Tajikistan: 15 Years of Partnership with the Asian Development Bank Development Effectiveness Brief

Tajikistan 15 Years of Partnership with the Asian Development Bank

Publication Stock No. ARM136085-3

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

Note: In this publication, “$” refers to US dollars.

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Printed on recycled paper Contents

Foreword ...... ii

Preface ...... iii

Tajikistan and ADB: 15 Years Down the Road ...... 1

ADB’s Contribution to Development and Poverty Reduction ...... 5

Bridging Power Gaps at Home and Abroad ...... 5

Repairing Roads, Reconnecting the Region ...... 9

Creating an Environment in which the Private Sector Can Flourish ...... 14

Channeling the Waters: Restoring Irrigation and Managing Floods ...... 15

Renovating Schools, Pulling Up Standards ...... 19

Operational Effectiveness: Improving Efficiency and Performance ...... 21

The Success Rate of ADB’s Operations in Tajikistan ...... 21

Speeding Up Disbursement ...... 22

Coordination and Partnerships ...... 22

Future Challenges ...... 23

Appendix: ADB Loans and Grants in Tajikistan, 1998–2013 ...... 24 Foreword

On the occasion of the 15th anniver- joint efforts and skills are needed to sary of our partnership, on behalf of further improve the people’s welfare the Tajikistan government, I would like through energy independence, food to express our profound gratitude to security, transport connectivity, and the Asian Development Bank (ADB) private sector development. for its fruitful support of the social and The government values its partner- economic development of the country. ship with ADB, which is based on Our relationship with ADB began in trust and respect, and looks forward 1998, after a difficult period of transi- to strengthening its cooperation with tion. We thank ADB for its timely this important regional development assistance in transport, energy, agri- institution. culture, and the social sectors, which has helped reduce our people’s isolation and improve access to electricity, water supply, and social services. Today, with a total portfolio of over Matlubkhon Davlatov $1 billion, ADB is not only our larg- ADB Governor est but also one of our most consistent First Deputy Prime Minister multilateral development partners. Government of Tajikistan As we celebrate our achievements, however, we acknowledge that our best

ii Development Effectiveness Brief—Tajikistan Preface

The Asian Development Bank (ADB) less of the sector we operate in, results has been privileged to partner with on the ground depend critically on Tajikistan in its endeavor to reduce the skills to plan, design, and imple- poverty and achieve inclusive and sus- ment projects effectively and efficiently. tainable growth since 1998. A lot has Working together for the last 15 years, happened over the last 15 years in the we have made progress in enhancing world, but our partnership has become these capabilities. Today, Tajikistan’s stronger and more fruitful. portfolio is among our strongest. From the initial post-conflict and As we celebrate 15 years of our emergency assistance, we gradually partnership, ADB stands committed moved to a full-fledged development to supporting Tajikistan’s development partnership. Next year, through our agenda and looks forward to many joint efforts we will complete our more years of productive collaboration second country partnership strategy in for the benefit of the Tajik people. Tajikistan, which focuses on strengthening energy supplies and transport links, and on developing a vibrant private sector to help the economy grow and diversify. Klaus Gerhaeusser As we can see from the numbers Director General and stories in this country brief, we Central and West Asia Department can be proud of the achievements. Asian Development Bank ADB commends the government for taking a strong lead and ownership in all ADB-supported projects. Regard-

iii

Tajikistan and ADB: 15 Years Down the Road

A country of spectacular landscapes A calamitous civil war following crowned by some of the world’s independence, in 1991, damaged much highest mountain peaks, Tajikistan of the country’s infrastructure, and is defined by its rugged terrain. It is sent the economy into a steep decline. landlocked, with the Kyrgyz Republic Poverty became widespread. After hos- to the north, the People’s Republic of tilities ended in 1997, improved stabil- China (PRC) to the east, Afghanistan ity made recovery possible. Economic to the south, and Uzbekistan to the growth reached 7.5% in 2012, and the west and north; and it is crisscrossed national poverty rate dropped to 47% by glacier-fed rivers that supply hy- from 72.4% in 2003. droelectricity, but also present a high The Asian Development Bank (ADB) flood risk. welcomed Tajikistan as a member in Tajikistan is the second-smallest 1998 and opened a resident mission in Opposite: Central Asian country in terms of ter- the capital, Dushanbe, in 2003. During Tajikistan’s ritory, and also one of the poorest. Its 15 years of partnership with the country, mountainous 8 million inhabitants live in a patch- ADB has used its financial resources terrain and work of self-contained valleys that and technical expertise to help improve extreme climate make up less than 7% of the land area, the welfare of the Tajik people. The part- add to its the rest of the land taken up by rugged nership has promoted social develop- development mountains. ment, restored or built new infrastruc- challenges.

Tajikistan in Numbers

Population 8 million (2013) Gross national income per $870 (2011) capita (Atlas method) Annual population growth rate 2.2% (2010-2012) Year Tajikistan joined ADB 1998 Infant mortality rate (per 1,000 52 (2012) live births) ADB’s total approvals $1.082 billion (1998–30 September 2013) Rural population 73% (2012) to Tajikistan

Literacy rate 99.7% (2010) ADB total grants $663 million

Poverty rate (% of the 47% (2009) ADB total loans $373 million population living below the national poverty line) ADB total technical assistance $46 million

ADB = Asian Development Bank. Source: Statistical Agency under the President of the Republic of Tajikistan; ADB estimates.

