Program Snapshot by alicejenny

VIEWS: 6 PAGES: 41

									WORLD BANK – TAJIKISTAN PARTNERSHIP
        PROGRAM SNAPSHOT




            September 2011
RECENT ECONOMIC AND SECTORAL                                           expenditures on health, education, and social assistance.
DEVELOPMENTS                                                           GDP growth recovered to 6.5 percent in 2010, and rose
                                                                       further to 6.9 percent in the first half of 2011. Economic
Growth and External Performance                                        growth in the first half of 2011 was boosted by increased
                                                                       exports (up 23.2 percent) and services (up 13.5 percent).
In the 2000s, Tajikistan’s economy recovered from the                  Remittances have rebounded in 2010 and 2011—estimates
severe transition-related recession and civil conflict of              indicate that remittance inflows increased by 26 percent in
the 1990s. Macroeconomic performance improved                          2010, and further by 38 percent during the first half of
considerably during this period: inflation fell from 30–40             2011 compared to the same period in 2010. Rising
percent in the late 1990s to 6–7 percent in the mid-2000s,             international wheat and fuel prices, exacerbated by customs
fiscal deficits were lower, and the current account deficit            duties on gasoline introduced by Russia in April 2010,
and external debt moved to more manageable levels. Real                pushed up the inflation rate to 9.8 percent in 2010, and 7.1
GDP growth averaged 8.6 percent per annum in 2000 to                   percent by July 2011.
2008. Strong growth over this period was made possible by
five favorable factors: the peace agreement that permitted
businesses and households to return to normal economic
activity; a stabilization dividend from the Government’s
success in stabilizing the economy; the growing global and
regional economy that led to rising aluminum and cotton
export receipts and remittances; rising inflows of donor
assistance, including from the international financial
institutions; and reforms that permitted existing businesses
and households to take advantage of emerging
opportunities.

                       GDP growth and Remittances
        12                                                        50
                                                                  45
                                                                       Tajikistan’s current account deficit peaked at over
        10
                                                                  40   US$1.8 billion in 2008, but has since improved
         8
                                                                  35   following the adoption of greater exchange rate
                                                                  30   flexibility by the authorities. Depreciation of the somoni
         6                                                        25
                                                                  20
                                                                       (by more than 30 percent relative to the US dollar since
         4
                                                                  15   2008) contributed to Tajikistan’s improved competitiveness
         2
                                                                  10   compared to other countries in the region, and facilitated
                                                                  5    current account adjustment. The current account balance
         0                                                        0
             2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
                                                                       improved from a deficit of 7.6 percent and 5.9 percent of
                                                           est.        GDP in 2008 and 2009 respectively to a surplus of 2.2
                        GDP growth     Remittances as % of GDP
                                                                       percent of GDP in 2010. At the same time, international
                                                                       reserves rose from 0.7 month of imports in 2008 to an
Tajikistan was adversely affected by the recent global                 estimated 1.4 months in 2010. Higher international prices
economic crisis, but economic recovery is underway.                    of aluminum and cotton were important contributory
Due to a decline in remittances and a fall in exports of               factors in facilitating external adjustment, as was the
cotton and aluminum, economic growth fell to 3.9 percent               temporary contraction of imports due to disruptions to rail
in 2009. Remittances fell from US$2.3 billion in 2008                  transit through Uzbekistan in the first part of 2010 and
(nearly 47 percent of GDP) to US$1.6 billion in 2009, while            slowdown in external loan disbursements for the public
total export receipts dropped by almost 13 percent due to              investment program. However, the current account is
lower international prices of cotton and aluminum. The                 expected to revert to 3.6 percent of GDP deficit in 2011
Government responded to the growth slowdown by                         due to the adverse terms-of-trade shock of higher food and
pursuing a two-pronged strategy of increasing public                   fuel prices as well as pent-up import demand following rail
spending as well as facilitating external adjustment through           transit disruptions.
greater exchange rate flexibility. To assist the Government
of Tajikistan during the global economic crisis,                       Tajikistan’s biggest challenge in the coming years will
development partners provided increased external                       be lifting its low rates of private investment. Total
assistance in 2009, which helped the Government maintain               investment, dominated by public investment, has hovered

1
around 20 percent of GDP during the past decade, with             protection) were broadly on target and fully financed in
private investment stagnating at only around 5 percent of         2010. Public spending (excluding the public investment
GDP. As highlighted in the World Bank’s 2011 Country              program) on the social sectors has increased steadily from
Economic Memorandum, improving the business                       8.1 percent of GDP in 2007 to 10.0 percent of GDP in
environment and managing relations with neighboring               2010, and is projected to rise further to an estimated 10.4
countries will be key factors in stimulating private              percent of GDP in 2011. Within the public investment
investment and foreign direct investment to sustain growth        program, capital spending on the energy sector accounts
over the medium-term. Over the medium-term, real GDP              for the largest share of public spending. With a view to
in Tajikistan is projected to grow at around 5 percent a          broadening the tax base, increasing tax revenue, and
year. Initially most of the projected growth is expected to       creating an environment conducive to private sector
come from construction, trade and other services, but with        growth, the Government has announced the development
time export of non-cotton agriculture, power, and mining          of a new tax regime to be drafted shortly, which is expected
are expected to contribute increasingly to growth.                to come into effect in 2013.

Fiscal Sector Performance

Despite the macroeconomic challenges posed by the
recent global economic crisis, the Government of
Tajikistan has managed to maintain a fairly prudent
fiscal stance, and restricted the fiscal deficit, excluding the
public investment program (PIP), to 0.5 percent and 0.4
percent of GDP in 2009 and 2010 respectively. According
to the IMF-World Bank 2011 Debt Sustainability Analysis,
Tajikistan’s debt to GDP ratio was 35 percent as of end-
2010. While the external debt is largely concessional, held
in broadly equal parts between multilateral and bilateral
creditors, Tajikistan’s risk of debt distress remains high.
The Tajik authorities have reaffirmed their commitment to
the importance of maintaining macroeconomic stability as a
precondition for sustaining high growth and faster poverty
reduction. The Government has identified debt
management as an area for priority reform, and remains
committed to gradually eliminating the fiscal deficit
(excluding PIP) by 2014. Including the PIP, the fiscal
deficit is expected to be brought down to around 2.5
percent of GDP by 2014. Total government revenues
posted strong growth in the first half of 2011, increasing by
47 percent in nominal terms compared to the same period
last year.

                                                                  Financial Sector

                                                                  Tajikistan’s banking sector remains fragile, as non-
                                                                  performing loans (NPLs) continued to grow in 2009
                                                                  and 2010, showing a small decline in the first half of
                                                                  2011. Bank profitability turned negative in mid-2010. NPLs
                                                                  have risen sharply from 4.8 percent in 2007 to 19.7 percent
                                                                  in September 2010, after peaking at 28 percent in March
                                                                  2010. They have continued a gradual decline to 16.39
                                                                  percent in June 2011. The apparent improvement in 2010-
                                                                  11 is due to writing off cotton loans under the
Social and energy sectors remained priority recipients            Government’s cotton debt resolution framework and
of budgetary funds and donor resources throughout                 replacing them with government bonds. The provision
2010-2011. Social sectors (education, health, and social          coverage for NPLs at end of June 2011 is low at around 35
2
percent at the system level. The capital adequacy ratio         changes to the insolvency law to streamline the timelines
(CAR) of the banking system is 22.81 percent as of June         set in the law for proceedings; has improved the protection
2011, comfortably above the minimum requirement of 12           of the minority shareholder rights in cases of self-dealing of
percent. Certain practices tend to under-report NPLs and        the assets of the corporation; has lowered corporate
under-provision, thus overstating capital. NPLs and             income tax rates; and has passed new laws calling for the
prudential violations are concentrated in two or three large    creation of a credit bureau. As a result of these reforms,
banks that are closely associated with the cotton sector and    for two consecutive of 2010 and 2011, Tajikistan has been
state-owned enterprises. Directed lending has increased         amongst the top 10 countries that have improved their
banks’ exposure to agriculture (from 8 percent of total         business environment the most in the world, as captured by
loans in 2007 to about 17 percent in 2010), which has the       Doing Business Report.
highest rate of NPLs (28 percent). Lending decisions that
are not always based on sound economic analysis, absence        Despite considerable progress, the development of the
of an effective financial infrastructure, and weaknesses in     private sector and the appropriate legal framework for
the regulatory and supervisory framework also contribute        its growth remain a work in progress. Tajikistan ranks
to banks’ credit risk.                                          139th out of 183 countries in Doing Business 2011 report of
                                                                the World Bank Group. In addition, other challenges
      35
                                                                beyond the Doing Business methodology also remain.
      30
                                                                According to the Business Environment and Enterprise
      25
                                                                Performance Survey (BEEPS) undertaken in 2007-8, as
      20
                                                                well as the World Bank’s Country Economic Memorandum
      15
                                                                of 2011, firms in Tajikistan claim to face a number of
      10
                                                                significant constraints including those related to: (i) tax
       5
                                                                policy and administration; (ii) electricity supply; (iii)
       0
            2007    2008     2009     2010   Jun-11
                                                                corruption in interactions with public officials; (iv) access
                                                                to finance; and (iv) labor skills.
                      CAR      NPLs/loans    ROE



The World Bank supports financial sector
development in Tajikistan through policy advice and
technical assistance. In 2010, the World Bank completed
a vulnerability assessment of the banking sector. In
addition, it provides significant financial sector advisory
assistance, including on (i) banking legislation and
regulation (central bank law, banking law, deposit insurance
law, payment system law, bank insolvency law, and related
regulations), (ii) payment systems development, (iii) secured
transactions modernization, and (iv) contingency planning.
The Bank has recently submitted a Trust Fund proposal to        The World Bank supports the development of the
strengthen banking supervision. The Bank also assisted to       private sector in Tajikistan by providing technical
prepare a medium-term financial sector strategy and action      assistance to the Government in simplifying
plan and mobilize donor support for its implementation.         regulations and procedures as it relates to the business
                                                                environment, and by providing assistance towards
Private Sector Development                                      building the capacity of government institutions that
                                                                implement reforms.          The Government remains
Tajikistan has been active in taking measures towards           committed to further reforms towards the development of
the development of the private sector. For example,             the private sector, and has sought the World Bank’s
since 2008, the Government has made it easier to start a        assistance in this area. The World Bank Group supports
business by eliminating unnecessary procedures, lowering        the Government through a number of initiatives including
minimum capital requirement and establishing a one-stop-        the Doing Business Reform Program 2009-2011, which
shop. In addition, in the area of permits and construction,     was developed through a partnership with the UK
the Government has passed amendments that have eased            Department for International Development (DFID), and
the burden of obtaining permits, and has enacted laws that      designed to provide assistance in targeted areas, including
call for the creation of a single window for utilities in       starting a business, registering property, trade, getting
construction. Moreover, the Government has made                 credit, construction permits, and protecting investors. In

3
addition, the World Bank provides industry-specific              There are signs that the economic growth is not
technical assistance towards the simplification of the           translating into improved living conditions across the
regulatory framework, and collaborates with local business       population. For example, extreme poverty, which reflects
associations in improving the public-private dialogue in         those who cannot afford to purchase a food basket
Tajikistan. Moreover, the World Bank delivers and
coordinates targeted capacity-building and training activities   satisfying basic dietary needs, remained nearly unchanged
for agencies that are responsible for carrying out and           between 2007 and 2009 at 17.5 percent of the population in
implementing reforms related to the development of the           both urban and rural Tajikistan. Furthermore, recent World
private sector in Tajikistan.                                    Bank analysis showed that the economic growth between
                                                                 2007 and 2009 was more concentrated among better-off
Poverty Developments                                             households, especially in the urban areas, with a large part
                                                                 of the rural poor seeing no increase in household
                                      Tajikistan continues       consumption. Whether this reflects a change in the
                                      to      remain      the
                                      poorest country in         poverty-growth dynamics or reflects more the sharp decline
                                      the Europe and             in remittances remains to be seen.
                                      Central Asia region
                                      (ECA) despite the          Social Protection
                                      reduction of poverty
                                      rates      from       83
percent to 47 percent between 1999 and 2009. The                                               Tajikistan’s two main social
incidence of rural poverty is 7 percentage points higher                                       assistance programs exert
than in urban areas. There is a risk of reversing the gains of                                 almost       no     downward
poverty alleviation, as the economic growth remains largely                                    influence on poverty rates.
dependent on external environment, particularly the pace                                       This is because the budget for
of recovery in Russia where up to 90 percent of labor                                          social assistance is extremely
migrants go, and the country’s ability to overcome chronic                                     low – the lowest in the Europe
energy shortage in the winter period. Tajikistan is unlikely                                   and Central Asia region – and
to meet the Millennium Development Goals (MDG).                                                because the social assistance
                                                                                               programs are poorly targeted.
                                                                                               The Government will not
                                                                                               increase the budget for social
                                                                                               assistance, and donors will not
                                                                                               support the social assistance
                                                                 programs, because the current system lacks mechanism for
                                                                 financial control, auditing and monitoring.

