The grant is issued through the International Development Association and a new World Bank’s financing instrument the Programme-for-Results (PforR) to provide universal and reliable energy supply to the people of Tajikistan.
The grant will help state utility Barqi Tojik to rehabilitate and modernise grid network, improve collections, achieve cost-recovery tariffs, reduce energy losses, settle payables, ensure timely debt service, as well as integrate sound governance practices and transparency in operations and financial management.
Barqi Tojik faces several financial and operational challenges due to below-cost-recovery tariffs, unsustainable and increasing debt levels, low collection rates for billed electricity, operational inefficiencies, and poor governance practices.
The utility will leverage the government-adopted Programme for Financial Recovery of Bargi Tojik (2019-2025) strategy to disburse the grant.
Recently, the World Bank and the Government of the Republic of Korea have agreed to support Tajikistan in building the required infrastructure to increase the efficiency and transparency of public services. Read the full story here
Tajikistan experiences power outages, particularly during the cold winter months. “The inherent benefits of Tajikistan’s ambitious public investments in energy generation and transmission can only be reaped if managed through a modern, efficient, and financially sound power utility,” said Jan-Peter Olters, World Bank Country Manager in Tajikistan. “To this end, the support provided to ensure Barqi Tojik’s financial viability is expected to yield considerable impacts in its ability to provide quality services to the population, attract private investment, and take full advantage of regional power export opportunities.”
The energy transition is a hot topic disrupting the utility industry in Asia and will be a key focus at Enlit Asia which takes place in Jakarta, Indonesia from 23-25 March. For more details click here.