Tajikistan and ADB: 15 Years Down the Road 1 ture, expanded agricultural production, The Changing Sector Distribution of ADB’s Commitments and encouraged regional cooperation to Tajikistan and trade within the framework of

500 Total the Central Asia Regional Economic 447 Cooperation (CAREC) Program. The 400 85 (19%) ongoing country assistance program evaluation, the first for the country, will 300 Total cover ADB’s engagement from 1998 to 240 (54%) 200 192 end–2013. 51 (26%) ADB’s early assistance concentrated 30 (16%)

mount ($ million) 100

A on the immediate necessities of emer- 111 (58%) 122 (27%) 0 gency and post–civil-war reconstruc- 2005–2008 2009–2012 tion. As the country has progressed, ADB’s focus has evolved. Complement- ing national development strategies, Energy Transport Agriculture Public and water sector ADB’s country partnership strategy, resources management 2010–2014, focuses on energy and transport to ensure critical mass and ADB = Asian Development Bank impact. It also supports private sector Source:ADB estimates.

Hundreds of kilometers of national, provincial, district and rural roads have been built or rehabilitated with ADB assistance.

2 Development Effectiveness Brief—Tajikistan development by facilitating reforms to help improve the business climate and increase the role of public–private partnerships in infrastructure development and service delivery. Due to the high incidence of poverty, all of ADB’s support to Tajikistan has been through the concessional Asian Development Fund; and since 2008, assistance has been almost entirely in the form of grants. By the end of September 2013, ADB’s cumulative commitments to Tajikistan totaled $1.082 billion, including $373 million in 23 loans, $663 million in 26 grants, and $46 million in 74 technical assistance grant projects. Most of ADB’s portfolio comprised initiatives in transport (39%) and energy (28%), with an em- phasis on promoting regional connectivity. The appendix lists approved loan- and grant-financed projects.

More than 160,000 hectares of land have been improved through irrigation with ADB assistance.

ADB Loans, Grants, and Technical Assistance Commitments in Tajikistan ($ million)

Approvals 1998– All Sectors 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

Total 232.3 41.2 35.8 40.0 97.8 62.2 62.3 122.8 167.3 106.8 115.3

ADF loans 210.9 33.4 29.5 27.0 71.7 0 0 0 0 0 0

Grants 2.9 5 2.3 8.5 22.8 61.3 61.6 122.0 165.0 100.0 113.3

TA projects 18.5 2.8 4.0 4.5 3.3 0.9 0.7 0.8 2.3 6.8 2.0

ADF = Asian Development Fund, TA = technical assistance. *As of end-September 2013 Source: Asian Development Bank.

Tajikistan and ADB: 15 Years Down the Road 3 4 Development Effectiveness Brief—Tajikistan ADB’s Contribution to Development and Poverty Reduction ADB’s operations in Tajikistan have are antiquated and poorly maintained, helped reduce isolation, increase com- resulting in high system losses. Black- munication, broaden access to electric- outs are frequent and widespread, ity, improve social services, and create especially in winter, when electricity income-generating activities. Between demand is high but river flows are low. 2004 and 2013, 570 kilometers (km) of Poor management, including low tariffs roads supported by ADB help enhance and weak collection systems, adds to connectivity within Tajikistan and the problem. Conversely, during the between Tajikistan and its neighbors, summer months, when river flows are benefitting almost 1.5 million people. high but electricity demand is lower, ADB-assisted projects installed or Tajikistan has surplus energy, which it upgraded 493 km of power transmission and distribution lines, and brought electricity to more than 51,000 house- ADB Portion of holds. Assistance to the water sector Energy Sector Financing connected more than 90,000 new ADB: $257 million $886 million total households to clean water supplies, and 29% helped improve more than 160,000 hectares of land through irrigation, Some projects: drainage, and flood management. Lines installed or upgraded ADB-supported education projects Transmission lines built or upgraded 1,770 classrooms and ADB: 141 km 742 km total learning institutions, and trained more 19% than 68,700 teachers to provide 173,000 students with better education. Distribution lines ADB: 352 km 3,200 km total Opposite: 11% Gender Bridging Power Gaps at disparities are significant. If this Home and Abroad young student proceeds to A key challenge facing Tajikistan is the upper secondary need for a reliable year-round power or tertiary supply. Hydropower supplies around education, she 98% of the country’s electricity and will have more is the main source of heat and light. boys than girls

However, the Soviet-built electricity Sources: State Committee of Investments and State among her generation and transmission systems Property Management; Barki Tojik; ADB enstimates classmates.

ADB’s Contribution to Development and Poverty Reduction 5 could export to energy-poor neighbor- has focused on supporting the mod- ing countries; but it has not been able ernization and expansion of electricity to do so on a large scale due to a lack of generation, transmission, and distri- infrastructure and various nontechni- bution infrastructure; reforming the cal reasons. sector to meet domestic energy needs; The government intends to make and developing regional distribution the country energy independent by infrastructure and reforming the sector rehabilitating and better maintaining to meet domestic energy needs, as well existing assets, increasing energy-use as developing regional energy trade efficiency, making tariffs more real- under the CAREC Program. istic, and encouraging private sector Among development partners, ADB investment. It also plans to increase led in energy development, with total energy exports. As Tajikistan’s largest assistance of $257 million, account- multilateral development partner in the ing for over 38% of total develop- energy sector, ADB has been helping ment partners’, or 29% of total energy the country achieve these goals. ADB investments in the country during

Development Outputs from ADB-Supported Projects in Tajikistan

Outputs Achieved Outputs Achieved Indicators by Sector 2004–2013 Indicators by Sector 2004–2013

