DUSHANBE, August 20, Asia-Plus — The Asian Development Bank (ADB) will provide 252 million U.S. dollars to Tajikistan for 2010-2012, outgoing ADB Country Director, Mr. Makoto Ojiro, announced at a news conference in Dushanbe on August 20.
According to him, the funds will go to supporting enhancement of the country’s energy system, international transportation communication, and improvement of work of the private sector in the country.
We will recall that funding will include two energy projects totaling $142 million, two reform projects of $59 million, and one transport project of $51 million. Technical assistance of around $5.1 million is planned for the same period. Financing is currently confined to grants, but an improvement in debt sustainability would allow the country to access loans, according to ADB.
Mr. Ojiro noted that during his tenure the Bank had endorsed 240 million U.S. dollars in grants for Tajikistan. He added that the overall amount of assistance provided by ADB to Tajikistan is expected to reach some 720 million U.S. dollars by the end of 2010.
The ADB country director also reminded that Tajikistan and the Asian Development Bank on a new five-year Country Partnership Strategy in May this year.
The Country Partnership Strategy for 2010 to 2014 is dedicated to advance Tajikistan’s drive to strengthen energy supplies and transport links, and to develop a vibrant private sector to help the economy diversify. The new partnership strategy will aid the government’s drive to expand energy supplies, particularly to underserved rural areas. Currently the country suffers from electricity shortages in winter and surpluses in the summer, with just 10% of its considerable hydropower resources in use. ADB, as the largest multilateral development partner in the sector, will focus on rehabilitating existing infrastructure, as well as developing clean, sustainable energy which supports both internal and regional connectivity. The strategy will also target further road improvements. In the private sector, ADB will support public management reforms and measures to improve the business and investment climate for private businesses, including the use of public private investment partnerships.
