DUSHANBE, February 3, Asia-Plus — On Wednesday February 1 Tajikistan’s Minister of Finance, Safarali Najmuddinov, inked the loan agreement for the Dushanbe – Kyrgyz-border Road Rehabilitation Project that was approved by Board of Directors of the Asian Development Bank (ADB) in November 2005.
According to information from the ADB Resident Mission in Tajikistan, the project’s total estimated budget is US$39.5 million, comprising ADB’s loan of US$29.5 million, and US$9.5 million equivalent of the Tajik government financing. ADB’s loan comes from its consessional Asian Development Fund. The loan carries a 32-year term, including a grace period of eight years. Interest will be 1% per annum during the grace period and 1.5% per annum for the rest of the term.
The loan is accompanied by a US$500,000 grant for an integrated, community-based program to address the increased vulnerability of communities to HIV/AIDS and other infectious disease that may arise during construction and after project completion.
The project, the second phase of the Dushanbe-Kyrgyz border road rehabilitation project, will improve about 89 kilometers of the central and border sections of the project road, along with 60 km of rural roads.
Investment into this road project will reduce Tajikistan’s isolation from the neighboring markets, and promote development of export industries in the country, thereby contributing to poverty reduction and sustainable growth. This investment also showcases ADB’s commitment to regional cooperation in Central Asia, according to the source.
The road is part of a network in Central Asia that directly links Kazakhstan, Kyrgyzstan, China, Tajikistan, Afghanistan, and Uzbekistan. It is also part of a larger network providing links to the ocean ports of Iran and Pakistan to the south, and to the Russian Federation into the north. The road also serves as the only substantial link between Dushanbe and the Rasht Valley.
