tajikistan: 15 years of partnership with the asian development bank

7/27/2019 Tajikistan: 15 Years of Partnership with the Asian Development Bank

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ajikistan

Development Eectiveness Brie

15 Years o Partnershipwith the Asian Development Bank


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2013 Asian Development Bank

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Publication Stock No. ARM136085-3

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Contents

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii

Preace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

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

ADBs Contribution to Development and Poverty Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Bridging Power Gaps at Home and Abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Repairing 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 Eectiveness: Improving Eciency and Perormance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Te Success Rate o ADBs Operations in ajikistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Speeding Up Disbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Coordination and Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Future Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Appendix: ADB Loans and Grants in ajikistan, 19982013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24


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ii Development Efectiveness BrieTajikistan

ForewordOn the occasion o the 15th anniver-sary o our partnership, on behal othe ajikistan government, I would like

to express our proound gratitude tothe Asian Development Bank (ADB)or its ruitul support o the social andeconomic development o the country.

Our relationship with ADB began in1998, aer a dicult period o transi-tion. We thank ADB or its timelyassistance in transport, energy, agri-culture, and the social sectors, whichhas helped reduce our peoples isolationand improve access to electricity, water

supply, and social services.oday, with a total portolio o over

$1 billion, ADB is not only our larg-est but also one o our most consistentmultilateral development partners.

As we celebrate our achievements,however, we acknowledge that our best

joint eorts and skills are needed tourther improve the peoples welarethrough energy independence, ood

security, transport connectivity, andprivate sector development.Te government values its partner-

ship with ADB, which is based ontrust and respect, and looks orwardto strengthening its cooperation withthis important regional developmentinstitution.

Matlubkhon DavlatovADB GovernorFirst Deputy Prime MinisterGovernment o ajikistan


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iii

PreaceTe Asian Development Bank (ADB)has been privileged to partner withajikistan in its endeavor to reduce

poverty and achieve inclusive and sus-tainable growth since 1998. A lot hashappened over the last 15 years in theworld, but our partnership has becomestronger and more ruitul.

From the initial post-conict andemergency assistance, we graduallymoved to a ull-edged developmentpartnership. Next year, through ourjoint eorts we will complete oursecond country partnership strategy in

ajikistan, which ocuses on strength-ening energy supplies and transportlinks, and on developing a vibrant pri-vate sector to help the economy growand diversiy.

As we can see rom the numbersand stories in this country brie, wecan be proud o the achievements.

ADB commends the government ortaking a strong lead and ownership inall ADB-supported projects. Regard-

less o the sector we operate in, resultson the ground depend critically onthe skills to plan, design, and imple-

ment projects eectively and eciently.Working together or the last 15 years,we have made progress in enhancingthese capabilities. oday, ajikistansportolio is among our strongest.

As we celebrate 15 years o ourpartnership, ADB stands committedto supporting ajikistans developmentagenda and looks orward to manymore years o productive collaborationor the benet o the ajik people.

Klaus GerhaeusserDirector GeneralCentral and West Asia DepartmentAsian Development Bank


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Tajikistan and ADB: 15 Years Down the Road 1

A country o spectacular landscapescrowned by some o the worldshighest mountain peaks, ajikistanis dened by its rugged terrain. It islandlocked, with the Kyrgyz Republicto the north, the Peoples Republic oChina (PRC) to the east, Aghanistanto the south, and Uzbekistan to thewest and north; and it is crisscrossedby glacier-ed rivers that supply hy-droelectricity, but also present a highood risk.

ajikistan is the second-smallestCentral Asian country in terms o ter-ritory, and also one o the poorest. Its8 million inhabitants live in a patch-work o sel-contained valleys thatmake up less than 7% o the land area,the rest o the land taken up by ruggedmountains.

A calamitous civil war ollowingindependence, in 1991, damaged mucho the countrys inrastructure, andsent the economy into a steep decline.Poverty became widespread. Aer hos-tilities ended in 1997, improved stabil-ity made recovery possible. Economicgrowth reached 7.5% in 2012, and thenational poverty rate dropped to 47%rom 72.4% in 2003.

Te Asian Development Bank (ADB)welcomed ajikistan as a member in1998 and opened a resident mission inthe capital, Dushanbe, in 2003. During15 years o partnership with the country,ADB has used its nancial resourcesand technical expertise to help improvethe welare o the ajik people. Te part-nership has promoted social develop-ment, restored or built new inrastruc-

ajikistan and ADB:15 Years Down the Road

Tajikistan in Numbers

Population 8 million (2013)

Annual population growth rate 2.2% (2010-2012)

Infant mortality rate (per 1,000live births)

52 (2012)

Rural population 73% (2012)

Literacy rate 99.7% (2010)

Poverty rate (% of thepopulation living below thenational poverty line)

47% (2009)

ADB = Asian Development Bank.

Source: Statistical Agency under the President of the Republic of Tajikistan; ADB estimates.

Gross national income percapita (Atlas method)

$870 (2011)

Year Tajikistan joined ADB 1998

ADBs total approvals(199830 September 2013)to Tajikistan

$1.082 billion

ADB total grants $663 million

ADB total loans $373 million

ADB total technical assistance $46 million

Opposite:

Tajikistans

mountainous

terrain and

extreme climate

add to its

development

challenges.