                                                                 The Government of Tajikistan recognizes this
                                                                 challenge and is taking steps to improve its system of
                       Poverty rate
                                                                 social assistance. It launched a pilot of a consolidated
                                                                 social assistance benefit in January 2011. The pilot is
                                                                 testing the scoring formula (proxy-means test) proposed in
                                                                 the World Bank report on Delivering Social Assistance to
                                                                 the Poorest Households. The pilot consolidates the two
                                                                 largest social assistance programs into a single benefit,
                                                                 targeted to the poorest 20 percent of the population. The
                                                                 Government agreed to plans to scale up an improved social
                                                                 assistance program nationwide in the context of the Fourth
                                                                 Programmatic Development Policy Grant. Reform of
                   Extreme poverty rate                          social assistance also features in the policy matrix of the
                                                                 European       Union’s     budget     support    agreement.
                                                                 Furthermore, the European Union (EU) is providing
                                                                 technical assistance to the Ministry of Labor and Social
                                                                 Protection for the pilot through a team of consultants. The

4
World Bank and the EU signed a Memorandum of                      efficient use of resources and poses a threat to access to
Understanding on June 11, 2010 on cooperation to support          care for low-income groups, particularly in rural areas.
the pilot.
                                                                                                              The Bank is one
To further support the Ministry of Labor and Social                                                           of the largest
Protection, the World Bank mobilized a grant to the                                                                development
Government of US$ 2.2 million from the Rapid Social
Response (RSR) Multi-donor Trust Fund to support the                                                          partners and has
pilot, which the Government will continue through 2012.                                                       the        longest
The World Bank has also provided an IDA grant to                                                              history          of
support the development and implementation of a national                                                            engagement
electronic registry for social assistance and capacity building                                               supporting the
for the national rollout of the consolidated and poverty-                                                     health sector in
targeted social assistance benefit. Finally, the World Bank is
                                                                  Tajikistan. The first Primary Health Care Project (2000-
also exploring opportunities to support disability projects
in Tajikistan.                                                    2005) introduced a model of health care delivery based on
                                                                  primary care and construction of 25 rural health facilities.
Health                                                            The subsequent project, the Community and Basic Health
                                                                  Project (2006-2012), co-financed by the Swedish
                                        Health indicators         International Development Agency and Swiss Cooperation
                                        of Tajikistan are         Office, aimed to increase access to, utilization of, and
                                        among the lowest          patient satisfaction with health services in project-
                                        in the Europe and         supported areas, and to build capacity and efficiency at
                                        Central        Asia       national, oblast and rayon (district) levels in administering a
                                        region. However,          basic package of health benefits. Significantly, it also
                                        some key indicators       introduced financing reforms in primary health care (PHC).
                                        like Infant Mortality     The Bank has also recently started supporting the Ministry
Rate decreased from 89 per 1000 live births in 2000 to 65         of Health in implementation of community based activities
per 1000 live births in 2005, and a similar decrease              aimed at addressing the high rates of childhood
occurred in the under-five mortality rate (UNICEF, 2007).         malnutrition observed in Khatlon region. This project
As far as financial sustainability and equity is concerned,       (2010-2013) is being implemented with the support of a
the Government’s health spending is low at 1.14 percent of        Japanese Social Development Fund (JSDF) grant. In 2011,
GDP in 2007. On the other hand, private out of pocket             the Bank will begin identification of a health operation
expenditures on health comprise approximately 72 percent          based on Results-Based Financing (RBF).
of total health spending, compared to the 18 percent spent
by the public sector. The out of pocket spending is the           Education
highest in the entire Europe and Central Asia region, and
raises concerns about equity in access.                                                           Tajikistan              is
                                                                                                  approaching universal
Inefficiency in production of health care and                                                     primary and         lower
allocation of resources. The health sector is characterized                                       secondary      education
by poor health outcomes, misallocation of staff and other                                         (grades 1-9 - ages from
resources, inefficient production of care, and hospital                                           7 to 15). Enrollment for
overcapacities. The provider payment system worsened the                                          14 years olds has
problem of excess capacity, as it is based on the number of       increased from 88 percent in 2007 to 95 percent in 2009.
hospital beds. These are unequally distributed between            However, enrollment in pre-school is very low standing at
urban and rural areas, resulting in inequity in access. A lack    7 percent only. Higher education (ages 18–24) is largely
of pooling of health funds contributed to creating                inaccessible to the poorer families. Some 72 percent of
geographic divisions and underfunding, which hampers              university students come from rich households compared
                                                                  with 13 percent from the poor families. To increase access
5
to higher education for the poor and make university           education quality control agency, and a National Testing
admission more fair and transparent, the Government has        Center is being set up to have institutional tools to measure
established the National Testing Center – a key element of     learning outcomes. The World Bank is supporting these
the National Assessment System - which is being                and other reforms through the Education Modernization
                                                               Project and a series of Education for All Fast Track
supported by the Bank, the Russian Government and the          Initiative grants.
Soros Foundation. The first admission to Higher
Education Institutions through the National Testing Center     Agriculture and Rural Development
is planned for 2014.
                                                                                                         With per capita
                                                                                                         income in the
                                                                                                         range of US$ 700
                                                                                                         the majority of
                                                                                                         the population is
                                                                                                         dependent       on
                                                                                                         agriculture     for
                                                                                                         their livelihoods.
                                                                                                                 Agriculture
                                                                                                         contributes      23
                                                               percent of the GDP, but employs 75 percent of the
                                                               country’s workforce, translating into low labor productivity
                                                               and high levels of poverty in rural areas. About 76 percent
Despite the efforts of the Government, the growing             of the poor in the country live in rural areas. The rural
school-age population poses challenges to education            poverty rate has declined but remains high. Of great
sector, affecting the entire economy. The education            concern, however, is the recent rise in rural poverty due to
level of the population has decreased. Today, less than 25     successive shocks, including adverse climatic conditions
percent of the working-age population has a professional       and the locust attacks of 2008. In addition, the regional
education. Tajikistan is a rare example of a country in        food price crisis of 2009-2010 contributed to increased
                                                               household food insecurity, and the global financial crisis in
which the education level of older generations is higher       2009 reduced the level of remittances, an important source
than the level of education of the youth. The education        of supplementary income for many poor rural households.
system graduates’ skills lack relevance to the needs of the
economy and development. In spite of the steady increase       Mountains and hills cover more than 90 percent of the
of teachers’ salaries, the education system experiences        Tajik territory. Agricultural land is limited with only
dramatic shortage of qualified teachers, who leave the         about 860,000 ha of medium fertility arable land.
                                                               However, the country has the resources and the potential
sector mainly due to economic reasons. That affects all
                                                               for a diversified agricultural sector, based on the
levels of education from pre-school to universities.           production of cereals, cotton, fruit, vegetables and livestock
Teacher training and retraining programs lack quality and      products. Crop yields have increased over the last decade
relevance. Buildings of 43 percent of schools are in an        particularly for non-cotton crops such as potatoes, fruits
emergency state or need capital rehabilitation or              and vegetables, although they remain low by international
reconstruction (affecting 36 percent of students). The         standards. There is considerable room to raise yields and
Government allocates budget resources and attracts             productivity through better crop management, more
                                                               intensive use of inputs and, most importantly, improved
external funds to implement the State Program on
                                                               irrigation.
Investments in school infrastructure.
                                                               Agricultural growth has been much slower than overall
The Government and the Ministry of Education                   economic growth. This was the result of continuing
(MOE) are committed to strategic goals to reform the           emphasis on cotton production and associated distortive
education sector. In order to improve the strategic and        policies. Recognizing the need to promote more rapid
efficient use of resources, the MOE is piloting policy-based   agricultural growth and reduce rural poverty, the
budgeting through the first stages of using a Medium-term      Government adopted several key policy reforms in the past
Expenditures Framework, and introducing per capita             three years (including amendments to the land code,
financing along with increasing school autonomy. The           adoption of the law on state registration of immovable
curriculum is being reformed, the MOE has established an
6
property and rights, a new law on mortgage, and further          with limitations in national prediction and response
efforts are underway to address remaining weaknesses).           capabilities. These impacts are expected to worsen in the
The Government has been working closely with donors to           future, with Tajikistan assessed as the most vulnerable
develop a broad-based reform program and to introduce            country to the impacts of future climate change in the
measures to remove policy distortions. A ―Road Map‖ or
action plan was adopted to reform the agricultural sector. It    Europe and Central Asia region. A key pillar in the
served as a platform for developing and implementing             Government and donor response was reached in
agricultural reforms: ensure freedom to farm, ensure             November 2010, with the approval of a US$ 50 million
proper land titling, improve farmers’ access to finance and      program of investments under the multi-donor supported
collateral practices, increase returns to farmers and            Pilot Program for Climate Resilience (PPCR), the key
promote cotton sector recovery.                                  Climate Investment Fund focused on broad adaptation
                                                                 issues. The World Bank coordinates the PPCR-supported
                                         The World Bank
                                                                 efforts of IBRD as well as the Asian Development Bank
                                         supports         the
                                                                 and European Bank for Reconstruction and Development.
                                         agricultural sector
                                                                 Key components include strengthening of weather and
                                         in       Tajikistan
                                                                 climate services, enhancing the resilience of the agricultural
                                         through ongoing
                                                                 and energy sectors, mainstreaming into river basin
                                         policy advice and
                                                                 management efforts, and capacity building and training. A
                                         investment lending
                                                                 coordination structure is being established in the
                                         for implementation
                                                                 Government to facilitate inter-Ministerial cooperation and
                                         and deepening of
                                                                 enhance engagement with civil society organizations.
agriculture reforms to: reduce food insecurity; rehabilitate
irrigation systems and support effective water management        Energy
(including irrigation management transfer and effective
development of river basins); improve access to agricultural                                              The energy sector
financial services (development of broader base for                                                       of the country is
agricultural lending, especially for cotton sector); develop                                              dominated by the
agriculture      support     services      (input     supply,                                             electricity sector
                                                                                                          mainly due to
marketing/processing,        training/advisory       services,
                                                                                                          abundant       but
veterinarian services      and support to seed sector                                                         underexploited
development); support land tenure and sustainable land                                                    hydro        power
management; set land registration and cadastre system to                                                  resources,     and
support ongoing land reform; provide institutional               limited use of other commercial sources of energy,
development and capacity building for the sector ministries      such as gas and coal. The strategy of the Government in
and support to continued policy and reform process               the energy sector is to ensure reliable supply to consumers,
                                                                 deal with the severe winter energy shortages, achieve
through separate technical assistance programs; and              sustainable export of summer surplus electricity, and
support building greater resilience of various sectors from      pursue reforms in the sector. In terms of physical
impacts stemming from recent climate variability and             investment, efforts in the power sector have been directed
future climate change.                                           towards all the three areas: power generation, transmission,
                                                                 and distribution.
Environmental Protection
                                                                 In terms of generation, several major projects have
                                      Tajikistan has been        been completed and are being implemented by the
                                                                 Government of Tajikistan and foreign investors. A run-
                                      impacted by floods,
                                                                 of-the-river Sangtuda-1 Hydropower Plant (HPP) added an
                                      droughts and soil          incremental capacity of 670 MW in 2009. The first unit of
                                      erosion    due   to        240 MW Sangtuda-2 HPP has been completed. A coal fired
                                      recent extremes in         combined heat and power project with about 270 MW
                                      weather         and        capacity is also planned to meet the winter deficits. Pamir
                                      climate,    coupled        Energy project, which received financing from the
                                                                 International Development Association (IDA) and
7
International Finance Corporation (IFC), has established        electricity and gas sectors with support from the Bank
an exemplary public-private partnership-based structure         and the Swiss Government. The World Bank has helped
delivering electricity to a highly remote area in the Eastern   finance the installation of around 170,000 electricity meters
part of the country, based on its own generation,               in Dushanbe and 140,000 gas meters in various regions of
transmission and distribution facilities. Apart from            the country. Installation of electricity meters in Dushanbe
achieving a high availability factor, Pamir HPP is providing    together with distribution network rehabilitation resulted in
electricity to some villages in the neighboring Afghanistan,    increase in billed consumption by around 50 percent within
although on a limited scale. These projects represent a         last two years. Billed revenue for sales of electricity in
significant foreign investment in the sector. In addition,      Dushanbe increased by almost five times in the same
assessment studies on the proposed Rogun hydropower             period. A Financial Management Improvement Program is
project (HPP) have started in the first quarter of 2011 to      being implemented by Barki Tajik and Tajiktransgas
assess the proposed project’s technical soundness,              (national electricity and gas companies). The two utilities
economic viability and compliance with all relevant             are expected to make good progress towards full migration
environmental and social safeguards – and also to assess        to the International Financial Reporting Standards based
whether the proposed project is viable based on the current     system by end 2011, which would be a good step for
international standards and practices. In addition, a           transparency and better corporate governance with reliable
feasibility study for rehabilitation and sedimentation          financial and energy flow information.
management of Nurek HPP is being planned. Efforts are
also underway to explore gas and coal, which could provide      Rehabilitation of damaged gas distribution sections
thermal based options for meeting winter energy shortfall.      has helped in improving the reliability of the natural
                                                                gas system operation. A number of boiler houses and
                                                                local district heating systems were rehabilitated under the
                                      In the absence of         Bank-funded emergency project, which benefitted in
                                                    adequate    providing heat during winters to several hospitals, schools
                                                transmission    and residential buildings in various regions.
                                      linkages,     use    of
                                      summer          surplus
                                      aligned with the flow     Municipal Services
                                      of       water      for
                                                 downstream                                           Water supply and
                                      irrigation needs is a                                                        sanitation
critical issue. Currently, much water is spilled without                                              infrastructure       has
generating electricity. There is also a limited market for                                            suffered      extensive
using benefits of ancillary services like frequency and peak                                          degradation over the
load support in the region. Export of electricity to                                                  years, is rapidly
neighboring South Asia has a high priority given the                                                  decaying, and needs
existing and projected surplus of electricity in the country                                                      substantial
and huge power deficit in the South Asian countries. A                                                         rehabilitation.
link with Afghanistan to provide up to 300 MW summer            Tajikistan mainly uses surface and groundwater sources,
exports is under construction. The Government is also           more than half of which have elevated hardness and
working with the World Bank and other International             mineralization levels. Due to the limited capacity of
Financial Institutions (IFIs) to assess Central Asia South      operators, water supply and sanitation systems are
Asia energy market and a proposed CASA-1000 project.            inadequately maintained and renewed, and their
The four countries in the proposed CASA-1000 project are        degradation results in unreliable and inefficient service. The
Tajikistan, the Kyrgyz Republic, Afghanistan and Pakistan.      availability of sustainable drinking water and sanitation
The techno-economic feasibility study of this initiative has    services is a challenge in both urban and rural areas, with
been completed and demonstrated that it is viable without       only 59 percent of the population having access to public
adding capacity beyond Sangtuda-2 Hydropower Plant.             water supply (versus the 79 percent MDG target for 2015).
Parallel work is ongoing on Environmental and Social            In urban areas, approximately 50 percent of the population
Impact Assessment and implementation aspects of this            have house connections and 32 percent - yard connections.
project.                                                        In rural areas, only 20 percent have access to centralized
                                                                water supply systems, mainly through public standpipes
A major focus in the electricity and gas sectors has            and yard connections. Water quality in most systems does
been in implementing a loss reduction in the                    not meet national drinking standards. Furthermore, only 14

