fbpx 45229-001: Access to Green Finance Project | Asian Development Bank

Tajikistan: Access to Green Finance Project

Sovereign (Public) Project | 45229-001 Status: Closed

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

Project Officer
Boboev, Muhammadi Central and West Asia Department Request for information
Country
  • Tajikistan
Modality
  • Grant
  • Technical Assistance
Sector
  • Finance
 
Project Name Access to Green Finance Project
Project Number 45229-001
Country Tajikistan
Project Status Closed
Project Type / Modality of Assistance Grant
Technical Assistance
Source of Funding / Amount
Grant 0346-TAJ: Access to Green Finance
concessional ordinary capital resources lending / 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 Gender Equity and Mainstreaming
Sector / Subsector

Finance / Inclusive finance

Gender Equity and Mainstreaming 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.

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
[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 25 Jun 2013 9.96 0.00 100%
Counterpart 1.12 Cumulative Disbursements
Cofinancing 0.00 25 Jun 2013 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 -
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 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.

Title Document Type Document Datesort descending
Access to Green Finance Project Project/Program Administration Manual Jun 2013
Access to Green Finance Project Reports and Recommendations of the President Jun 2013
Access to Green Finance Project Gender Action Plans Jun 2013
Access to Green Finance Project Initial Poverty and Social Analysis Jun 2013
Grant Agreement (Special Operations) for the Access to Green Finance Project Grant Agreement Aug 2013
Project Agreement for Access to Green Finance Project (PA1) Project/Program Agreements Dec 2013
Project Agreement for Access to Green Finance Project (PA2) Project/Program Agreements Dec 2013
Лоиҳаи Дастрасӣ ба маблағгузории энергияи сабз : Маълумот дар бораи лоиҳа Translated PDS Jul 2014
Проект «Доступ к зеленым финансам» : Справочный лист проекта Translated PDS Jul 2014
Amendment to the Project Agreement (PA2) for Grant 0346: Access to Green Finance Project Agreements Aug 2015
Amendment to the Project Agreement (PA1) for Grant 0346: Access to Green Finance Project Agreements Aug 2015
Access to Green Finance Project: Audited Project Financial Statements (For the Periods ended 31 December 2014 and 31 December 2015) Audited Project Financial Statements Nov 2016
Access to Green Finance Project: Arvand Audited Project Financial Statements (1 December 2014-31 December 2015) Audited Project Financial Statements Mar 2017
Access to Green Finance Project: IMON Audited Project Financial Statements (1 December 2014-31 December 2015) Audited Project Financial Statements Mar 2017
Access to Green Finance Project (SF): IMON Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements May 2017
Access to Green Finance Project: Arvand Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jun 2017
Access to Green Finance Project: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jun 2017
Access to Green Finance Project: Micro Deposit Organization “Arvand” Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Jun 2018
Access to Green Finance Project: Project Implementation Unit for Access to Green Finance Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Jun 2018
Access to Green Finance Project: Micro Deposit Organization "Imon International" Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Jul 2018
Access to Green Finance Project: Micro Deposit Organization “Arvand” Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements May 2019
Access to Green Finance Project: Microcredit Organization “Imon International Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Jun 2019
Access to Green Finance Project: Project Management Unit Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Aug 2019
Access to Green Finance Project: Procurement Plan Procurement Plans Dec 2019
Access to Green Finance Project: Project Management Unit Audited Project Financial Statements (July 2019-January 2020) Audited Project Financial Statements May 2020

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


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.

Tenders

Tender Title Type Status Posting Date Deadline
Public Awareness and Marketing Specialist Individual - Consulting Closed 01 Jun 2018 15 Jun 2018
Microfinance Specialist Individual - Consulting Closed 13 Aug 2018 24 Aug 2018
Capacity Building Specialist/Technical Adviser Individual - Consulting Closed 28 Sep 2018 04 Oct 2018
Microfinance Specialist Individual - Consulting Closed 01 Oct 2018 07 Oct 2018
SGES Product and Market Development Specialist Individual - Consulting Closed 08 Oct 2018 14 Oct 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Datesort descending
Access to Green Finance Project: Procurement Plan Procurement Plans Dec 2019