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2 Development Efectiveness BrieTajikistan

ture, expanded agricultural production,and encouraged regional cooperationand trade within the ramework othe Central Asia Regional EconomicCooperation (CAREC) Program. Teongoing country assistance programevaluation, the rst or the country, will

cover ADBs engagement rom 1998 toend2013.

ADBs early assistance concentratedon the immediate necessities o emer-gency and postcivil-war reconstruc-tion. As the country has progressed,ADBs ocus has evolved. Complement-ing national development strategies,ADBs country partnership strategy,20102014, ocuses on energy andtransport to ensure critical mass andimpact. It also supports private sector

0

100

200

300

400

500

Energy

Amount($m

illion)

Transport Agricultureand waterresources

Publicsector

management

51 (26%)

Total

192

30 (16%)

111 (58%)

20052008

Total

447

85 (19%)

240 (54%)

122 (27%)

20092012

The Changing Sector Distribution of ADBs Commitments

to Tajikistan

ADB = Asian Development Bank

Source:ADB estimates.

Hundreds o kilometers o national, provincial, district and rural roads have been built or rehabilitated

with ADB assistance.


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Tajikistan and ADB: 15 Years Down the Road 3

development by acilitating reorms tohelp improve the business climate andincrease the role o publicprivate part-nerships in inrastructure developmentand service delivery.

Due to the high incidence o poverty,all o ADBs support to ajikistan has

been through the concessional AsianDevelopment Fund; and since 2008, as-sistance has been almost entirely in theorm o grants. By the end o September2013, ADBs cumulative commitments toajikistan totaled $1.082 billion, including$373 million in 23 loans, $663 million in26 grants, and $46 million in 74 technicalassistance grant projects. Most o ADBsportolio comprised initiatives in trans-port (39%) and energy (28%), with an em-phasis on promoting regional connectiv-ity. Te appendix lists approved loan- andgrant-nanced projects.

ApprovalsAll Sectors

19982003 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

ADB Loans, Grants, and echnical Assistance Commitmentsin ajikistan ($ million)

ADF = Asian Development Fund, TA = technical assistance.

*As o end-September 2013

Source: Asian Development Bank.

More than 160,000

hectares o land

have been improved

through irrigation

with ADB assistance.


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ADBs Contribution to Development and Poverty Reduction 5

ADBs operations in ajikistan havehelped reduce isolation, increase com-munication, broaden access to electric-ity, improve social services, and createincome-generating activities. Between2004 and 2013, 570 kilometers (km) oroads supported by ADB help enhanceconnectivity within ajikistan and

between ajikistan and its neighbors,benetting almost 1.5 million people.ADB-assisted projects installed orupgraded 493 km o power transmis-sion and distribution lines, and broughtelectricity to more than 51,000 house-holds. Assistance to the water sectorconnected more than 90,000 newhouseholds to clean water supplies, andhelped improve more than 160,000hectares o land through irrigation,

drainage, and ood management.ADB-supported education projectsbuilt or upgraded 1,770 classrooms andlearning institutions, and trained morethan 68,700 teachers to provide 173,000students with better education.

Bridging Power Gaps atHome and Abroad

A key challenge acing ajikistan is theneed or a reliable year-round powersupply. Hydropower supplies around98% o the countrys electricity andis the main source o heat and light.However, the Soviet-built electricitygeneration and transmission systems

are antiquated and poorly maintained,resulting in high system losses. Black-outs are requent and widespread,especially in winter, when electricitydemand is high but river ows are low.Poor management, including low tarisand weak collection systems, adds tothe problem. Conversely, during the

summer months, when river ows arehigh but electricity demand is lower,ajikistan has surplus energy, which it

ADBs Contribution toDevelopment and Poverty

Reduction

Opposite:

Gender

disparities are

signicant. I this

young student

proceeds toupper secondary

or tertiary

education, she

will have more

boys than girls

among her

classmates.

Some projects:

Lines installed or upgraded

ADB:$257 million $886 million total

29%

ADB Portion of

Energy Sector Financing

ADB:141 km 742 km total

19%

Transmission lines

ADB:352 km 3,200 km total

11%

Distribution lines

Sources: State Committee of Investments and StateProperty Management; Barki Tojik; ADB enstimates


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could export to energy-poor neighbor-ing countries; but it has not been ableto do so on a large scale due to a lack oinrastructure and various nontechni-cal reasons.

Te government intends to makethe country energy independent by

rehabilitating and better maintainingexisting assets, increasing energy-useeciency, making taris more real-istic, and encouraging private sectorinvestment. It also plans to increaseenergy exports. As ajikistans largestmultilateral development partner in theenergy sector, ADB has been helpingthe country achieve these goals. ADB

has ocused on supporting the mod-ernization and expansion o electricitygeneration, transmission, and distri-bution inrastructure; reorming thesector to meet domestic energy needs;and developing regional distributioninrastructure and reorming the sector

to meet domestic energy needs, as wellas developing regional energy tradeunder the CAREC Program.

Among development partners, ADBled in energy development, with totalassistance o $257 million, account-ing or over 38% o total develop-ment partners, or 29% o total energyinvestments in the country during

Indicators by Sector

Outputs Achieved

20042013

Education

Classrooms built or upgraded

(number)

1,770

Teachers trained (number) 68,701

Students beneting (number) 173,000

Energy

Transmission lines installed or

upgraded (kilometers)

141

Distribution lines installed or


352

Additional households connected

to electricity (number)

51,600

Finance

Micronance loan accounts

opened / end borrowers

(number)

93,000

Indicators by Sector

Outputs Achieved

20042013

Transport

National, provincial, district, and

rural roads built or upgraded

(kilometers)

570

Beneciaries rom road projects

(number)

1,470,700

Water Supply and Sanitation

Water supply pipes installed or


23

New households connected to

water supplies (number)

90,848

Land improved through irrigation

services, drainage, and ood

management (hectares)

160,144

Development Outputs rom ADB-Supported Projects in ajikistan

ADB = Asian Development Bank.

