Cross Regional Power Trade



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

22 Jul 2015



PSD disclosed:

06 May 2015

Translated version of this PSD: Russian

Project description and objectives

The Bank is considering providing financing for facilitation of the electricity cross-border trade of existing summertime hydropower surplus in Tajikistan and Kyrgyzstan (the “Project”). The Bank’s financing would go towards the reinforcement and construction of the high voltage transmission infrastructure in Tajikistan as part of the Project.  The Project is supported by an Inter-Governmental Agreement by the participating countries and is envisaged to be co-financed by a number of IFIs/bilateral donors, including the World Bank Group and the European Investment Bank.

The Bank’s involvement in the Project shall support the expansion of opportunities for cross-regional energy trade and help finance the modernization of Tajikistan’s domestic transmission infrastructure. The Bank also intends to support a potential carbon credits arrangement.

The Project scope is being finalised between the participating financiers and the Government of Tajikistan. In case of any material change in the scope of EBRD financed component, the Project Summary Document will be updated accordingly.

Transition impact

The Project is expected to have the following transition impact:

  • Promote cross-border competition through development of open third party access rules beyond the long-term power purchase agreements to allow any independent power producer (IPP) to participate in selling electricity through the cross-border transmission line.
  • Support on-going reform and restructuring of the power sector in Tajikistan, in particular promoting the establishment of an independent energy sector regulator. The Bank will provide assistance through comprehensive regulatory technical cooperation (TC) concentrating on the implementation of the action plan with particular emphasis on building policy and regulatory capacity and on assisting with drafting relevant regulatory legislation. The TC will be an extension of the regulatory assistance currently provided by the Bank, which focuses on strengthening technical capacity of the power sector officials and on preparing a regulatory action plan.
  • Promote standards of corporate governance and business conduct, in particular with regards to transparency and accountability of revenues generated by the electricity exports and to operating efficiency.
  • The expected transition impact rating is ‘excellent’.

The client

Open Stock Holding Power Company Barki Tojik (OSHC Barki Tojik), a 100% state owned vertically integrated power utility responsible for generation, transmission and distribution of electricity in Tajikistan.

EBRD finance

Up to USD 110 million sovereign-guaranteed loan to OSHC Barki Tojik

Total project cost

Up to USD 1,170 million.

Project cost related to Tajikistan: USD 301 million

Environmental impact

Categorised B (ESP2014). The Project component considered for financing by EBRD is associated with potential environmental and social (E&S) risks and impacts, which can be readily identified and mitigated. The project category and scope of the Environmental and Social Due Diligence (ESDD) was defined following an initial environmental and social examination undertaken by the ESD inclusive of a site visit.  The scope of the ESDD will include recommendations for the location of the Project's infrastructure aimed at minimizing environmental and social impacts. The ESDD will also assess the Company’s institutional capacity to implement the Project in compliance with EBRD’s E&S Performance Requirements (PR). Based on the ESDD an Environmental and Social Action Plan will be developed to enable the Project to be structured to comply with the Bank’s PRs.

The Bank will only finance components located in Tajikistan. A separate study is being undertaken of the Project by the World Bank. This includes a Regional Environmental Assessment and a Social Impact Assessment covering the whole Project.

The Project components not financed by EBRD include high voltage transmission lines which require an Environmental Social Impact Assessment in line with EBRD and World Bank requirements. These components will be subject to an ESIA in the future. The Project's ESAP will include requirements for the country specific ESIAs to cover future projects as well as the investment associated with the investment program and, to the extent appropriate, meet the objectives of EBRD performance requirements for A category projects in addition to the World Bank E&S policy requirements.

Technical cooperation

  • The following technical assistance is envisaged: Phase II of regulatory assistance to

    (a) develop amendments to the legal and regulatory framework to support the  unbundling of the electricity sector and the establishment of the independent energy regulator;

    b) introduce an independent energy regulator and develop transparent tariff methodology; and

    c) capacity building for the staff of the newly established energy regulator;
  • Technical and energy efficiency audit TC under the existing framework program for the sustainable development of the power sector.



Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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