DUSHANBE, January 31, Asia-Plus — The Asian Development Bank (ADB) will provide a $171.1 million assistance package to help raise household incomes in rural areas of Tajikistan.
According to the ADB Dushanbe Office, the funds are provided to increase productivity, introduce better land management, and develop the rural infrastructure in the country.
Press release issued by ADB says agriculture provides the major source of livelihood for more than 64% of Tajikistan”s population and contributes about one quarter to gross domestic product. But despite this importance, the sector is still falling short of its potential to contribute to growth, poverty reduction, rural development, and exports.
Among the key constraints are sub-optimal farming decisions, an unpredictable business environment, extensive land degradation caused by salinity, waterlogging or soil erosion, scarcity of support services, poor infrastructure, and weak institutions. In addition, women face special problems that affect their equal access to resources, services, and opportunities.
Focusing on five districts – Fayzobod, Roghun, Rudaki, Vahdat, and Varzob – located around Dushanbe, the project will tackle all these issues, introducing reforms on land use security, agro-processing, and marketing, and enterprise development.
It will undertake a nationwide pasture land assessment; prepare a road map of policy, strategy, legislation, and investment; provide essential agriculture and business support services, rehabilitate small scale but essential community infrastructure such as access roads and bridges, irrigation and drainage systems, and water supplies; and address land degradation.
The total cost of the project is estimated at $23.2 million, of which ADB will finance from its Asian Development Fund a loan of $8.8 million and a grant of $8.3 million. The loan carries a 32-year term, including a grace period of eight years. Annual interest is 1% during the grace period and 1.5% for the rest of the term.
The grant-funded segment will develop awareness of land management and business opportunities, a modern curriculum for pasture land management, train staff, and help districts to plan and maintain infrastructure.
The project is expected to be supported with a grant of $3.5 million from the Global Environment Facility. The Government will finance $1.65 million equivalent and beneficiaries will contribute $1 million.
The Ministry of Agriculture and Environmental Protection (MoAEP) is the executing agency for the project, which is due for completion around the end of March 2014.