Note: Outputs Achieved reers to periods or 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.


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19982013. ADBs energy projects in-stalled or upgraded a total o 141 km otransmission lines, which accounted or19% o the total length o transmissionlines installed or upgraded country-wide during 20042013. ADB projectsalso installed or upgraded 352 km odistribution lines, or 11% o the totallength installed or upgraded during thesame period.

ADBs rst power sector project

in ajikistan, the $34 million PowerRehabilitation Project, ocused onthe most urgent priority o expandingthe power supply to local consum-ers and making it more reliable. Tisproject, which was completed in 2009,added over 100 gigawatt-hours o

The planned ADB-nanced 500-kilovolt (kV) switchyard at the

Nurek hydropower plant will look much like the new 220 kV

switchyard there (pictured), built with the support o KW.

A modern 220-kilovolt (kV)

switchyard, completed with

unding rom KW, is housed

in the white rectangular

building at the let o the

photo. The ADB-supported

500 kV switchyard is under

construction on a stable site

just to the let. Switchyards

based on new technology

need only about 2% o the

space o the old acilities.


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power-generation capacity by reha-bilitating the war-damaged Centralhydropower plant in Khatlon Provinceand the giant 3,000-megawatt (MW)Nurek hydropower plant. Te proj-ect had also intended to stabilize theground under the Nurek hydropower

plants 220 kilovolt (kV) and 500 kVswitchyards, which were sinking andin danger o collapsing at any time,potentially knocking out 70% o thenations power supply. Due to thescope o the work involved, it was laterdecided to relocate and rebuild the twoswitchyards using an advanced state-o-the-art gas-insulated technologyunder two separate projects. Germa-nys Credit Institute or Reconstruc-tion (Kreditanstalt r Wiederaufau,or KW) nanced the reconstructiono the recently commissioned 220 kVswitchyard; and ADB is supportingthe rebuilding o the other one with a$54.8 million grant, approved in 2008,

or the Nurek 500 kV Switchyard Re-construction Project.

Ali Rahimov, electrician or IntegralCompany, which is building the new500 kV switchyard together with othercontractors, is glad to be part o suchan important project. I like the op-

portunity to learn new things, he says.We have specialists rom several coun-tries working togetherrom Ger-many, Kazakhstan, ajikistanand welearn a lot rom each other. Rahimovwill have gained valuable transerableskills by the time the work is completedin 2014.

ADB is also supporting two powertransmission projects to help modern-ize and expand the countrys trans-mission network. Te projects areintended not only to reduce systemlosses and improve energy eciency,but also to acilitate energy trade withneighboring countries.

Power

transmission

lines and towers

built under the

Regional Power

Transmission

Interconnection

Project export

electricity

generated in

Tajikistan to

Aghanistan.


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TeRegional Power ransmissionInterconnection Project, launchedin 2006, has constructed 116.5 km o220 kV double-circuit transmissionlines linking hydropower stations onajikistans Vakhsh River with theAghanistan border and a urther 163

km to Pul-i-Khumri, in Aghanistan.Te power line began exporting ajiki-stans 300 MW summer power surplusin 2011 to meet a power shortall inAghanistan. Te project also helpedaddress a winter power decit in south-ern ajikistan by boosting generationcapacity and reducing technical losses,resulting in additional 320 gigawatt-hours annually. Te ajikistan portiono the project was conanced by ADB(through a $21.5 million concessionalloan), the Islamic Development Bank,and the Organization o Petroleum

Exporting Countries Fund or Interna-tional Development (OFID).

Te $122 million grant-unded Re-gional Power ransmission Project,launched in 2010, is constructingtwo 220 kV transmission lines total-ing 140 km and rehabilitating two

high-voltage substations. Te projectis also paving the way or reorms inthe national utility company, Barkiojik, by restructuring its operationaland business processes and reorm-ing taris.

Repairing Roads,Reconnecting the Region

A well-maintained road network isvital i a landlocked country is to reachmarkets and sources o inputs, and pro-vide its rural population with economicopportunities and social services.Maintenance work on the countrys31,800 km Soviet-era road networkdramatically decreased aer the col-lapse o the Soviet Union; and roadsand bridges were subsequently dam-aged as a result o the civil war, heavy

usage, and natural deterioration.ADB and other development partners

are supporting the governments strate-gy o rehabilitating and maintaining thecountrys road network and developingan outward-looking trade environment.As the largest multilateral developmentpartner in ajikistans transport sector,ADB has provided around $440 mil-lion in loans and grants between 1998

and end-September 2013. ADBs roadassistance accounts or around 46% ototal development partners, or 26% ototal investments in the road sector.ADBs projects have ocused on reha-bilitating the countrys major regionallinks and modernizing border crossings,

Some projects:

National, provincial, district and rural

roads supported (kilometers)

ADB:$440 million $1,714 million total

26%

ADB Portion of

Transportation Sector Financing

ADB:570 km 1,235 km total

46%

Sources: State Committee of Investments and StateProperty Management; Ministry of Transport;

ADB estimates.