Education Transport

Classrooms built or upgraded 1,770 National, provincial, district, and 570 (number) rural roads built or upgraded (kilometers) Teachers trained (number) 68,701 Beneficiaries from road projects 1,470,700 Students benefiting (number) 173,000 (number)

Energy Water Supply and Sanitation

Transmission lines installed or 141 Water supply pipes installed or 23 upgraded (kilometers) upgraded (kilometers)

Distribution lines installed or 352 New households connected to 90,848 upgraded (kilometers) water supplies (number)

Additional households connected 51,600 Land improved through irrigation 160,144 to electricity (number) services, drainage, and flood management (hectares) Finance

Microfinance loan accounts 93,000 opened / end borrowers (number)

ADB = Asian Development Bank. Note: “Outputs Achieved” refers to periods for which outputs were reported in project completion reports. Sources: ADB project and program completion reports issued from 2004 to 30 June 2013, regional departments, and Strategy and Policy Department.

6 Development Effectiveness Brief—Tajikistan A modern 220-kilovolt (kV) switchyard, completed with funding from KfW, is housed in the white rectangular building at the left of the photo. The ADB-supported 500 kV switchyard is under construction on a stable site just to the left. Switchyards based on new technology need only about 2% of the space of the old facilities.

1998–2013. ADB’s energy projects installed or upgraded a total of 141 km of transmission lines, which accounted for 19% of the total length of transmission lines installed or upgraded country- wide during 2004–2013. ADB projects also installed or upgraded 352 km of distribution lines, or 11% of the total length installed or upgraded during the same period. ADB’s first power sector project in Tajikistan, the $34 million Power Rehabilitation Project, focused on the most urgent priority of expanding the power supply to local consum- ers and making it more reliable. This The planned ADB-financed 500-kilovolt (kV) switchyard at the project, which was completed in 2009, Nurek hydropower plant will look much like the new 220 kV added over 100 gigawatt-hours of switchyard there (pictured), built with the support of KfW.

ADB’s Contribution to Development and Poverty Reduction 7 power-generation capacity by reha- for the Nurek 500 kV Switchyard Re- bilitating the war-damaged Central construction Project. hydropower plant in Khatlon Province Ali Rahimov, electrician for Integral and the giant 3,000-megawatt (MW) Company, which is building the new Nurek hydropower plant. The proj- 500 kV switchyard together with other ect had also intended to stabilize the contractors, is glad to be part of such ground under the Nurek hydropower an important project. “I like the op- plant’s 220 kilovolt (kV) and 500 kV portunity to learn new things,” he says. switchyards, which were sinking and “We have specialists from several coun- in danger of collapsing at any time, tries working together—from Ger- potentially knocking out 70% of the many, Kazakhstan, Tajikistan—and we nation’s power supply. Due to the learn a lot from each other.” Rahimov scope of the work involved, it was later will have gained valuable transferable decided to relocate and rebuild the two skills by the time the work is completed switchyards using an advanced state- in 2014. of-the-art gas-insulated technology ADB is also supporting two power under two separate projects. Germa- transmission projects to help modern- ny’s Credit Institute for Reconstruc- ize and expand the country’s trans- tion (Kreditanstalt für Wiederaufbau, mission network. The projects are or KfW) financed the reconstruction intended not only to reduce system of the recently commissioned 220 kV losses and improve energy efficiency, switchyard; and ADB is supporting but also to facilitate energy trade with the rebuilding of the other one with a neighboring countries. $54.8 million grant, approved in 2008,

Power transmission lines and towers built under the Regional Power Transmission Interconnection Project export electricity generated in Tajikistan to Afghanistan.

8 Development Effectiveness Brief—Tajikistan TheRegional Power Transmission Exporting Countries Fund for Interna- Interconnection Project, launched tional Development (OFID). in 2006, has constructed 116.5 km of The $122 million grant-funded Re- 220 kV double-circuit transmission gional Power Transmission Project, lines linking hydropower stations on launched in 2010, is constructing Tajikistan’s Vakhsh River with the two 220 kV transmission lines total- Afghanistan border and a further 163 ing 140 km and rehabilitating two km to Pul-i-Khumri, in Afghanistan. high-voltage substations. The project The power line began exporting Tajiki- is also paving the way for reforms in stan’s 300 MW summer power surplus the national utility company, Barki in 2011 to meet a power shortfall in Tojik, by restructuring its operational Afghanistan. The project also helped and business processes and reform- address a winter power deficit in south- ing tariffs. ern Tajikistan by boosting generation capacity and reducing technical losses, Repairing Roads, resulting in additional 320 gigawatt- hours annually. The Tajikistan portion Reconnecting the Region of the project was cofinanced by ADB A well-maintained road network is (through a $21.5 million concessional vital if a landlocked country is to reach loan), the Islamic Development Bank, markets and sources of inputs, and pro- and the Organization of Petroleum vide its rural population with economic opportunities and social services. Maintenance work on the country’s 31,800 km Soviet-era road network ADB Portion of dramatically decreased after the col- Transportation Sector Financing lapse of the Soviet Union; and roads and bridges were subsequently dam- ADB: $440 million $1,714 million total aged as a result of the civil war, heavy 26% usage, and natural deterioration. ADB and other development part- Some projects: ners are supporting the government’s National, provincial, district and rural strategy of rehabilitating and main- roads supported (kilometers) taining the country’s road network and developing an outward-looking ADB: 570 km 1,235 km total 46% trade environment. As the largest multilateral development partner in Tajikistan’s transport sector, ADB has provided around $440 million in loans and grants between 1998 and end- September 2013. ADB’s road assistance accounts for around 46% of total development partners’, or 26% of total investments in the road sector. ADB’s Sources: State Committee of Investments and State projects have focused on rehabilitating Property Management; Ministry of Transport; ADB estimates. the country’s major regional links and

