ADB’s Program in Tajikistan Stresses Inclusive Growth
Friday 7 December 2012
DUSHANBE (ADB press service) – The Asian Development Bank (ADB) plans a $137 mln grant program for Tajikistan to support inclusive growth over the next two years by creating economic opportunities and ensuring greater access to growth. The indicative program is described in a recently endorsed Country Operations Business Plan (COBP) for 2013-2014, essentially a pipeline of projects that ADB wishes to support.
- Country Operations Business Plan Project for Tajikistan, 2013-2014 (PDF)
The ADB’s COBP 2013-2014 retains the focus on the core areas and crosscutting themes of energy, transport, private sector development and some “crosscutting themes”.
ADB transport operations will benefit the poor by reducing their isolation, improving communications, and easing their access to social services and income-generating opportunities. The energy sector interventions under the COBP will target areas where most of Tajikistan’s poor live. The private sector development projects under the COBP will create more jobs and promote private sector-led economic growth by providing a stable macroeconomic environment, building an enabling business climate, establishing more efficient tax administration, and streamlining tax compliance systems.
“ADB’s resources are limited, and we really have to target the most severe bottlenecks in key sectors, such as energy and transport, and cultivate an enabling environment for private investment,” said C.C. Yu, ADB’s Country Director for Tajikistan. “ADB will also continue to support regional cooperation, capacity building and governance, climate change, and gender mainstreaming.”
Tajikistan is currently eligible only to receive grants from the Asian Development Fund (ADF). The indicative investment program for ADF resources agreed with the government under the COBP, 2013-2014 comprises $59 mln each year in 2013 and 2014. Tajikistan may receive additional ADF resources for projects with regional importance. Several projects have been included in the indicative pipeline on a standby basis and can be reclassified as firm depending on the results of further discussions with the government and availability of funding. The technical assistance pipeline for 2013-2014 is expected to total about $3.4 mln.
ADB will facilitate development of private sector through loans, equity, and/or guarantee facilities. Potential projects include trade finance and the financing of banks for activities with a high development impact. Manufacturing and processing sectors may also be considered for financing. ADB will remain cautious and selective about projects in the extractive industries, including mining. ADB will require at a minimum that sponsors have excellent commercial, technical, and environmental track records and adequate revenue transparency before it will consider projects in this sector.
The 2013-2014 indicative assistance pipeline includes projects to rehabilitate the Golovnaya hydropower plant, develop the power sector, and improve regional road corridors. The COBP also comprises projects to build climate resilience in the Panj River basin, streamline tax systems, and strengthen private sector participation in higher education and technical and vocational education and training.
Tajikistan joined ADB in 1998, and to date the institution has cumulatively approved a total assistance of more than $966 mln in concessional loans, grants, and technical assistance to the country. ADB’s operations benefit the population by reducing isolation, increasing communication, broadening access to electricity, improving social services, and creating more income-generating opportunities.