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while also improving rural roads to helpreduce poverty. ADB projects upgraded570 km o national and rural roads,which account or 46% o ajikistanstotal road length rehabilitated during20042013.

ajikistans roads are important arter-ies or the wider region, and its economyis increasingly dependent on externaltrade. Te country is a transit point onour o the six CAREC corridors2, 3,5, and 6. Upgrading its dilapidated road

Askerbi Hasanov,a truck driver

rom Bishkek

uses the

Dushanbe

Kyrgyz border

road every

2 weeks.


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sections and making its border crossingsmore ecient are thereore part o theCAREC transport strategy.

Cross-border customs and transitarrangements are hugely importantin acilitating trade, not least becauseo the extensive delayssometimes

or days and even weeksthat driversoen experience at border-crossingpoints. Te Regional CustomsModernization and InrastructureDevelopment Project, completedin 2011, improved the eciency andtransparency o customs services andpromoted trade and customs coopera-tion between neighboring states. Teproject was nanced by a $10.7 millionADB loan and a $1.6 million grantrom the Government o the UnitedStates. Customs processing capacitywas improved through the installationo a computerized, unied inorma-tion system in 72 customs posts. Keyborder posts were also improved, andvehicles, X-ray machines, and diesel

generators were procured. Tese mea-sures reduced import clearance timerom 10 days in 2005 to 12 days bythe end o 2011, and they quadrupledrevenue collection.

In addition, customs cooperation withthe Kyrgyz Republic is being promoted

through a comprehensive cross-bordertransport agreement signed in 2011.

ravel on the road between the ajiki-stan capital, Dushanbe, and the KyrgyzRepublic border is much improved withthe rehabilitation o this 317 km sectiono CAREC Corridors 3 and 5. SinceADB approved its rst assistance or theDushanbeKyrgyz Republic border roadin 2003, it has provided over $135 mil-lion to repair the road.

rac volumes on the rehabilitatedroad increased by 20% annually, andvehicles can now travel at average speedso 80 km per hour, compared with 50km per hour on unrehabilitated sec-tions, vastly reducing journey times.Askerbi Hasanov, rom Bishkek, Kyrgyz

The newlyconstructed

Karamyk border-

crossing point on

the Tajikistan

Kyrgyz Republic

border, on CAREC

Corridor 3.


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Republic, who trucks medical suppliesrom Almaty, Kazakhstan, uses theDushanbeKyrgyz Republic border roadevery 2 weeks. He says that the rehabili-tated road is now aster and saer, andhe spends much less on uel and main-tenance. Te journey rom the Kyrgyz

Republics border to Dushanbe, whichsometimes took a week, now takes himonly about 8 hours.

As trac volumes have grown, so hasthe number o small-scale enterprisesgas stations, restaurants, and grocerystores. Havasmo Ibrogimova, rom KalaiNav village in Faizabad District, owns asmall roadside restaurant, and she hasseen big changes during her 27 yearsthere. Back when the road was almostimpassable, her restaurant was the onlyone on that stretch. Now that the road isin good condition, there is more passingtrac, but also more competition romnewly established caes and restaurants.I am divorced and have no other source

o income, she says, so I have to keepthe restaurant open 24 hours a day toearn enough to support my six children.I worry that when trucks are held updue to problems at the borders, I wontbe able to make ends meet. Like thetruck drivers, Ibrogimova has ound her

lie is easier when border crossings aresmoother.

For the local communities, privatetaxi and minibus services are requentnow, making travel to markets, schools,and hospitals aster and easier. Terehabilitation o the road has helpedraise incomes in the area, reducing thepoverty incidence rom about 70% in2005 to about 36% in 2012.

As road quality improves, maintain-ing roads at a reasonable cost becomesa serious challenge or ajikistan, givenits mountainous landscapes, extremeclimate, and requent natural haz-ards. Te government has increasedroad maintenance unding, and with

A woman sells

ruit to passing

trac along

the Dushanbe

Uzbek border

road.


21/36


ADBs technical assistance, is pilotingperormance-based road maintenancecontracting with the private sector tostretch its unds urther.

In the meantime, in the west o thecountry, rehabilitation has begun onthe 62 km section o CAREC Corridor

3 rom Dushanbe to the Uzbekistanborder (at ursunzade). Started in2011, the work is being nanced by a$120 million grant rom ADB and $35million in parallel nancing rom theEuropean Bank or Reconstructionand Development (EBRD). Te projectwill also upgrade the border-crossingacilities and equipment, management,and stang. Tese improvements areexpected to increase agricultural andindustrial production and trade in oneo the most productive agriculturalregions in the country. A gender com-ponent will also enrich and saeguardborder communities and help women,who head many households, to createsmall businesses.

