The European Bank for Reconstruction and Development (EBRD) will provide a $50m loan to fund the first phase of the Qairokkum hydropower plant modernization program in Tajikistan.
The only electricity generating facility in northern Tajikistan built in 1957, the Qairokkum hydropower plant supplies energy to over 500,000 homes in the Sugd region.
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Under the Climate Investment Funds (CIF), the Pilot Program for Climate Resilience (PPCR) will also provide $21m, including a $10m loan and $11m grant, for the project.
The remaining $ 4.7m includes additional donor financing provided by the governments of Austria and the UK, and the EBRD’s Shareholder Special Fund for consultancy services.
The funds will also be used to upgrade equipment to increase safety levels and strengthen the plant’s resilience against the impacts of climate change.
Tajik Finance Minister Abdusalom Kurbonov said: "The collaboration between our country and the EBRD has been developing strongly over the past few years. EBRD support is very important for our economic development."
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By GlobalDataEBRD Energy and Natural Resources in Russia and Central Asia director Aida Sitdikova said: "We are very pleased to support the government of Tajikistan with the restructuring and rehabilitation of a key hydro asset.
"The Qairokkum hydropower plant is strategically important as it is the sole power generation facility in Sugd, the second largest industrial region in the country. The upgrade will significantly improve the supply situation, especially in the winter."
Image: The Qairokkum hydropower plant. Photo: © European Bank for Reconstruction and Development 2013.
