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Tajikistan and ADB

ADB’s investments in Tajikistan have emphasized diversifying the economic base and improving the investment climate to create jobs with higher incomes.

ADB's Work in Tajikistan

ADB Membership

Joined 1998

Shareholding and Voting Power

Number of shares held:
30,402 (0.286% of total shares)

Votes:
69,516 (0.523% of total membership, 0.803% of total regional membership)

Overall capital subscription:
$437.87 million

Paid-in capital subscription:
$21.95 million

With some of the world’s highest mountains covering 93% of its territory, Tajikistan faces obstacles to its development, including food insecurity, limited transport connectivity, and low levels of private investment. Due to its narrow economic base and reliance on remittances by labor migrants, Tajikistan’s economy remains vulnerable to external shocks such as the global economic impacts of the coronavirus disease (COVID-19) pandemic.

The Asian Development Bank (ADB) has partnered with Tajikistan since 1998. ADB’s investments in the country have emphasized diversifying the economic base and improving the investment climate to create jobs with higher incomes. ADB has helped Tajikistan to improve its transport, energy, and municipal infrastructure. The bank has also supported the upgrading of labor force skills and improvements to food security.

Since 1998, ADB has committed $1.63 billion in grants, $498.4 million in concessional loans, and $66.6 million in technical assistance for Tajikistan.

Mountains of the Rasht region, Tajikistan

Cumulative loan and grant disbursements to Tajikistan amount to $1.44 billion. These were financed by concessional ordinary capital resources, and the Asian Development Fund.


ADB-Supported Projects and Programs

To support Tajikistan in its fight against COVID-19 and help limit the impacts of the pandemic on citizens and the economy, ADB provided grants totaling $52.5 million in 2020 for budget support and delivered emergency medical supplies.

ADB has also provided budget support for critical reforms to improve Tajikistan’s investment climate, tax administration, public financial management, and social protection. The bank disbursed a $50 million program grant in 2020 to further support reforms by the Government of Tajikistan to boost private sector confidence, strengthen the financial sector, and improve fiscal management.

To create international trade links, over 700 kilometers of Tajikistan’s highways have been improved with ADB’s support. By supporting a “single window” facility and improving key customs posts along borders, the bank has helped Tajikistan boost regional cooperation and trade. ADB is also helping deliver social services to the people of Tajikistan by improving national and local road networks, including under a $67.49 million grant committed in 2020.

ADB investments have helped improve three hydropower plants, install or upgrade over 600 kilometers of power transmission and distribution lines, and modernize major electricity substations. The bank is implementing a $35 million grant to reconnect Tajikistan’s electricity system to the Central Asian Power System through interconnection with Uzbekistan. ADB is also working with the government to implement energy sector restructuring and reforms, improve financial sustainability, and reduce system losses, including under a $105 million development grant committed in 2020.

The Nurek hydropower plant is Tajikistan’s main source of power, producing around 60% of the nation’s electricity

ADB is implementing a $10 million grant to help Tajikistan prepare for and respond to natural hazards and climate change, and a $10 million grant to support tourism.

ADB has helped make clean water available to over 100,000 households in Tajikistan, and improved more than 170,000 hectares of land through better irrigation, drainage, and flood management. The bank is helping to rehabilitate urban water supply and sanitation infrastructure in the southeast of the capital, Dushanbe, under a $41.18 million grant.

The Asian Development Bank is helping Tajikistan to improve its technical and vocational education system, making it more responsive to labor market needs

In education, ADB supports the modernization of technical and vocational education and training. In 2020, it committed a $31.5 million grant to further strengthen the skills of Tajikistan’s youth, women, and labor migrants to improve their employability and wages.

ADB has helped Tajikistan strengthen drug quality-control mechanisms, develop a family group practice framework, rehabilitate and equip rural health care facilities, and train family doctors and nurses. The bank is currently implementing a $32 million grant to deliver integrated maternal and child health care services in the districts of Fayzobod, Rasht, and Shamsiddin Shohin.

The Maternal and Child Health Integrated Care Project will provide women and children with quality maternal and child health (MCH) services in Rasht, Tajikistan.

Nonsovereign Operations

As a catalyst for private investments, ADB provides financial assistance to nonsovereign projects and financial intermediaries. Total commitments in loans and equity investments from ADB’s own funds in 2020 amounted to $1.4 billion for 38 transactions in economic and social infrastructure, finance sector, and agribusiness. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2020, ADB mobilized $1.9 billion of long-term project cofinancing and $3.3 billion of cofinancing through its Trade and Supply Chain Finance Program and Microfinance Program. Total outstanding balances and commitments of nonsovereign transactions funded by ADB’s own resources stood at $14.3 billion as of 31 December 2020.

Financing Partnerships

Financing partnerships enable ADB’s financing partners, governments or their agencies, multilateral financing institutions, and commercial organizations to participate in financing ADB projects. The additional funds are provided in the form of loans and grants, technical assistance, and other nonsovereign cofinancing such as B loans, risk transfer arrangements, parallel loans and equity, guarantee cofinancing, and cofinancing for transactions under ADB’s Trade and Supply Chain Finance Program and Microfinance Program.

ADB began cofinancing operations in Tajikistan in 2000. Since then, sovereign cofinancing commitments for Tajikistan have amounted to $330.77 million for 23 investment projects, and $19.6 million for 20 technical assistance projects. Nonsovereign cofinancing for Tajikistan has amounted $5.66 million for one investment project and $0.2 million for one technical assistance project.

In 2020, Tajikistan received $25 million loan cofinancing from the European Bank for Reconstruction and Development for the Power Sector Development Program, and $1.5 million grant cofinancing from the Japan Fund for Information and Communication Technology for the Skills and Employability Enhancement Project.

A summary of cofinanced projects is available at Tajikistan: Cofinancing.

Operational Challenges

Despite progress in developing its economy and alleviating poverty, Tajikistan continues to face challenges in human capital development and attracting private investment. ADB is working closely with the government and other development partners to implement wide-ranging reforms in various sectors of the national economy.

Tajikistan boasts high success rates for completed projects as well as timely implementation of ongoing projects supported by ADB. However, challenges persist in project design and ownership, and in securing resources to maintain rehabilitated facilities. To explore new strategies in these areas, ADB and the government are working to improve quality-at-entry for projects, enhance procurement and disbursement efficiency, strengthen country processes, and promote financial sustainability of investments.

Future Directions

ADB plans to provide approximately $103 million in 2021 and $345.54 million from 2022 to 2024, which will be anchored on a new country partnership strategy, 2021–2025. The proposed financing is intended to fund projects that will improve food security and water resource management, and develop urban infrastructure and the energy sector. ADB also plans to support projects focused on developing health systems, improving the financial sector, accelerating tourism, enhancing disaster resilience, and upgrading road networks. In addition, the investment pipeline includes projects that will promote e-governance and improve science, technology, engineering, and mathematics education. ADB has also slated $5.25 million for technical assistance, knowledge work, and project preparation during 2021–2023.

This article was originally published in the ADB and Tajikistan: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

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