47099-004: Investment Climate Reforms Program - Subprogram 2 | Asian Development Bank

Tajikistan: Investment Climate Reforms Program - Subprogram 2

Sovereign (Public) Project | 47099-004 Status: Closed

The Asian Development Bank is working with Tajikistan to expand economic opportunities, develop the private sector, and attract investments. The project is helping to create jobs through increased private investment, economic diversification, and competitiveness. This is reducing costs of doing business, strengthening protection for businesses, and increasing business innovation and productivity.

Project Details

Project Officer
Mukhopadhyay, Hiranya Central and West Asia Department Request for information
Country
  • Tajikistan
Modality
  • Loan
  • ND
Sector
  • Public sector management
 
Project Name Investment Climate Reforms Program - Subprogram 2
Project Number 47099-004
Country Tajikistan
Project Status Closed
Project Type / Modality of Assistance Loan
ND
Source of Funding / Amount
Grant 0530-TAJ: Investment Climate Reforms Program - Subprogram 2
concessional ordinary capital resources lending / Asian Development Fund US$ 19.24 million
Loan 3513-TAJ: Investment Climate Reforms Program - Subprogram 2
concessional ordinary capital resources lending / Asian Development Fund US$ 30.76 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Industry and trade / Small and medium enterprise development

Public sector management / Economic affairs management - Law and judiciary - Public administration

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

Subprogram 2 provides budget support for the expansion of economic opportunities and development of the private sector. It includes policy actions to (i) reduce the cost of doing business, (ii) strengthen protection for businesses, and (iii) increase business innovation and productivity. The Asian Development Bank (ADB) Board of Directors approved the

programmatic approach and subprogram 1 on 4 December 2015.

Project Rationale and Linkage to Country/Regional Strategy Under subprogram 2, ADB is providing technical assistance and policy-based lending to improve the investment climate. ADB is using a phased approach that allows sustained monitoring of reform progress and leveraged, step-by-step deepening of reforms. Subprogram 1 was completed in December 2015. The reform areas constitute a logical extension of previous ADB support. The program is supporting initiatives and engaging in policy dialogue to enable women to overcome barriers to entrepreneurship through training, creation of business incubators, and business development centers. Women's entrepreneurship is critical for the economic advancement of Tajik women, given limited formal employment opportunities. While women's entrepreneurship is generally small-scale, involving home-based production and sale, it may expand over time. Women entrepreneurs face many challenges, such as limited access to information and markets; lack of financial literacy and management skills, financial resources, and training; and cultural norms that discourage women from starting and managing businesses.
Impact Private investment, economic diversification, and competitiveness increased
Project Outcome
Description of Outcome Capabilities and opportunities of businesses to set up and expand higher value-added production increased
Progress Toward Outcome Achievement of the outcome will be assessed after the program's funds disbursement and at program completion.
Implementation Progress
Description of Project Outputs

1. Reduced cost of doing business

2. Strengthened protection for businesses

3. Increased business innovation and productivity

Status of Implementation Progress (Outputs, Activities, and Issues) Achievement of the outputs will be assessed after the program's funds disbursement and at program completion.
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The program is categorized as C for environmental safeguards.
Involuntary Resettlement The program is categorized as C for involuntary resettlement.
Indigenous Peoples The program is categorized as C for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design

ADB missions fielded in February 2016, April 2016, September 2016, and October 2016 discussed the reforms under subprogram 2 with private businesses, business associations, and development partners. Workshops and focus group discussions with policy makers and private businesses were held in some of the reform areas. Consultations with private business assessed the main costs to business such as business inspections, cost of tax compliance, and regulatory constraints. ADB missions also met with firms in the financial sector to discuss potential participation in the wholesale credit fund for rural sector development supported by the program. The new RIA system for newly proposed legal and regulatory acts one of the reform areas in the program foresees the use of systematic consultation mechanisms to find agreements and consensus with government stakeholders and other interest groups in civil society on an ongoing basis.

ADB staff missions conducted consultations with civil society organizations (mainly business associations, techno-parks, research experts, consumer groups, and professional networks) on the program reform areas and on the expected impact of structural reforms.

During Project Implementation This is a policy-based program and the government is using existing forms of civil society participation in the design and implementation of reforms. The new RIA system for newly proposed legal and regulatory acts will further strengthen these forms of civil society participation.
Business Opportunities
Consulting Services The program has no consulting recruitment activities.
Procurement The program has no procurement activities.
Responsible ADB Officer Mukhopadhyay, Hiranya
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
State Committee on Investments and State Property Management
27, Shotemur Street
Dushanbe
Tajikistan
Timetable
Concept Clearance -
Fact Finding 27 Sep 2016 to 30 Sep 2016
MRM 03 Nov 2016
Approval 22 Dec 2016
Last Review Mission -
Last PDS Update 29 Sep 2017

Grant 0530-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2016 24 Jan 2017 22 Sep 2017 31 Dec 2017 - 31 Dec 2017
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 19.24 Cumulative Contract Awards
ADB 19.24 22 Dec 2016 19.24 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 22 Dec 2016 19.24 0.00 100%

Loan 3513-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2016 24 Jan 2017 22 Sep 2017 31 Dec 2017 - 31 Dec 2017
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.76 Cumulative Contract Awards
ADB 30.76 22 Dec 2016 31.61 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 22 Dec 2016 31.61 0.00 100%

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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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

None currently available.


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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.