DUSHANBE, May 13, 2009, Asia-Plus — Tajikistan has raised water rates by 30 to 50 percent, depending on category of consumers, Asia-Plus has learned from Rahmat Bobokalonov, the director general of the state unitary enterprise, Khojagii Manziliyu Kommunali (KMK — housing and communal services).
According to him, the new rates took effect on January 1, 2009. “The new water rates were introduced upon recommendations of the European Bank for Reconstruction and Development,” Bobokalonov said.
Current water prices are 18 dirams per one cubic meter for residential consumers and 56 dirams for commercial enterprises, the KMK head said, noting that the water rates would continue to rise in the country. He added that the water rates in Tajikistan were the lowest not only in the Central region but also within the CIS area as a whole.
“Over the past 20-25 years, there has been no proper financing for the ageing water-supply infrastructure,” said Bobokalonov, “Financing has improved over the past two years. Two years running, the government has provided 6 million somoni for upgrading the water-supply infrastructure. Last year, 16 million somoni were spent for development of the infrastructure due to foreign investments and more than 13 million somoni are expected to be used this year.”
In the meantime, the EBRD is intensifying municipal operations in Tajikistan. According to press release issued by the Bank on May 7, the EBRD is providing a $2 million loan to the KMK for improvement of the water supply in southern Tajikistan.
The loan will be used to finance priority investments in the cities of Kulob and Qurghon Teppa as well as Danghara district. The project is supported by a $4.2 million capital grant provided by the EBRD Shareholders’ Special Fund and has also received significant technical co-operation funds for preparation and implementation.
The project builds on the Bank’s previous experiences in the Tajik water sector. After the successful implementation of a program of improvements in Khujand the EBRD was approached by the government of Tajikistan to expand its municipal water infrastructure program to smaller cities in more remote areas.
The new project in the south of the country is a first step in this direction. The EBRD loan and the donor’s contribution will not only finance infrastructure investments. At a later stage the gradual introduction of a new tariff policy will help the local water companies cover operating costs and generate income, while protecting low income households. Cost reductions, efficiency measures and transparency will in a further step lead to performance improvements of the water companies.
