Tajikistan : Access to Green Finance Project
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
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Project Officer
Boboev, Muhammadi
Central and West Asia Department
Request for information -
Country/Economy
Tajikistan -
Modality
-
Sector
- Finance
| Project Name | Access to Green Finance Project | ||||||||
| Project Number | 45229-001 | ||||||||
| Country / Economy | Tajikistan |
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| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Grant Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming |
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| Sector / Subsector | Finance / Inclusive finance |
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| Gender | 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. |
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| 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 | Installation of SGES products was completed in three districts of Khatlon region in 3Q 2018. Local NGO "Systemavtomatika", supplier of green energy products conducted capacity building workshop on operation and maintenance of the green energy products for stakeholders. |
| Implementation Progress | |
| Description of Project Outputs | Increased outreach by MFIs for green finance, particularly to women borrowers. Increased public awareness of energy efficiency Increased usage of SGES most helpful to women, such as energy-efficient cooking stoves, heating units, and solar water heaters. Increased private sector participation |
| Status of Implementation Progress (Outputs, Activities, and Issues) | ongoing The 41% of loans at the amount of $3,278,585 have been provided to women sub-borrowers. Cumulative number of loans - 6,843 loans (totaling $8.8M), 41% ($3.3M) - women and 61% ($5.5) - men. As of today the PMU conducted 38 focus groups discussions in the project areas. These focus groups covered 331 people of different jamoats of Tajikistan: 221 (66%) Men and 110 (34%) Women. The PIU is planning to conduct 2 day Seminar in Khujand on July 25-26 and 1 day Symposium at the end of August, 2018. In 2Q 2018, PIU conducted additional awareness campaign and procured SGES products which were installed in Vose, Dangara, Shurobod districts of Khtalon region. An extensive marketing and public awareness campaigns were launched. The PMU conducted 30 focus groups as part of the Public Awareness and Marketing Campaign. The main idea of these events is to introduce the benefits of the SGES products and the energy efficiency. As of today the PMU conducted 38 focus groups discussions in the project areas. These focus groups covered 331 people of different jamoats of Tajikistan: 221 (66%) Men and 110 (34%) Women. In 2Q-3Q 2018, PMU conducted additional awareness campaign and procured SGES products which was installed in the selected districts - Vose, Danghara, Shurobod. From the beginning of the Project about 6843 loans have been issued in different regions of Tajikistan. About 89% of sub loans financed the green products such as double-glazed doors/windows, boilers/heating stoves, and home insulation. Financing of solar water heaters, and solar home systems is still limited. To address this issue, MFIs started to actively work with the suppliers such as Geres and Homsol. They agreed to offer solar energy products at discounted prices for the project's model green buildings. Public information campaign specialist was recruited in 2016 to support in raising awareness about green products to households and with his support seminars and workshops for stakeholders and community are conducted on regular basis. |
| 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 lent $8.8 million to microfinance institutions (MFIs) for energy efficient and environmentally friendly solutions. The MFIs have been providing 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. |
| Business Opportunities | |
|---|---|
| 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. Two international and one local consultants under JFPR TA were recruited in 4Q 2018 and completed all targeted activities. All contracts under the project were completed. |
| 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. In 2018 ADB approved procurement of smart green energy (SGES) products and additional office furniture and equipment. Procurement of SGES products and additional IT and office equipment/firniture was completed. |
| Responsible ADB Officer | Boboev, Muhammadi |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Tajikistan Resident Mission |
| Executing Agencies |
Ministry of Finance Ilhom Nozimov, PMU Head [email protected] 3, Academic Rajabovs Dushanbe Tajikistan 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 | 27 Sep 2018 |
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 | - | 30 Mar 2020 |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 11.12 | Cumulative Contract Awards | |||
| ADB | 10.00 | 17 Jun 2022 | 9.96 | 0.00 | 100% |
| Counterpart | 1.12 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 9.96 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
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 | 31 Jul 2019 | 10 Jun 2019 |
| 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 | 17 Jun 2022 | 273,865.52 |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
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 Access to Information Policy (AIP) 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.
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
| Title | Document Type | Document Date |
|---|---|---|
| Tajikistan: Access to Green Finance Project | Validations of Project Completion Reports | Feb 2022 |
Related Publications
| Title | Document Type | Document Date |
|---|---|---|
| Maximizing Access to Energy for the Poor in Developing Asia | Brochures and Flyers | Dec 2013 |
The Access to Information Policy (AIP) 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.
ADB to Boost Energy Efficiency in Tajik Households
The 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.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| SGES Product and Market Development Specialist | Individual - Consulting | Closed | ||
| Microfinance Specialist | Individual - Consulting | Closed | ||
| Capacity Building Specialist/Technical Adviser | Individual - Consulting | Closed | ||
| Microfinance Specialist | Individual - Consulting | Closed | ||
| Public Awareness and Marketing Specialist | Individual - Consulting | Closed |
Contracts Awarded
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Access to Green Finance Project: Procurement Plan | Procurement Plans | Dec 2019 |