14 December 2012: The European Bank for Reconstruction and Development (EBRD) is expanding its programme of upgrading water supply systems in Tajikistan by further investing in efforts to bring safe water to the northern cities of Istravshan, Pendjikent, Shakhriston and Zafarobod, as well as Isaev and Yovon, in the south-west Khatlon Province.

EBRD is extending two loans of US$ 12 million to Khojagii Manziliyu-Kommunali (KMK), the central governmental agency responsible for water supply and wastewater services, for on-lending to its subsidiaries in the six participating cities. The Swiss State Secretariat for Economic Affairs (SECO) may co-finance the loan for projects in Istravshan, Pendjikent, Shakhriston and Zafarobod. The EU’s Investment Fund for Central Asia (IFCA) is considering co-financing the investments in Isaev and Yovon.

While Tajikistan is abundant in water resources, the lack of adequate water infrastructure translates into limited access to safe water. Ulf Hindstrom, EBRD Dushanbe, underscored that the EBRD financing will enable the water companies in the six cities to upgrade their infrastructure, expand access to safe water to families, and ensure households connected to the water supply system actually receive water and are billed accordingly.

EBRD noted that financial sustainability of the water operators is a crucial element of the EBRD’s integrated approach to improving Tajikistan’s water sector. In that regard, the Bank has previously helped develop a water tariff methodology to secure cost recovery levels, provided capacity-building support to the water sector and engaged stakeholders in sector reform. To date, the EBRD has committed over US$ 319 million to various sectors of the Tajik economy. [EBRD Press Release]