Sugd - Energy Loss Reduction project



Project number:


Notice type:


Environmental category:


Approval date:

01 Jun 2011



PSD disclosed:

31 Mar 2011

Translated version of this PSD: Russian

Project Description

In June, 2011 the EBRD provided financing for the supply and installation of new electricity meters, meter reading system and automated billing system in the Sugd region of Tajikistan.  The Project objectives are to reduce distribution network losses, improve quality of supply and increase energy efficiency.  As part of the Project implementation, significant power loads in the distribution network were pointed out resulting in poor quality of power supply and associated losses; construction of new 110/10kV substations was considered.  The EBRD is considering an up to USD 4 million increase in the existing loan amount to finance construction of a new 110/10kv substation and related infrastructure.  

Transition Impact

The original Project which was signed in 2011 involves financing the installation of electronic metering and automated billing.  The Project will increase revenue collections and introduce commercial business practices of the Client, whereby addressing energy efficiency and increasing the reliability of power supply.  A pilot billing and collection unit was established in Khujand Electricity Networks in 2015 and billing went live with c. 26,000 meters installed as of 30 April 2016.  As part of the Project requirement, an Environmental and Social Action Plan (ESAP) has been developed and will be implemented, which will improve the environmental management and performance of the Client.  The Project also supports a plan developed to strengthen the regulatory framework as well as improvements in corporate governance and business conduct of the Client through the introduction of IFRS reporting, ESAP.  The proposed operation extension will complement the Transition Impact of the Project by supporting further loss reduction in electricity distribution. 

The Client

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

EBRD Finance

Up to USD 14.15 million long-term sovereign guaranteed loan to Barki Tojik.  The Project is co-financed with a parallel EUR 7.0 million loan from the European Investment Bank (EIB) and a EUR 7.0 million grant from the European Union’s Investment Fund for Central Asia (IFCA).

Project Cost

€26.6 million.

Environmental Impact

Categorised B under the 2008 Environmental and Social Policy due to the fact that this is an extension of existing loan.  An increase in the loan amount will be used to finance the construction of a new substation and potential impacts can be readily identified and mitigated.  The independent environmental and social due diligence was conducted in March-April 2016 and is currently being finalised.  The ESDD included the site visit, review of the current environmental, health and safety and social practices employed by the Client and an assessment of impacts and benefits of the proposed investment.  The ESDD also included the status of the previously agreed ESAP.  The findings to date indicate that Project activities are generally supported by the local communities as tangible benefits include better electricity supply and meter readings system. Project-related information is communicated to stakeholders on a regular basis.  However, the implementation of ESAP has not progressed as was envisaged by original implementation deadlines due to limited resources.  It is intended to use PIU consultants to support the Company in implementing the ESAP.  Key issues include a need to improve general housekeeping, better enhancement of the permit-to-work system and also hazardous waste storage and handling.  The future project will entail temporary impacts related to the restrictions of access, increased noise and dust emissions and removal of trees present at the construction site.  The Client will also need to develop and implement formal environmental and social policy and procedures and increase E&S management capacity and resources.  The revised ESAP, incorporating mitigation measures for identified impacts, will need to be finalised and agreed prior to signing.

Technical Cooperation

  • Consultancy support for technical and environmental due diligence of the Project financed by a Swiss donor and the SSF.
  • Consultancy assistance for the regulatory support handled by the Bank’s OGC Legal Transition Team.
  • Project Implementation Support to assist the project implementation unit with procurement of goods, works and services for the Project and to provide organizational and technical assistance financed by the Technical Cooperation funds.

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

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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