$1.3 billion to be invested in Tajikistan's energy sector
By Aynur Jafarova
Over $1.3 billion, including state funds, loans and grants of international financial institutions and countries, is expected to be invested in the development of Tajikistan's energy sector, a source in the Tajik Ministry of Economic Development and Trade has said.
The list of investment projects to be implemented in 2013-2014 includes a project on reducing the loss of electric power in the Sughd province, reconstruction of Kairakum hydropower plant, etc.
The source said that the volume of financing of the Tajik energy sector through a state investment program is surpassed only by the transport sector.
Investments in the energy sector amount to 36.9 percent of the total financial portfolio, while in the transport sector the figure is 49.1 percent.
Being one of the five Central Asian countries, Tajikistan needs to establish an efficient national energy system capable to supply energy for all sectors of the economy as the development of the national economy depends on the energy supply.
Tajikistan has limited hydrocarbon reserves. Most of the country's hydrocarbon resources are located deep underground. In addition, it is difficult to evaluate these resources due to complicated geological conditions.
Coal reserves in Tajikistan surpass those of oil and gas. Most coal mining sites are located in hard-to-reach mountainous areas where no railroads are available, which makes industrial development unfeasible.
Tajikistan accounts for 10 percent of hydropower resources of the Commonwealth of Independent States countries and more than 50 percent of the hydropower potential of Central Asia. This is a good precondition to make the country an energy exporter to the neighboring countries.