European Bank for Reconstruction and Development (EBRD) has announced a substantial financial commitment aimed at bolstering the reliability and sustainability of Tajikistan's electricity supply. The initiative channeled through a financial facility totaling €31mn, targets the national transmission network operator Shabaqahoi Intiqoli Barq (SIB).
The facility comprises two EBRD sovereign loans amounting to €23mn and an investment grant of up to €8mn. These funds are earmarked for critical infrastructure upgrades, including the rehabilitation of existing transformers and the construction of a new transformer at the Sugd-500 substation situated in the northern region of Tajikistan.
The significance of the Sugd-500 substation lies in its pivotal role within the northern Tajikistan power system, where it serves as a vital link through the 500 kV Sugd-Dushanbe high-voltage line. The proposed enhancements aim to fortify the grid's resilience, enabling it to accommodate both burgeoning domestic demand and the requirements for electricity exports.
Moreover, the project aligns with Tajikistan's 2030 National Development Strategy, emphasizing energy diversification and integration of renewable sources. With a capacity to integrate up to 700 MW of renewables, the upgraded substation is poised to contribute to the country's sustainable energy objectives.
This initiative follows the successful completion of the EBRD's Sugd energy loss-reduction project, which demonstrated remarkable efficacy in modernizing metering and billing systems. This initiative reduced network losses in Khujand, the region's primary city, from 27% to 10%, while substantially enhancing payment collections.
Supported by grant funds from the Sustainable Infrastructure Fund and the Japan-EBRD Cooperation Fund, the project is anticipated to yield substantial environmental benefits. It is projected to annually reduce CO2 emissions by an estimated 129,000 tonnes, thereby advancing Tajikistan's environmental sustainability goals.
As part of the endeavor, the EBRD will institute a capacity-building program at SIB, aimed at enhancing the operational competence and resilience of Tajikistan's electricity system. This strategic investment underscores the EBRD's commitment to fostering sustainable development and infrastructure resilience in Tajikistan.
The EBRD's engagement in Tajikistan extends back significantly, with investments totaling €919mn across 165 projects to date. This latest commitment underscores the bank's ongoing dedication to advancing sustainable infrastructure and economic development in Tajikistan.
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