8
percent of the population has access to centralized             objectives. In addition, the political arrangements between
sanitation services (44 percent in urban areas and 3 percent    the national and sub-national government to keep peace
in rural areas). Finally, most urban centers do not have        may also limit the scope of governance reforms.
adequate solid waste collection, disposal, and recycling.       The quality of public administration, as measured in the
This poor level of service has a negative impact on people’s    2010 Country Policy and Institutional Assessment (CPIA),
health and adds unnecessary burdens to the daily                stands at 3.3 (out of 6).
management of the household, inevitably affecting women
and children.                                                   Tajikistan was selected as one of four countries in the
                                                                Europe and Central Asia region to pilot the Country
The World Bank and the Government established a                 Governance and Anti-corruption (CGAC) framework.
decade-long partnership towards the rehabilitation of           This approach involves increased attention to governance
local infrastructure to improve living standards of the         in both strategic and operational aspects of World Bank
population. The Bank has been providing significant             assistance to client countries. The World Bank’s
support to the Government through two ongoing projects          engagement on governance in Tajikistan moves toward
- the Dushanbe Water Supply Project (DWSP) completed            mainstreaming governance at the national, sector, and
in June 2011 and the Municipal Infrastructure                   project levels. Within the CGAC framework, the World
Development Project (MIDP). The MIDP assists                    Bank aims to assist the Government of Tajikistan in
Dushanbe, the capital of the country, as well as eight          tackling three principal governance challenges: (a)
principal provincial towns in providing accessible, reliable    strengthening transparency and accountability; (b)
and good quality basic municipal services (water supply,        developing capacity; and (c) fostering demand for good
sanitation and solid waste management) for the population.      governance.     Governance     interventions     will  be
Investments result in a more reliable access to basic           mainstreamed throughout all sectors in the portfolio, with
municipal services and improved quality of water, both          an emphasis on consolidating and scaling up existing
important factors for local economic growth and poverty         instruments of engagement to achieve strategic goals.
reduction. To ensure the sustainability of these
investments, and based on the country’s need to reach the       Public Sector Reforms
Millennium Development Goals (MDGs), the World Bank
has approved the Second Dushanbe Water Supply Project           The gradual stabilization of the political system has
with the main objective to extend reliable water supply         re-oriented the focus of the Government of Tajikistan
services and water quality to remaining areas of Dushanbe.      from conflict resolution issues to the establishment of
By ensuring higher quality, dependable and sustainable          a stable institutional system. In 2006, the Government
water supply service across Dushanbe, the Project will have     of Tajikistan approved the Public Administration Reform
substantial direct and indirect benefits in terms of            Strategy (PARS), which embodies a broad approach to
improving public health and reducing associated hardship        institutional reform, addressing institutional reorganization,
and costs. Preparation has also started on an additional        budget management, regulatory management and human
financing for MIDP.                                             resource management issues, and also proposes measures
                                                                to strengthen accountability and transparency in public
Governance and Anti-Corruption                                  sector management. The major areas of reforms currently
                                                                covered by the Government include implementation of key
                                   Development             in   changes in civil service development, optimization of
                                   Tajikistan depends           organizational structures in selected public sector
                                   on improvements in           institutions, enhancing effectiveness of public expenditure
                                   governance. The civil        management, and improvement of the quality of regulatory
                                   war took a heavy toll        management.
                                   on            Tajikistan’s
                                   institutional         and    The Bank supported Public Administration through the
                                   human           capacity.    Public Administration Reform Project, which has
                                   Efforts to rebuild that      contributed to fundamental civil service reforms to be
capacity are impeded by aspects of the country’s political      implemented in 2013.
economy and limited financial resources to upgrade
institutions and retrain workers to properly manage the
transition to a market economy. Capacity limitations
constrain the Government’s effectiveness in designing and
implementing programs to achieve priority development

9
Public Financial Management                                   introducing international accounting standards for state-
                                                              owned enterprises; and introducing a modern public
                                    The Government is         procurement system.
                                    highly committed to
                                    improving        public   The Bank supports public financial management
                                    financial management      reform      through    Public    Financial  Management
                                    system.         Reform    Modernization Project (PFMMP) financed by a multilateral
                                    processes which are       donor trust fund. The project uses a two-stage Adaptable
                                    currently     underway    Program Loan (APL) approach. APL-1 would address
                                    include introducing a     capacity weaknesses, support streamlining procedures on
Medium Term Expenditure Framework (MTEF) in social            budget preparation and execution, improve transparency
sectors; introducing new budget classification and the        and communications, and support incremental automation
Unified Chart of Accounts; developing a decentralized         of financial operations in the Ministry of Finance plus
internal audit function; upgrading the Treasury Information   Information Technology (IT) capacity building. APL-2
Management System and its extension to 73 territorial         would build on the results of reforms implemented under
treasury divisions; and introducing per capita financing in   APL-1 and support the automation of the modernized
education and health sectors. Other ongoing reform efforts    public financial management processes.
in public financial management include developing
securities markets and improving public debt management
capacity; modernizing customs and tax administration
systems; establishing an external audit institution;




10
THE WORLD BANK PROGRAM IN TAJIKISTAN
                                                                        In fiscal year 2011, the World Bank has approved four
                              Tajikistan joined the World               grants with a total commitment of US$ 38.2 million.
                              Bank in 1993 and IDA in                   These include a development policy grant, a water supply
                              1994. Since 1996, the World               project in Dushanbe, a social safety net strengthening
                              Bank has provided over US$                project and a regional project for capacity building for
                              630 million in International              hydrometeorology service.
                              Development       Association
                                                                        Portfolio quality is relatively high. There are no problem
                              (IDA) credits and grants and
                                                                        projects in the portfolio. The portfolio review is
                              trust funds, of which some
                                                                        undertaken on a regular basis since 2004, jointly with the
                              US$ 500 million have already
                                                                        Government of Tajikistan and the Asian Development
                              been               disbursed.
                                                                        Bank. The review for 2010 has been carried out and
                              Approximately 32 percent of
                                                                        discussed in April 2011.
                              these funds have been
                              committed for agriculture                      World Bank Cumulative Portfolio by Sectors
                                                                               (excluding TAs, as of September 2010)
                                                                                                                               World Bank Active Portfolio by Sectors
                                                                                                                               (excluding TAs, as of September 2010)


and rural development, while the share of other sectors is                                       Educa-
                                                                                         Water
as follows: economic policy, including budget support – 30                      Energy
                                                                                         7.5%
                                                                                                  tion
                                                                                                  8.3%
                                                                                                          Health   Transport
                                                                                                                                             Water
                                                                                                                                             17%


percent, health – 9 percent, energy – 9 percent education –
                                                                                 8.8%                      8.9%      1.7%                                 Education
                                                                                                                                                            15%

                                                                                                                                Energy
8 percent, water and municipal services – 7 percent and                        Agriculture
                                                                                                                                 23%
                                                                                                                                                                 Health
                                                                                                                                                                  8%

public sector – 5 percent.
                                                                                and rural            Economic
                                                                              development            policy and
                                                                                 30.5%                 public                               Agriculture
                                                                                                       sector                                                           Economic
                                                                                                                                             and rural                  policy and
                                                                                                       34.4%                                developmen
The World Bank Country Partnership Strategy (CPS)
                                                                                                                                                                          public
                                                                                                                                                 t                        sector
                                                                                                                                               31%                          6%

for 2010-2013 was endorsed by the Bank’s Board of
Executive Directors in May 2010. The CPS has two-fold
objectives: (i) reducing the negative impact of the crisis on
poverty and vulnerability; and (ii) paving the way for post-            Trust Funds: The Tajikistan portfolio includes 40 Trust
crisis recovery and sustained development. Improving core               Fund operations with US$ 80 million in commitments,
governance will be mainstreamed across the CPS program                  which represents about 30 percent of the portfolio. In
in the context of the Country Governance and Anti                       addition, Tajikistan is the beneficiary of two large Trus
Corruption (CGAC) strategy.                                             Funds, one that addresses climate change (Pilot Program
                                                                        for Climate Resilience, US$ 50 million) and another for
                   IDA Commitments and Disbursements
                                                                        food security (Global Food Security Program, US$ 28
         250                                                            million). Trust Fund activities complement the Bank
         200
                                                                        assistance program and finance a wide range of projects in
         150
                                                                        key strategic sectors including energy, agriculture and social
         100
                                                                        sectors. The Bank continues to be very active in efforts to
          50

           0
                                                                        seek additional Trust Fund resources for Tajikistan. They
               FY00 FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11   co-finance ongoing IDA operations in education,
                     Annual Commitment      Disbursement in FY          agriculture, food security, migration, demand-side
                                                                        governance that are expected to strengthen Bank’s
                                                                        involvement in these areas.
The active portfolio of the World Bank currently
consists of 16 projects with net commitment of US$                      Analytical and Advisory activities delivered in fiscal
227 million. The largest share of portfolio is in agriculture           years 09-10 include: Policy Dialogue on Private Sector
and rural development (34 percent), followed by energy                  and Financial Sector Development, Report on Standards
and water (32 percent), education (16 percent), economic                and Codes of Accounting and Audit, technical assistance
policy and public sector (14 percent including development              on strengthening tax administration, a study on women’s
policy lending), and health (8 percent).                                access to land and financial markets, a study on feasibility
                                                                        of results-based financing in health sector, macroeconomic
11
monitoring to help the government manage the crisis
budget, and a report on the social assistance reform and
poverty. The ongoing and planned analytical work will
underpin the strategies of the new Country Partnership
Strategy (CPS) for 2010-13 and include a new Country
Economic Memorandum and a poverty assessment update
to analyze the impact of the crisis on poor households by
geographical locations. The International Development
Association (IDA) will also work with the Government to
develop a comprehensive energy sector strategy. An
Institutional and Governance Review (IGR) is being
carried out to deepen understanding about political
economy at the local level.




12
                               THE MAP OF TAJIKISTAN




     Source: www.geology.com




13
                                                ONGOING PROJECTS
       TAJIKISTAN COMMUNITY AGRICULTURE AND WATERSHED MANAGEMENT PROJECT
Key Dates:
Approved : June 15, 2004
Effective: November 25, 2004
Closing: April 30, 2012
Financing from all co-financiers, million US Dollars:
 Financier                 Financing
 IDA Credit                       5.80
 IDA Grant                        5.00
 GEF                              4.50
 Gov. of Tajikistan               0.74
 Beneficiaries                    1.83
 Total Project Cost             17.87
World Bank Disbursements, million US Dollars *:
                                Total Disbursed Undisbursed
 IDA Credit                       6.27        6.06      0.21
 IDA Grant                        5.47        5.36      0.11
 GEF Grant                        4.50        4.50      0.00
Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.
Environmentally fragile mountain systems cover more than 90% of Tajikistan’s area of about 141,000 km2. Agriculture
provides livelihoods for two-thirds of the population but is characterized by low productivity. Challenges for upland
farmers include land degradation, land insecurity, lack of investment capital, limited private sector capacity, and a focus by
government on irrigated, lowland crop production. The potential of sustainable management of mountain agro-systems
remains largely untapped, not only for increased productivity, but also for provision of ecosystem services.
The Project Development Objective is to enable rural people in the Surkhob, Zarafshon, Vanj, and Tohirsu watersheds
to build their productive assets in ways which sustainably increase rural productivity and curtail natural resource degradation.
The Project finances small-scale rural production investments in farm productivity, sustainable land management and
infrastructure with grants of less than US$5,000. It provides facilitation, technical and institutional support and capacity
building for rural populations, enabling them to design, implement and manage these investments. The project also builds
the Government’s capacity to provide local communities with technical advice and to foster local initiatives.
Results achieved:
 Farmer groups in 402 villages are managing more than 3,800 rural production investments, which build productive assets
    and reduce natural resource degradation. Investments include inter-cropped orchards and woodlots (1.35 million trees
    and over 360,000 grapevines covering an aggregate of 3,400 ha), apiculture (over 2,500 bee hives), crop and livestock
    production, pasture management, and small infrastructure (e.g., rehabilitation of irrigation, access tracks, and alternative
    energy);
 The project has benefited more than 40,000 households (250,000 people) with many households receiving incremental
    returns of $100 to $300 per year. Female participants comprise 40% of the beneficiaries;
 It is estimated that as of 2009, the proportion of people above poverty level in the participating communities had
    increased from 3% to 16% since the project started. Updated analysis is currently underway; and
 Land resource management investments and other project activities that address land and ecosystem degradation cover
    about 95,000 ha.
In addition, more than 500 examples of replication of rural production investments have been implemented without project
financing. The project was selected as one of 12 that are ―Improving People’s Lives in the Europe and Central Asia
Region‖ in 2010.
Key Partners:
The Project is working under the Office of the Deputy Prime Minister, and collaborates with local district and sub-district
(jamoat) authorities. Jamoat Development Committees (local civil society organizations) are key partners at the village level.
Key Development Partners include organizations providing facilitation support: the United Nations Development
Program, Food and Agriculture Organization, WelteHungerHilfe, and the Aga Khan Foundation’s Mountain Societies
Development Support Program. The Global Environmental Facility (GEF) provided co-financing.