Te remote Zarashan Valley, innorthern ajikistan, is the location o theCAREC Corridor 6 (AyniUzbekistan

Border Road) Improvement Project,which was launched in 2012 with sup-port rom ADB ($100 million grant)and the OPEC Fund or InternationalDevelopment ($14 million loan). Te 113km road is part o the historic Silk Road.Under the project, road upgrading willincrease regional connectivity; provideimpoverished communities with accessto social services and markets; andstimulate the development o agricul-

ture, tourism, and mining.A project does not need to be expen-

sive to have a big impact. A new bridgeover the Surhob River, nanced by a $2million grant rom the Japan Fund orPoverty Reduction (JFPR) under the

Sustainable Access or Isolated RuralCommunities Project, completed in2010, has improved the quality o lieor communities in Rasht Valley. It hasalso helped them become more sel-sucient by building their capacity tomaintain the new bridge, and has up-

graded roads in the immediate vicinity.Te bridge, which replaced a di-

lapidated suspension bridge destroyedduring a ood, has made the delivery oagricultural products to market centersmuch easier and cheaper. In the past,I could not sell my apples and pearsat all, explains Davlathuja Kulolov, a

Restaurant owner, Havasmo Ibrogimova, depends on the

rehabilitated road or business rom passing trac. She says

the smoother, aster road has also reduced travel time to the

nearest hospital, in the town o Rogun, rom 1 hour to just

15 minutes; and there are ewer breakdowns and accidents.


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armer rom Zarangak Village. Novendor came to our village to pickthem up, and I was at a loss at how tobring the ruits to market mysel. Butnow it is only 8 km to reach the mainmarket, and the travel is easy. Te im-pact is multiplied across the 47,000 or

so villagers in the vicinity o the bridge,including children. Te bridge and

linking roads have helped older stu-dents reach secondary schools wherethey can continue their education.

Creating an Environmentin which the Private

Sector Can FlourishTe government is taking steps todevelop the private sector in order toincrease oreign direct investment andreduce the economys dependence onmigrant worker remittances and oncommodities such as aluminum andcotton. ajikistans accession to theWorld rade Organization (WO) inMarch 2013 was a major landmark inthis context, as it requires the govern-ment to undertake market-orientedlegal and regulatory reorms to liberalizetrade. ADB is providing a technical as-sistance project, Strengthening ajiki-

Let: Davlathuja

Kulolov explains

that the new

bridge (bottom)

makes it possible

or him to take hisruit to markets.


23/36


stans rade and Investment Regime.

Te project will conduct policy researchon reorming ajikStandard, the agencythat deals with all standardization andmetrology; train key ocials on policyand regulatory reorms; and support theorganization o a trade and investment

conerence to showcase the govern-ments commitment to improving theenvironment or trade and business.

Te government is eying the publicprivate partnership (PPP) as a meansto expand investment and help main-tain ajikistans economic and socialservices. At the governments request,ADB will help improve the policy, legal,and regulatory environment or PPPsthrough a new technical assistanceproject: Support Enabling CapacityBuilding or PublicPrivate Partner-ships in ajikistan. Building on WorldBankInternational Finance Corpora-tion support or the development o anew PPP law, which was adopted inearly 2013, the technical assistance willimprove project screening and identiyand develop new PPP projects, amendkey laws, and increase government ca-

pacity to undertake PPP policy reorms.

Channeling the Waters:Restoring Irrigation andManaging Floods

Te broad, silt-laden rivers that weaveacross ajikistans agricultural land area plentiul source o irrigation wateror arming communities. Agriculture

is a vitally important sector, as aboutone-third o the countrys populationis ood insecure and 70% relies directlyor indirectly on arming or livelihood.Te risk o severe oods is ever presentand is exacerbated by climate change.Given this context, the major thrust o

ADBs work in the sector has been torestore irrigation systems and manageoods. During 1998 end-September2013, ADB provided assistance totaling$140 million or these purposes. Tisamount accounted or 44% o the totalinvestment, or around 51% o the total

development partners assistance in theagriculture sector during this period. Ithelped improve irrigation systems on160,144 hectares o land during 20042013, which accounts or 21% o the totalarea o irrigated land in the country.

ADB has provided immediate assis-tance and longer-term solutions to helpood-aected communities. In 2005,devastating oods inundated KhatlonProvince, in the south o the country.Communities lost buildings, bridges,roads, as well topsoil rom 4,000 hect-ares o elds. Mahina Mansurova romMetintugay Village, experienced the

Some projects:

Land improved through

irrigation (hectares)

ADB:$140 million $314 million total

44%

ADB Portion of

Agriculture Sector Financing

ADB:160,144 ha 762,590 ha total

21%

Sources: State Committee of Investments and StateProperty Management; Ministry of Transport; ADBestimates.


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were destroyed, and drinking watersupplies were cut o.

ADB responded to the emergency byadding to the scope o two then-ongoingloans, the Agriculture RehabilitationProject and the Irrigation Rehabilita-tion Project. Te unds were used to

rehabilitate damaged embankmentsalong the Pyanj River and to reconstruct

ood, and described the scene as re-sembling a warzone, with oodwaterssubmerging houses and elds.

Everyone was out in the streetsescaping rom the surging waters. Wehad to run or about 4 kilometers tond a saer place, she says. Tey lost

cows, sheep, gardens, and elds. Riverembankments and irrigation canals

Let: Residents o Metintugay Village,

in Khatlon Province, gather to talk

about the foods that devastated theircommunity.

Below: Flood protection embankments

along the Pyanj River, which delineates

Tajikistans border with Aghanistan.


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a much higher level than in the 2005ood, but this time it stayed withinits embankments. Te results speakor themselves, he says. Almost hala million people in our districts arenow protected, have water to drinkand irrigate their elds with, and can

plan their uture.Besides addressing the 2005 ood

emergency, the Irrigation Rehabilita-tion Project, completed in 2011, helpedrepair irrigation and drinking-waterinrastructure, which had become seri-ously degraded throughout the countrydue to the lack o adequate maintenanceollowing independence. Supported bya $22.7 million ADB loan, 250 km oirrigation canals, 425 km o collectordrains, nine pump stations, and nineheadworks were rehabilitated in ve othe countrys poorest districts. Improved

canals, providing protection or 50,000hectares o land. Tey were also used orthe construction o new inrastructure,such as schools, roads, and hospitals.

o make communities in our vul-nerable districtsHamadoni, Fark-hor, Kulyab, and Vosemore resilient

against uture oods, ADB provideda $22 million loan or the KhatlonProvince Flood Risk Management

Project in 2007. Concrete protectiveembankments were built along 11.6km o the Pyanj River and 18 spurdikes were constructed to moderatethe rivers ow. Te project also helpedcommunities plan or emergenciesby instituting ood warning systems,ood-risk maps, public education, andevacuation plans. According to Rah-mat Bobokalonov, Minister o WaterResources, the structural measuresare working: in 2010, the river rose to

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 or rural communities.


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Climate Resilience, in partnership withADB, EBRD, and the World Bank. Te$50 million program, launched in 2010,pilots approaches to integrate climaterisks into development planning. ADBis supporting a capacity developmenttechnical assistance project or climate

resilience, and an investment projectaimed at building climate resilience inthe Pyanj River Basin. Both projects arejointly unded by the Strategic Climate

water supply schemes also reached31,620 people in the project areas.

As well as being highly predisposed togeological and hydrological hazards, a-jikistan is in the unlucky position o be-ing one o the most vulnerable countriesto climate change in the region, with an

increased requency o oods, droughts,and storms. o help put itsel on a moreclimate-resilient path, ajikistan isparticipating in the Pilot Program or


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$20 million Social Sector Rehabilita-tion Project, approved in 1999, beganto repair the damage, rehabilitating1,200 classrooms, including roos, watersupply systems, and heating; printing2.3 million updated copies o 27 text-booksenough or 90% o the countrys

secondary school students; and training63,017 teachers.

Tis was ollowed by the $7.5 mil-lion Education Sector Reorm Project,completed in 2010, which supportedthe Ministry o Education in pilotingeducational reorms in ve districts.Facilities and equipment were improvedin the 76 most needy schools, and ina urther 50 schools to a lesser degree,beneting about 112,500 students; and5,684 teachers were trained. Between2005 and 2009, gross enrollment rateor grades 111 increased by 6.4% onaverage in the pilot districts, comparedwith 2.1% nationally; and girls enroll-ment in grades 1011 improved by 51%in the pilot districts, compared with 18%nationally. Students average grades inthe pilot districts improved by 27% inajik language and by 19% in math.

Linked to this project, the SchoolImprovement Project, a $1.075 mil-lion JFPR grant unded schools withestablished parentteacher associationsand school-improvement plans to coverminor repairs, teaching aids, basicequipment, school attendance and re-tention schemes, and school-managedlivelihood projects.

Fund and ADBs echnical AssistanceSpecial Fund.

Renovating Schools,Pulling Up Standards

Independence rom the Soviet Unionand the ensuing civil war le ajikistansschools physically damaged, under-unded, and poorly staed. Te educa-tion component o the ADB-supported

These boys study at Secondary

School Number 31 in Mirapok Village,

Kulyab District, which was partially

rehabilitated under ADBs Education

Sector Reorm project.


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Operational Eectiveness: Improving Efciency and Perormance 21

Central Asian country into contractingout to the private sector. Te Ministryo ransport intends to replicate thispromising approach elsewhere and isalso exploring PPP arrangements toexpand road maintenance.

O 14 com-

pleted technicalassistance projects,

only 8 (57%) were

rated successfulor

highly successful

during 20082012.

O the sixpartly

successfulprojects,

our suered rom

overambitious

or inappropriate

project design,

and two received

inadequate govern-

ment support or ownership or some

components. o improve the success

rate and address design and ownership

issues, ADB, together with the govern-

ment, has implemented several initia-

tives. Better and more regular consulta-

tions and monitoring generally produce

good results. So, project design andimplementation are now done jointly

by headquarters and resident mission

sta, and this change is strengthening

the quality-at-entry and overall peror-

mance o the country portolio.

Te Success Rate oADBs Operations in

ajikistan

Between 2004 and 2012, ADB complet-ed 15 projects. O these, 93% (all except

one project) were rated either successfulor highly successful, making ajikistanthe ourth-best perormer among allo ADBs developing member coun-tries. ADBs one exception, Te PowerRehabilitation Project was ratedpartlysuccessfulbecause o design weak-nesses, reduced outputs, cost overruns,and delays.

O the 15 projects, 4 were also ratedless likely sustainablethe Irrigation

Rehabilitation Project, the AgriculturalRehabilitation Project, the Social Sec-tor Rehabilitation Project, and the RoadRehabilitation Project. In all our assess-ments, the key problem highlighted wasthe lack o unds, sta, and equipment tomaintain the rehabilitated classrooms,irrigation structures, and roads.

o try to resolve operation and main-tenance problems in the road network,the government has allocated $4 mil-lion or a pilot initiative supported byADB to outsource maintenance workon the DushanbeKyrgyz Republicborder road to private contractorsusing perormance-based selectioncriteria. Tis is the rst venture by a

Opposite: The

Pamir Mountain

Range is known

as the roo o the

world.

Operational Eectiveness:Improving Eciency and

Perormance

Project design and

implementation are done

jointly by headquarters a

resident mission staf, an

this change is strengthen

the quality-at-entry and

overall perormance o th

country portolio.


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Speeding UpDisbursement

Te speedy disbursement o unds isessential or ecient project implemen-tation and timely delivery o results. In

the past, und withdrawal applicationssubmitted by implementing agen-cies were oen o poor quality, andthus rejected and sent back by ADBheadquarters. Te ajikistan ResidentMission sta now prescreens all with-drawal applications to ensure that theyare ree o inconsistencies, mistakes, andomissions; and the resident mission hassuccessully piloted an electronic docu-ment storage-and-retrieval system to

speed up the submission o withdrawalapplications. Tese pragmatic stepsreduced average processing time ordirect payment claims rom 2040 daysin 2008 to 35 days in 2012, resulting inaster project implementation. And theyhelped reduce the average time betweenapproval and rst disbursement rom14 months in 2010 to 8 months in 2012;that was 4 months aster than the ADBresults ramework target.

Coordination andPartnerships

Coordination. More than 80 develop-ment partners are present in ajiki-stan, leading to potential coordinationheadaches. ADB has played an impor-tant role in promoting country-levelinitiatives to improve the alignment

o aid with ongoing reorms and thegovernments policy objectives, particu-larly through the Development Coor-dination Council (DCC). Tis bodywas established in 2007 to strengthencoordination and consolidate donor e-

orts on needed reorms, and to acili-tate regular, structured dialogue andinteraction between the governmentand development partners, and amongdevelopment partners.

ADB chaired the DCC in 20102011,and has led development agencies in

pursuing aid eectiveness objectives.Te DCC has ormalized coordinationthrough working groups chaired bybilateral and multilateral developmentpartners, with ADB currently chair-ing the energy and transport groups.o showcase ajikistans developmentcoordination, which is now amongthe best in the region, representa-tives o development partners and thegovernment shared lessons rom theircoordination and partnership experi-ence under the DCC at the High LevelForum on Aid Eectiveness in Busan,Republic o Korea in 2011.

Te government, ADB, and the WorldBank have also been conducting jointresults-based country portolio peror-mance reviews since 2004 to nd solu-tions to common and systemic issues.

Participation o civil society organi-

zations. Nongovernment organizations(NGOs) have been directly involved inimplementing several ADB-nancedprojects in ajikistan. For example,an NGO system has been establishedto execute community participatorydisaster and ood awareness and miti-gation, early response, and recoveryintroduced by the Community Partici-patory Flood Management Project,approved in 2008. In the Microfnance

Systems Development Program, ap-proved in 2003, more than 50 NGOselected to become licensed micro-nance institutions to help provide thecountrys poor with access to nancialproducts. Nine local NGOs received


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Operational Eectiveness: Improving Efciency and Perormance 23

training to build their capacity toimplement the HIV/AIDS preventioncomponent o the DushanbeKyrgyzBorder Road Rehabilitation Project.

Aside rom participating in projectimplementation, civil society organiza-tions can also help communities achieve

the results they want. In 2012, Kalam,a local NGO, represented parents andteachers who had lodged an ocialcomplaint with ADBs Oce o theSpecial Project Facilitator about thelimited scope o rehabilitation works inve schools in Roshtkala District. Teseschools had been partially renovatedunder the Education Sector ReormProject. Te NGOs constructive role ledto urther school improvements beingmade, to the satisaction o all parties.

Future Challenges

ajikistans economy remains highlyexposed to external shocks due toits narrow economic base and heavydependence on remittances. Althougheconomic growth is expected to remainstrong, it will continue to be vulner-

able to uctuations in the internationalprices o cotton and aluminum, itsmajor export commodities. Growth isaected by the ortunes o ajikistansmain trading partner and migrant des-tination, the Russian Federation. Tehealth o the economy also depends onregional trade and cargo transit, and onpolitical and social stability.

Persistent winter power shortagesremain the countrys biggest growth

constraint, causing hardship or thepopulation and industry. ADB willcontinue to help the governmentimprove its energy security by reha-bilitating and constructing physicalinrastructure, developing renewable

energy, promoting regional power tradeinitiatives and investments, and im-proving the perormance o the powermonopoly.

ajikistans transport challenges aredaunting, and ADB will continue toprioritize road rehabilitation opera-

tions, aster cross-border transit, andthe sustainability o rehabilitatedinrastructure.

Promoting a booming and innova-tive private sector is integral to achiev-ing the countrys development goals,and will thereore be a key area orADB over the next ew years. ADB willcontinue supporting public manage-ment reorms and measures to createa climate conducive to investment, in-cluding improvements in the nancialsector. Te banking system is severelyunderdeveloped, with average borrow-ing costs at 30% or small and medium-sized enterprises.

Unusually or a developing country,ajikistans older generation is morehighly educated than the growingyoung working-age population. Teyouth also lack the skills relevant to the

evolving economy. More assistance intechnical and vocational education andtraining is necessary to correct skillmismatches and create a larger pool oskilled workers.

Food insecurity is a pressing problemthat is likely to become more serious asgrowing climate change damages agri-cultural production. Te governmentis committed to ensuring ood securityby designating the agriculture sector

as one o its strategic priorities. ADBwill consider increasing support in thisarea when it prepares its new countrypartnership strategy.


