EBRD commits €55.4 million to Tajikistan infrastructure projects

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EBRD funds Tajikistan infrastructure

Highlights

EBRD approved a €49.2 million sovereign loan and €4.2 million grant to upgrade a 56 km road in Tajikistan’s Khatlon region, improving year-round access for 6,000 residents.
EBRD committed an additional €6.2 million sovereign loan and €3.4 million grant for water and wastewater infrastructure upgrades in Kulob, benefiting over 100,000 people.
The new memorandum of understanding could see Tajikistan's infrastructure and energy sectors attract up to €750 million EBRD investment by 2030.

Road and water funding package

As reported by European Bank for Reconstruction and Development, the financing package includes a sovereign loan of up to €49.2 million to upgrade a 56 km section of road between Baljuvon and Sari Khosor in Tajikistan’s Khatlon region. The project is intended to create a year-round transport link for 19 local communities with a combined population of nearly 6,000, where seasonal flooding currently disrupts access in winter and spring.

The road scheme also includes nature-based resilience measures such as bioengineering and riverbank protection. It is backed by grant funding of up to €4.2 million from the bank for project implementation and road safety advisory services.

An additional sovereign loan of up to €6.2 million is being directed to the completion of an ongoing water and wastewater project in Kulob. The funding is set to support upgrades to water supply and sewage networks, including mains, intakes and pumping stations, while also modernising the city’s wastewater treatment plant and helping install water meters.

The Kulob project is expected to provide uninterrupted access to clean water for more than 100,000 people and save millions of cubic metres of water each year. It also receives a grant of up to €3.4 million from the bank, supplementing €16.5 million in previous loans and grants provided by the EBRD and the European Union.

Pipeline growth through 2030

These are the first projects signed under a recently concluded memorandum of understanding between Tajikistan’s Ministry of Finance and the EBRD. The agreement establishes a cooperation framework through 2030 and links the bank’s investment pipeline in the country with policy reform, project preparation and technical cooperation.

Under that partnership, Tajikistan’s infrastructure and energy sectors could attract up to €750 million of EBRD investment over the next five years. To date, the bank has invested more than €1 billion in Tajikistan across 200 projects.

Our earlier coverage on sovereign resilience in a higher-rate environment explained how prolonged geopolitical tensions and elevated public spending are increasing borrowing risks as refinancing costs stay high. The piece noted that emerging and frontier markets are especially exposed because debt-service burdens tend to be heavy relative to narrower revenue bases, while persistent inflation shocks can further squeeze fiscal space.

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