Tajikistan: Access to Green Finance Project

Sovereign Project | 45229-001 Status: Active

Summary

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.

Latest Project Documents

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Procurement Documents


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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
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
Sector / Subsector

Finance - Inclusive finance

Gender Equity and Mainstreaming Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome Ongoing
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

All undertakings and covenants are being complied with.

All undertakings and covenants are being complied with.

All undertakings and covenants are being complied with.

All undertakings and covenants are being complied with.

Geographical Location National

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

The Symposium on Access to Green Energy was held in Dushanbe, Tajikistan from 1 to 3 October 2015. The Symposium brought together more than 250 participants from the government, private sector, microfinance institutions (MFIs), NGO, and general public to inspire, raise awareness, and offer guidance to participants on discussing alternative, innovative, and sustainable green energy opportunities as well as acknowledging the role of microfinance institutions as key drivers of financial market in Tajikistan.

The highlights of the Symposium which set the stage to a closing panel challenging the thinking on the following: (i) conducting more pro-active public awareness campaign by government to promote more advanced SGES market; (ii) developing a list of accredited producers or suppliers of SGES products such as solar home systems, solar water heaters and other energy efficient appliances; (iii) strengthening capacity of MFIs to better target subborrowers; and (iv) expand outreach of smart green energy solutions financing and products to all four regions of the country.

The full amount of $8.6 million have been disbursed to the two participating MFIs, Arvand and Imon, for $4.3 million each. Partial liquidations of the advances are expected during the second quarter of 2016. A Grant review mission is planned during the early part of second quarter 2016 to discuss the progress of the Grant and implementation of various activities planned for 2016 including the finalization of plans for the next major public awareness raising campaign tentatively scheduled during the third quarter of 2016.

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 Staff

Responsible ADB Officer Aliya Mukhamedyarova
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
MINFIN@TOJIKISTON.COM
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 -
Last Review Mission -
Last PDS Update 30 Mar 2016

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 2.46 0.00 25%
Counterpart 1.12 Cumulative Disbursements
Cofinancing 0.00 25 Jun 2013 9.38 0.00 94%

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 188,295.07

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


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