EBRD invests in new clean water projects in central Tajikistan

DUSHANBE, November 15, 2011, Asia-Plus — The European Bank for Reconstruction and Development (EBRD) is continuing to support the cities of Tajikistan in their efforts to supply clean, safe water to their citizens.

According to the EBRD Office in Dushanbe, after the successful refurbishment of the water supply system in the north and south of the country, the bank has announced its participation in the Central Tajik Water Project, lending up to US$ 7 million for new clean water projects in four more cities at the request of the central government.

Tajikistan is a country rich in water resources.  Yet the quality of the water supplied to citizens is often dangerously low with intermittent supply, especially in the summer, leading to outbreaks of water-borne disease, and many citizens refusing to pay their water bills.  Clean water is one of the EBRD”s priorities in the country, according to the new country strategy.

The new EBRD loan with a sovereign guarantee to the State Unitary Enterprise “Khojagii Manziliyu Kommunali” (the state holding company for public utilities) will be used for on-lending to water companies in Hisor, Shahrinav, Somoniyon and Tursunzoda.

The project cost will be supplemented by grants.  The EBRD Shareholder Special Fund has approved a grant of US$ 2.6 million for the project.  The EU Investment Facility for Central Asia is considering a grant of €6 million (US$ 8.1 million) for the same project.

Significant technical cooperation, funded by the EBRD and international donors, will help the water companies improve their performance.

“We want to bring innovation to Tajikistan in terms of financing, including financing municipalities together with other big international financial institutions and donors,” says Lin O’Grady, EBRD’s Deputy Director for Municipal and Environmental Infrastructure.  “Improved quality and supply of water will stimulate the payment of water bills, helping the water companies to become self-reliant.”

“EBRD is the strongest cooperation partner for the State Unitary Enterprise, Khojagii Manziliyu Kommunali, in the implementation of water supply improvement projects in the cities and districts of Tajikistan,” says Alimurod Taghoymurodov, General Director of Khojagii Manziliyu Kommunali. “We hope that the Central Tajikistan Water Rehabilitation Project which was signed today will be implemented successfully and in due course positive results will be achieved. We also hope that the EBRD will continue its close cooperation with Khojagii Manziliyu Kommunali in similar projects in order to improve water supply and wastewater systems in other cities and districts of Tajikistan.”

The existing EBRD-financed projects in the municipal infrastructure in Tajikistan concentrate on improving water supply and wastewater services, as well as improving solid waste management and public transport services.

Tajikistan became a shareholder of the EBRD in 1992. To date the Bank has invested over US$ 280 million in about 60 projects in the country.

The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia.