ADB supports enhancement of sustainability of energy sector and road network in Tajikistan

Members of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) on March 3 voted for ratification of grant agreements signed between the Government of Tajikistan and the Asian Development Bank on projects aimed at accelerating the implementation of ongoing reforms and improve the financial sustainability of the power sector and enhancing the safety and reliability of the national road network in southern Tajikistan.

Presenting the agreements to lawmakers, the Minister of Finance Faiziddin Qahhorzoda noted that the ADB will provide a US$105 million grant to accelerate the implementation of ongoing reforms and improve the financial sustainability of the power sector in Tajikistan.

The reforms include unbundling the vertically integrated power utility Barqi Tojik into three independent companies responsible for power generation, transmission, and distribution; restructuring Barqi Tojik’s excessive liabilities; establishing a new power sector regulator; adopting a tariff methodology; and setting up a new centralized cash control system among the unbundled entities.  As part of the reforms and institutional capacity building, a newly established power distribution company will be operated under a 5-year management contract by an internationally reputable company with experience operating power utilities.

The program will enhance retail electricity metering and low- and medium-voltage distribution networks in Dushanbe, Konibodom, Isfara, Istaravshan and Danghara.   

Besides, the ADB will provide a US$73 million grant to rehabilitate the road from Hukbuk to Kangurt, the minister said.