Tajikistan Secures $2 Million AIIB Grant for Road and Bridge Development

The Asian Infrastructure Investment Bank (AIIB) and Tajikistan have signed a grant agreement worth $2.04 million under the Project-Specific Window (PSW) initiative.

The funding will support the construction of a long-span bridge and access roads along the Obigarm-Nurobod section, The Caspian Post reports, citing Asia-Plus.

This agreement marks the first-ever PSW grant in AIIB’s history and represents a significant milestone in the Bank’s efforts to expand the use of blended financing mechanisms to enhance the effectiveness of development projects.

The Obigarm-Nurobod highway construction project is designed to restore a vital 75-kilometer section of the M1 highway, which traverses mountainous terrain north of the Vahdat River Valley in central Tajikistan. This segment was submerged due to the filling of the reservoir of the Rogun Hydropower Plant.

The signing ceremony took place at AIIB headquarters in Beijing.

The agreement was signed by Tajikistan’s Minister of Finance, Fayziddin Kakhorzoda, and Konstantin Limitovskiy, Vice President for Investment Operations at the Asian Infrastructure Investment Bank (AIIB).

“This first PSW grant marks a significant step in expanding AIIB’s impact through blended financing instruments,” said Limitovskiy.

“Integrating infrastructure investments with programs aimed at skill development and women’s economic empowerment will help deliver sustainable benefits to local communities - particularly women and youth in the project area,” he added.

The grant is funded by the China International Development Cooperation Agency (CIDCA) and is aimed at promoting inclusive development in regions affected by the project.

The funds will be used to provide vocational and technical training for professionals and workers, establish training centers for women, and implement programs that support entrepreneurship and improve living standards.

The Project-Specific Window (PSW) is a dedicated mechanism of the AIIB designed to mobilize grant funding from development partners in support of selected infrastructure projects.