GrCF3W2 - Dushanbe District Heating Extension

disbursing

The initial sovereign-guaranteed loan of US$ 5.0 million, co-financed by an investment grant of US$ 5.0 million from the Shareholder Special Fund (SSF), was signed in 2021 to finance the rehabilitation of district heating (DH) infrastructure in Dushanbe, under the GrCF2W2-Dushanbe District Heating project (Project ID 49375). The PIP included: - Procurement of operational and maintenance equipment and machinery (Lots 1-3). - Installation of 16 smart meters and rehabilitation of 16 DH pumping stations. - Rehabilitation and extension of DH network (Lots 1-2). Due to high inflation that followed the project's technical and economic feasibility assessment, the PIP had to be adjusted based on the results of open procurement process. Specifically, the contracting of Lot 2 of the "Rehabilitation and extension of the DH network" had to be postponed due to the lack of available financing. The additional sovereign-guaranteed loan of up to US$ 3.0 million and investment grant of up to US$ 3.0 million as an extension to the Project ID 49375 are now required to address cost overruns to achieve the project objectives.