EBRD ready to provide financial support for implementation of hydroelectricity projects in Tajikistan




November 20, 2009



On Thursday November 19, President Emomali Rahmon received Mr. Masaru Honma, EBRD Director for Central Asia, according to presidential press service.
In the course of the talks, the two discussed issues related to cooperation between
Tajikistan and the European Bank for Reconstruction and Development (EBRD).

At present, a number of projects for a total amount of 128 million U.S. dollars are being implemented in the country with financial support from the EBRD.
Mr. Honma noted that every year, the Bank launches 10-12 new projects for a total amount of 60 to 80 million U.S. dollars in the country and the EBRD intends to double project finance volumes in the future, the press service said.

The sides expressed satisfaction with current situation of microfinance in
Tajikistan and noted that in the future, microloans would be given mainly to entrepreneurs working in sphere of production, in particular in the agrarian sector.

President Rahmon hailed the EBRDís support to Tajik commercial banks through boosting the levels of financial intermediation in
Tajikistan with equity investments in commercial banks in the country.

Mr. Honma highly appraised measures taken by the Tajik government to improve investment climate in the country. Rahmon and Honma also discussed issues related to cooperation in sectors like energy, industry, agriculture, transport and communications.

Touching upon current energy supply situation in Tajikistan, the EBRD director for Central Asia noted that the Bank was ready provide financial support for modernization of the Qairoqqum hydroelectric power plant (HPP).  He promised that the EBRD will appeal to 63 member states of the Bank, in particular the
United States, Canada and Japan, as well as international financial institutions for assistance to Tajikistan with tackling the energy supply problems connected with Uzbekistanís withdrawal from the unified Central Asian power grid, presidential press service noted.

The sides also discussed issues related to expanding cooperation in the Central Asian region and resolving artificially created regional problems. The EBRD is supporting the progress of the private sector in
Tajikistan by fostering development of small and medium-sized enterprises (SMEs) and strengthening the banking sector, in parallel to tackling critical infrastructure concerns.  EBRD loans have also assisted in road rehabilitation and construction and strengthened the grassroots economy.