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 Name||Access to Green Finance Project|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|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|
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|
|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).|
|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
|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 Project has started to gain momentum during the last quarter of 2014: (a) success of the kick-off event activity, Access to Green Finance Expo, held from 20-22 November 2015 and attended by 47 exhibitors and over 1,000 visitors; (b) training by JFPR TA 8394-TAJ consultants on green finance market development and roll-out methodology and results-based monitoring and evaluation system to the PMU staff, microfinance instituitons (MFIs), project partners and stakeholders ; (c) signing of the project agreements by IMON and Arvand on 11 December 2013; and (d) providing loans $1,760,000 to Imon and Arvand. A financial and integrity due diligence on 16 MFIs are being undertaken and is expected to be completed in late April 2015 afterwhich a Loan Review Mission will be fielded thereafter to negotiate the Project Agreement with the second batch of MFIs.|
|Consulting Services||All PMU staff was engaged per Procurement Plan. Three international experts have been engaged (i) Smart Green Energy Solution (SGES) Product and Market Development Specialist, (ii) Microfinance Specialist/Team Leader, SGES Technology Specialist, and (iii) Results-based Monitoring and Evaluation Specialist. These three international consultants completed their tasks and submitted their report to ADB and EA.|
|Procurement||The PMU has acquired 2 vehicles, several office equipment and office furniture during the first 18 months of the project's implementation period using the Shopping procurement method.|
|Responsible ADB Officer||Boboev, Muhammadi|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Tajikistan Resident Mission|
Ministry of Finance
3, Academic Rajabovs
|Concept Clearance||20 Mar 2013|
|Fact Finding||18 Feb 2013 to 28 Feb 2013|
|MRM||12 Apr 2013|
|Approval||25 Jun 2013|
|Last Review Mission||-|
|Last PDS Update||29 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|25 Jun 2013||19 Aug 2013||03 Oct 2013||30 Jun 2019||-||-|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||11.12||Cumulative Contract Awards|
|ADB||10.00||25 Jun 2013||9.72||0.00||97%|
|Cofinancing||0.00||25 Jun 2013||9.92||0.00||99%|
|Approval||Signing Date||Effectivity Date||Closing|
|25 Jun 2013||19 Aug 2013||19 Aug 2013||31 Jul 2018||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|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.
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|Title||Document Type||Document Date|
|Maximizing Access to Energy for the Poor in Developing Asia||Brochures and Flyers||Dec 2013|
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ADB to Boost Energy Efficiency in Tajik HouseholdsThe Asian Development Bank (ADB) is providing a $10 million grant for an Access to Green Finance project to help Tajik families increase power access and efficiency through financing of “smart” green energy solutions.