The project aims to increase resilience to climate vulnerability and change of communities in the Pyanj River Basin. The project's impact will be improved livelihoods of Pyanj River Basin communities vulnerable to climate variability and change. The project's outcome will be reduced adverse effects of climate variability and climate change in 59 villages in 19 jamoats in the Pyanj River Basin. The project has four outputs:
Output 1 is flood protection infrastructure climate-proofed in 10 jamoats. It will (i) upgrade and climate-proof flood and mudflow protection infrastructure in 10 locations, including riverbank reinforcement, embankment reconstruction, restoration of stream beds, terracing and planting of trees, and soil stabilization; (ii) establish O&M practices, develop O&M guidelines, and train local units of the responsible agencies; (iii) develop early warning communication systems through the use of modern technologies; (iv) establish disaster risk management committees; and (v) conduct training and disseminate information on the impact of climate change and adaptation measures for local government officials and local institutions such as khashar (mutual self-help groups), mahala (neighborhood associations), and women's committees.
Output 2 is irrigation systems climate-proofed in eight jamoats. It will (i) rehabilitate and climate-proof irrigation canals and network assets, including reconstruction and desilting of drainage and delivery channels and rehabilitation of pumping stations; (ii) pilot a drip irrigation scheme; (iii) strengthen water users' associations; and (iv) provide advice and disseminate information on water resources management and climate-resilient agricultural practices to farmers, local government officials, women's groups, and other stakeholders.
Output 3 is water supply infrastructure climate-proofed in seven jamoats. It will (i) rehabilitate and climate-proof seven rural drinking water supply systems, including rehabilitation, upgrade, and construction of boreholes, provision of new and rehabilitated pumping equipment, and construction of new service reservoirs and water tanks; (ii) establish O&M practices for drinking water supply systems, develop O&M guidelines, and train local units of the responsible agencies; (iii) establish drinking water consumer groups to influence responsible agencies and ensure performance of the water supply facilities; and (iv) raise awareness of health and other risks associated with climate change.
Output 4 is micro credits and micro deposits made available to promote climate resilience in the Pyanj River Basin. It will (i) expand capacity of participating financial institutions (PFIs) in the Pyanj River Basin to accept micro and small deposits and provide micro loans in support of climate-resilient economic activities; (ii) provide credit lines for agricultural improvements (climate-resilient agriculture credit line) and economic diversification (income diversification credit line), particularly targeting women; (iii) strengthen financial literacy of the local population; and (iv) assess the feasibility of collateral insurance linked to credit and, if appropriate, pilot a credit insurance scheme.
The project will:
- Protect at least 231 hectares of arable land from annual floods and 1,490 hectares of arable land from high floods by 2019. Training on disaster risk management will be provided to communities. Disaster risk management groups will be established and early warning systems developed to support communities in their responses to floods;
- Service 1,450 hectares of arable land with irrigation water. Water users associations (WUAs) will be established and trained to deliver agricultural advice. Women will represent at least 20% of the WUAs members. Training on climate-resilient agriculture practices will be provided to farmers, local government officials, women's groups, and other stakeholders. A drip irrigation scheme will be piloted;
- Service at least 4,150 households with water supply. Drinking water consumer groups will be established to influence responsible agencies and ensure performance of the water supply facilities. Women will represent at least 30% of members of water consumer groups. Information on health and other risks associated with climate change will be disseminated to local communities;
- Make available micro credits and micro deposits to at least 1,000 households to promote climate resilience agriculture and economic diversification in the Pyanj River Basin. A third of all subloans will be for either women or enterprises with a minimum of 50% ownership by women. Training on financial literacy will be provided to local population. The feasibility of collateral insurance linked to credit will be assessed and, if appropriate, a credit insurance scheme will be piloted in the river basin.
The project will have three executing agencies: (i) the Ministry of Land Reclamation and Water Resources (MLRWR), (ii) the State Unitary Enterprise for Housing and Communal Services (Khochagii Manziliyu Kommunali - KMK), and (iii) the MOF. MLRWR will be responsible for outputs 1 and 2, KMK will be responsible for output 3, and MOF will be responsible for output 4. Overall coordination will be provided by the Executive Office of the President and the Pilot Program for Climate Resilience Interministerial Committee, which is chaired by the deputy prime minister. A project steering group comprising the three executing agencies will provide implementation guidance and monitor project performance. The project management structure will consist of (i) a project management office (PMO) in the MLRWR and four project implementation offices (PIOs) in the Pyanj river basin; (ii) the existing project implementation group in the KMK and three PIOs; and (iii) the PMO in the MOF, which is jointly financed under three ADB projects. The project management units will ensure compliance with grant covenants, project administration manual, gender action plan, and financial and safeguard requirements. Specific responsibilities will include (i) overall financial management; (ii) procurement, disbursement, and accounting; and (iii) monitoring and evaluation, including progress reports for submission to ADB.