ADB’s Contribution to Development and Poverty Reduction 9 modernizing border crossings, while total road length rehabilitated during also improving rural roads to help 2004–2013. reduce poverty. ADB projects upgraded Tajikistan’s roads are important arter- 570 km of national and rural roads, ies for the wider region, and its economy which account for 46% of Tajikistan’s is increasingly dependent on external trade. The country is a transit point on

Askerbi Hasanov, a truck driver from Bishkek uses the Dushanbe– Kyrgyz border road every 2 weeks.

10 Development Effectiveness Brief—Tajikistan four of the six CAREC corridors—2, 3, border posts were also improved, and 5, and 6. Upgrading its dilapidated road vehicles, X-ray machines, and diesel sections and making its border crossings generators were procured. These mea- more efficient are therefore part of the sures reduced import clearance time CAREC transport strategy. from 10 days in 2005 to 1–2 days by Cross-border customs and transit the end of 2011, and they quadrupled arrangements are hugely important revenue collection. in facilitating trade, not least because In addition, customs cooperation with of the extensive delays—sometimes the Kyrgyz Republic is being promoted for days and even weeks—that drivers through a comprehensive cross-border often experience at border-crossing transport agreement signed in 2011. points. The Regional Customs Travel on the road between the Tajiki- Modernization and Infrastructure stan capital, Dushanbe, and the Kyrgyz Development Project, completed Republic border is much improved with in 2011, improved the efficiency and the rehabilitation of this 317 km section transparency of customs services and of CAREC Corridors 3 and 5. Since promoted trade and customs coopera- ADB approved its first assistance for the tion between neighboring states. The Dushanbe–Kyrgyz Republic border road project was financed by a $10.7 million in 2003, it has provided over $135 mil- ADB loan and a $1.6 million grant lion to repair the road. from the Government of the United Traffic volumes on the rehabilitated States. Customs processing capacity road increased by 20% annually, and was improved through the installation vehicles can now travel at average speeds of a computerized, unified informa- of 80 km per hour, compared with 50 tion system in 72 customs posts. Key km per hour on unrehabilitated sec-

Right: The newly constructed Karamyk border- crossing point on the Tajikistan– Kyrgyz Republic border, on CAREC Corridor 3.

ADB’s Contribution to Development and Poverty Reduction 11 tions, vastly reducing journey times. newly established cafes and restaurants. Askerbi Hasanov, from Bishkek, Kyrgyz “I am divorced and have no other source Republic, who trucks medical supplies of income,” she says, “so I have to keep from Almaty, Kazakhstan, uses the the restaurant open 24 hours a day to Dushanbe–Kyrgyz Republic border road earn enough to support my six children. every 2 weeks. He says that the rehabili- I worry that when trucks are held up tated road is now faster and safer, and due to problems at the borders, I won’t he spends much less on fuel and main- be able to make ends meet.” Like the tenance. The journey from the Kyrgyz truck drivers, Ibrogimova has found her Republic’s border to Dushanbe, which life is easier when border crossings are sometimes took a week, now takes him smoother. only about 8 hours. For the local communities, private As traffic volumes have grown, so has taxi and minibus services are frequent the number of small-scale enterprises— now, making travel to markets, schools, gas stations, restaurants, and grocery and hospitals faster and easier. The stores. Havasmo Ibrogimova, from Kalai rehabilitation of the road has helped Nav village in Faizabad District, owns a raise incomes in the area, reducing the small roadside restaurant, and she has poverty incidence from about 70% in seen big changes during her 27 years 2005 to about 36% in 2012. A woman sells fruit to passing there. Back when the road was almost As road quality improves, maintain- traffic along impassable, her restaurant was the only ing roads at a reasonable cost becomes the Dushanbe– one on that stretch. Now that the road is a serious challenge for Tajikistan, given Uzbek border in good condition, there is more passing its mountainous landscapes, extreme road. traffic, but also more competition from climate, and frequent natural haz-

12 Development Effectiveness Brief—Tajikistan ards. The government has increased million grant from the Japan Fund for road maintenance funding, and with Poverty Reduction (JFPR) under the ADB’s technical assistance, is piloting Sustainable Access for Isolated Rural performance-based road maintenance Communities Project, completed in contracting with the private sector to 2010, has improved the quality of life stretch its funds further. for communities in Rasht Valley. It has In the meantime, in the west of the also helped them become more self- country, rehabilitation has begun on sufficient by building their capacity to the 62 km section of CAREC Corridor maintain the new bridge, and has up- 3 from Dushanbe to the Uzbekistan graded roads in the immediate vicinity. border (at Tursunzade). Started in The bridge, which replaced a di- 2011, the work is being financed by a lapidated suspension bridge destroyed $120 million grant from ADB and $35 during a flood, has made the delivery of million in parallel financing from the agricultural products to market centers European Bank for Reconstruction much easier and cheaper. “In the past, and Development (EBRD). The project will also upgrade the border-crossing facilities and equipment, management, and staffing. These improvements are expected to increase agricultural and industrial production and trade in one of the most productive agricultural regions in the country. A gender component will also enrich and safeguard border communities and help women, who head many households, to create small businesses. The remote Zarafshan Valley, in northern Tajikistan, is the location of the CAREC Corridor 6 (Ayni–Uzbekistan Border Road) Improvement Project, which was launched in 2012 with support from ADB ($100 million grant) and the OPEC Fund for International Development ($14 million loan). The 113 km road is part of the historic Silk Road. Under the project, road upgrading will increase regional connectivity; provide impoverished communities with access to social services and markets; and stimulate the development of agriculture, tourism, and mining. Restaurant owner, Havasmo Ibrogimova, depends on the A project does not need to be expen- rehabilitated road for business from passing traffic. She says sive to have a big impact. A new bridge the smoother, faster road has also reduced travel time to the over the Surhob River, financed by a $2 nearest hospital, in the town of Rogun, from 1 hour to just 15 minutes; and there are fewer breakdowns and accidents.

