BAKU, Trend, October 31. Under the new country
strategy extending until 2025, the European Bank for Reconstruction
and Development (EBRD) is committed to enhancing Tajikistan’s
infrastructure, bolstering regional connectivity, and expanding
employment opportunities within the country, Holger Wiefel, the
Head of Tajikistan for EBRD, told Trend in an exclusive interview.
“The EBRD’s recently approved country strategy until 2025
addresses issues such as a volatile macroeconomic environment, a
challenging business climate and vulnerability to climate change.
Our investments in Tajikistan are aimed at making the economy
green, digital, inclusive and resilient,” he said.
Wiefel highlighted that the EBRD’s activities in Tajikistan
align with a country strategy collaboratively developed with the
government, aimed at bolstering the resilience, modernization,
digitalization, and regional integration of the national
economy.
“We firmly believe in the importance of trade for Tajikistan. In
addition to offering trade finance schemes to domestic exporters
and importers, we are also looking at modernising Tajikistan’s key
infrastructure important for the sustainability of international
and regional trade,” he added.
Wiefel stressed that special attention given to the development
of Tajikistan’s agricultural sector, which employs nearly half of
the country’s workforce and contributes more than 22.5 percent to
the gross domestic product. EBRD actively collaborates with partner
banks to support micro, small, and medium-sized enterprises in
Tajikistan.
He highlighted the successful completion of various EBRD
projects, with 67 percent of investments last year being green.
Additionally, EBRD funded the first green taxi project across all
the economies it operates in.
Wiefel went on to detail specific EBRD projects in Tajikistan,
such as the completion of a significant 10-year infrastructure
project in water management, which received EBRD funding and
support from the EU and Switzerland. This project provided
uninterrupted access to clean and safe drinking water for more than
400,000 people in 13 municipalities and introduced
climate-resilient water supply and treatment infrastructure.
He also mentioned the Sugd Energy Loss Reduction Project,
co-financed by the EU Investment Fund for Central Asia and the
European Investment Bank (EIB), which improved power supply
reliability and reduced electricity losses through advanced
metering infrastructure.
According to him, the Qairokkum HPP rehabilitation project was
another point of pride, as EBRD mobilized concessional financing
from Climate Investment Funds and the Green Climate Fund. This
financing supported the modernization of a 60-year-old hydropower
plant that provides electricity to 500,000 people. As part of the
project, professional training was offered to energy sector
professionals to help them adopt best practices for mitigating
climate change in hydropower plant operations.
Wiefel revealed the launch of the $50 million Tajikistan Green
Economy Financing Facility II (GEFF Tajikistan II), which aims to
promote higher energy and resource efficiency standards and support
the country’s transition to a more environmentally friendly
economy. This program encourages residential and commercial
borrowers to invest in green and innovative solutions for efficient
water use and sustainable land management, providing better access
to green technologies and climate adaptation in a country severely
affected by climate change.
He added that GEFF Tajikistan II builds upon the foundation of
the initial Green Economy Financing Facility I (GEFF Tajikistan I),
which received support from the EU and operated from 2019 to 2023.
GEFF Tajikistan I effectively facilitated over 4,600 sub-projects,
resulting in an annual production of more than 24,000 MWh of energy
savings, a reduction of 5,195 tons in CO2 emissions, and a decrease
in water consumption by 5.2 million cubic meters.
“The development of green economy and decarbonization plans are
integral to Tajikistan’s agenda. This is an irreversible global
trend, and the country recognizes the need and urgency of this
work. The EBRD stands ready to provide its expertise and financial
resources to assist the authorities,” he said.
Furthermore, he mentioned that over the past 30 years, the EBRD
has been an active supporter of Tajikistan’s banking sector through
equity investments, lines of credit for micro-, small, and
medium-sized companies, trade finance facilities, syndicated loans,
and risk-sharing schemes.
“The bank has historically provided almost 250 million euros to
Tajik banks and microfinance institutions, which have then directed
these funds toward numerous green, agribusiness, and digital
projects, as well as supporting women entrepreneurs. Nearly 115
million euros (or 46 percent) of this amount were allocated to aid
Tajik exporters and importers within the framework of the Bank’s
Trade Facilitation Programme,” he explained.
The Trade Facilitation Programme, initiated in 1999, was
designed to enhance and streamline trade activities among the
economies where the EBRD has made investments.
Wiefel further emphasized that equity investments are among the
options considered for the development of Tajikistan’s banking
sector when appropriate opportunities arise.
“Throughout these years, the EBRD has enjoyed excellent
cooperation with Tajikistan’s authorities, both central and
regional, as well as the business community, which has enabled the
bank to invest over 900 million euros in nearly 160 projects across
the country. Our funds have supported commendable entrepreneurial
initiatives and vital upgrades in various sectors, ranging from
energy and transportation to banking and small and medium-sized
enterprises (SMEs),” Wiefel said.
