ADB approves $105 million loan to improve financial sustainability of the power sector in Tajikistan

The Asian Development Bank (ADB) has approved a $105 million grant to accelerate the implementation of ongoing reforms and improve the financial sustainability of the power sector in Tajikistan. ..

The reforms include unbundling the vertically integrated power utility Barki Tojik into three independent companies responsible for power generation, transmission, and distribution; restructuring Barki Tojik’s excessive liabilities; establishing a new power sector regulator; adopting a tariff methodology; and setting up a new centralized cash control system among the unbundled entities. As part of the reforms and institutional capacity building, a newly established power distribution company will be operated under a five year management contract by an internationally reputable company with experience operating power utilities. The total cost of the program is $145 million, with the Government of Tajikistan providing $15 million, and the European Bank for Reconstruction and Development providing a $25 million loan. The program is expected to be completed in 2026.

 

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