ADB’s Contribution to Development and Poverty Reduction 13 I could not sell my apples and pears so villagers in the vicinity of the bridge, at all,” explains Davlathuja Kulolov, a including children. The bridge and farmer from Zarangak Village. “No linking roads have helped older stu- Left: Davlathuja vendor came to our village to pick dents reach secondary schools where Kulolov explains that the new them up, and I was at a loss at how to they can continue their education. bridge (bottom) bring the fruits to market myself. But makes it possible now it is only 8 km to reach the main Creating an Environment for him to take his market, and the travel is easy.” The im- fruit to markets. pact is multiplied across the 47,000 or in which the Private Sector Can Flourish The government is taking steps to develop the private sector in order to increase foreign direct investment and reduce the economy’s dependence on migrant worker remittances and on commodities such as aluminum and cotton. Tajikistan’s accession to the World Trade Organization (WTO) in March 2013 was a major landmark in this context, as it requires the government to undertake market-oriented legal and regulatory reforms to liberalize

14 Development Effectiveness Brief—Tajikistan trade. ADB is providing a technical as- and is exacerbated by climate change. sistance project, Strengthening Tajiki- Given this context, the major thrust of stan’s Trade and Investment Regime. ADB’s work in the sector has been to The project will conduct policy research restore irrigation systems and manage on reforming TajikStandard, the agency floods. During 1998– end-September that deals with all standardization and 2013, ADB provided assistance totaling metrology; train key officials on policy $140 million for these purposes. This and regulatory reforms; and support the amount accounted for 44% of the total organization of a trade and investment investment, or around 51% of the total conference to showcase the govern- development partners’ assistance in the ment’s commitment to improving the agriculture sector during this period. It environment for trade and business. helped improve irrigation systems on The government is eying the public– 160,144 hectares of land during 2004– private partnership (PPP) as a means 2013, which accounts for 21% of the total to expand investment and help main- area of irrigated land in the country. tain Tajikistan’s economic and social ADB has provided immediate assis- services. At the government’s request, tance and longer-term solutions to help ADB will help improve the policy, legal, flood-affected communities. In 2005, and regulatory environment for PPPs devastating floods inundated Khatlon through a new technical assistance Province, in the south of the country. project: Support Enabling Capacity Communities lost buildings, bridges, Building for Public–Private Partner- roads, as well topsoil from 4,000 hect- ships in Tajikistan. Building on World Bank–International Finance Corpora- tion support for the development of a ADB Portion of new PPP law, which was adopted in Agriculture Sector Financing early 2013, the technical assistance will improve project screening and identify ADB: $140 million $314 million total and develop new PPP projects, amend 44% key laws, and increase government capacity to undertake PPP policy reforms. Some projects: Land improved through Channeling the Waters: irrigation (hectares) Restoring Irrigation and ADB: 160,144 ha 762,590 ha total Managing Floods 21% The broad, silt-laden rivers that weave across Tajikistan’s agricultural land are a plentiful source of irrigation water for farming communities. Agriculture is a vitally important sector, as about one-third of the country’s population is food insecure and 70% relies directly Sources: State Committee of Investments and State or indirectly on farming for livelihood. Property Management; Ministry of Transport; ADB The risk of severe floods is ever present estimates.

ADB’s Contribution to Development and Poverty Reduction 15 ares of fields. Mahina Mansurova from cows, sheep, gardens, and fields. River Metintugay Village, experienced the embankments and irrigation canals flood, and described the scene as re- were destroyed, and drinking water sembling a warzone, with floodwaters supplies were cut off. submerging houses and fields. ADB responded to the emergency by “Everyone was out in the streets adding to the scope of two then-ongoing escaping from the surging waters. We loans, the Agriculture Rehabilitation had to run for about 4 kilometers to Project and the Irrigation Rehabilita- find a safer place,” she says. They lost tion Project. The funds were used to

Left: Residents of Metintugay Village, in Khatlon Province, gather to talk about the floods that devastated their community.

Below: Flood protection embankments along the Pyanj River, which delineates Tajikistan’s border with Afghanistan.