14
                   TAJIKISTAN LAND REGISTRATION AND CADASTRE SYSTEM PROJECT
Key Dates:
Approved : April 21, 2005
Effective: October 11, 2005
Closing: March 31, 2012
Financing from all co-financiers, million US Dollars:
 Financier                  Financing
 IDA Grant                      10.07
 Gov of Tajikistan                0.07
 Beneficiaries                    0.52
 Total Project Cost             10.66
World Bank Disbursements, million US Dollars *:
                                 Total Disbursed Undisbursed
 IDA Grant                      10.66         9.44       1.51
Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.
In Tajikistan, restructuring agricultural land into individual and family units helps to create an environment in which farmers
are able to respond effectively to market forces. In the absence of full restructuring, old-style collective management
systems have persisted, and interference in farming choices has continued. Resent results have shown that restructuring
farmland and provision of use rights to family farms has created stronger incentives to raise farm production and to benefit
from labor and investment.
The Project Development Objective is to expand farmland restructuring to enable more rural people to become
independent farmers and take management decisions in response to market forces.

The Project supports farmland restructuring and registration of land use rights for households by expanding the scope and
making them more efficient, fair and transparent. It also builds capacity, establishes spatial databases, strengthens policy
development, provides information for farmers in farmland restructuring and farm management, supports water users’
associations to operate and maintain the on farm irrigation infrastructure including their rehabilitation. The project also
builds farmer’s capacity in environmental land management.
Results achieved:
The pace of restructuring has accelerated significantly, with over 28,157 land use certificates for family and individual farms
issued by June 2011, out of a total of almost 44,200 issued so far in the country, including the certificates issued outside the
project. These certificates issued by the project are in response to applications from a cumulative total of over 125,070
shareholders since project inception. Seven Regional Land Cadastral Centers are fully operational. A geodetic reference
network has been established and is being used for the legal cadastre, and orthophotos now provide base map information
for over 21,700 square kilometers. The project has fostered a number of policy reforms including initiatives related to
farm debt resolution, spatial database transparency, and decentralization of certificate issuance, and has also built awareness
of other key land policy issues. Over 142,000 people have been trained in land use rights and the process of restructuring
large government-managed farms into family and individual holdings. The project has also supported a large scale publicity
campaign and technical training of almost 7,800 farmers. As of June 30, 2011, 42 Water User Associations have been
organized, and 41 of these have received one or more tranches of small grants to support on-farm irrigation rehabilitation.
The environmental land management activities have supported the training of 788 government specialists, and developed
relevant case studies, indicators, and pest lists.
In combination, these results are helping to build the incentive framework for agricultural growth, to alleviate poverty, to
increase food security, and to improve environmental management.
Key Partners:
The project operates within the State Committee for Land Management and Geodesy (responsible for farmland
restructuring) and collaborates with Institute for Geodesy and Mapping (responsible for the geodetic network and
orthophoto production). The project also collaborates with district government specialists working on land, irrigation, and
environmental management.
Key Development Partners
The project collaborates with other donor projects including the European Commission’s Finmap technical assistance
support on geodesy and photogrammetry, the United States Agency for International Development’s Land Reform Project,
and the Swedish International Development Cooperation Agency’s Swedesurvey Registration Project.




15
                               TAJIKISTAN COTTON SECTOR RECOVERY PROJECT

Key Dates:
Approved : May 30, 2007
Effective: September 28, 2007
Closing: March 31, 2013

World Bank Disbursements in million US Dollars*:
 Financier                            Total Disbursed Undisbursed
 IDA Credit                           15.00           11.63              3.60

Note: Disbursements may differ from financing due to exchange rate fluctuations at
the time of disbursement.




The Project aims to assist the Government of Tajikistan to resolve the cotton debt crisis and rejuvenate the cotton sector
through debt resolution, an improved policy environment, and increased cotton output and profitability.
The new Project Development Objective is to benefit cotton farmers and create the conditions for sustainable growth of
cotton production in low income areas of Tajikistan through an improved policy environment and better access to finance.

Results achieved:
The Project has been an important vector for cotton sector reform. Following May 30, 2009 announcement of the total
debt write-off, a considerable progress has been made with farm debt annulment for the majority of farms. According to
the Government sources, an estimated US$ 500 million worth of farm debt has been written off.

The Government’s acceptance of the need for "freedom to farm" as a critical building block for cotton sector reform, and
the associated reduction of local government intervention in farmers’ decisions have been substantially advanced. As a
result, high level announcements and decrees to terminate inappropriate local government intervention in agriculture are
now being gradually followed at district level.

Together with the EBRD/TAFF project, the Project team has also persuaded the Government to use the agriculture credit
lines extended by the Ministry of Finance to commercial banks, for both cotton and non-cotton farming activities. This is a
critical step forward in the development of a more diverse and balanced agriculture sector. In addition, the decision to re-
allocate Project’s funds to a post-harvest credit line for cotton processors, has provided an alternative to these government
funded credit lines and facilitated government agreement to phase out this publicly funded source of agricultural credit. Up
to now, US$ 5 million has been disbursed to cotton processors from the post harvest credit line immediately after harvest
for the purchase of seed cotton from farmers. Initially this credit line is used for post-harvest cotton finance, but soon it
will be available for other agricultural activities as a means to encourage agricultural diversification.

The trends in cotton exports from Tajikistan per individual exporter for 2007-2009 period show that the level of
competition is increasing, as expected. Out of 83 cotton exporters in 2009, market share of the largest 5 exporters (30
percent) is falling, with very high levels of competition between the remaining 78 companies. The post-harvest credit line
of the restructured project will help to strengthen the mid-size exporters.

Key Partners:
The Bank team worked closely with the Ministry of Agriculture of Tajikistan which is responsible for overall policy setting,
and Participating Financial Institutions (PFI) for the implementation of the credit lines.

Key Development Partners include the European Bank for Reconstruction and Development (EBRD) with whom the
Bank team coordinated closely on policy issues.




16
                TAJIKISTAN EMERGENCY FOOD SECURITY AND SEED IMPORTS PROJECT

Key Dates:
Approved : August 6, 2009
Effective: April 9, 2010
Closing: May 1, 2013

World Bank Disbursements, million US Dollars *:
 Financier                     Financing       Disbursed Undisbursed
 Russia FPCRR TF                       6.25           0.73               5.52
 Total Project Cost                    6.25           0.73               5.52
Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.


The Project aims to provide food security and support loss of livestock in the poorest households due to high volatile food
prices in 2008 as well as the climatic conditions in 2007-2008. The first phase of the Project was implemented by the United
Nations Food and Agriculture Organization (FAO).
The Project Development Objective of the original Project was to increase domestic food production and reduce the loss
of livestock to help at least 28,000 poorest households to reduce the impact of high and volatile food prices. With the
additional funding from the Russia Food Price Crisis Rapid Response (FPCRR) Trust Fund, the Project development
objectives were revised as follows: (i) to increase domestic food production and reduce livestock losses to help at least
55,000 poorest households; (ii) to improve the ability of poor households to deal with seed shortages because of poor crops;
and (iii) to promote private commercial farming in order to increase food production and diversification.
Results achieved:
The ongoing Project to which the additional financing from the Russia Trust Fund is being provided, benefited about
94,000 households ─ far exceeding the original target of 28,000 households and the revised target of 55,000 households.
Over the summer of 2010, FAO distributed soft wheat seeds and fertilizer to about 1,000 households affected by the
earthquake at the beginning of 2010. Potato seeds and fertilizer were distributed to over 4,000 households in the remote
mountainous areas of the Direct Rule District and Khatlon Regions. The Project Management Unit is currently procuring
potato, corn, vegetable, fodder crop, soft fruit seeds, and fertilizer for the winter season.

Close coordination with the Government has benefitted Project implementation and resulted in a strong sense of ownership
and general satisfaction with the project's outcome on the part of the Government. The local NGOs employed to monitor
project implementation have also made a strong contribution to project monitoring and liaised with local government
officials.

As the FAO had completed its emergency interventions by providing 94,000 families (surpassing the target of 55,000
households initially planned to be covered by the Project), the Project has just been restructured to introduce a new activity–
setting up a temporary Revolving Fund for fertilizer imports to help private commercial farmers cope with the collapse of
the existing fertilizer supply chain with the aim of promoting private commercial farming in order to increase food
production and diversification.

Key Partners:
The Bank team works closely with the Ministry of Agriculture of Tajikistan which is responsible for overall oversight of the
project.

Key Development Partners include local non-governmental organizations and the United Nations Food and Agriculture
Organization (FAO) in charge of project implementation.




17
              TAJIKISTAN FERGHANA VALLEY WATER RESOURCES MANAGEMENT PROJECT

Key Dates:
Approved : July 26, 2005
Effective: January 19, 2006
Closing: May 31, 2013

Financing in million US Dollars:
 Financier                     Financing
 IDA Credit               23.57
 Total Project Cost       23.57
World Bank Disbursements, million US Dollars *:
                               Total           Disbursed Undisbursed
 IDA Credit                    23.57           11.40          12.17

Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.
The Ferghana Valley is an important region of Central Asia with a total population of about 11.3 million people, 70 percent of
whom live in rural areas, spread among Uzbekistan, Kyrgyz Republic and Tajikistan. After the collapse of the Soviet Union,
the valley’s irrigation and drainage systems have fallen into disrepair, leading to unreliable supply of irrigation water, drainage
and water-logging problems, reduced soil fertility and crop yields, and reduction in irrigated area. This has affected the
livelihoods of people, reducing agricultural income and increasing the incidence of poverty.

The Project Development Objective is to (i) increase the coverage of drained and irrigated areas in Bobojon Gufarov and
Kanibodom districts; and (ii) strengthen the early warning system of the Kayrakkum dam as well as carry out a geotechnical
survey for assessing the risks associated with said dam.
The Project helps the Government of Tajikistan address deficiencies affecting irrigation and drainage and improve water
management in Kanibodom and Bobojon Gafurov districts of the Soghd Region. It addresses critical elements of the
irrigation and drainage systems to improve their performance and efficiency, and strengthen the early warning system of
Kayrakkum Dam. Interventions under the project are expected to benefit about 30,000 ha and about 250,000 people.


Results achieved:

82 percent of original project funds have been disbursed and substantial volumes of works and technical assistance have been
completed, including
       a third of all envisaged tubewells have been rehabilitated;
       rehabilitation of four out of nine large pump stations is being completed;
       more than half of the envisaged primary supply irrigation canals have been rehabilitated;
       a third of envisaged reservoir embankments have been rehabilitated;
       one fifth of the envisaged main drainage canals have been cleaned;
       studies and safety measures conducted on the dam and reservoir to date have further clarified the safety of the dam;
        and
       a water users’ association (WUA) has been established and yearly field demonstrations have taken place.


Key Partners:
The Bank team works closely with the Ministry of Land Reclamation and Water Resources which is responsible for project
implementation.




18
         TAJIKISTAN PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER
                                 MANAGEMENT PROJECT
                             EU FOOD CRISIS RAPID RESPONSE FACILITY GRANT
Key Dates:
Approved : August 26, 2010
Effective: November 24, 2010
Closing: December 31, 2011
Financing in million US Dollars as of September 2011:
 Financier                   Financing      Disbursed     Undisbursed
 EU Food Crisis Rapid
 Response Facility (TF)         10.59          4.96            5.61
 Total Project Cost             10.59          4.96            5.61


Agriculture contributes to 23 percent of the GDP, but it employs 75 percent of the country’s workforce which indicates the
low labor productivity in the sector and, as a result, the high levels of poverty in rural areas. In fact, 76 percent of
Tajikistan’s poor live in rural areas and low earnings from agriculture are a major cause of rural poverty. Of great concern is
the recent rise in rural poverty due to successive shocks, including adverse climatic conditions and the locust attacks of
2008. In addition, the regional food price crisis of 2008-2009 contributed to increased household food insecurity. The global
financial crisis in 2009 reduced the level of remittances, an important source of supplementary income for many poor rural
households. Low productivity, low incentives and weak markets are the underlying causes of inadequate agriculture sector
growth and high rural poverty. Despite considerable potential to raise crop and livestock productivity, a combination of
weak land use and ownership rights, local governments’ priority to produce cotton and inadequate competition have
combined to reduce farmer incentives to raise output.
Khatlon Region remains the main location of rural poverty in Tajikistan mostly due to the dependence of its rural
population on the historically depressed cotton sector. 47 percent of the region’s people live below the poverty line.
Khatlon’s rural poverty and food insecurity can be reduced as the region has a good agricultural resource base with a large
area of arable land, favorable climate, and access to gravity-fed irrigation. But access to water is inadequate, the irrigation
systems are generally in poor condition due to lack of funding for maintenance and rehabilitation - which lowers crop yields.
The Project Development Objective is to generate temporal employment and rehabilitate irrigation and drainage
infrastructure in selected districts in Khatlon Oblast as a means to increase household food security.


