The European Bank for Reconstruction and Development (EBRD) has agreed to advance a loan of $150m for infrastructure development in Tajikistan, involving the construction of a 44km stretch of M41 highway.

M41 is touted to be the country’s main transport corridor connecting Tajikistan with neighbouring Kyrgyz Republic, Kazakhstan and China. The road will offer better regional connectivity while improving economic opportunities in the region.

EBRD along with the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have jointly financed the construction of a bypass of the existing section of the M41, which needs to be replaced due to the construction of a hydropower plant in the region.

Technical cooperation funding for assessing climate change risks was provided by the Czech Republic.

EBRD believes that the bypass road construction project could also bring economic benefits for local women.

Along the road, five trading areas will be established for more than 8,000 women entrepreneurs in the valley and at least 150 women are expected to receive specialised training designed to improve their commercial skills.

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The funding from EBRD will also help in improving road maintenance practices in the country through increased institutional capacity measures.

In August 2019, EBRD, the European Investment Bank (EIB), the Green Climate Fund, the Climate Investment Funds’ Pilot Programme for Climate Resilience, Austria and the UK offered $196m finance package for the rehabilitation and modernisation of Qairokkum hydropower plant (QHPP) in Tajikistan.

The hydropower plant generates enough energy to be supplied to 500,000 people. Measures will include the concrete dam works and the installation of hydraulic steel components, turbines and electromechanical equipment for the six hydropower units.

The rehabilitation will increase the plant’s capacity from 126MW to 174MW. The upgrade will also introduce new climate resilience measures enabling the plant to cope with expected to impact of climate change on the country’s hydrological systems.


Image: EBRD to provide $150m loan for highway project in Tajikistan. (Credit: European Bank for Reconstruction and Development.)