16 Development Effectiveness Brief—Tajikistan rehabilitate damaged embankments Resources, the structural measures along the Pyanj River and to reconstruct are working: in 2010, the river rose to canals, providing protection for 50,000 a much higher level than in the 2005 hectares of land. They were also used for flood, but this time it stayed within the construction of new infrastructure, its embankments. “The results speak such as schools, roads, and hospitals. for themselves,” he says. “Almost half To make communities in four vul- a million people in four districts are nerable districts—Hamadoni, Fark- now protected, have water to drink hor, Kulyab, and Vose—more resilient and irrigate their fields with, and can against future floods, ADB provided plan their future.” a $22 million loan for the Khatlon Besides addressing the 2005 flood Province Flood Risk Management emergency, the Irrigation Rehabilita- Project in 2007. Concrete protective tion Project, completed in 2011, helped embankments were built along 11.6 repair irrigation and drinking-water km of the Pyanj River and 18 spur infrastructure, which had become seri- dikes were constructed to moderate ously degraded throughout the country the river’s flow. The project also helped due to the lack of adequate maintenance communities plan for emergencies following independence. Supported by by instituting flood warning systems, a $22.7 million ADB loan, 250 km of flood-risk maps, public education, and irrigation canals, 425 km of collector evacuation plans. According to Rah- drains, nine pump stations, and nine mat Bobokalonov, Minister of Water headworks were rehabilitated in five of

Pump station Urta-Buz Number 4, Farkhor District, Khatlon Province, Tajikistan. The pump station was partly rehabilitated under the Irrigation Rehabilitation Project, which helped improve agricultural productivity, incomes, and access to clean water for rural communities.

ADB’s Contribution to Development and Poverty Reduction 17 the country’s poorest districts. Improved participating in the Pilot Program for water supply schemes also reached Climate Resilience, in partnership with 31,620 people in the project areas. ADB, EBRD, and the World Bank. The As well as being highly predisposed to $50 million program, launched in 2010, geological and hydrological hazards, Ta- pilots approaches to integrate climate jikistan is in the unlucky position of be- risks into development planning. ADB ing one of the most vulnerable countries is supporting a capacity development to climate change in the region, with an technical assistance project for climate increased frequency of floods, droughts, resilience, and an investment project and storms. To help put itself on a more aimed at building climate resilience in climate-resilient path, Tajikistan is the Pyanj River Basin. Both projects are

18 Development Effectiveness Brief—Tajikistan jointly funded by the Strategic Climate tion component of the ADB-supported Fund and ADB’s Technical Assistance $20 million Social Sector Rehabilita- Special Fund. tion Project, approved in 1999, began to repair the damage, rehabilitating Renovating Schools, 1,200 classrooms, including roofs, water supply systems, and heating; printing Pulling Up Standards 2.3 million updated copies of 27 text- Independence from the Soviet Union books—enough for 90% of the country’s and the ensuing civil war left Tajikistan’s secondary school students; and training schools physically damaged, under- 63,017 teachers. funded, and poorly staffed. The educa- This was followed by the $7.5 million Education Sector Reform Project, completed in 2010, which supported the Ministry of Education in piloting educational reforms in five districts. Facilities and equipment were improved in the 76 most needy schools, and in a further 50 schools to a lesser degree, benefiting about 112,500 students; and 5,684 teachers were trained. Between 2005 and 2009, gross enrollment rate for grades 1–11 increased by 6.4% on average in the pilot districts, compared with 2.1% nationally; and girls’ enrollment in grades 10–11 improved by 51% in the pilot districts, compared with 18% nationally. Students’ average grades in the pilot districts improved by 27% in Tajik language and by 19% in math. Linked to this project, the School Improvement Project, a $1.075 million JFPR grant funded schools with established parent–teacher associations and school-improvement plans to cover minor repairs, teaching aids, basic equipment, school attendance and re- tention schemes, and school-managed livelihood projects.

These boys study at Secondary School Number 31 in Mirapok Village, Kulyab District, which was partially rehabilitated under ADB’s Education Sector Reform project.

ADB’s Contribution to Development and Poverty Reduction 19 20 Development Effectiveness Brief—Tajikistan Operational Effectiveness: Improving Efficiency and Performance

The Success Rate of Central Asian country into contracting out to the private sector. The Ministry ADB’s Operations in of Transport intends to replicate this Tajikistan promising approach elsewhere and is also exploring PPP arrangements to Between 2004 and 2012, ADB complet- expand road maintenance. ed 15 projects. Of these, 93% (all except Of 14 com- one project) were rated either successful pleted technical or highly successful, making Tajikistan assistance projects, Project design and the fourth-best performer among all only 8 (57%) were implementation are done of ADB’s developing member coun- rated successful or tries. ADB’s one exception, The Power highly successful jointly by headquarters and Rehabilitation Project was rated partly during 2008–2012. resident mission staff, and successful because of design weak- Of the six partly nesses, reduced outputs, cost overruns, successful projects, this change is strengthening and delays. four suffered from Of the 15 projects, 4 were also rated the quality-at-entry and overambitious less likely sustainable—the Irrigation or inappropriate overall performance of the Rehabilitation Project, the Agricultural project design, Rehabilitation Project, the Social Sec- country portfolio. tor Rehabilitation Project, and the Road and two received Rehabilitation Project. In all four assess- inadequate governments, the key problem highlighted was ment support or ownership for some the lack of funds, staff, and equipment to components. To improve the success maintain the rehabilitated classrooms, rate and address design and ownership irrigation structures, and roads. issues, ADB, together with the govern- To try to resolve operation and main- ment, has implemented several initia- tenance problems in the road network, tives. Better and more regular consulta- the government has allocated $4 mil- tions and monitoring generally produce lion for a pilot initiative supported by good results. So, project design and ADB to outsource maintenance work implementation are now done jointly Opposite: The on the Dushanbe–Kyrgyz Republic by headquarters and resident mission Pamir Mountain border road to private contractors staff, and this change is strengthening Range is known using performance-based selection the quality-at-entry and overall perfor- as “the roof of the criteria. This is the first venture by a mance of the country portfolio. world”.

