STATE COMMITTEE ON INVESTMENT AND STATE PROPERTY MANAGEMENT OF THE REPUBLIC OF TAJIKISTAN Республика Таджикистан Tajikistan’s experience in PPP

Fifth meeting of the infrastructure financing and PPP Network of Asia and the Pacific – June 22, 2021 Russian Federation Republic of Tajikistan

Kazakhstan

Uzbekistan Kyrgyzstan Capital: Dushanbe China Area: 142 600 km² Afghanistan Iran Population: 10 mln.(as of 2019) Currency: Tajik Somoni (TJS) Pakistan Country code: +992 Saudi Arabia India Timezone: UTC + 5

Dushanbe Khorog

Bokhtar Khujand State Strategies and Programs

National development strategy of the Republic of Tajikistan for the period up to 2030 FOUR STRATEGIC GOALS: 1) ENSURING ENERGY INDEPENDENCE; 2) EXIT FROM COMMUNICATION DEADLOCK; 3) ENSURING FOOD SECURITY; 4) RAPID INDUSTRIALIZATION OF THE COUNTRY. Medium term development program of the Republic of Tajikistan for 2021-2025 Program of rapid industrialization of the Republic of Tajikistan for the period 2021-2025 Macroeconomics

GDP structure by Sectors

2020 GDP growth (%)

9% 20% +7,1 +7,3 +7,5 11% +6,9 +4,5 10% 18%

15%

17%

Construction Tax Transport Trade 2016 2017 2018 2019 20202020 Industry Services Agriculture Foreign investment inflow

(mln. US Dollars) 2020 FDI Other 162,5 265,9 354.5 -53% +1,8% 470.9 434.2 326.8 745.9 506.9 408.4 2019 317.7 FDI Other 2015 2016 2017 2018 345,9 261,1 ПрочиеOther инвестиции ПИИForeign direct investment investment +5,8% -17,8% FDI inflow in sectors

Total for 2015-2020 (mln. US Dollars) 1000 874 900 800 700 600 411.5 500 400 263.2 300 178 129.8 200 82.1 102.8 31.7 21.4 100 0

Mining Other Industry Tourism Agriculture Education Construction

Finance and Trade

Transport and communication PPP legal framework

Law on Concession (adopted in new edition in 2011) Regulates relations related to the concession and determines powers of state bodies, the conditions and procedure for the provision of concession objects

Law on PPP (adopted in 2012) Defines the legal, economic and organizational foundations of PPP, project implementation procedure and protection of the interests of public and private sectors

Laws and regulations and Laws Guidelines and manuals on procedures of preparing and implementing PPP projects, including developing Feasibility report, setting up Evaluation Commission of tender bids

Civil Code, Tax Code, Customs Code, Land Code, Law on Investments etc. PPP institutional framework

Institutional arrangement PPP Council The senior PPP body authorized to supervise all the activities related to the PPP projects. Chaired by the senior government officials (First Deputy Prime minister, ministers and heads of committees and agencies)

The State Committee on investment and state property management (The PPP Center) Responsible for implementing state policy in PPP field, preparing guidelines and standards for PPP projects, assisting public and private sectors in preparing PPP projects Line ministries, committees, agencies and local governments Prepare and propose PPP projects in their relevant sector, set up commission on evaluating bidding proposals PPP projects under implementation in Tajikistan

Projects pipeline (within the period 2013-2020)

•2016 – Project of Rehabili- TJS 223.8 mil. TJS 23 mil. •2019 – Project of TJS 13,7 mil. tation and Supplying drinking management of ($ 22.8 mil) • 2017 – Project water to residents kinder-garten of establishing • 2018 - Project of of Isfisor village of •2020 – Project №133 •2016 – Project Center for Dushanbe City B.Ghafurov of Solid waste Dushanbe city, of Construction hepatitis Card “Public district», tenure 15 management in tenure 10 years of power grid till diseases, trans-port years (2019-2034) Buston city, (2016-2026) FEZ Danghara, tenure 15 electronic tenure 20 years tenure 8 years years (2017- payment system TJS 1,78 mil. (2020-2040 (2017-2027) 2032) control in TJS 8 mil. Dushanbe city”, TJS 20 mil. tenure 5 years (2018-2022) - 6 projects - TJS 290,3 mil. - 5 sectors (education, power, health care, transport, utilities) Success case of PPP in Tajikistan

