DUSHANBE, December 14, 2012, Asia-Plus — The European Bank for Reconstruction and Development (EBRD) will provide additional loans and grants in a total amount of 27.4 million U.S. dollars for projects aimed at improving the municipal water services in Sughd and Khatlon provinces.
Appropriate loan agreements as well as an agreement on the government guarantees for the “Khatlon Water Rehabilitation” and “North Tajik Water Rehabilitation” projects were singed between the State Unitary Enterprise Khojagii Manziliyu-Kommunali (KMK, country’s state-owned agency responsible for basic municipal services) and the EBRD in Dushanbe on December 14.
Tajik Minister of Finance, Safarali Najmiddinov, said a total cost of the projects is 27.5 million U.S. dollars, including, 12 million U.S. dollars provided by the EBRD in loans and 15.5 million U.S. dollars that will be financed by the Swiss Secretariat for Economic Affairs (SECO) and the Investment Facility for Central Asia (IFCA).
“The loan is repayable in 15 years with a three-year grace period and an interest rate of 1.5 percent,” said the minister. “Due to these projects that will be finished by 2016, more than one million people in Tajikistan will get access to safe drinking water.”
Provided funds will allow rehabilitating water supply systems in 21 cities of Tajikistan, said Mr. Ulf Hindstrom, Head of the EBRD Dushanbe Resident Office.
According to Najmiddinov, the sides agreed that in the future, the Bank will provide loans to economic entities without government guarantees. “It is a new stage in our relations that that is evidence of mutual confidence,” the minister stressed.
