The President of Tajikistan and the Chairman of the EDB Management Board discuss the investment potential for cooperation
Dushanbe, 12 February 2013. Today President of Tajikistan Emomalii Rakhmon received a delegation from Eurasian Development Bank (EDB) headed by Igor Finogenov, Chairman of the Management Board, in Dushanbe. The sides discussed the outlooks for the Tajik economy, its development priorities, the main aspects of the investment policy, and EDB’s plans in Tajikistan.
Igor Finogenov said to the President that the Bank was ready to take part, on both expert-and-research and financing levels, in projects involving the generation, transit and export of electric power that would help tap the country’s hydropower potential, primarily small and medium-sized hydropower projects.
In addition, EDB intends to support projects aimed at the advancement of agriculture and ensuring food imports, on the terms acceptable to the country.
The Bank will also support projects fostering the development of the financial infrastructure and ensuring access to loans for Tajik small and medium-sized businesses.
At the same time EDB will continue to monitor situation in the country and promote macroeconomic reforms as the Resources Manager of the EurAsEC Anti-Crisis Fund (ACF).
The head of EDB reminded that in 2009 EDB invested US $22.5 million in the construction of the cutting-edge Olim Textile spinning mill with a capacity of 5,000 tonnes of high-quality cotton a year. In addition, the Bank provided US $7 million to finance the supply of feedstock for the new plant.
In 2010 EDB provided a US $3 million loan to Tajprombank for the purposes of micro-lending. After the first loan was repaid in 2011 EDB opened a new loan facility to the bank to the tune of US $3 million.
In this context the head of EDB said that the Bank was ready to take a more active part in implementing Tajikistan’s economic development objectives.
The Bank is considering a number of promising projects in the key sectors of the Tajik economy. Its participation envisages investment of up to US $100 million. The President of Tajikistan emphasised that investment was specifically needed in the power sector, transport infrastructure and agriculture.
Igor Finogenov noted that funding from the ACF should also be taken into account. In 2010 the ACF provided a US $70 million financial credit to the Tajik government for the purposes of financing the social sector (education, healthcare and social protection) and improving public finance management. At present the ACF is considering a project to reconstruct irrigation networks in the Tajik part of the Fergana Valley, with an estimated value of US $80 million. The ACF’s share in the project can reach US $30 million.
As for
cooperation in the area of research and expert advice, Igor Finogenov said that
the Bank was
Additional Information
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://www.eabr.org.