DUSHANBE, June 11, 2009, Asia-Plus — In the framework of bilateral assistance to Tajikistan, a Financing Agreement valued at € 2 million in support of Government”s effort to reform the management of its Public Finance has been signed between the European Commission and the Government of Tajikistan represented by the Finance Minister Safarali Najmiddinov, press release issued by the Delegation of the European Commission in Tajikistan on June 10 said.
This allocation represents the European Commission”s contribution to a World Bank Multi-donor Trust Fund co-financed by the UK Department of Foreign International Development (DFID). The Tajik Government”s contribution in the project financing amounts to US$ 1.3 million and is complemented by a grant from the Government of Japan of US$ 0.97 million.
The grant is provided to finance the Public Finance Management Modernization Project (PFM-MP) whose overall objective is to improve the effectiveness and transparency of public financial management in Tajikistan.
The PFM-MP comes in support to the Public Finance Management Reform Strategy approved by President Rahmon on 20 March 2009. The development objective of the Strategy is modernize the PFM system in Tajikistan within the period from 2009 to 2018 with regard to three clear priorities: improving the aggregate fiscal discipline by maintaining sustainable government finance, improving the allocative efficiency by better allocating resources with relevant policy priorities and enhancing the operational efficiency through improving the delivery of public services at lower costs.
The new EU Strategy for Central Asia aims to strengthen ties between the European Union and its Central Asian partners. It has doubled European Commission assistance to the region to €750 million for 2007-2013. Tajikistan gets the main share of bilateral assistance (€66 million for 2007-2010) in support to sector programs, technical assistance and grants. It focuses on social protection, health and private sector development, underpinned by public finance management. Projects aimed at enhancing living standards continue. Tajikistan also receives regional and thematic assistance in areas like border management and drug control (BOMCA/CADAP), education (TEMPUS, Erasmus Mundus), water / environment, migration, human rights and democracy (EIDHR), non-State actors (NSA) and SME development (CA-Invest). The total value of EC assistance disbursed to Tajikistan since 1992 is over €500 million.
