The European Investment Bank (EIB) has lent EUR 70 million to Tajikistan to finance the construction of a 500 kV electricity power transmission line of 477 km to interconnect Tajikistan and Kyrgyzstan’s electricity networks and a 120 km line to strengthen the internal backbone network of Tajikistan. The objective is to increase the reliability of the electricity systems and allow development of the regional electricity trade in Central Asia.

The EIB will also finance the extension of three existing power substations: two in Tajikistan and one in Kyrgyzstan, and the construction of a new 500/220 kV substation located in Tajikistan.

The project is a part of a larger regional electricity scheme, the “Central Asia - South Asia Electricity Transmission and Trade” (“CASA-1000”) initiative, covering four Asian countries – Tajikistan, Kyrgyzstan, Afghanistan and Pakistan. It is essential for developing the conditions for sustainable trade in renewable electricity based on electricity generation from renewable hydropower resources in the countries concerned. It will alleviate shortages of power supply in the aforementioned South Asian countries and enhance export revenues in Tajikistan and Kyrgyzstan.

Wilhelm Molterer, EIB Vice-President, stated, “The EIB loan will help improve the reliability and capacity of vital energy infrastructure needed for improving the quality of life of Tajik citizens and for further economic development in the region. The new energy infrastructure will foster electricity trade with neighbouring countries and make it possible to attract foreign investors due to safer energy supplies.”