EBRD investing US$150m in Tajikistan for infrastructure development

ongoing

The people of the Rasht Valley in eastern Tajikistan will soon benefit from better regional transport links, connectivity, and new economic opportunities, thanks to a major infrastructure project investment by the European Bank for Reconstruction and Development (EBRD). A US$150 million loan arranged by the EBRD will finance the construction of a 44 kilometre stretch of the M41 motorway, which is the main transport corridor in the country that links Tajikistan with its neighbours the Kyrgyz Republic, Kazakhstan and China. This investment complements similar funding by the Asian Development Bank and the Asian Infrastructure Investment Bank, who are also jointly financing the construction of a bypass from the existing section of the M41, which needs to be replaced due to the construction of a new hydropower plant in the area. Technical co-operation funding, which is aimed at the assessment of climate change risks, was provided by the Czech Republic. This scheme will also provide multiple economic benefits for local women, with five local trading areas to be established to support more than 8,000 women entrepreneurs along the valley. At least 150 women will receive specialized training designed to improve their commercial skills. The investment will also be used to help improve road maintenance practices in Tajikistan, through the increased funding and institutional capacity measures supported by the Bank. The new motorway will also bring gender-sensitive and safety facilities, which will include safe pedestrian crossings, road lighting, bus stops and special family rooms at the rest stops. To date, the European Bank for Reconstruction and Development has invested over €700 million through 133 projects in Tajikistan’s economy.