Tajikistan-regulated microfinance institutions (MFIs) may apply to be a PFI if they meet the following eligibility criteria: (i) compliance with mandatory prudential standards regulation in Tajikistan; (ii) corporate, financial, management, and governance practices acceptable to ADB and MOF, and satisfactory completion of ADB's integrity, anti-money laundering and combating the financing of terrorism due diligence requirements; (iii) successful experience in the rural development sector; and (iv) willingness and ability to grow and service beneficiaries in the Pyanj River Basin in line with the objectives of the project, including the ability to offer deposits. Microfinance institutions will be required to (i) submit audited financial statements for the 2 years prior to entering into a subsidiary loan agreement, (ii) implement a basic environment and social management system, and (iii) implement adequate anti-money laundering and combating the financing of terrorism customer due diligence measures. PFIs will enter into a subsidiary loan agreement with the MOF and a project agreement with ADB. ADB conducted financial and integrity due diligence on four microfinance institutions from July 2012 to March 2013. Based on the results of the due diligence assessment, IMON International and OXUS have been selected to participate in the first round of microfinance activities. Half of the total funds ($1.4 million) will be allocated to IMON International and OXUS in equal amounts. The remaining total funds will be allocated by MOF, subject to ADB concurrence, to selected and eligible MFIs.
The project was approved by the ADB board on 25 July 2013. A grant agreement was signed by t
|Project Rationale and Linkage to Country/Regional Strategy
Tajikistan is considered to be one of the Central Asian countries most vulnerable to the adverse effects of climate change. It frequently experiences extreme climate events such as intense spring rainfall, excessive melt-waters from large snow accumulations, droughts, and occasionally devastating glacial lake outburst floods. These cause mudflows, floods, reduced water availability, avalanches, landslides, and rockfalls. These hazards routinely take lives and destroy or degrade land, crops, and infrastructure.
With a population of approximately 1.27 million, the Pyanj River Basin (114,500 square kilometers) is the largest of the five principal basins of Tajikistan (Pyanj, Vakhsh, Kafernigan, Zerevshan, and Syr Darya). It has a large range of altitude, from 300-350 meters (m) in the semi-arid lowlands of southern Khatlon to more than 7,000 m in the Pamir and Hindu-Kush mountains. It is also the bread-basket of Tajikistan, containing a large portion of the country's agricultural land. Communities located in the Pyanj River Basin are already experiencing extreme climatic events. In the mountainous Gorno Badakhsan oblast (province), droughts, avalanches, landslides, rockfalls, and violent winds are routine events which disrupt social and economic life, damage houses and infrastructure, and erode land. Occasional but devastating flash floods are released when temporary glacial lakes, created by glacier surges in the Pamir Mountains, burst without warning (glacier lake outburst flood). In the hills, lowlands, and flood plains of the eastern Khatlon region, droughts caused by decreased snowfall, and mudflows and floods caused by intense spring rain, occur annually. These hazards routinely destroy land, crops, and infrastructure and, in the worst cases, take lives.
Recent studies indicated that projected rise in temperature of up to 2 degree Celsius by 2050 will result in glacial melt and early snow melt. The runoff peak is likely to shift from the current late spring and early summer towards late winter and early spring runoff regime. This shift has significant repercussions for farming practices and water resources management because it leads to a major water deficit during the crop growing season. Increasing risks from hazards such as catastrophic flooding due to glacial lake outbursts, destabilizations of mountain slopes, and more landslides will result in a progressive increase in economic losses and risk to the population, and reduce the ability of communities located in the Pyanj River Basin to move out of poverty. These adverse effects will be exacerbated by an increase in water demand resulting from increased evapotranspiration and a projected 25% population increase by 2050. Water infrastructure in the Pyanj River Basin is in a state of disrepair. Irrigation systems and flood protection need major repair, and safe drinking water is often inaccessible. Planning and maintenance capacity at the jamoat (subdistrict) and community level is very weak. Financial resources for subsector-specific development planning and operation and maintenance (O&M) are absent. National and local institutions are weak and lack climate change risk management skills. In addition, the Pyanj River Basin faces particular development challenges arising from the high rate of out-migration by males and the consequent prevalence of households headed by women. Main barriers to climate resilience include the lack of information on climate change impacts on water resources, limited availability of financial resources to introduce resilient practices, absence of risk transfer mechanisms, and limited women's involvement in decision making.
As a result of its high exposure and its limited capacity to anticipate and manage climate change risks, Tajikistan is a beneficiary of the Pilot Program for Climate Resilience a multilateral program financed by the Strategic Climate Fund (SCF) that aims to demonstrate approaches to increase climate resilience in developing countries. Building climate change resilience of communities in the Pyanj River Basin was identified as a priority by country stakeholders in the extensive consultations that the Government of Tajikistan has conducted in partnership with ADB, the World Bank, and European Bank for Reconstruction and Development since 2009, as part of the first phase of the Pilot Program for Climate Resilience. Priorities identified include the need for a better coordinated and strategic approach to water resources management in the Pyanj River Basin, encompassing (i) improved access to water resources through climate-resilient infrastructure for irrigation, drainage, water supply, and storage; (ii) increased resilience to extreme climate events through flood protection, early warning systems, and risk transfer mechanisms; and (iii) improved access to information and financial resources, particularly for women.
The proposed project is consistent with the Tajikistan country partnership strategy, 2010-2014 and is included in the Tajikistan country operations business plan, 2013-2014. This project is also in line with ADB's long-term strategic framework, Strategy 2020, which includes support to increase climate resilience of developing member countries. The project design reflects lessons from previous ADB interventions in the country.