Why the Land Reclamation and Irrigation Agency can’t escape debt: over TJS226 mln owed to Barqi Tojik

Asia-Plus

Tajikistan’s Agency for Land Reclamation and Irrigation  (Agency) continues to struggle with significant debts, currently owing over 226 million somonis (TJS) to Barqi Tojik, the country’s energy provider.  The Agency’s debt has been growing due to poor payment discipline among water users and rising electricity tariffs, the Agency head Zafarbek Davlatzoda told reporters in Dushanbe on July 28.

Despite the rising debt, which now stands at 353.1 million somonis, the Agency has maintained its commitment to providing irrigation services to farmers.  Over the first six months of this year, the Agency has reportedly signed over 60,000 water supply contracts with farmers and other water users.

The irrigation covered nearly 515,000 hectares of farmland, with about 1.9 billion cubic meters of water supplied—83.7 million more than in the same period last year.

However, despite providing services worth 92.5 million somonis, only 27.9 million somonis (about 30%) has been paid.  This ongoing payment shortfall, according to Davlatzoda, directly affects the Agency’s ability to meet its financial obligations to energy suppliers like Barqi Tojik.

The Agency relies heavily on power-hungry pump stations and artesian wells to deliver water. In the first half of 2025 alone, these systems consumed 451.7 million kWh of electricity, costing 58.1 million somonis, but only 15 million somonis (about 25%) has been paid.

The rising cost of electricity remains one of the main reasons for the growing debt.  Irrigation in Tajikistan is highly energy-intensive, requiring 0.270 kWh to lift just one cubic meter of water.

To address these financial challenges, the Agency is implementing an “Investment Program to Equip Pump Stations with Modern Energy-Efficient Equipment for 2023-2027.” In 2025, the Agency plans to replace outdated equipment and repair stations at a total cost of 301.6 million somonis.  So far, 33.5 million somonis has been allocated from the state budget and international partners.

The planned modernization of equipment is expected to reduce energy consumption, lower water supply costs, and help improve the Agency’s payment capacity, stabilize financial flows, and reduce its debt to Barqi Tojik.

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