DUSHANBE, April 22, Asia-Plus — Issue of setting up a lab for testing cotton fiber quality was a focus of a meeting of Agriculture Minister Qosim Qosimov with Ms. Adriano Lourdes, Senior Rural Development Economist, the Asian Development Bank (ADB), that was held in Dushanbe on April 21, Asia-Plus has learned at the Ministry of Agriculture (MoA).
The source at a MoA said that in the course of the talks, the two had discussed issues related to setting up a number of such labs in some cotton-growing regions of Tajikistan.
Ms. Lourdes heading the ADB mission arrived in Dushanbe at the end of last week. The aim of the visit is for the mission to get acquainted with a progress of implementation the project aimed at helping revitalize Tajikistan’s cotton industry.
The project has worked in Tajikistan since December 2006.
ADB provided a loan and grant package totaling $12 million to help restore the productivity and profitability of Tajikistan”s cotton industry.
The project is aimed at resolving cotton farm debt on a pilot scale in four selected districts in the two main cotton-producing regions – Sughd and Khatlon. It also makes make policy recommendations and farm debt resolution options to the Government, and supports education and awareness measures to provide suitable financing products and services to the restructured pilot cotton farms, the Government will relend $3 million of ADB’s loan to participating commercial banks. The project also helps develop the cotton market by promoting the adoption of internationally recognized quality standards for fiber cotton.
ADB’s support comprises a $5.5 million loan and a $6.5 million grant from its concessional Asian Development Fund. The loan carries a 32-year term, including a grace period of 8 years, and an interest rate of 1% per annum during the grace period and 1.5% per annum after. The Government and private sector will shoulder the balance of $3.29 million, to meet the project’s total estimated cost of $15.29 million. The Executive Office of the President is the executing agency for the project, which is due for completion in 2010.