Results achieved:
The Project has employed 10,321 (instead of originally envisaged 6,950) people for ―manual labor‖ and 97% of public
works have been completed in 28 (out of total 32) jamoats (municipalities) within the first 5 months (instead of planned 12
months). The Project provided support in rehabilitation of more than 1,825 km of irrigation and 576 km of drainage canals
and other elements of irrigation system. Once all the works are completed it is expected to result in increased food
production from an area of approximately 49,000 ha. Implementation of the Project has brought also a number of positive
direct and indirect social impacts: opportunity for additional income for vulnerable households in the winter season when
remittances are generally low (most migrants work in Russia in the spring and summer months), improvement of irrigation
and farm productivity, and supporting small and subsistence farmers with purchase of seeds and fertilizer for the year. In
addition, the project facilitated acquiring of tax identification numbers and bank accounts of a number of rural citizens.
Women comprised approximately 8% of all beneficiaries in Vaksh, 13% in Farhor, and 2.5% in Kumsangir.


Key Partners:
The Bank team works closely with the Ministry of Irrigation and Water Resources of the Republic of Tajikistan and the
Hukumat (local administration) of the Khatlon Region in the implementation of this project.
Key Development Partners include the European Commission with whom the Bank coordinates the policy and technical
issues of the Project.




19
                                   SECOND DUSHANBE WATER SUPPLY PROJECT

Key Dates:
Approved : June 7, 2011
Effective: TBD
Closing: December 31, 2015

Financing in million US Dollars:
 Financier                     Financing       Disbursed Undisbursed
 IDA Grant                              16.0              0               16.0
 Municipality of Dushanbe                3.0
 Total Project Cost                    19.00             .0               19.0
Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.


In Tajikistan, the bulk of drinking water and sanitation infrastructure consists of assets inherited from the Soviet era,
extensively degraded at the hands of low-capacity operators and weak institutions. The availability of sustainable drinking
water and sanitation services is a challenge in both urban and rural areas, with only 59 percent of the population having
access to public water supply (versus the 79 percent Millennium Development Goals (MDG) target for 2015). Water quality
in most systems does not meet national drinking water standards and service interruptions are frequent. The Second
Dushanbe Water Supply Project (DWSP-2) follows up on a first operation implemented between 2002 and 2011, which
achieved moderately satisfactory results in terms of improved quality and reliability of service in Dushanbe.
The Project Development Objective: The proposed project development objective (PDO) is to improve water utility
performance and water supply services in selected areas of Dushanbe.
The objective reflects the commitment of the Municipality of Dushanbe, and of the Dushanbe Vodokanal (DVK) to deliver
safe and satisfactory public service while improving financial performance. The objective is to be attained through (i) water
treatment and distribution infrastructure upgrades to achieve water quality and service improvements noticeable by
customers, (ii) metering programs and improved billing and collection systems to quickly enhance revenue generation while
improving customer service, and (iii) technical assistance and capacity-building activities to strengthen DVK’s management
and operational performance. Achievement of the objective will be measured through improvements in water quality for
selected areas of Dushanbe, in service satisfaction and in revenue collection and financial viability of DVK. Considering the
scale of rehabilitation and upgrade needs and the limited available funding, the targeted improvements cannot be achieved
system wide but rather in selected DVK service areas.




Results achieved: The project is still in the launch phase.




Key Partners:
The Bank team works closely with (i) the Ministry of Finance; (ii) Municipality of Dushanbe; and (iii) Dushanbe Vodokanal
responsible for the overall implementation.




20
                  TAJIKISTAN MUNICIPAL INFRASTRUCTURE DEVELOPMENT PROJECT

Key Dates:
Approved : January 19, 2006
Effective: April 12, 2006
Closing: February 28, 2012

Financing in million US Dollars*:
 Financier                       Financing Disbursed            Undisbursed
 IDA Grant                                 15            12.9               2.1
 Government of Tajikistan                 1.5             1.3               0.2
 Total Project Cost                      16.5            14.2               2.3
Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.



Objectives of the project:
This Project aims to help the Government of Tajikistan provide accessible, reliable and good quality basic municipal services
for the population of the eight participating cities. Ensuring access to basic municipal services is an important factor in
supporting the growth of local economies and reducing poverty. The towns served by the Project include Dangara,
Istravshan, Kanibadam, Kulyab, Kurgan-Tube, Rasht, Vahdat and Vose. All of the interventions help protect people from
disease, and specifically aid Tajikistan as it moves toward achieving the Millennium Development Goal of halving the
proportion of people without sustainable access to safe drinking water and basic sanitation. The Municipal Infrastructure
Development Project includes three components: the first component finances the rehabilitation and repair of facilities and
installations and the replacement of equipment needed for delivery of basic municipal services; the second component
supports additional engineering studies that are necessary to define the needed investments and strengthen the institutional
capacity of the State Unitary Enterprise of Housing and Communal Services; the third project component is designed to
provide implementation and project management support to the project implementing agency.


Results achieved:
The implementation of the Project is satisfactory. The Project is currently undergoing its third phase investment program
which covers 6 towns. In addition to improvement measures for water supply systems, the scope of works aims at ensuring
the efficiency and sustainability of the installed equipment under the first and second phases of the Project, by mitigating the
negative effects caused by erratic and fluctuating power supply.

As a result of the implementation of the First and Second phase investment programs, the following progress has been
achieved: population with access to water services increased by 2168 people, or 10 percent compared to the baseline data as
of 2006 and currently reaches 70 percent; 1227 improved community water points were constructed and rehabilitated under
the project; 8568 new piped household water connections were constructed that are resulting from the project intervention;
69661 piped household water connections that are benefiting from rehabilitation works undertaken by the project.

The Project has shown adequate disbursement performance. An extension of the closing date has been granted to allow
finalization of residual contracts, and bridge project operations with an Additional Financing under preparation

Key Partners:
The Bank team works closely with (i) the Ministry of Finance; (ii) the State Unitary Enterprise of Housing and Communal
Services, responsible for the overall project implementation.




21
                                 TAJIKISTAN ENERGY LOSS REDUCTION PROJECT

Key Dates:
Approved : June 30, 2005
Effective: December 7, 2005
Closing: June 30, 2012

Financing in million US Dollars*:
 Financier                         Financing Disbursed            Undisbursed
 IDA Credit                                 15           13.50                1.49
 IDA Grant                                   3            1.67                1.33
 Government of Tajikistan                    4
 Other donors (SECO)                         8
 Total Project Cost                         30
Note: Disbursements may differ from financing due to exchange rate fluctuations at the
time of disbursement.

The Government of Tajikistan’s Poverty Reduction Strategy Paper (PRSP) underscores the essential role of the
infrastructure sector to achieve the main objectives of poverty reduction and growth. In particular, the energy sector is one
of the priority sectors due to its significant development potential. Accordingly, the Government’s medium-term sector
development strategy has identified the reduction of losses, in particular commercial losses, and steps to improve the
financial viability of the energy sector as the topmost priorities within the sector. The Project is aimed at assisting the
Government in the implementation of these priority actions and, thereby, in the implementation of the medium-term sector
development strategy.
The Project Development Objective is to assist in reducing the commercial losses in the electricity and gas systems and
lay the foundation to improve the financial viability of the electricity and gas utilities through adoption and implementation
of an energy pricing policy, as well as measures to improve the metering, billing, and collection practices.
The Project provides for the supply and installation of electricity as well as gas meters and testing and quality control
laboratories. It supports the design and installation of computerized billing systems. In addition, it supports capacity
building and technical assistance to the relevant energy utilities and to the Government for the implementation of energy
tariff and social protection policies. Upon request from the Government, the Project was restructured to include assessment
studies for the proposed Rogun Hydropower Plant.
Results achieved:
Barki Tajik. About 165,600 electric power meters have been installed in Dushanbe, covering existing households, about
200 new large customers – schools, kindergartens, hospitals, etc. and about 14,000 new residential customers. Apart from
the new household customers, the new meters now cover previously unmetered customers who used to pay for
consumption either based on norms or did not pay at all. Installation of meters in Dushanbe city together with distribution
network rehabilitation supported by another Bank financed project (Energy Emergency Recovery Assistance Project)
enabled increase in billing by 50 percent in two years.

TajikTransgas. Gas meters have been installed at households, large industrial consumers and at transmission and
distribution networks. Billing of customers is now performed based on actual meter readings rather than the old method of
normative consumption. As a result, the losses in the gas sector have gone down by about 5 percent in the last three years.

A Financial Management Improvement Program is being implemented by Barki Tajik and Tajiktransgas. The two utilities
are expected to achieve migration to the International Financial Reporting Standards-based system by mid 2011.
Key Partners
The Bank team works closely with: (i) the Ministry of Finance, (ii) the Ministry of Energy and Industry, (iii) OJSHC ―Barki
Tajik‖, and (iv) OJSC ―Tajiktransgas‖.
Key Development Partners include Swiss State Secretariat for Economic Affairs (SECO), providing financial support to
implement billing system and other project components at both utilities.




22
                   TAJIKISTAN ENERGY EMERGENCY RECOVERY ASSISTANCE PROJECT
 Key Dates:
 Approved : May 1, 2008
 Additional Financing – May 6, 2010
 Effective: November 26, 2008
 Additional Financing – August 23, 2010
 Closing Date: December 31, 2012
 Financing in million US Dollars*:
     Financier                    Financing        Disbursed       Undisbursed
     IDA Grant                              6.5                6               0.5
     IDA Additional Financing               15               6.4               8.6
     Total Project Cost                    21.5
 Note: Disbursements may differ from financing due to exchange rate fluctuations at the
 time of disbursement.

 Tajikistan is a country that is highly dependent on hydroelectric resources for meeting its conventional energy needs. In
 practice, almost 90 percent of the country’s power generation depends on the reservoir water level associated with Nurek
 Hydropower Plant. While it experiences surplus generation in summer months, it experiences severe winter power
 shortages. The severity depends upon the severity of winter, availability of water in Nurek and arrangements for
 supplemental winter power.
 In 2008, due to combination of unprecedented cold weather, shortage of water, and insufficient electricity and gas supply,
 Tajikistan faced a severe energy deficit leading to serious socio-economic consequences. The Nurek reservoir had seen a
 dramatic drop in its water levels reaching the lowest level to supply the turbines, and the hydropower plant was exposed to
 the risk of shutdown. The supplemental sources of energy were insufficient to meet the winter demand, and due to bad
 weather conditions in the region, the neighbors were unable to increase electricity exports to Tajikistan. The Government
 of Tajikistan requested the Bank to support implementation of its Energy Emergency Mitigation Action Plan (EEMAP)
 and help manage this unprecedented energy crisis in the country. The project was prepared to respond to this urgent
 request.
 The Project Development Objective. The Project supports the Government of Tajikistan in increasing, to the extent
 possible, thermal and heat energy supply from existing facilities in the shortest possible time, and initiating institutional and
 technical measures to increase the amount and reliability of energy supplied to the population during the next two winter
 seasons. The objectives of the Project include: (i) sustaining thermal and heat energy supply in the shortest possible
 timeframe; (ii) initiating preparatory actions for the following two winters when the energy situation was likely to remain in
 deficit; and (iii) identifying actions to be implemented over the medium- and long-term to improve the energy security of
 the country. In 2009, an Additional Financing was prepared to help Tajikistan to overcome new challenge of cut off from
 the Central Asia grid; that resulted in a loss of access to electricity for thousands of households as well as any augmentation
 from Central Asia grid.

 Results achieved:
 All the activities under the main Project have been completed. The delivery of 5,000 tons of fuel oil provided much needed
 power from Dushanbe Combined Heating Plant to manage the unprecedented crisis. Urgent rehabilitation of power grid
 in Dushanbe has helped to sustain power supply during winter seasons. Rehabilitation of local district heating systems in
 secondary towns has been completed ensuring heat supply to hospitals, schools, and households that have lost access to
 these services for years. In addition, the Government could restore water level of Nurek reservoir to the required levels.
 Funds under the Additional Financing have been used to ensure timely payments to power suppliers during winters.
 Key Partners
 The Bank team worked closely with (i) the Ministry of Finance, (ii) Ministry of Energy and Industry, (iii) OJSHC ―Barki
 Tajik‖, (iv) OJSC ―Tajiktransgas‖, (v) SUE ―Khojagi Manziliyu Kommunali‖.




23
                               TAJIKISTAN EDUCATION MODERNIZATION PROJECT

Key Dates:
Approved : May 15, 2003
Effective: September 26, 2003
Closing: July 31, 2013
Financing in million US Dollars*:
 Financier                  Financing   Disbursed Undisbursed
 IDA Credit                      13.00
 IDA Grant                         7.00
 IDA Grant (for                    2.00
 Additional Financing)
 Total Project Cost             24.77*       20.37         4.40
* Note: Disbursements may differ from financing due to exchange rate
fluctuations at the time of disbursement.

