European Bank of Reconstruction and Development, Tajikistan sign deals totaling $103 mln in 2025

DUSHANBE. Feb 9 (Interfax) - The European Bank of Reconstruction and Development (EBRD) signed 19 agreements with Tajikistan for a total of almost $103 million in 2025, the bank's representative office in the republic reported.

The EBRD said that it had invested 83% of this in the country's public sector, with around 58% of the loaned funds allocated for green energy projects.

Some 83% of all the loans were allocated to infrastructure projects and a further 14% to local banks to lend money to small and medium-sized enterprises, women and young entrepreneurs as well as to fund projects promoting resilience to climate change and more efficient use of resources.

One of the key projects from 2025 was a funding package for up to 43 million euros, granted to state-owned electricity distribution company Shabakahoi Taqsimoti Barq (STB). The package included an EBRD loan of up to 28 million euros and an EU investment grant of 15 million euros via the EU's Asia Pacific Investment Fund. The money will be spent on modernizing accounting and billing systems in nine cities in the Khatlon and Sughd provinces.

Another major project was an EBRD loan of 38 million euros and a grant from the Asian Development Bank (ADB) for $86.7 million or 83.5 million euros, specifically for the modernization and expansion of the Dangara-Guliston road. The road is an important transport corridor between the north and south of the Khatlon province, which accounts for over 53% of the country's agricultural output and 35% of its population.

Among notable achievements, the statement refers to the commissioning of all six hydroelectric generator units at the Kayrakkum Hydroelectric Power Plant (HPP), which marked the completion of one of the biggest projects in the field of renewable energy. The plant's installed capacity increased from 126 MW to 174 MW, supplying electricity to around 500,000 people in the Sughd province. This modernization project, launched in 2019, was implemented with the help of EBRD funding, which totaled $196 million.

The EBRD also granted three further loans for a total sum exceeding 12 million euros, or $14 million, for the modernization of water supply systems in the cities of Kulob and Yovon and central heating systems in Dushanbe.

The EBRD signed six risk-sharing agreements in 2025, taking on up to 50% of risks on the loans issued by its partner banks.

The bank's representative office in Tajikistan said that the EBRD board had approved a new strategy for cooperation with Tajikistan, defining the bank's priorities in the country up to 2030.

As part of the strategy implemented by the EBRD in 2020-2024, it invested a total of 369.3 million euros in Tajik businesses.