The official visit of the President of the Republic of Tajikistan H.E. Emomali Rahmon to the EIB / Signing of the first EIB loan

European Investment Bank (EIB) lends EUR 7 million to the Republic of Tajikistan, to finance  rehabilitation of low and medium-voltage distribution network, consisting mainly of installation of electricity meters with ancillary equipment.

EIB President Philippe Maystadt, who signed the loan together with Tajikistan’s Minister of Finance Mr Safarali Najmuddinov, stated: “I welcome the fact that EIB funds will be supporting this flagship project that will contribute to the renovation of the electricity network, the reduction of distribution losses and the promotion of the economically sustainable development of the energy sector in the Republic of Tajikistan.”

The Tajik side estimates signing of this agreement as logical continuation of the constructive dialog between both parties and as actual support of its projects in energy sector by EIB.

At the same time the Tajik side expresses its hope that the result of conducted talks in EIB will serve for the real promotion of partnerships between both parties.

This first ever EIB loan provided in the Republic of Tajikistan will finance the installation of electricity meters, with ancillary equipment to enable demand-side management and grid energy balance control and reduce distribution network losses and increase energy efficiency.

This project is a good example of cooperation between partner international financial institutions as it is being co-financed by the EIB and the European Bank for Reconstruction and Development (EUR 7 million each) and also supported by a EUR 7m grant from Investment Facility for Central Asia.

Through cooperation in the fields of energy and the environment, the project will support the EU’s strategic development objectives and sustainable economic and social development in Tajikistan and in the wider  region.

Background information:

The EIB, the European Union’s bank, contributes to the integration, balanced development and economic and social cohesion of the EU Member States by financing sound investment. In Central Asia, the EIB supports the EU policy objectives of diversification of energy resources, by focusing its financing on energy supply and transmission projects and on the protection of the environment. The EIB started its operations in the Republic of Tajikistan in February 2010.

The Bank finances projects in the region from the EUR 1 billion lending window for Asia provided under the mandate from the Council and European Parliament for the period 2007-2013, out of which EUR 100 million has been made available for use in Central Asia. 

To complement the mandate, Central Asian countries are eligible under the Bank’s own risk Energy Sustainability and Security of Supply Facility (ESF) for investment-grade projects in renewable energy, energy efficiency, carbon capture, transmission or storage projects aimed specifically at reducing greenhouse gas emissions and projects contributing substantially to the security of the EU’s energy supplies.