After gaining independence in 1991 following the break-up of the Soviet Union, Tajikistan was hit hard by the civil war and
an economic catastrophe that wiped out 70 percent of the real GDP. One fifth of schools were destroyed or severely
damaged by war. One fifth of children stopped going to primary school. The legacy of conflict and economic collapse were
such that 80 percent of schools were in need of major repair. However, by 2008, the buildings of 43 percent of schools were
in emergency condition or needed capital rehabilitation or reconstruction. While primary enrolment rates have fully
recovered by 2007, dropout rate at grade 9 is around 6 percent resulting in 85 percent of children completing basic
education.
The Project Development Objective is to improve the learning conditions and school enrollment and completion
through grade 5 in selected districts.
The Project aims to set the stage for change at the national level, through (1) improving textbooks and curriculum and (2)
reviewing financing options. At the district and local level, it is improving the school environment through (3)
infrastructure rehabilitation and (4) purchase of equipment and books. The Project is also helping to develop local and
district capacity through community and district level grant schemes.
Additional Financing. The Additional Financing for this Project approved on May 25, 2010 will scale up activities under
the student assessment component by financing the construction of the building for the National Testing Center and the
equipment and furniture.
Results achieved:
    The original Project is close to completion with almost all of the targets reached:
a. Enrollment rates increased in Project schools in grades 1-4 to 90 percent of age cohort over 2003 enrollments, by the
    end of the project (469 schools in 7 districts);
b. Around 67,000 students in 136 schools of 7 Project districts benefited from rehabilitation of 1284 classrooms,
    construction of new 62 classrooms and school equipment provision;
c. Teachers qualification has been upgraded to enhance teacher development and increase job satisfaction - 144 uncertified
    working teachers have been trained and got certification for teaching;
d. All Project schools have functioning Parents – Teachers Associations (PTAs) which were trained by NGOs in
   community mobilization, and got and completed 493 thematic grants (up to US$ 5,000) and 103 rehabilitation grants (up
   to US$ 30,000).
e. Per capita based financing was designed and piloted in two project districts;
f. 4.35 million textbooks of 52 titles are published and distributed to all schools in the country. 8 titles of textbooks and
   teaching guides for primary grades based on new curriculum have been developed;
g. National Curriculum Board is established and operational. National Curriculum Framework is developed. Curriculum
   for primary grades (1-4) has been upgraded and introduced;
h. Capacity in the system to conduct student assessment was built – two rounds of the student assessment were conducted;
i. Two new school design prototype (urban and rural) are developed and schools are constructed.
Key Partners:
The Bank team works closely with the Ministry of Education of the Republic of Tajikistan in the implementation of this
Project.

Key Development Partners include USAID with whom the Bank team coordinates closely on policy issues.



24
                      TAJIKISTAN EDUCATION FOR ALL – FAST TRACK INITIATIVE III
                                              CATALYTIC FUND GRANT
Key Dates:
Approved by FTI Board: November 6, 2009
Effective: April 16, 2010
Closing: September 30, 2012
Financing in million US Dollars:
 Financier                 Financing  Disbursed Undisbursed
 EFA-FTI CF                     13.50       1.00       12.50

 Total Project Cost                13.50




Tajikistan was one of the first signatories to the Millennium Development and Education for All goals. The Ministry of
Education (MOE) has defined its mission as one to ensure the effective and efficient delivery of education services and
access to relevant and quality education for all.

The major goals under this mission, set forth in the National Strategy for Education Development, address the main
challenges in general education, including the poor state of school infrastructure; a shortage of adequate furniture and basic
equipment; a lack of teaching-learning materials; and poor quality of teaching. There is also a persistent problem of
attendance in the final 2-3 years of basic education, which predominantly affects the poor and girls and is partly due to
household factors; attendance among girls in grades 7-9 is estimated at 84 percent.

The Project Development Objective is to contribute to an increased access to improved learning environments and a more
efficient delivery of quality education services.
The Project is designed to help fill the gaps in the implementation of the National Strategy for Education particularly with
respect to the goals to improve the physical infrastructure, and material and technical aspects of the education system; to
improve the management and performance of the education system for the delivery of quality education services; and to
ensure the quality of education services. Fast Track Initiative 3 (FTI-3) Grant to Tajikistan continues supporting activities
initiated under FTI-1 and FTI-2, and includes the following components: (1) Improving the learning environment; (2) In-
service training of pedagogical and managerial personnel; (3) Policy reform, research and evaluation; (4) Capacity building
and grant management. In particular, the Project supports schools facilities upgrade (schools construction and furniture
provision), provision of reading materials for primary grades, strengthening management and fiduciary capacity in the sector
and capacity of the school principals and methodologists, national implementation of per capita financing in the general
education, phased development and national implementation of an Education Management Information System, and
revision of the National Strategy for Education Development.

Results achieved:
 The majority of the activities supported under this Project are the continuation of the two previous FTI grants. So far, the
Project has supported Regional Conference on per capita financing in education, conducted training for district and school
methodologist, completed design works for the schools construction using innovative technologies. The MOE has started
tender processes for school construction and furniture provision.




Key Partners:
The Bank team works closely with the Ministry of Education of the Republic of Tajikistan in the implementation of this
project.

Key Development Partners include UNICEF, USAID, the European Commission, Aga Khan Foundation, and German
Technical Cooperation Agency (GIZ).




25
                                             READ TRUST FUND GRANT
                                            TAJIKISTAN PHASE II PROJECT
                                RUSSIA EDUCATION AID FOR DEVELOPMENT
Key Dates:
Approved: May 11, 2011
Effective: August 24, 2011
Closing: October 31, 2014
Financing in million US Dollars:
 Financier                 Financing   Disbursed Undisbursed
 READ TF                           3.4          0            0

 Total Project Cost                   3.4




Tajikistan was one of the first signatories to the ―Millennium Development and Education for All‖ goals. Existing National
Strategy for Education Development (NSED) for 2006−2015 seeks to ensure effective and efficient delivery of education
services and access to relevant and quality education for all, and adopts five strategic goals related to improvement of
management and performance, effectiveness of the system, quality education services at all levels, equitable access to basic
education and merit-based access to other levels, and efforts to improve physical infrastructure.

In line with these goals, the Government established in 2008 the National Testing Center (NTC) with a mandate to improve
the national system of multi-level education, based on the concept of national tests that provide information about quality of
education and educational levels attained by students, and examinations that generate data upon which to base decisions
about selection of students for universities in Tajikistan. The Government established the NTC with the view that it would
serve as a valuable national educational resource and position Tajikistan as a leader in educational innovation in the region.

The NTC will not only conduct centralized examinations but will manage admission to higher education institutions by
matching top ranked students and places in the universities based on the results of Unified University Entrance
Examinations (UEE), students’ preferences and availability of places at the universities. Designing and introducing the UEE
will be the major task of the NTC over the next four years.

The Ministry of Education’s and the NTC’s tasks for the next 15 years are as follows:

     1.   To design and establish UEE – sustainable, fair and transparent system for universities admission;
     2.   To establish student assessment systems at different levels of education;
     3.   To prepare the country for participation in the international assessments (TIMSS, PISA etc.);
     4.   To establish system of state standards, curriculum and textbooks modernization, and teacher training /retraining
          based on the assessments’ results.

The READ Grant covers period from July 2011 till October 31st, 2014.

The Project Development objective of this grant is to increase the capacity of the National Testing Center so as to enable
the sustainable introduction of Unified University Entrance Examinations (UEE) and national (grade-level) assessments
(GLA) with a long-term view to meeting international standards.

Results achieved:
The financing of this Project was approved relatively recently and implementation is just gathering momentum.


Key Partners:
The Bank team works closely with the Ministry of Education of the Republic of Tajikistan and National Testing Center in
the implementation of this project.

Key Development Partners includes the Open Society Institute – Assistance Foundation.




26
                            TAJIKISTAN COMMUNITY AND BASIC HEALTH PROJECT

Key Dates:
Approved : December 15, 2005
Effective: April 18, 2006
Closing: December 31, 2012

Financing in million US Dollars*:
 Financier                     Financing       Disbursed Undisbursed
 IDA Grant                             22.0           17.4                4.5
 Other Donors (SIDA)                    6.0            6.0                0.0
 Other Donors (SDC)                     0.7            0.7                0.0
 Other Donors (Japan)                   2.8           0.00                2.8
 Total Project Cost                    31.5           24.1                7.3
Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.
Tajikistan’s health system has a number of structural weaknesses, most of which are common to post-Soviet and transition
economies. Primary health care (PHC) is underemphasized with an overly large hospital network, which receives the bulk of
the public sector’s health allocation. The provider payment system based on the number of hospital beds worsens the
problem of excess capacity. Predictably, this large number of hospital beds is unequally distributed between urban and rural
areas, resulting in inequity in access. Lack of pooling of health funds contributes to creation of geographic divisions and
underfunding, hampering the efficient use of resources and posing a threat to access to care for low-income groups,
particularly in rural areas. Public health functions such as disease surveillance and health promotion require significant
overhauling to effectively address old challenges such as malnutrition, high infant and maternal mortality rates as well as new
ones such as chronic and non-communicable diseases. There are also significant capacity gaps in health policy, planning and
management, both at the central level and among region, district and facility health administration.

The Project Development Objective is to increase access to, utilization of, and patient satisfaction with health services in
project-supported areas, and to build capacity and efficiency at national, regional and district levels in administering the basic
benefit package and per capita financing for primary health care.

The major aims of the Project include (1) decreasing the percentage of households in project-supported areas who do not
seek healthcare when necessary because they cannot afford it, (2) decreasing the share of health in household expenditure,
supporting a more equitable distribution of the health budget through (3) implementing per capita financing in primary
health care, and (4) improving primary health care infrastructure and services.

Results achieved:

-The Project successfully supported the Ministry of Health (MOH) along with other key partners (SDC & USAID) in
introducing and rolling out key health financing reforms at the Primary Health Care level, with the aim of improving service
quality and achieving more equitable access to primary health care services;
-Per capita method of payment was piloted and scaled up from 6 pilot districts to 41 in Khatlon and Soghd regions in the
latter half of 2009;
-The Basic Benefit Package (BBP) for health was introduced in 6 pilot districts in 2007and is scaling up to cover all hospitals
in a total of 20 districts in Soghd and Khatlon regions. The BBP provides guaranteed access to health services of the most
disadvantaged groups;
-The Family Medicine model of practice has been implemented in 8 districts of Khatlon and Soghd regions with a total of
262 doctors and 638 nurses having completed 6-month retraining programs as of July 2010;
-Rehabilitation of 18 PHC facilities and one Family Medicine training center and construction of 36 new PHC facilities in
Khatlon and Soghd;
-In collaboration with WHO, the Project also supported the creation and institutionalization of the Health Policy Analysis
Unit at the MOH which provides evidence-based advice for policy decisions.

Key Partners:
The Bank team works closely with (i) the Ministry of Health and the Regional Health Departments in Khatlon and Soghd.
Key Development Partners: the Swedish International Development Cooperation Agency (SIDA) and the Swiss Agency for
Development and Cooperation (SDC) which provided co-financing. The Bank also works in close cooperation with the
USAID funded health project, the World Health Organization (WHO) and UNICEF.



27
  TAJIKISTAN PILOT NUTRITION INVESTMENTS IN SEVERELY FOOD INSECURE DISTRICTS OF
                                KHATLON PROVINCE
                                    JAPAN SOCIAL DEVELOPMENT FUND GRANT
Key Dates:
Approved : December 15, 2005
Effective: April 18, 2006
Closing: December 31, 2012
Financing in million US Dollars*:
 Financier                Financing Disbursed Undisbursed
 JSDF Grant                     2.80      0.87        1.93

 Total Project Cost                    2.80           0.87              1.93
Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.


The Tajikistan Livings Standards Survey of 2007 revealed that more than a quarter (27 percent) of children aged 5 and under
were stunted in Tajikistan. The financial crisis led to a 35 percent decline in workers' remittances, as migrant workers from
Tajikistan lost construction jobs in Russia. This is a major shock to household income and to food security, since workers'
remittances comprised more than half of GDP in 2008. As a result, a significant proportion of families have experienced
persistent food insecurity over the last two years. This situation was at its worst during the food price increases of early
2008, when almost 35% of households were classified as food insecure and this food insecurity is a key factor behind the
high proportion of malnourished children. However data from April, 2011 indicate that food prices have increased sharply
and have surpassed their peaks during the food and fuel price crisis of 2008.

Children in rural Tajikistan, and especially in the relatively poor Khatlon Region, are more vulnerable to malnutrition
because of low productivity and production of food, droughts, and dependence on migrant workers' remittances for
income. The recent international financial crisis apparently worsened an already difficult situation by lowering remittances
and thus the incomes of many poor rural households. In addition, a survey conducted under the Global Food Price Crisis
Response Grant, found that women lacked information in the local language and in an easy to understand format, on a
range of nutrition issues, such as appropriate nutrition for pregnant women and for breastfeeding mothers and children, and
on the consequences of malnutrition on women and the unborn children.

The Project Development Objective is to address the shockingly high malnutrition rates among infants and young
children in Tajikistan, which, if not tackled immediately, makes these children vulnerable to illness and permanent
developmental problems.
The Project is closely aligned with the first pillar of the current Bank’s Country Partnership Strategy targeting to reduce the
negative impact of the crisis on poverty and vulnerability. The project will support attainment of this objective by reducing
the exposure of poor people to food insecurity and by improving the long-term health and well-being of today's infants and
small children through the following components: (i) Community-based nutrition monitoring; (ii) Community Training on
Management of Childhood Illnesses; (iii) Educational messages to promote behavioral change; (iv) Distribution of micro-
nutrient supplements; (v) Monitoring & evaluation, and (vi) Management.

