Tajikistan to receive EFSD loan worth $40 mln to rehabilitate Nurek
By Abdul Kerimkhanov
A draft agreement on granting a loan of $ 40 million to the Eurasian Fund for Sustainable Development (EFSD) for the Nurek HPP rehabilitation is planned to be signed in the near future.
EFSD specialists during their visit to Tajikistan last week held talks on the granting of this investment loan with the government of the republic, reports the Eurasian Development Bank, which manages the funds of the EFSD.
Representatives of the Fund held talks with a government delegation led by Tajik Minister of Finance Faiziddin Kahhorzoda.
As part of the mission, a number of meetings were held with representatives of the Ministry of Justice, the Ministry of Foreign Affairs, the Ministry of Economic Development and Trade, the Ministry of Energy, the State Committee on Investments and State Property Management, the Tax Committee, as well as the Barki Tohik public joint stock company and Nurek HPP.
“As a result of joint work, the draft agreement was thoroughly evaluated. It is expected to be signed after approval by the EFSD Council,” the message says.
Earlier it was reported that the signing of the agreement provides for the purchase, supply, installation and commissioning of six single-phase autotransformers instead of similar equipment that has developed service life and are in poor technical condition.
Funding is provided for 20 years, including eight years of a grace period for the payment of principal.
It is expected that the project implementation will improve the safety and reliability of the HPP, ensure uninterrupted power supply of Tajikistan and reduce the cost of operation and repair of autotransformers.
Implementation of the project “Rehabilitation of the Nurek HPP. Phase 1 will begin after signing the agreement.
Currently, the first phase of the Nurek HPP reconstruction is being implemented, which is financed by the International Development Association (World Bank group) and the Asian infrastructure investment bank.
The project “Rehabilitation of Nurek HPP. Phase 1” is the first EFSD investment project in Tajikistan. It is expected that a loan agreement between the EFSD and the Tajik Government will be signed in the near future and the project will be launched this year.
The objectives of the First Phase of Nurek Hydropower Rehabilitation Project for Tajikistan are to rehabilitate and restore the generating capacity of three power generating units of Nurek HPP, improve their efficiency, and strengthen the safety of the Nurek dam.
The EFSD project portfolio in the Republic of Tajikistan consists of financial credits. The portfolio amount is $ 110 million, including a completed project of $ 70 million and an active project of $ 40 million.
An investment project in the Energy sector is under preparation, the estimated amount of investment loan is $ 40 million.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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