Operational Effectiveness: Improving Efficiency and Performance 21 Speeding Up forts on needed reforms, and to facilitate regular, structured dialogue and Disbursement interaction between the government and development partners, and among The speedy disbursement of funds is development partners. essential for efficient project implemen- ADB chaired the DCC in 2010–2011, tation and timely delivery of results. In and has led development agencies in the past, fund withdrawal applications pursuing aid effectiveness objectives. submitted by implementing agen- The DCC has formalized coordination cies were often of poor quality, and through working groups chaired by thus rejected and sent back by ADB bilateral and multilateral development headquarters. The Tajikistan Resident partners, with ADB currently chair- Mission staff now prescreens all with- ing the energy and transport groups. drawal applications to ensure that they To showcase Tajikistan’s development are free of inconsistencies, mistakes, and coordination, which is now among omissions; and the resident mission has the best in the region, representa- successfully piloted an electronic docu- tives of development partners and the ment storage-and-retrieval system to government shared lessons from their speed up the submission of withdrawal coordination and partnership experi- applications. These pragmatic steps ence under the DCC at the High Level reduced average processing time for Forum on Aid Effectiveness in Busan, direct payment claims from 20–40 days Republic of Korea in 2011. in 2008 to 3–5 days in 2012, resulting in The government, ADB, and the World faster project implementation. And they Bank have also been conducting joint helped reduce the average time between results-based country portfolio perfor- approval and first disbursement from mance reviews since 2004 to find solu- 14 months in 2010 to 8 months in 2012; tions to common and systemic issues. that was 4 months faster than the ADB Participation of civil society organi- results framework target. zations. Nongovernment organizations (NGOs) have been directly involved in Coordination and implementing several ADB-financed Partnerships projects in Tajikistan. For example, an NGO system has been established Coordination. More than 80 develop- to execute community participatory ment partners are present in Tajiki- disaster and flood awareness and miti- stan, leading to potential coordination gation, early response, and recovery headaches. ADB has played an impor- introduced by the Community Partici- tant role in promoting country-level patory Flood Management Project, initiatives to improve the alignment approved in 2008. In the Microfinance of aid with ongoing reforms and the Systems Development Program, ap- government’s policy objectives, particu- proved in 2003, more than 50 NGOs larly through the Development Coor- elected to become licensed microfi- dination Council (DCC). This body nance institutions to help provide the was established in 2007 to strengthen country’s poor with access to financial coordination and consolidate donor ef- products. Nine local NGOs received

22 Development Effectiveness Brief—Tajikistan training to build their capacity to energy, promoting regional power trade implement the HIV/AIDS prevention initiatives and investments, and im- component of the Dushanbe–Kyrgyz proving the performance of the power Border Road Rehabilitation Project. monopoly. Aside from participating in project Tajikistan’s transport challenges are implementation, civil society organiza- daunting, and ADB will continue to tions can also help communities achieve prioritize road rehabilitation opera- the results they want. In 2012, Kalam, tions, faster cross-border transit, and a local NGO, represented parents and the sustainability of rehabilitated teachers who had lodged an official infrastructure. complaint with ADB’s Office of the Promoting a booming and innova- Special Project Facilitator about the tive private sector is integral to achiev- limited scope of rehabilitation works in ing the country’s development goals, five schools in Roshtkala District. These and will therefore be a key area for schools had been partially renovated ADB over the next few years. ADB will under the Education Sector Reform continue supporting public manage- Project. The NGO’s constructive role led ment reforms and measures to create to further school improvements being a climate conducive to investment, in- made, to the satisfaction of all parties. cluding improvements in the financial sector. The banking system is severely Future Challenges underdeveloped, with average borrow- ing costs at 30% for small and medium- Tajikistan’s economy remains highly sized enterprises. exposed to external shocks due to Unusually for a developing country, its narrow economic base and heavy Tajikistan’s older generation is more dependence on remittances. Although highly educated than the growing economic growth is expected to remain young working-age population. The strong, it will continue to be vulner- youth also lack the skills relevant to the able to fluctuations in the international evolving economy. More assistance in prices of cotton and aluminum, its technical and vocational education and major export commodities. Growth is training is necessary to correct skill affected by the fortunes of Tajikistan’s mismatches and create a larger pool of main trading partner and migrant des- skilled workers. tination, the Russian Federation. The Food insecurity is a pressing problem health of the economy also depends on that is likely to become more serious as regional trade and cargo transit, and on growing climate change damages agri- political and social stability. cultural production. The government Persistent winter power shortages is committed to ensuring food security remain the country’s biggest growth by designating the agriculture sector constraint, causing hardship for the as one of its strategic priorities. ADB population and industry. ADB will will consider increasing support in this continue to help the government area when it prepares its new country improve its energy security by reha- partnership strategy. bilitating and constructing physical infrastructure, developing renewable

Operational Effectiveness: Improving Efficiency and Performance 23 Appendix: ADB Loans and Grants in Tajikistan, 1998–2013

Approval ADB Financing Cofinancing Project Date Type ($ million) ($ million)

Agriculture and Natural Resources

Building Climate Resilience 25 Jun 2013 Grant 21.55 (SCF 1) in the Pyanj River Basin*

Community Participatory 8 Sep 2008 Grant 3.0 (JFPR) Flood Management

Khatlon Province Flood Risk 5 Oct 2007 Loan 22.0 Management*

Rural Development* 29 Jan 2007 Loan 8.8 3.50 (GEF) 1.1 (Beneficiaries)

