ADB demands Tajikistan to increase electricity tariffs in exchange for $50 mln loan

Receptionist at Pamir Energy. Photo shoot of facilities and personel of "Pamir Energy", the biggest energy company in Khorog town, providing electricity (hydroelectricity) to the whole region.The town of Khorog (2200m), is the capital of the Gorno-Badakhshan Autonomous Province (GBAO) in Tajikistan. It is situated in the Pamir Mountains (ancient Mount Imeon) at the confluence of the Gunt and Panj rivers. The city is bounded to the south and to the north by the deltas of the Shakhdara and Gunt rivers, respectively. The two rivers merge in the eastern part of the city flow through the city, dividing it almost evenly until its delta in the river Panj, also being known as Amu Darya, or in antiquity the Oxus on the border with Afghanistan. Khorog is known for its beautiful poplar trees that dominate the flora of the city. Khorog is one of the poorest areas of Tajikistan, with the charitable organization Aga Khan Foundation providing almost the only source of cash income. Most of its inhabitants are Ismaili Muslims.Tajikistan, a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and People's Republic of China to the east. Tajikistan also lies adjacent to Pakistan separated by the narrow Wakhan Corridor. Tajikistan became a republic of the Soviet Union in the 20th century, known as the Tajik Soviet Socialist Republic. It was the first of the Central Asian republic to gain independence in December 1991.

The Asian Development Bank urged the government of Tajikistan to reconsider tariffs for electricity that entered into force on November 1, 2016 saying it will be one of other terms in exchange for $50 million loan for development of the country’s budget.

According to Country Director for Tajikistan Si Si Yu, Tajikistan will get the loan only after execution of all their terms.

The ADB demands to increase tariffs for electricity for both private sector and businessmen.

The Tajik side agreed with the given terms and now it is reconsidering electricity tariffs, noted the Country Director.

Electricity tariffs in Tajikistan have been earlier increased twice on recommendation of the World Bank by 20%.

The respective memorandum was signed between the government of Tajikistan and the World Bank in 2006 to boost profitability of the energy sector of the country.

Electricity in Kyrgyzstan costs $0.01-0.03$ per kilowatt-hour, $0.06 in Kazakhstan, $0.02-$0.06 in Uzbekistan, $0.007 in Turkmenistan and $$0,020-$0,023 in Tajikistan.

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