Tajikistan: Building Resilience with Active Countercyclical Expenditures Program

Sovereign Project | 56147-001

The BRACE program will support the implementation of the government's countercyclical

measures, targeting the poor and vulnerable while meeting financing needs. The program is

aligned with the overarching development objective: social inclusion promoted by strengthening

the support to poor and vulnerable groups, and economic resilience improved.24 The effect of the

program will be: adverse socioeconomic effects of the shocks mitigated, and resilience of poor

and vulnerable groups enhanced. The program will contribute to the government's efforts to

contain inflation within reasonable limits through fiscal interventions. It targets the provision of

social assistance and protection until March 2023 to ensure that more than 500,000 poor and

vulnerable households (of whom at least 40% are headed by women) benefit from at least one

economic assistance program under the government's Anti-Crisis Action Plan, and therefore

Project Details

  • Project Officer
    Shah, Syed Ali-Mumtaz H.
    Central and West Asia Department
    Request for information
  • Country/Economy
    Tajikistan
  • Sector
    • Public sector management
Project Name Building Resilience with Active Countercyclical Expenditures Program
Project Number 56147-001
Country / Economy Tajikistan
Project Status Active
Project Type / Modality of Assistance Grant
Technical Assistance
Source of Funding / Amount
Grant 0857-TAJ: Building Resilience with Active Countercyclical Expenditures Program
Asian Development Fund US$ 50.00 million
TA 6975-TAJ: Preparing the Building Resilience with Active Countercyclical Expenditures
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Public sector management / Public expenditure and fiscal management - Social protection initiatives

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The BRACE program will support the implementation of the government's countercyclical

measures, targeting the poor and vulnerable while meeting financing needs. The program is

aligned with the overarching development objective: social inclusion promoted by strengthening

the support to poor and vulnerable groups, and economic resilience improved.24 The effect of the

program will be: adverse socioeconomic effects of the shocks mitigated, and resilience of poor

and vulnerable groups enhanced. The program will contribute to the government's efforts to

contain inflation within reasonable limits through fiscal interventions. It targets the provision of

social assistance and protection until March 2023 to ensure that more than 500,000 poor and

vulnerable households (of whom at least 40% are headed by women) benefit from at least one

economic assistance program under the government's Anti-Crisis Action Plan, and therefore

prevent them from falling deeper into poverty because of a higher cost of living. At least 186,000

MSMEs are expected to remain in business, of which at least 20% are owned by women. The

program has three reform areas: (i) increased social assistance measures implemented, (ii)

increased food security measures implemented, and (iii) enhanced support for business entities

and measures to safeguard employment implemented.

Project Rationale and Linkage to Country/Regional Strategy

Tajikistan is experiencing significant adverse economic and social impacts from the

Russian invasion of Ukraine. Rising global food and oil prices, disrupted trade and revenue

shortfalls, stressed financial sector, returning migrants, and diminishing remittances are causing

economic growth to decelerate sharply, and unemployment and poverty to increase. The

Government of Tajikistan adopted the Plan of Actions to Prevent the Impact of Potential Risks to

the National Economy (Anti-Crisis Action Plan) .2 Given its limited fiscal space and international

gross reserves, the government is exploring sources to fund its urgent pro-poor countercyclical

measures and expenditures(i) a social protection response package to assist poor and

vulnerable groups; (ii) measures to ensure food security; and (iii) support to micro, small, and

medium-sized enterprises (MSMEs) prone to experiencing severe effects. In the short term, the

BRACE program will support the government's countercyclical responses and financing needs to

help mitigate the adverse social and economic impacts of the crisis, while targeting women, the

poor, and other vulnerable groups and ensuring gender mainstreaming.3 To be implemented in

2022, the program supports fiscal sustainability in the medium term as well as economic recovery.

It is aligned with Strategy 2030 of the Asian Development Bank (ADB), including its operational

priorities of (i) addressing remaining poverty and reducing inequalities, (ii) accelerating progress

in gender equality, (iii) tackling climate change, building climate and disaster resilience and

enhancing environmental sustainability, (iv) strengthening governance and institutional capacity,

and (v) fostering regional cooperation and integration. 4 Moreover, the program supports the

Central Asia Regional Economic Cooperation (CAREC) Strategy 2030, particularly its Operational

Cluster B on trade.5 It aligns with these priorities by strengthening the government's capacity for

executing the countercyclical responses; and targeting social assistance at women, the poor, and

other vulnerable groups.

Impact

Social inclusion promoted by strengthening the support to poor and vulnerable groups, and economic resilience improved

Project Outcome
Description of Outcome

Adverse socio-economic effects of the shocks mitigated, and resilience of poor and vulnerable groups enhanced

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Increased social assistance measures implemented

Increased food security measures implemented

Enhanced support for business entities and measures to safeguard employment implemented

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 No environmental impact is expected.
Involuntary Resettlement No involuntary land acquisition and resettlement is expected.
Indigenous Peoples No adverse impacts on indigenous peoples is expected.
Stakeholder Communication, Participation, and Consultation
During Project Design The wide range of stakeholders, including (i) Ministry of Finance; (ii) Ministry of Health and Social Protection; (iii) Agency for State Material Reserves under the Government of Tajikistan; and (iv) Ministry of Labor, Employment of Population and Migration were consulted to identify the impacts of the pandemic and the Russian Invasion of Ukraine, and align ADB's assistance with government's needs and the support by development partners.
During Project Implementation The civil society will be consulted through the TA during program implementation.
Business Opportunities
Consulting Services ADB will engage the consultants under the technical assistance following the ADB Procurement Policy (2017, as amended from time to time) and its associated staff instructions.
Procurement None
Responsible ADB Officer Shah, Syed Ali-Mumtaz H.
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 -
Fact Finding 10 May 2022 to 18 May 2022
MRM 29 Jul 2022
Approval 21 Oct 2022
Last Review Mission -
Last PDS Update 21 Oct 2022

Grant 0857-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Oct 2022 04 Nov 2022 08 Nov 2022 30 Apr 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 50.00 22 Nov 2022 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 22 Nov 2022 50.00 0.00 100%

TA 6975-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Oct 2022 15 Nov 2022 15 Nov 2022 31 Dec 2023 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 22 Nov 2022 0.00

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.


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.

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Tenders

Tender Title Type Status Posting Date Deadline
National Gender Specialist Individual - Consulting Closed 09 Nov 2022 18 Nov 2022
National Social Protection Specialist Individual - Consulting Closed 01 Nov 2022 07 Nov 2022
National Monitoring and Evaluation Specialist Individual - Consulting Closed 21 Sep 2022 04 Oct 2022
National Public Finance Management Specialist Individual - Consulting Closed 21 Sep 2022 04 Oct 2022

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.