Ø Pamir Energy Project Company – rehabilitate, maintain and operate hydropower system in Gorno Babahshan Autonomous Oblast of Tajikistan for 25 years (2002 – 2026) based on Concession Agreement with Government of Tajikistan Ø Project objective: supply reliable electricity to consumers in a financially, environmentally and socially sustainable way Ø Initial project cost: $26.4 mil. Success case of PPP in Tajikistan

Ø The Dushanbe-Chanak Toll Road– A private sector company Innovative Road Solutions (IRS) was awarded the rights to manage the Dushanbe-Chanak (Sughd) toll road for 30 years (2010-2040) based on a Concession Agreement with Government of Tajikistan Ø IRS’s responsibility: keep regular road maintenance, equip the road with toll plazas and collect tolls from motorists Ø Project objective: improve the road condition, increase transportation speed and keep open transport connectivity between North and South part of the country year- around, repay the public debt Ø Public investment in road construction: $296 mil. Success case of PPP in Tajikistan

Ø The project “Automation of fare payment and control system in public transport of Dushanbe” provide quality public transport service in capital city Dushanbe and implement automation of fare payment and control of the process for 5 years (2018 – 2022) based on PPP Agreement with the Executive body of the state authority of Dushanbe city Ø Project objective: improve public transport service quality, strengthen financial control, increase the transparency, obtain accurate data, analysis and reports, move to cashless payment system using transport cards and automation of fare systems for passenger transport Ø Project cost: TJS23.1 mil. Reforms for creating favorable PPP environment in Tajikistan

1 New law on PPP and concession in Tajikistan

State Program on promoting PPP in Tajikistan for 2 the period up to 2030

3 State Program on promoting private sector development in Tajikistan for the period up to 2030

Action plan on improving Tajikistan position in 4 international ratings for the period 2019-2022 Tajikistan in international ratings

þ 106th place in the World Bank þ 50 score in the Global Doing Business Report. competitiveness index.

þ In the list of Top 10 reformers in þ 107th place in the Global Peace the World Bank's Doing Ranking. Business ranking for 2010, 2011, 2015, 2019

þ 44 score in the infrascope index, measuring the enabling environment for PPP in infrastructure. Enabling business environment Investment protection 39 7 35 • Mutual promotion • Multilateral • Avoidance of double and protection of protection of taxation investments investments

•Algeria, Armenia, Austria, •Eurasian Investment •Kyrgyzstan, Kazakhstan, Azerbaijan, Belarus, Belgium; Agreement BLEU (Belgium-Luxembourg Russia, Belarus, Armenia, •ECO Investment Agreement Economic Union), China, Azerbaijan, Ukraine, Poland, Moldova, Czech Republic, Czech Republic, France, •EU-Tajikistan Partnership Turkey, Iran, Germany, Germany, India, Indonesia, Agreement Indonesia, Pakistan, United Iran, Kazakhstan, Kuwait, •USA-Central Asia TIFA Kingdom, Kuwait, Malaysia, Kyrgyzstan, Lithuania, •Convention on Investor Qatar, Austria, Thailand, Luxembourg, Moldova, Rights in CIS Saudi Arabia, United Arab Mongolia, Netherlands, •Energy Charter Treaty Emirates, Vietnam, Republic Pakistan, Slovakia, Spain, •OIC Investment Agreement of Korea, Romania, Bahrain, Switzerland, Syria , Finland, Switzerland, Turkmenistan, Ukraine, Uzbekistan United Arab Emirates, Uzbekistan, Vietnam General Incentives According to Customs and Tax legislation there are more than 110 incentives for Investors and Entrepreneurs, including Income Tax Exemption

mln. $

For 5 years, with investment more than $ 5 million 5 > 5

For 4 years, with investment from $ 2 million to $ 5 million 4 2-5

For 3 years, with investment from $ 500 thousand to $ 2 million 3 0,5-2

For 2 years, with investment from $ 200 thousand to $ 500 thousand 2 0,2-0,5 Applicable sectors for PPP projects implementation

Transport Water Energy Social

ü Roads ü Utilities ü Construction ü Hospitals ü Bridges ü Water treatment ü Generation ü Schools- ü Parking areas ü Water supply ü Sales kindergarden ü Airports networks ü Transition ü Solid waste ü Terminal management Priority Industries

Energy Agriculture Light industry Tourism Transport Construction WELCOME TO TAJIKISTAN! Thank you for attention!

State Committee for Investments State Enterprise and State Property Management of “Tajikistan PPP Center” the Republic of Tajikistan www.ppp.tj [email protected] www.investcom.tj