tajikistan
  • Shabakahoi Taksimoti Bark to upgrade grid in the south of the country
  • Introduction of billing and metering infrastructure

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are improving the sustainability and efficiency of Tajikistan’s energy sector by financing power-distribution grid upgrades in the Khatlon region of the country.

A financing package of €35 million will provided to Shabakahoi Taksimoti Bark (STB), a state-owned power utility responsible for electricity distribution in Tajikistan. The financing will consist of a €20 million sovereign loan provided by the EBRD and a €15 million investment grant provided by the EU under its Investment Facility for Central Asia (IFCA).

The funds will be used for the modernisation of the power distribution networks in the cities of Kulob and Bokhtar and in adjacent territories. The financing will also help introducing billing and metering infrastructure and upgrade STB’s workshops.

As part of the project, STB, in cooperation with domestic educational establishments, will develop professional training schemes for local young people.

The investment is the latest project under the EBRD’s Tajikistan Energy Efficiency Framework designed to promote power-sector reforms and provide funds  key energy infrastructure affected by decades of underinvestment.

The project is supported by grant funding from the EU IFCA and the EBRD Shareholder Special Fund.

To date, the EBRD has invested €765 million through 140 projects in Tajikistan’s economy.

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