45229-001: Access to Green Finance Project | Asian Development Bank

Tajikistan: Access to Green Finance Project

Sovereign (Public) Project | 45229-001 Status: Active

ADB is helping Tajikistan promote energy efficiency among household users. The project will support microfinance lenders in providing credit particularly to women for household energy efficiency improvements, such as switching to energy-efficient stoves and solar water heaters. This will help the country tackle energy challenges that include lengthy power outages in some areas in winter.

Project Details

Project Officer
Boboev, Muhammadi Central and West Asia Department Request for information
Country
  • Tajikistan
Modality
  • Grant
  • Technical Assistance
Sector
  • Finance
 
Project Name Access to Green Finance Project
Project Number 45229-001
Country Tajikistan
Project Status Active
Project Type / Modality of Assistance Grant
Technical Assistance
Source of Funding / Amount
Grant 0346-TAJ: Access to Green Finance
concessional ordinary capital resources lending / Asian Development Fund US$ 10.00 million
TA 8394-TAJ: Access to Green Finance
Japan Fund for Poverty Reduction US$ 750,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Sector / Subsector

Finance / Inclusive finance

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The project will leverage Tajikistan's sound microfinance system to provide credit for households and microenterprises for energy efficient and environment-friendly homes.

The grant will comprise project implementation support of $1.2 million and $8.8 million for 5-year, local currency denominated credit lines to selected microfinance institutions (MFIs). The interest rate on the credit lines will be the NBT refinancing rate, reset annually.

An additional technical assistance (TA) grant of $750,000, provided by the Japan Fund for Poverty Reduction (JFPR), will build the capacity of MFIs and the project management unit (PMU) to facilitate efficient green finance intermediation and promote energy efficiency in the country, particularly for rural households and women.

Project Rationale and Linkage to Country/Regional Strategy The project will address the two key barriers limiting effective demand: lack of affordable financing, and insufficient buyer and lender awareness about SGES. The project will provide loans through selected MFIs to households and micro entrepreneurs to purchase and install affordable SGES. Innovative promotion and delivery mechanisms will be used to help make SGES widely acceptable and affordable to low-income households. The project will improve understanding about SGES by increasing public awareness and by providing TA to MFIs. The MFI support will include capacity building and technical advice to MFIs and their clients from SGES experts and engineers who will complete needs assessments, discuss options with clients, and advise on structuring of SGES loans.
Impact Increased energy efficiency Tajik households
Project Outcome
Description of Outcome Increased access to finance for SGES in Tajikistan
Progress Toward Outcome During the market campaign about 21 focus group discussion were conducted for households, including women and local Government representatives . These events were conducted jointly with credit officers of PFIs and representative of Local Company "Hamsol" (official distributor of solar panel).
Implementation Progress
Description of Project Outputs

1. Increased outreach by MFIs for green finance, particularly to women borrowers.

2. Increased public awareness of energy efficiency

3. Increased usage of SGES most hellpful to women, such as energy-efficient cooking stoves, heating units, and solar water heaters.

4. Increased private sector participation

Status of Implementation Progress (Outputs, Activities, and Issues)

Total 6,843 loans have been provided at the amount of $8.8mln.

The 41% of loans at the amount of $3,278,585 have been provided to women sub-borrowers.

In 2016 PMO conducted public awareness campaign. Next public awareness campaign is planned in the 4Q 2017. ongoing

ongoing

ongoing

ongoing

ongoing

Geographical Location Nation-wide
Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects MOF will lend $8.8 million to microfinance institutions (MFIs) for energy efficient and environmentally friendly solutions. The MFIs will provide credits (up to $5000) to households and microenterprises for solar home solutions, energy efficient cookstoves and heat exchanger units, home insulation solutions. The project is categorized as FI treated as C.
Involuntary Resettlement The project will leverage Tajikistan's high global horizontal irradiance and sound microfinance system to channel credit delivery to 5,000-7,000 households and microenterprises to meet their demand for energy efficient and environmentally friendly energy solutions (including solar energy solutions) through FIs. Only those subprojects classified as category C for IR under ADB's financial intermediaries' classification will be financed under this project's subloans. Subprojects classified as A or B under ADB's IR classification or those requiring IR clearances under Tajikistan's laws will not be financed under the Project. With the additional energy solution products to be offered by the FIs, the project classification as FI treated as C remains and has no impacts on IR.
Indigenous Peoples The project will leverage Tajikistan's high global horizontal irradiance and sound microfinance system to channel credit delivery to 5,000-7,000 households and microenterprises to meet their demand for energy efficient and environmentally friendly energy solutions (including solar energy solutions) through FIs. Only those subprojects classified as category C for IP under ADB's financial intermediaries' classification will be financed under this project's subloans. Subprojects classified as A or B under ADB's IP classification or those requiring IP clearances under Tajikistan's laws will not be financed under the Project. With the additional energy solution products to be offered by the FIs, the project classification as FI treated as C remains and has no impacts on IP.
Stakeholder Communication, Participation, and Consultation
During Project Design ADB consulted and shared information about the project with banks and microfinance institutions (MFIs), the Association of Microfinance Organizations of Tajikistan (AMFOT), private suppliers of SGES, local governments, the Ministry of Finance (MOF), the Ministry of Energy and Industry (MOEI), the National Bank of Tajikistan (NBT), development partners, and non-government organizations that are active in the areas of microfinance, energy efficiency, and renewable energy (collectively, NGOs). A survey of 560 households was also conducted.
During Project Implementation

