DUSHANBE, November 3, Asia-Plus — The Government of Tajikistan and the Asian Development Bank (ADB) have signed a loan agreement on the Regional Road Corridor Improvement Project.
The agreement was singed at the 6th Ministerial Conference of the Central Asia Regional Economic Cooperation (CAREC) in Dushanbe on November 3.
A total cost of the project is $76.4 million. A $53.4 million contribution of ADB to the project includes $12.4 million provided in a form of grant. The contribution of the Tajik government to the project amounts to $22.8 million.
The project is aimed to facilitate the completion of improvement of key sections of the road from Dushanbe to the Tajik-Kyrgyz Border, in order to achieve better facilitation of trade and cooperation between adjoining countries in the north and the south, and strengthen economic linkages between the Tajikistan and other CAREC countries.
Improved road condition and better management of road maintenance, and upgrading of border control facilities and customs processes between Tajikistan and the Kyrgyz Republic through enhanced institutional and stakeholders’ capacity is central to the project design.
The project is dedicated to improve a part of the regional corridor from Nimich to Karamyk (Tajikistan’s component) and from Karamyk to Saritash (Kyrgyzstan’s component) as well as enhance border infrastructures for strengthening regional trade and cooperation.
The project will be implemented during five years (2008-2013).
The ADB loan carries a 32-year term, including a grace period of eight years, and an interest rate of 1% per annum during the grace period and 1.5% per annum after.
