DUSHANBE, January 16, Asia-Plus — The World Bank has made a statement to clarify news reports by some media in relation to the energy shortages in the current extreme weather conditions in Tajikistan.
Press release issued by the World Bank Dushanbe Office says that as a part of the World Bank’s work with Tajikistan, the World Bank has been working closely with the Tajik authorities to help the country put its energy system on a sustainable and more effective footing. This includes encouraging the Tajikistan authorities to put in place the financing arrangements to ensure that energy services are improved, together with a social protection scheme that supports the poorest and neediest families in meeting their electricity bills. The World Bank has not advocated that the Tajik authorities raise electricity prices to repay debt owed to the institution.
World Bank recognizes that the energy sector is a very important sector for the economy of Tajikistan. Tajikistan is experiencing power shortages every winter due to increased demand from population for heating purposes, lack of generation and absence of power surplus in neighboring countries. Since independence, no significant investments were made in the energy sector leading to deterioration of the energy infrastructure.
Under its efforts to reform the energy sector, the Government of Tajikistan is taking two-track approach on energy sector development. The
first track
focuses on reforming the domestic energy sector, including the pricing policy, financial discipline, social protection and institutional reforms. The
second track
of the energy sector development strategy is oriented towards the export markets.
The Tajik government has committed to increasing electricity prices as part of its overall energy sector reform program to bring them to the cost recovery level. The average electricity tariff in Tajikistan is still one of the lowest electricity tariffs in the world.
To support the Government’s reform efforts, the World Bank approved the Energy Loss Reduction Project in June 2005. The project helps reduce commercial losses in Tajikistan’s electricity and gas systems and undertakes to lay the foundation for improvements in the financial viability of the electricity and gas utilities, in a manner that will take into account the interests of all of the country’s population groups.
Part of the Bank’s support goes to installing modern “smart” meters to reduce unaccounted-for electricity consumption. The World Bank has also supported the Tajik authorities in putting in place a social protection scheme or “lifeline tariff” that makes it affordable for the poorest in Tajikistan to pay their electricity bills.
