DUSHANBE, Tajikistan, August 16. The European Bank for Reconstruction and Development (EBRD) is currently considering providing loan financing for the fixing of two existing transformers at the 500/220/35 kV substation in the Sugd region of Tajikistan, Trend reports.
According to the bank, the financing will be in the form of a sovereign loan of up to 25 million euro to Tajikistan. The loan proceeds will then be provided to Shabaqahoi Intiqoli Barq Company, which is the entity responsible for implementing the project.
The estimated approval date for the loan is November 15, 2023. The total cost of the project is 30 million euro.
“The implementation of the project shall contribute to strengthening of the power sector in Tajikistan by reducing losses, improving collection rates and revenue streams,” the EBRD said.
The primary goals of the project are to address the most pressing needs for replacing aging infrastructure and to contribute to the reduction of distribution network losses, resulting in financial savings and a decrease in CO2 emissions.
Ultimately, the EBRD expects the project to enhance the reliability and stability of the transmission network, boost the capacity of the electricity system, and consequently lead to a reduction in system losses.
The EBRD portfolio in Tajikistan reached 487 million euros, allocated for 67 active projects as of July 31.
Tajikistan joined the EBRD in 1992; since then, the bank has established itself as the primary investor in the country, fostering a longstanding cooperation. Its primary focus in Tajikistan lies in enhancing infrastructure, promoting regional connectivity, and creating employment opportunities.