Tajikistan Taps EBRD Funds for Greener Water and Heating Systems

The European Bank for Reconstruction and Development (EBRD) is stepping up its support for sustainable urban development in Tajikistan, approving more than 9.92 million euros ($11.6 million) in new financing for two key municipal infrastructure projects.

The announcement was made during a visit to Dushanbe by Mark Bowman, EBRD Vice President for Policy and Partnerships, The Caspian Post reports via Tajik media.

The financial package, comprising a combination of sovereign loans and grants, will target critical improvements in water supply infrastructure in Yovon and district heating systems in the capital, Dushanbe.

Water Supply Upgrade in Yovon

Under the first initiative, the EBRD will provide a sovereign loan of up to 2.4 million euros, matched by a 2.4-million-euro-grant, to modernize the water supply network in Yovon, located in the Khatlon province. The project aims to enhance the quality, reliability, and accessibility of water services by:

Constructing new water mains and reservoirs

Upgrading outdated infrastructure

Implementing a modern billing and utility management system

These improvements are expected to boost the operational efficiency of the local water utility and improve public access to clean water.

District Heating Improvements in Dushanbe

The second project will deliver a sovereign-guaranteed loan of up to $3 million (2.56 million euros) and an equivalent EBRD grant to support the modernization of Dushanbe’s district heating system. This initiative builds on an earlier EBRD loan signed in 2021 under the EBRD Green Cities program, which aims to reduce the environmental impact of urban utilities through energy-efficient and climate-resilient infrastructure.

Long-Term Partnership with Tajikistan

The latest investments reflect the EBRD’s continued commitment to sustainable development in Tajikistan. To date, the Bank has provided more than 1 billion euros in financing across 185 projects in the country. In partnership with international donors, the EBRD has also allocated over 133 million euros in funding for 14 water and wastewater projects, benefitting 23 cities nationwide.

Operating across 42 economies on three continents, the EBRD is jointly owned by 77 countries, the EU, and the European Investment Bank. Its mission focuses on promoting private-sector development and building green, inclusive, resilient, and well-governed economies.