Results achieved:

      Training of primary health care providers as family medicine practitioners started on January 4th, 2011. This
       includes 56 participants from the 10 nutrition grant pilot districts; 18 doctors and 38 nurses. This first phase of
       training is underway. Medical bags with basic equipment and supplies for these trained personnel have also been
       procured.
      300 community volunteers have been selected and have been trained on nutrition and home based management of
       childhood illnesses.
      1000 Primary Health Care workers have been trained on breast-feeding promotion, good nutrition for children and
       mothers; and on the Integrated Management of Childhood Illnesses as recommended by UNICEF and WHO.
      Education sessions for approximately 1,000 pregnant women and mothers on breastfeeding, appropriate child
       nutrition and basic care of the sick child is underway.
      The first batch of micronutrient supplements and vitamins have been ordered and are expected to be delivered by
       UNICEF in June 2011 with distribution to mothers and children is underway.
      Baseline survey data has been collected with preliminary findings is underway.
      Basic computer equipment, office furniture and supplies have been procured and distributed to the primary health
       care facilities to facilitate the process of monitoring of the nutrition activities by the primary health care providers in

28
       the 10 pilot districts. The forms for nutrition monitoring and project activity monitoring have been agreed with
       MOH and distributed to the pilot districts.
      Communication activities to inform the population about the project are ongoing- short TV briefs on nutrition and
       management of childhood illnesses were broadcasted via the central TV channel 'Safina' in mid April, 2011.
      Information materials on (i) nutrition have been printed and distributed to mothers and pregnant women; (ii)
       training materials, registration journals and registration forms have been printed and distributed to volunteers; (iii)
       250,000 copies of types of information leaflets on nutrition, acute respiratory illness and diarrhea have been printed
       and distributed to PHC workers and volunteers, with additional materials being developed.

Key Partners:
The project is being implemented by the Ministry of Health and the Regional Health Department of Khatlon Region.

Key Development Partners include the Embassy of Japan to Tajikistan, UNICEF and WFP.




29
                       TAJIKISTAN SOCIAL SAFETY NET STRENGTHENING PROJECT

 Key Dates:
 Approved: July 13, 2011
 Effective: TBD
 Closing: December 31, 2015
 Financing in million US Dollars: 3.2
  Financier                Financing    Disbursed          Undisbursed
  IDA                               3.2
  Total Project Cost                3.2




 The European Union, the Asian Development Bank, and the World Bank support policy actions to reform Tajikistan’s
 system of social assistance through budget support grants. (These budget support grants are separate from this proposed
 grant.) The proposed grant for an IDA-supported project would build the tools and capacity of the Government to support
 its ability to achieve and manage these reforms.
 These reforms have already begun: the European Union is now helping the Ministry of Labor and Social Protection to pilot
 the reform of social assistance in two districts. The pilot consolidates the two largest social assistance programs into a
 single benefit, and uses a proxy-means test to target benefits to the poorest 20 percent of the population. The World Bank
 has also mobilized a grant from the Rapid Social Response (RSR) Multi-Donor Trust Fund to support the implementation
 and evaluation of the pilot. This IDA-supported Project would support extension of these reforms by supporting the
 development of core tools and capacity for rolling them out at the national level.
 The Project Development Objective: The development objective of the proposed Project is to improve the capacity of
 the Government of Tajikistan to plan, monitor, and manage social assistance for the poor through the development of a
 national registry of social protection and the provision of training, equipment and related items for improving said capacity.
 The Project would build on the lessons and experience of the Government’s pilot reform of social assistance. It would
 establish a National Registry for Social Protection, train government personnel and build other kinds of capacity to operate
 and sustain the National Registry for Social Protection, support project management. The components of the project are:
 Component 1: National Registry for Social Protection (USD 1.4 million equivalent)
 Component 2: Capacity building (USD 1.2 million equivalent)
 Component 3: Project Management (USD 0.3 million equivalent).
 Results achieved:
 The financing of this Project was approved very recently. It is expected that disbursement of funds will start in late 2011.

 Key Partners:
 The Bank team works closely with the Ministry of Labor and Social Protection, the Ministry of Finance and the Executive
 Office of the President of the Republic of Tajikistan in the implementation of this project.

 Key Development Partners include European Union and Asian Development Bank.




30
             TAJIKISTAN GRANT FOR TARGETING AND PAYMENT OF SOCIAL ASSISTANCE
                                   RAPID SOCIAL RESPONSE FACILITY GRANT
Key Dates:
Approved: January 19, 2011
Effective: TBD
Closing: June 30, 2012
Financing in million US Dollars:
 Financier                 Financing   Disbursed           Undisbursed
 EFA-FTI CF                        2.2

 Total Project Cost                    2.2




The Government of Tajikistan addresses poverty, in part, through two main social assistance programs. However, the social
assistance programs exert almost no downward influence on poverty rates. One reason is that the social assistance is not
targeted well: only 23 percent of social assistance payments reached the poorest quintile of the population, with the rest
―leaking‖ to better-off groups. Moreover, the lack of accurate and accessible information on recipients of social assistance
weakens budgeting, management, and financial controls. There is no electronic registry (or even a basic consolidated listing)
of beneficiaries, but only paper files in district offices.
These weaknesses in targeting, information management, monitoring, oversight and controls undermine the credibility of
the social assistance system. During the 2008 global food price crisis, responses by donors and the government were
constrained by the lack of a poverty-targeted and well-controlled mechanism for channeling assistance to the poor. This
continued to cripple response efforts during the financial crisis of 2009. A more credible and effective system of social
assistance would help the Government channel assistance to poor households.
Since 2010, the European Union has been helping the Ministry of Labor and Social Protection to pilot the reform of social
assistance in two districts. The pilot, which will continue through 2012, consolidates the two largest social assistance
programs into a single benefit, and uses a proxy-means test to target benefits to the poorest 20 percent of the population.
The World Bank has mobilized this grant from the Rapid Social Response (RSR) Multi-Donor Trust Fund to support the
implementation and evaluation of the pilot, and to support extension of these reforms by supporting the development of
core tools and capacity for rolling them out at the national level.
The Project Development Objective. The development objective of the proposed RSR grant is to help the Government
of Tajikistan to develop, pilot and evaluate a targeting, registry and payments mechanism.
The Project includes a World Bank-implemented part (US$ 300,000) and a government-implemented part (US$ 2.2
million). The World Bank-implemented part would support studies and, most importantly, a statistical evaluation study of
the pilot of reform of social assistance.

The government-implemented part supports: development and design of a pilot targeting, registry and payments
mechanism, in collaboration with the Ministry of Labor and Social Protection (MLSP) and the European Union (EU);
piloting of the mechanism as a vehicle for channeling poverty-targeted social assistance transfers in two districts (rayons);
and, following evaluation of the pilot, building the capacity of the MLSP to roll-out a national targeting, registry and
payments mechanism through training, provision of equipment, and repairs to infrastructure.


Results achieved: The financing of this Project was approved recently. It is expected that disbursement of funds for the
government-implemented part will start in late 2011. The World Bank has already begun monitoring and evaluation
activities, starting with a study to evaluate the application process in the targeted regions. The World Bank will issue surveys
in the fall of 2011 to learn further lessons from the pilot, which will inform the national roll-out of social assistance reforms.


Key Partners: The Bank team works closely with the Ministry of Labor and Social Protection, the Ministry of Finance and
the Executive Office of the President of the Republic of Tajikistan in the implementation of this project.

Key Development Partners include European Union and Asian Development Bank..




31
           TAJIKISTAN PROGRAMMATIC DEVELOPMENT POLICY GRANT (PDPG) OPERATIONS

Key Dates:
Approved : June 7, 2011 (PDPG 5)
Effective: July 26, 2011
Closing: January 31, 2012
World Bank Disbursements, million US Dollars *:
                                     Total     Disbursed Undisbursed

 IDA Grant / PDPG 1                     7.0            7.0                0.0
 IDA Grant / PDPG 2                     6.7            6.7                0.0
 IDA Grant / PDPG 3                    13.3           13.3                0.0
 IDA Grant / PDPG 4                    25.4           25.4                0.0
 IDA Grant / PDPG 5                    10.0            0.0               10.0

Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.
Tajikistan was impacted by the global economic crisis through a decline in remittances and exports. Remittances fell from
US$2.3 billion in 2008 to US$1.6 billion in 2009, while total export receipts dropped by almost 13 percent due to lower
international prices of cotton and aluminum. The Government pursued a two-pronged strategy in response to the growth
slowdown by increasing public spending and facilitating external adjustment. Development partners provided increased
external assistance to Tajikistan, which helped the Government maintain expenditures on health, education, and social
assistance. While affected by the global economic downturn, Tajikistan’s economic growth of 3.9 percent in 2009 was better
than in most other countries in the region. The economy has recovered in 2010 and grew by 6.5 percent.
The Project Development Objective:
 for PDPG 1-3 operation: to improve the environment for private sector development, and to improve overall functioning
     of the public sector and the delivery of key public services.
 for PDPG 4-6 operation: to support a set of policy reforms to protect the delivery of essential social services, further
     develop private sector and strengthen government effectiveness.
PDPG5 supported actions aimed at improving basic social services, private sector climate, and government effectiveness. To
protect basic services, government has continued improving targeting and efficiency of social spending, and specifically has
adopted a health sector master plan, issued resolutions for implementation of per capita financing in general education, and
introduced pilot schemes for better targeting of social assistance in two rayons. To improve the environment for private sector,
the government submitted a law to Parliament codifying reduction in coverage of permit and procedures to restrict
introduction of new permits. It has also submitted a bankruptcy law for credit institutions prepared with assistance from the
World Bank, as well as a draft National Bank of Tajikistan law consistent with IMF advice. To promote farmland restructuring,
the government has accelerated issuance of land use certificates to family farms. To enhance government effectiveness, PDPG5
supported continued implementation of financial management improvement plans for Barki Tajik and Tajiktransgas.
Results achieved for PDPG 1-3:
Within the private sector development pillar, the PDPG 1-3 supported streamlining the licensing and inspections systems,
increasing the transparency of the privatization process, and promoting market competition. The Project also supported
structural reforms in key strategic sectors, specifically involving i) divesture from a state air company air traffic control
functions and four national airports to increase access to a double-landlocked country; ii) introduction of a new cotton pricing
method and introduction of universal cotton grading standards to improve returns to farmers; iii) implementing a schedule for
electricity tariff adjustments for 2007–10 to gradually move toward cost recovery levels, at the same time providing safety net to
the poor, to enhance the functioning and financial viability of the energy utilities and address a growing problem of quasi-fiscal
deficits. Within the pillar of the Public Sector Management and Public Service Delivery, the Project supported i)
rationalization of core public administration structures and implementing a new transparent and predictable civil service wage
system, aimed at linking rewards to performance and at creating improved career and earnings prospects for public officers; ii)
measures of the government health strategy to improve incentives for efficient and effective delivery of health services and
introduction of a system of per capita financing of schools to improve the efficiency of resource use in education.
Key Partners:
The Bank team works closely with the Ministry of Finance, Executive Office of the President, Ministry of Economic
Development and Trade, State Committee on Investments and State Property Management, Ministry of Transport, Ministry of
Agriculture, Ministry of Education and Ministry of Health.
Key Development Partners include the International Monetary Fund (IMF), European Commission (EC), and the Asian
Development Bank (ADB).

32
                                  TAJIKISTAN PUBLIC SECTOR REFORM PROJECT

Key Dates:
Approved: July 6, 2006
Effective: September 8, 2006
Closing: October 1, 2011

Financing in million US Dollars:
 Financier               Financing   Disbursed                Undisbursed
 IDA Grant                       5.4     4.6                    0.80

 Total Project Cost                      5.4        4.6          0.80
Note: Disbursements may differ from financing due to exchange rate fluctuations
at the time of disbursement.


In 2005, the President of Tajikistan initiated the development of a long-term Public Administration Reform Strategy to
serve as a framework for addressing key weaknesses in the governance system. The Strategy embodies a broad approach to
institutional reform, addressing institutional reorganization, budget management, regulatory management and human
resource management issues, and also proposes measures to strengthen accountability and transparency in public sector
management.
The objective of the Project is to assist the Government in the implementation of the Public Administration Reform
Strategy through strengthening policy making and service delivery systems and enhancing transparency of public
management in selected core public sector institutions. The Project provides for reforms in the areas of the civil service
management, reorganization of management structures in selected public administration institutions, enhancing
effectiveness of management of public finance, and regulatory management.

Results achieved:
Civil Service Reform
 1. Implementing Civil Service Register;
 2. Introducing new Job Description System;
 3. Developing and implementing methodologies and procedures for competitive recruitment;
 4. Introducing a new Civil Service Wage Grid;
 5. Conducting horizontal functional review of executive system;
 6. Developing and implementing the Action Plan on Improving Service Delivery System in the Ministry of Labor and
      Social Protection;
 7. Adoption of the Public Financial Management Reform Strategy for 2009-2018;
 8. Implementing a New Wage Grid and Job Classification System in Health;
 9. Conducting inventory of legislation in the areas of sanitary-epidemiology service, fire inspection, and mining;
 10. Capacity building in maintaining Adliya Legal Database.


Key Partners:
The Bank team is working with the Presidential Administration, Civil Service Department, Institute of Higher Qualification
of Civil Servants, Ministry of Finance, Ministry of Justice, and other ministries and agencies.




33
              TAJIKISTAN PUBLIC FINANCE MANAGEMENT MODERNIZATION PROJECT

Key Dates:
Approval: May 14, 2009
Effective: February 12, 2010
Closing: August 31, 2014

Financing in million US Dollars:
 Financier               Financing    Disbursed         Undisbursed
 IDA                              5.2      0.4            4.8
 Govt of Tajikistan               1.3       0             1.3
 Govt of Japan                   0.97      0.1           0.87
 Trust Fund (DFID and            5.21    1.37            3.84
 EC)
 Total Project Cost             12.68     1.87             10.81
Note: Disbursements may differ from financing due to exchange
rate fluctuations at the time of disbursement.

