EU, EBRD Launch Project to Upgrade Tajikistan’s Power Grid

The European Bank for Reconstruction and Development (EBRD) and the European Union are stepping in to help modernize Tajikistan’s aging electricity distribution system, boosting its resilience and efficiency.

A financing package worth up to 43 million euros has been approved for “Shabakahoi Taqsimoti Barq” (Shtb), the state utility responsible for power distribution across the country, The Caspian Post reports via Tajik media.

The agreement for the “Energy Loss Reduction” project was signed at Tajikistan’s Ministry of Finance by Finance Minister Faiziddin Qahhorzoda and Head of the EBRD Resident Office in Tajikistan, Holger Wiefel. The funding includes a 28 million-euro-sovereign loan from the EBRD and a 15 million-euro-grant from the EU’s Asia-Pacific Investment Fund.

The project will upgrade Shtb’s billing and electricity metering systems in nine cities across the Sughd and Khatlon regions, where outdated equipment and high energy losses have long hindered performance and strained the utility’s finances. Modernizing this infrastructure is expected to reduce losses, improve service reliability, and strengthen the company’s overall efficiency.

The initiative also supports Shtb’s digital transformation, introducing cybersecurity measures to protect the country’s power distribution network, with EU and EBRD technical assistance. Additionally, Shtb plans to invest in human capital by launching training programs for youth and women in skills related to clean technologies - a move aimed at strengthening the workforce and boosting the competitiveness of young professionals and women in Tajikistan’s job market.