Dushanbe Energy Loss Reduction Project

Location:

Tajikistan

Project number:

51667

Business sector:

Energy

Notice type:

State

Environmental category:

B

Approval date:

30 Sep 2020

Status:

Concept Reviewed

PSD disclosed:

27 May 2020

Project Description

The provision of a sovereign loan of up to US$ 25 millionto the Republic of Tajikistan to finance the development of smart grid metering infrastructure in the cities of Dushanbe, Dangara, Buston, Panjakent and their surroundings in Tajikistan.

Project Objectives

The Project will target one of the key constraints to economic development in the country - limited access to the reliable energy supply. The Project's principal objectives are to: (i) address most urgent needs for the replacement of aged infrastructure, (ii) contribute towards the reduction of distribution network losses resulting in financial and CO2 emissions savings, and (iii) introduce modern billing and smart metering infrastructure, improve payment discipline and cash collection, support operational and financial efficiency and sustainability of the distribution sector. 

Transition Impact

The expected transition impact of the Project is twofold:

-         Resilient: The Project will support more efficient functioning of the distribution network operator, through improved transparency and accountability and introduction of billing and metering system. The Project comes under Tajikistan Energy Efficiency Framework which includes a policy dialogue initiative, building on existing engagements, to strengthen the regulatory environment for the Tajik energy sector including drafting of key regulations and institutional capacity building for the newly established regulatory unit.  

-         Inclusion: The Project will support improvements in the employability of youth by expanding high-quality and certifiable skills training opportunities, in collaboration with local educational institutions. 

Client Information

TAJIKISTAN SOVEREIGN

The EBRD loan will be provided to the Republic of Tajikistan to be on-lent to OJSC "Shabakahoi taksimoti bark" established as part of Barqi Tojik unbundling.

 

EBRD Finance Summary

USD 25,000,000.00

Total Project Cost

USD 92,187,504.00

Additionality

  • Financing structure: Long-term financing for large infrastructure projects is currently unavailable from local commercial banks.
  • Risk Mitigation, Policy and Regulatory Change and Knowledge, Innovation and Capacity Building: the Bank's technical and institutional expertise with the turnaround of utilities, policy dialogue work and TC.  Additionality is further underpinned by the Bank's conditionalities including in ESAP.

Environmental and Social Summary

Categorised B under the 2014 ESP.  E&S impacts/risks to consider include potential land acquisition and restriction of access, labour issues, client Environmental and Social capacity, ecological impacts for instance power lines impacting birds, management of contractors, occupational health and safety risks, demobilisation of fee collectors and stakeholder engagement associated with the introduction of new payment methods (smart metering). Environmental and Social (E&S) due diligence will be undertaken by an independent consultant and will include a review of the proposed E&S organisation and practices of the to-be-established implementing entity and/or the existing PIU, and an assessment of impacts and benefits of the proposed investment.  The ESDD will build on the Khatlon ESDD findings and as appropriate develop an NTS and ESAP for this Project. 

Technical Cooperation and Grant Financing

  • Consultancy support for environmental due diligence of the Project to be financed by the SSF.
  • Gender assessment to be financed by the SSF.

Company Contact Information

Republic of Tajikistan

PSD last updated

27 May 2020

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 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 the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both 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. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. 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.

Project Complaint Mechanism (PCM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g., 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 accountability mechanism.

The accountability mechanism 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 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 our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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