Tajikistan : Financial Sector and Fiscal Management Improvement Program (Subprogram 1)

Sovereign Project | 51066-001

The proposed Financial Sector and Fiscal Management Improvement Program aims to support the Government of Tajikistan with reforms to create a more stable financial system, enhance access to financial services, and improve fiscal management to accelerate sustainable private sector growth. The program will (i) enhance banking sector stability, (ii) improve the enabling environment for the financial sector, and (iii) strengthen public financial management.

Project Details

  • Project Officer
    Miyaki, Yuji
    Central and West Asia Department
    Request for information
  • Country/Economy
    Tajikistan
  • Sector
    • Finance

Related Projects

Project Name
Financial Sector and Fiscal Management Improvement Program (Subprogram 1)
Project Number
51066-001
Country / Economy
  • Tajikistan
Project Status
Closed
Project Type / Modality of Assistance
  • Grant
Source of Funding / Amount
Grant 0782-TAJ: Financial Sector and Fiscal Management Improvement Program (Subprogram 1)
Source Amount
Asian Development Fund US$ 50.00 million
Operational Priorities
  • OP2: Accelerating progress in gender equality
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector

  • Finance / Banking systems and nonbank financial institutions - Central banking systems - Finance sector development - Money and capital markets

  • Public sector management / Economic affairs management - Public expenditure and fiscal management

Gender
Some gender elements
Description
The proposed Financial Sector and Fiscal Management Improvement Program aims to support the Government of Tajikistan with reforms to create a more stable financial system, enhance access to financial services, and improve fiscal management to accelerate sustainable private sector growth. The program will (i) enhance banking sector stability, (ii) improve the enabling environment for the financial sector, and (iii) strengthen public financial management.
Project Rationale and Linkage to Country/Regional Strategy

Private investment in Tajikistan declined from 6.2% of GDP in 2014 to 4.5% of GDP in 2017, below the regional average of 15.6% of GDP. Domestic credit to the private sector fell from 23% to 12% of GDP over 2015-2018, far below the regional average of 63% of GDP, and is identified as a top constraint to private sector development. Empirical analysis shows financial sector development has a statistically significant and relatively high impact on private investment. Insufficient public investment, including in critical infrastructure (e.g. energy and water) and a skilled workforce, also limits private investment. Poor public investment management practices, e.g. project appraisal and costing and absence of suitable resource allocation plans, including a medium term budget framework, create gaps in infrastructure and services needed for private investment and supporting economic growth.

The program is consistent with the Asian Development Bank (ADB) country partnership strategy for Tajikistan, 2016-2020 and ADB's Strategy 2030, aligned with strengthening governance and institutional capacity. The program will support the government's reform agenda in the national development strategy up to 2030. The policy-based financing will be a programmatic approach that includes two subprograms to be implemented during 2020-2021.

Impact

Sustainable economic development improves the standard of living of the population (National Development Strategy of the Republic of Tajikistan for the Period up to 2030)

Project Outcome

Description of Outcome

Private sector investment increased

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

1. Banking sector stability enhanced

2. Enabling environment for financial sector improved

3. Public financial management strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Nation-wide

Safeguard Categories

Environment
C
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Miyaki, Yuji
Responsible ADB Department
Central and West Asia Department
Responsible ADB Division
Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance

Timetable

Concept Clearance
10 Dec 2019
Fact Finding
24 Jun 2020 to 26 Jun 2020
MRM
07 Oct 2020
Approval
09 Dec 2020
Last Review Mission
-
Last PDS Update
09 Dec 2020

Funding

Grant 0782-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2020 17 Dec 2020 21 Dec 2020 31 Dec 2021 - 31 Dec 2021
Financing Plan
  Total (Amount in US$ million)
Project Cost 50.00
ADB 50.00
Counterpart 0.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 50.00 0.00 100%
Cumulative Disbursements 17 Jun 2022 50.00 0.00 100%

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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

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Related Publications

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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.