The EU Delegation to Tajikistan says the EU-EBRD joint project aims to improve the performance and governance of the Tajik power sector. The initiative is part of a coordinated approach among all IFIs to ensure consistency and to increase the international community’s leverage on the Tajik authorities in the framework of the cycle of reforms linked to the Roghun HPP project, as an opportunity to push for transformational improvements in the energy sector, i.e. making it more transparent and financially sound, and increased the share of renewables.
The EU and EBRD are working together on the final steps for supporting a project co-financed by a EUR 20 million EU grant from the European Union’s Asia Pacific Investment Facility, to support improvements in electricity distribution efficiency in Tajikistan. In November 2024, the APIF Board approved a contribution of EUR 20,000,000 (including fees).
The project will (i) boost investments in renewable energy projects across Tajikistan by setting up an investment facility for preparatory studies for renewable energy projects and (ii) increasing energy efficiency by rolling out key solutions (e.g. digitalizing billing and metering systems) for significantly reducing grid losses.
The project is in line with Global Gateway & Team Europe and builds on previous and ongoing EU-financed interventions supporting the ongoing energy sector reform. It will contribute to diversifying, greening and rendering Tajikistan’s energy sector more sustainable.
By addressing the significant technical and financial losses of the electricity system (5TWh annually – or more than 20% of the generated electricity), the project will contribute to reducing the shortage of electricity and enhance the financial viability of the energy sector as a whole, and key projects such as the Roghun hydropower plant in particular. The project contributes to Tajikistan’s 2030 National Development Strategy (NDS), in particular the objectives to reduce electricity losses to 10%, increase the installed capacity of the power system to 10 GW; and achieve 10% of renewable energy sources (other than hydropower) in the country’s energy mix.
Besides, the European Union and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have reaffirmed their commitment to sustainable economic and human development in Tajikistan by signing a Declaration of Intent, which aims to enhance the green transition in Tajikistan’s cotton value chain. The declaration was signed by Mr. Peteris Ustubs, Director for Asia and the Pacific Directorate-General for International Partnerships, on behalf of the European Commission, and Ms. Sabine Olthof, Country Director of GIZ Tajikistan.
Under this agreement, the European Union and GIZ have reached an understanding on additional financial contributions, including EUR 16.6 million from the European Union and EUR 1.5 million from the Federal Republic of Germany. These funds will support the green transition through the cotton value chain in Tajikistan.
The signing of this declaration highlights the strong and long-standing cooperation between the European Union and GIZ. Both parties recognize the urgent need for sustainable cotton production and processing in response to global challenges such as climate change, rising temperatures, and prolonged droughts. The initiative will promote industrialization while ensuring environmental sustainability.