Capacity Building: Training was delivered in the form of active practice within the PMU. The development of the quarterly report and the analysis of the Point of Service Survey (PSS) provided a good opportunity to coach the relevant PMU staff in statistical analysis and data interpretation. This activity will be continued throughout 2017.

A pilot focus group discussion was conducted by the PMU, together with Geres (a French NGO with experience in public awareness campaigns on energy efficiency in Tajikistan) and Homsol (a solar home system and solar water heater supplier) in a government school in Vakhdat district in RRS province (about 30 minutes away from Dushanbe) on Monday, 4th July 2016. The focus group discussion was attended by a group of 16 teachers from the school of which 11 were female teachers. The PMU staff and representatives from Geres and Homsol explained the functions and benefits of SGES products such as solar home systems, solar water heaters, LED lights, wall/roof insulation, energy efficient room heaters and other appliances. Total 11 focus group discussion have been conducted. Porcess is ongoing.

Business Opportunities
Consulting Services All PMU staff have been engaged per Procurement Plan. Three international experts have been engaged (i) Smart Green Energy Solution (SGES) Product and Market Development Specialist, (ii) Microfinance Specialist/Team Leader, SGES Technology Specialist, and (iii) Results-based Monitoring and Evaluation Specialist. The engagement of the Smart Green Energy Solution (SGES) Technology Specialist is being processed and is expected to be recruited in mid April 2015.
Procurement The PMU has acquired 2 vehicles, several office equipment and office furniture during the first 18 months of the project's implementation period using the Shopping procurement method.
Responsible ADB Officer Boboev, Muhammadi
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Tajikistan Resident Mission
Executing Agencies
Ministry of Finance
[email protected]
3, Academic Rajabovs
Dushanbe
Tajikistan
Timetable
Concept Clearance 20 Mar 2013
Fact Finding 18 Feb 2013 to 28 Feb 2013
MRM 12 Apr 2013
Approval 25 Jun 2013
Last Review Mission -
Last PDS Update 29 Sep 2017

Grant 0346-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Jun 2013 19 Aug 2013 03 Oct 2013 30 Jun 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.12 Cumulative Contract Awards
ADB 10.00 25 Jun 2013 9.03 0.00 90%
Counterpart 1.12 Cumulative Disbursements
Cofinancing 0.00 25 Jun 2013 16.72 0.00 167%

TA 8394-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Jun 2013 19 Aug 2013 19 Aug 2013 31 Jul 2018 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 750,000.00 0.00 0.00 0.00 0.00 750,000.00 25 Jun 2013 218,744.06

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Access to Green Finance Project: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jun 2017
Access to Green Finance Project: Arvand Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jun 2017
Access to Green Finance Project (SF): IMON Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements May 2017
Access to Green Finance Project: IMON Audited Project Financial Statements (1 December 2014-31 December 2015) Audited Project Financial Statements Mar 2017
Access to Green Finance Project: Arvand Audited Project Financial Statements (1 December 2014-31 December 2015) Audited Project Financial Statements Mar 2017
Access to Green Finance Project: Audited Project Financial Statements (For the Periods ended 31 December 2014 and 31 December 2015) Audited Project Financial Statements Nov 2016
Проект «Доступ к зеленым финансам» : Справочный лист проекта Translated PDS Jul 2014
Лоиҳаи Дастрасӣ ба маблағгузории энергияи сабз : Маълумот дар бораи лоиҳа Translated PDS Jul 2014
Project Agreement for Access to Green Finance Project (PA1) Project/Program Agreements Dec 2013
Project Agreement for Access to Green Finance Project (PA2) Project/Program Agreements Dec 2013
Grant Agreement (Special Operations) for the Access to Green Finance Project Grant Agreement Aug 2013
Access to Green Finance Project Initial Poverty and Social Analysis Jun 2013
Access to Green Finance Project: Procurement Plan Procurement Plans Jun 2013
Access to Green Finance Project Project/Program Administration Manual Jun 2013
Access to Green Finance Project Reports and Recommendations of the President Jun 2013
Access to Green Finance Project Gender Action Plans Jun 2013

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Access to Green Finance Project: Procurement Plan Procurement Plans Jun 2013