Rural Development* 29 Jan 2007 Grant 8.3

Sustainable Cotton Subsector 3 Nov 2006 Loan 5.5

Sustainable Cotton Subsector 3 Nov 2006 Grant 6.5

Irrigation Rehabilitation 10 Dec 2004 Loan 22.7

Agriculture Rehabilitation 18 Dec 2002 Loan 35.0 1.8 (Beneficiaries)

Tajikistan Rural Poverty Reduction 30 Oct 2001 Grant 2.9 (JFPR)

Emergency Restoration of 8 Aug 2001 Loan 3.6 Yavan Water Conveyance System

Education

School Improvement 13 Jan 2004 Grant 2.0 (JFPR)

Education Sector Reform 17 Dec 2003 Loan 7.5

Energy

Regional Power Transmission* 13 Aug 2010 Grant 122.0

Nurek 500 kV Switchyard 17 Nov 2008 Grant 54.8 Reconstruction*

Regional Power Transmission 19 Dec 2006 Loan 21.5 8.5 (OFID) Interconnection 10.0 (IsDB)

24 Development Effectiveness Brief—Tajikistan Approval ADB Financing Cofinancing Project Date Type ($ million) ($ million)

Community-Based Rural Power 15 Mar 2006 Grant 2.0 (JFPR) Supply

Regional Power Transmission 17 Dec 2002 Loan 20.0 2.4 (OFID) Modernization

Emergency Baipaza Landslide 10 Sep 2002 Loan 5.3 Stabilization

Power Rehabilitation 20 Dec 2000 Loan 34.0 9.3 (IsDB) 6.0 (Swiss Gov’t)

Finance

Access to Green Finance* 25 Jun 2013 Grant 10.0

Microfinance Systems 26 Jun 2003 Loan 4.0 0.7 (NGOs/MFIs) Development (Program Loan) 0.2 (Clients)

Microfinance Systems 26 Jun 2003 Loan 4.0 Development (Project Loan)

Health

Community Participation and 22 Jan 2004 Grant 1.0 (JFPR) Public Information Campaign for Health Improvement

Health Sector Reform 17 Dec 2003 Loan 7.5

Industry and Trade

Central Asia Regional Economic 1 Apr 2013 Grant 9.2 Cooperation Regional Improvement of Border Services*

Regional Customs Modernization 26 Nov 2004 Loan 10.7 1.6 (US Gov’t) and Infrastructure Development

Regional Trade Facilitation and 29 Oct 2002 Loan 10.0 Customs Cooperation

Multisector

Improved Maternal and Child 7 Mar 2013 Grant 2.5 (JFPR) Health through Connectivity*

Strengthening Public Resource 12 Apr 2011 Grant 45.0 Management*

Crisis Recovery Support 6 Jul 2009 Grant 40.0

Appendix 25 Approval ADB Financing Cofinancing Project Date Type ($ million) ($ million)

Emergency Flood Rehabilitation 2 Dec 1999 Loan 5.0

Social Sector Rehabilitation 26 Oct 1999 Loan 20.0

Postconflict Infrastructure 10 Dec 1998 Loan 20.0 Rehabilitation

Transport

Central Asia Regional Economic 19 Sep 2013 Grant 70.0 Cooperation Corridors 3 and 5 Enhancement*

Central Asia Regional Economic 11 Sep 2012 Grant 100.0 Cooperation Corridor 6 (Ayni– Uzbekistan Border Road) Improvement*

CAREC Corridor 3 (Dushanbe- 18 Jan 2011 Grant 120.0 Uzbekistan Border) Improvement*

CAREC Regional Road Corridor 24 Oct 2007 Loan 40.9 Improvement*

CAREC Regional Road Corridor 24 Oct 2007 Grant 12.5 Improvement*

Dushanbe–Kyrgyz Border 24 Jul 2009 Grant 20.0 Road Rehabilitation (Phase II) (Supplementary)

Sustainable Access for Isolated 23 Oct 2007 Grant 2.0 (JFPR) Rural Communities

Dushanbe–Kyrgyz Border Road 17 Nov 2005 Loan 29.5 Rehabilitation (Phase II)

Dushanbe–Kyrgyz Border Road 17 Nov 2005 Grant 0.5 Rehabilitation (Phase II)

Community-Based Rural Road 4 Nov 2005 Grant 1.8 (JFPR) Maintenance

Dushanbe–Kyrgyz Border Road 18 Dec 2003 Loan 15.0 6.0 (OFID) Rehabilitation (Phase I)

Road Rehabilitation 20 Dec 2000 Loan 20.0 4.0 (OFID)

ADB = Asian Development Bank, GEF = Global Environment Facility, IsDB = Islamic Development Bank, JFPR = Japan Fund for Poverty Reduction, MFI = microfinance institution, NGO = nongovernment organization, OFID = Organization of Petroleum Exporting Countries Fund for International Development, Swiss govt. = Government of Switzerland, US Govt = Government of the United States. *Ongoing projects. Source: ADB.

26 Development Effectiveness Brief—Tajikistan

Tajikistan: 15 Years of Partnership with the Asian Development Bank Development Effectiveness Brief

The Asian Development Bank (ADB) welcomed Tajikistan as a member in 1998. During 15 years of partnership with the country, ADB has helped improve the welfare of the Tajik people. The partnership has promoted social development, restored or built new infrastructure, expanded agriculture production, and encouraged regional cooperation and trade.

About the Asian Development Bank

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.7 billion people who live on less than $2 a day, with 828 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

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