DUSHANBE, July 28, Asia-Plus — Further expansion of bilateral cooperation between Tajikistan and the Islamic Development Bank (IDB) was the focus of a meeting of President Emomali Rahmon with visiting IDB Vice-President Birama Boubacar Sidibe that was held in Dushanbe on July 27, according to presidential press service.
In the course of the talks, Mr. Sidibe said that Tajikistan was an active and initiative member of the IDB and noted that he had arrived in Tajikistan to promote strengthening of relationships and support to mitigation of negative impact of the global financial crisis on Tajikistan’s economy.
During the meeting, it was noted that the IDB has sponsored implementation of 19 loan agreements and 11 grant projects in Tajikistan since 1997 when Tajikistan joined the IDB. At present 8 investment projects for a total amount of US$91.5 million are being implemented in the country with support of the IDB.
Under the Three-Year Program of Cooperation between the IDB Tajikistan, 7 loan agreements for a total amount of US$80 million and 5 grant projects for a total amount of US$1.3 million will be implemented in Tajikistan in 2009-2011.
During his stay in Tajikistan, Mr. Sidibe will sign two loan agreements with relevant organizations of Tajikistan. The loan agreement for US$20 million is aimed at rehabilitation and construction of the Kulob-Qalai Khumb road and the loan agreement for US$10 million will support a microfinance project in the rural areas of Tajikistan.
We will recall that the IDB approved a loan of 10 million US dollars and a technical assistance grant of 330,000 for a microfinance project in the rural areas of Tajikistan on July 7, 2009. The project aims to complement the Tajikistani government’s efforts in achieving economic growth and lessening poverty by increasing the access of rural populations to reasonable and reliable microfinance services, as well as encouraging Sharia’h-compliant microfinance products in the region. This project will enable the socio-economic uplifting of the rural poor, the establishment and expansion of strong Sharia’h-compliant microfinance and increased micro-entrepreneurs, which will in turn generate more job opportunities. In line with IDB objectives, it is also expected to contribute to the empowerment of women as it will be targeting women micro-entrepreneurs in rural areas, and women will constitute at least 50% of the microfinance beneficiaries. The total project cost is estimated at about US$ 20.08 million. The project will deepen the outreach of microfinance services for the marginalized, and have multiplying positive effects for Tajikistan.
According to presidential press service, a working group of the IDB will arrive in Dushanbe in the near future in order to concretize ways of further expansion of cooperation and define volumes of investments Tajikistan needs.
In the course of the talks, the sides also discussed the establishment of the bank in Tajikistan that would operate on the basis of the Islamic banking system, the press service said.
The two also considered issues related to cooperation between Tajikistan and the IDB in sectors like education, health care, energy, agriculture, transportation as well as implementation of large projects that have region-wide significance.