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Appendix: ADB Loans andGrants in ajikistan, 19982013

ProjectApproval

Date TypeADB Financing

($ million)Cofnancing

($ million)

Agriculture and Natural Resources

Building Climate Resilience

in the Pyanj River Basin*

25 Jun 2013 Grant 21.55 (SCF 1)

Community Participatory

Flood Management

8 Sep 2008 Grant 3.0 (JFPR)

Khatlon Province Flood Risk

Management*

5 Oct 2007 Loan 22.0

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

1.1 (Beneciaries)

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 (Beneciaries)

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

Emergency Restoration o

Yavan Water Conveyance System

8 Aug 2001 Loan 3.6

Education

School Improvement 13 Jan 2004 Grant 2.0 (JFPR)

Education Sector Reorm 17 Dec 2003 Loan 7.5

Energy

Regional Power Transmission* 13 Aug 2010 Grant 122.0

Nurek 500 kV Switchyard

Reconstruction*

17 Nov 2008 Grant 54.8

Regional Power Transmission

Interconnection

19 Dec 2006 Loan 21.5 8.5 (OFID)

10.0 (IsDB)


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Appendix 25

ProjectApproval


($ million)Cofnancing($ million)

Community-Based Rural Power

Supply

15 Mar 2006 Grant 2.0 (JFPR)

Regional Power Transmission

Modernization

17 Dec 2002 Loan 20.0 2.4 (OFID)

Emergency Baipaza Landslide

Stabilization

10 Sep 2002 Loan 5.3

Power Rehabilitation 20 Dec 2000 Loan 34.0 9.3 (IsDB)

6.0 (Swiss Govt)

Finance

Access to Green Finance* 25 Jun 2013 Grant 10.0

Micronance Systems

Development (Program Loan)

26 Jun 2003 Loan 4.0 0.7 (NGOs/MFIs)

0.2 (Clients)

Micronance Systems

Development (Project Loan)

26 Jun 2003 Loan 4.0

Health

Community Participation and

Public Inormation Campaign or

Health Improvement

22 Jan 2004 Grant 1.0 (JFPR)

Health Sector Reorm 17 Dec 2003 Loan 7.5

Industry and Trade

Central Asia Regional Economic

Cooperation Regional

Improvement o Border Services*

1 Apr 2013 Grant 9.2

Regional Customs Modernization

and Inrastructure Development

26 Nov 2004 Loan 10.7 1.6 (US Govt)

Regional Trade Facilitation and

Customs Cooperation

29 Oct 2002 Loan 10.0

Multisector

Improved Maternal and Child

Health through Connectivity*

7 Mar 2013 Grant 2.5 (JFPR)

Strengthening Public Resource

Management*

12 Apr 2011 Grant 45.0

Crisis Recovery Support 6 Jul 2009 Grant 40.0


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ProjectApproval


($ million)Cofnancing

($ million)

Emergency Flood Rehabilitation 2 Dec 1999 Loan 5.0

Social Sector Rehabilitation 26 Oct 1999 Loan 20.0

Postconict Inrastructure

Rehabilitation

10 Dec 1998 Loan 20.0

Transport


Cooperation Corridors 3 and 5

Enhancement*

19 Sep 2013 Grant 70.0


Cooperation Corridor 6 (Ayni

Uzbekistan Border Road)

Improvement*

11 Sep 2012 Grant 100.0

CAREC Corridor 3 (Dushanbe-Uzbekistan Border) Improvement*

18 Jan 2011 Grant 120.0

CAREC Regional Road Corridor

Improvement*

24 Oct 2007 Loan 40.9

CAREC Regional Road Corridor

Improvement*

24 Oct 2007 Grant 12.5

DushanbeKyrgyz Border

Road Rehabilitation (Phase II)

(Supplementary)

24 Jul 2009 Grant 20.0

Sustainable Access or Isolated

Rural Communities

23 Oct 2007 Grant 2.0 (JFPR)

DushanbeKyrgyz Border Road

Rehabilitation (Phase II)

17 Nov 2005 Loan 29.5


Rehabilitation (Phase II)

17 Nov 2005 Grant 0.5

Community-Based Rural Road

Maintenance

4 Nov 2005 Grant 1.8 (JFPR)


Rehabilitation (Phase I)

18 Dec 2003 Loan 15.0 6.0 (OFID)

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 or Poverty Reduction,MFI = microfnance institution, NGO = nongovernment organization, OFID = Organization o Petroleum Exporting Countries Fund or InternationalDevelopment, Swiss govt. = Government o Switzerland, US Govt = Government o the United States.

*Ongoing projects.

Source: ADB.


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

The Asian Development Bank (ADB) welcomed Tajikistan as a member in 1998. During15 years of partnership with the country, ADB has helped improve the welfare of theTajik people. The partnership has promoted social development, restored or built newinfrastructure, expanded agriculture production, and encouraged regional cooperation

and trade.

About the Asian Development Bank

ADBs vision is an Asia and Pacific region free of poverty. Its mission is to help itsdeveloping member countries reduce poverty and improve the quality of life of theirpeople. Despite the regions many successes, it remains home to two-thirds of theworlds 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 throughinclusive economic growth, environmentally sustainable growth, and regionalintegration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Itsmain instruments for helping its developing member countries are policy dialogue,loans, equity investments, guarantees, grants, and technical assistance.

Asian Development Bank6 ADB Avenue, Mandaluyong City

1550 Metro Manila, Philippineswww.adb.org

tajikistan: 15 years of partnership with the asian development bank

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