The objectives of the Project are: (a) to establish basic processes for efficient and transparent management of public
expenditures; and (b) to develop adequate institutional capacity to support the implementation and sustained functioning of
an automated financial management information system (FMIS). These objectives will be pursued by strengthening
budgeting and treasury functions, improving transparency and communications, designing and implementing improvements
of the public financial management information systems, and building capacity in core areas of public financial management.
The Project is designed to support selected core Public Financial Management (PFM) reforms identified in the
Government’s PFM Strategy, and capacity building in the Ministry of Finance (MoF) and related agencies. The Project
takes account of complementary ongoing reforms. It uses a two-stage Adaptable Program Loan (APL) approach. APL-1
would address capacity weaknesses, support streamlining procedures on budget preparation and execution, improve
transparency and communications, and support incremental automation of financial operations in the MoF plus
Information Technology (IT) capacity building. APL-2 would build on the results of reforms implemented under APL-1
and support the automation of the modernized public financial management processes.

Results achieved:
1. Ministry of Finance Training Center has been renovated and equipped;
2. Regulation on Establishing New IT Center has been approved. 8 IT specialists, who will maintain future FMIS have
   been recruited;
3. Technical specifications and functional requirements for the upgrade of current Treasury Information Management
   System have been developed.




Key Partners:
The Bank team works closely with the Ministry of Finance of Tajikistan.
Key Development Partners include the UK’s Department for International Development (DFID), European Commission
(EC), Swiss State Secretariat for Economic Affairs (SECO), and International Monetary Fund (IMF).




34
     TAJIKISTAN GRANT FOR STRENTHENING RESULTS-BASED MONITORING AND EVALUATION
                           FOR BETTER MIGRATION MANAGEMENT
                                       INSTITUTIONAL DEVELOPMENT FUND
     Key Dates:
     Approved : December 17, 2010
     Effective: May 31, 2011
     Closing: May 31, 2014
     Financing in US Dollars:
      Financier                  Financing     Disbursed Undisbursed

      IDF Grant                      475.000        0           475.000

      Total Project Cost             475.000


     The Institutional Development Fund (IDF) Grant was designed to develop and strengthen the capacity of the
     Government of Tajikistan and a newly created Migration Agency under the Government in monitoring and evaluation
     of migration-related policies and interventions (both government and donor).

     The Grant Development Objective - Grant will contribute to the overall improvement of national planning and
     decision making in the area of labor migration management. The objective of the IDF grant is to help in creating an
     operational results-based monitoring and evaluation (M&E) system based on:
     (i) solid data flows;
     (ii) sustainable capacity building activities;
     (iii) regional dialogue and,
     (iv) supporting implementation of short and medium term actions aimed at improving labor management systems.

     The following components are envisioned under this IDF Grant:
     Component 1: Strengthening Government’s migration M&E systems
     Component 2: Capacity building for M&E in migration
     Component 3: Participation of Civil Society partners in M&E in migration

     Results achieved so far:

     As of September 2011 – activities under IDF Grant are being initiated.

     Key Partners:
     The Bank team is working closely with the Migration Service under the Government of Tajikistan and Project
     Coordination Group under the Executive Office of the President, which is responsible for the overall implementation
     of the IDF Grant. In addition, relevant line ministries and agencies that are working on migration specifics will be
     actively involved in the implementation of the project’s components.

     Key Development Partners:
     The Bank Team coordinates closely with other donors engaged in the development agenda on migration topics, such as
     the International Organization for Migration, UK’s Department for International Development (DFID), and
     UNWomen.




35
THE INTERNATIONAL FINANCE CORPORATION PROGRAM IN TAJIKISTAN

The International Finance Corporation’s (IFC) strategy        IFC Advisory Services
for Tajikistan reflects the mostly rural nature of the        There are several IFC advisory projects currently in
                                economy and the fact that     operation in Tajikistan:
                                the real key to economic
                                growth in the short to
                                                               Business Enabling Environment Project 2004 –
                                medium term is in the
                                                                present (ifc.org/tajikistan/sme)
                                development of micro
                                                               IFC improves the business climate and helps facilitate
                                and      small   business
                                                               growth of the private sector in Tajikistan by identifying
                                enterprises as well as
                                                               and removing regulatory barriers to business entry and
                                agricultural   production
                                                               operations. Donor partners: Swiss Secretariat for
                                and processing. Support
                                                               Economic Affairs and UK Department for
                                for such development
                                                               International Development
                                requires IFC to devote
significant efforts toward capacity and institution
                                                               Tajikistan Agribusiness Finance and Business
building in the financial sector through advisory services    Environment Project 2010 – present
and investment. This is accompanied by support for            This project aims to improve regulatory framework for
improvements in the business environment in addition          private investment in the agricultural sector, and
to the development of pilot initiatives which                 facilitate access to finance for agri-business through
demonstrate that the private sector can successfully          leasing and equipment finance. Donor Partner:
operate in the country.                                       European Union

In the past two years, in Tajikistan, IFC has committed        Central Asia Corporate Governance 2007 –
investments of more than US$ 31 million in 10 projects:       present (ifc.org/cacgp)
in banking, microfinance, hydro-power generation, and         IFC is helping local joint stock companies and banks
business services. In parallel, IFC spends about US$ 3.5      strengthen their corporate governance practices with a
million annually on advisory services to support activities   view to improving their operations and increasing
related to the development of Tajikistan’s private sector     ability to attract investment and financing. Donor
– multi-year advisory projects valued at US$ 8 million        partner: Ministry of Foreign Affairs of the Netherlands
have recently been added to the IFC’s program in              and from mid-2011, UK Department for International
Tajikistan.                                                   Development

                                                               MicroFinance Transformation Support Project
                                                              2008 – present (ifc.org/acamfi)
                                                              IFC is providing advisory services on a selective basis
                                                              to microfinance institutions in Azerbaijan and Central
                                                              Asia to support their transformation processes. Donor
                                                              Partner: Ministry of Foreign Affairs of the Netherlands

                                                               Financial Markets Infrastructure Project 2009 –
                                                              present (ifc.org/acafi)
                                                              IFC aims to expand secure access to finance for
                                                              individual consumers and small and medium enterprises
                                                              by improving the financial infrastructure of and
                                                              regulatory environment for credit bureaus and by

36
developing a Risk Certification Program. Donor partner:                       transparent and competitive process that meets
Swiss Secretariat for Economic Affairs                                        international best practices and standards both for the
                                                                              tendering process as well as the development of the
 Konimansuri Kalon Advisory 2009 – present                                   mine.
The Government of Tajikistan has selected IFC to serve
as a lead advisor in the tendering process to select a
private investor to develop the Konimansuri Kalon
silver deposit. As the Government’s lead advisor, IFC is
committed to assist the Government in ensuring a




     SELECTED RECENT IFC INVESTMENTS IN TAJIKISTAN

      FINANCIAL         PROJECT             IFC                                        DESCRIPTION
         YEAR                           Financing
                                        ($ million)
        2010      Amiri LLC                1.3        IFC loan to support Tajikistan’s first production of high-quality chocolate
                                                      and confectionery and reduce the country’s reliance on imports.

        2009      Tourism Promotion        7.0        IFC’s financing for the construction of a greenfield nine story 85 room five-
                  Services Tajikistan                 star hotel in Dushanbe. Tourism Promotion Services is a subsidiary of the
                                                      Aga Khan Fund for Economic Development.

        2009      Eskhata Bank             7.0        IFC Trade Finance line and loan to support expansion of SME financing.

        2009      Access Bank             1.98        Equity investment in greenfield Microfinance Bank in Tajikistan.

        2008      First Micro Finance     3.85        IFC’s loan for the First Micro Finance Bank of Tajikistan to support micro,
                  Bank                                small, and medium-sized enterprises in rural and urban areas.

        2008      Imon International       2.5        IFC’s loan for expanding microfinance lending operations for one of the
                                                      leading microlending foundations in Khujand, Tajikistan.




37
     Contacts
     For further information about the World Bank Group’s work in Tajikistan, please visit our website:
     http://www.worldbank.org/tj, or contact the following persons at:

     the World Bank Dushanbe Country Office:
     Ms. Marsha Olive, Country Manager
     Ms. Dilya Zoirova, Communications Associate
     Email: dzoirova@worldbank.org
     Tel: (992 48) 701 58 00
     Postal address: 48 Ayni Street, Business Center ―Sozidanie‖, 3d floor
     Dushanbe, Tajikistan


     the International Finance Corporation:

     Mr. Christopher Miller, Country Officer
     Ms. Sabzina Oshikova, Team Assistant
     e-mail: soshikova@ifc.org
     Tel: (992-48) 701 14 62
     Postal address: 48 Ayni Street, Business Center ―Sozidanie‖, 3d floor
     Dushanbe, Tajikistan




38
                     CONTACTS OF ACTIVE WORLD BANK-FUNDED PROJECTS IN TAJIKISTAN
                                  (FINANCED BY IDA AND TRUST FUNDS)

Community Agriculture and Watershed Management       Energy Loss Reduction Project &
Project                                              Energy Emergency Recovery Assistance Project
Project Implementation Unit                          Project Implementation:
Director: Mr. Amonullo Ashur                         Electricity Component: OJSHC "Barki Tajik"
Address: Dushanbe, 44 Rudaki Ave                     Management Director: Mr. Mahmadamin Aminov
Tel: (992-37) 221-85-66, 221-13-67                   Address: Dushanbe, 64 I. Somoni Str., 3rd floor
Fax: (992-37) 251-01-17                              Tel: (992 37) 229-55-78, 229-56-58, 229-56-32
E-mail: cawmp_tj@yahoo.com,                          Fax: (992 37) 235-86-92, 229-53-41
cdwshmp_inf@tojikiston.com,                          E-mail: prgbt@infosystem.tj, elrpbt@gmail.com
 cdwshmp_pr@tojikiston.com                           Gas Component: OJSC "Tajiktransgas"
                                                     Management Director: Mr. Gaibullo Bohirov
Land Registration and Cadastre System Project        Address: Dushanbe, 6 Rudaki Ave.
Project Implementation Unit                          Tel: (992 37) 227-67-97, 221-57-38
Director: Mr. Mahmudjon Khabirov                     Fax: (992 37) 221-28-16
Address: Dushanbe, 15 Giprozem Str.                  E-mail: elrp.tajikgas@gmail.com
Tel: (992-37) 445-01-95, 445-01-97
Fax: (992-37) 445-01-98                              Education Modernization Project
E-mail: mkhabirov@yahoo.com, khabirov@tajnet.com,    Project Management Unit
cadastr@tajnet.com                                   Director: Mr. Isroil Ismoilov
                                                     Address: Dushanbe, 50 A. Donish Str, 2nd floor.
Cotton Sector Recovery Project &                     Tel: (992-37) 222-17-02, 222-18-02
Emergency Food Security and Seed Imports Project     Fax: (992-37) 222-16-02
Project Implementation Unit                          E-mail: emp@pmu.tajik.net
Director: Mr. Muhridin Sheraliev
Address: Dushanbe, 44 Rudaki Ave                     Additional Financing for Education Modernization
Tel: (992-37) 221-11-56, (918) 63-97-19              Project
Fax: (992-37) 221-34-50                              Project Implementation
Email: pmu_cotton@tajnet.com, proc_dep_csrp@bk.ru    National Coordinator: Mr. Abdujabbor Rakhmonov,
                                                     Minister of Education of RT
Ferghana Valley Water Resources Management Project   Address: Dushanbe, 13A Chekhova Str.
&                                                    Tel: (992-37) 221-46-05, 221-43-60
Public Employment for Sustainable Agriculture and    Fax: (992 37) 221-70-41, 227-45-02
Water Management Project                             E-mail: moert.k@maorif.tj
Project Implementation Unit
Director: Mr. Vohid Sharipov                         Education for All – Fast Track Initiative -3
Address: Dushanbe, 5/1 Shamsi Str.                   Project Implementation
Tel: (992-37) 236-62-08, 37881-11-85, 37881-12-68    National Coordinator: Mr. Abdujabbor Rakhmonov,
Fax: (992-37) 221-20-31                              Minister of Education of RT
E-mail: pmu@fvwrmp.tj, ppu@fvwrmp.tojikiston.com     Address: Dushanbe, 13A Chekhova Str.
                                                     Tel: (992-37) 221-46-05, 221-43-60
Dushanbe Water Supply Project                        Fax: (992 37) 221-70-41, 227-45-02
Project Coordination Unit                            E-mail: moert.k@maorif.tj
Director: Mr. Zafar Nozimov
Address: Dushanbe, Aini 14A Str. 4th floor.
Tel: (992-37) 221-42-23; 221-62-23                   Community and Basic Health Project & JSDF Grant for
Fax: (992-37) 221-62-23                              Nutrition Pilot
E-mail: dwspcu@gmail.com                             Project Implementation Unit
                                                     Director: Ms. Mahbuba Sheralieva
Municipal Infrastructure Development Project         Address: Dushanbe, 41 Pulodi Str.
Project Implementation Unit                          Tel: (992-37) 221-33-46, 227-25-31,
Director: Mr. Jamshed Tabarov                        600-60-01
Address: Dushanbe, 56 N.Karabaeva Str.               Fax: (992-37) 227-68-22
Tel: (992-37) 233-88-25, 233-13-30                   E-mail: mahbuba@health.tojikiston.com
Fax: (992-37) 233-85-25, E-mail: office@midp.tj


39
Public Sector Reform Project
Project Implementation Unit
Manager: Mr. Tojiddin Jurazoda
Address: Dushanbe, 27 Rudaki Ave, 2nd floor
Tel/Fax: (992-37) 221-73-61
E-mail: tojiddin@psrp.tj

Public Financial Management Modernization Project
Project Implementation Unit
Coordinator: Mr. Amirjon Ubaidulloev
Address: Dushanbe, 3 Ac. Radjabovich Str.
Tel: (992-37) 227-37-40, 221-58-11
Fax: (992-37) 221-58-11
E-mail: a.ubaidulloev@pfmmp.tj




40

								
To top