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
    Israr, Anjum
    Sectors Group
    Request for information
  • Country/Economy
    Tajikistan
  • Modality
  • 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
Source Amount
Asian Development Fund US$ 50.00 million
TA 6975-TAJ: Preparing the Building Resilience with Active Countercyclical Expenditures
Source Amount
Technical Assistance Special Fund US$ 400,000.00
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
  • OP7: Fostering regional cooperation and integration
Sector / Subsector
  • Public sector management / Public expenditure and fiscal management - Social protection initiatives

Gender
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

Contact

Responsible ADB Officer
Israr, Anjum
Responsible ADB Department
Sectors Group
Responsible ADB Division
Public Sector Management and Governance Sector Office (SG-PSMG)
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

Funding

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 - 30 Apr 2023
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 20 Jun 2024 0.00 0.00 0%
Cumulative Disbursements 20 Jun 2024 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 31 Dec 2024 -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00
Cumulative Disbursements
Date Amount
20 Jun 2024 237,366.15

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.

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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.

Requests for information may also be directed to the InfoUnit.

  • 20 Dec 2023 | Project Result / Case Study

    Tajikistan Farmers Get Affordable Financing to Boost Food Supply

    ADB approved the BRACE program to help Tajikistan expand social assistance for poor and vulnerable people, support domestic food production, safeguard small businesses, and support the employment of returning migrants.

Tenders

Tender Title Type Status Posting Date Deadline
Trade Consultant (International Consultant to Support the Development of the Action Plan for "Strategy for Sustainable Export Growth) Individual - Consulting Closed
Trade Development Expert (National Consultant to Support the Development of the Action Plan for "Strategy for Sustainable Export Growth") Individual - Consulting Closed
Public Finance Management Specialist (National) Individual - Consulting Closed
Leasing Sector Specialist (International) Individual - Consulting Closed
Leasing Sector Expert (National) Individual - Consulting Closed
Trade Consultant for Developing and Implementing Economic Diplomacy Strategy and Acquiring GSP Plus Status Individual - Consulting Closed
Senior Public Finance Management Specialist Individual - Consulting Closed
Government Finance Statistics Specialist Individual - Consulting Closed
SME Expert (National) Individual - Consulting Closed
Digitalization Expert (National) Individual - Consulting Closed
Digitalization Expert (International) Individual - Consulting Closed
Trade and Economic Development Expert (National) Individual - Consulting Closed
National Gender Specialist Individual - Consulting Closed
National Social Protection Specialist Individual - Consulting Closed
National Public Finance Management Specialist Individual - Consulting Closed
National Monitoring and Evaluation Specialist Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.