ADB to allocate $ 35 million gratis funds to Tajikistan for reviving energy bonds with Uzbekistan

The ADB will grant $ 35 million to Dushanbe to reunite the power supply system with Uzbekistan. This will, in turn, bring benefits to Tashkent and the entire Central Asian region. 

A gift from ADB to Dushanbe (by agreement, a gratuitous tranche worth $ 35 million) will be used to restore the overall power grid with Uzbekistan. Modern equipment of relaying protection, automation, as well as stabilizers will be purchased and installed for the allocated funds. 

The restoration of the power grid will cost $ 40 million. Thus, Tajikistan itself will invest $ 5 million in the project.

However, Uzbekistan will also benefit from the restoration of the energy system. Nearly 10 years after the abandonment of the existing power capacities, the recoverable infrastructure will compensate for the shortage of electricity. 

“This project will allow Tajikistan to export to Uzbekistan the surplus of electricity generated in summer and generally contribute to improving the efficiency of the regional power grid ... Network restoration is an important step in ensuring parallel operation of the electricity system of Uzbekistan and the Central Asian energy system as a whole,” ADB financial specialist Yuki Inoue said. 

Because of the parallel operation of the power grids of two countries, the situation with electricity supply in Uzbekistan will significantly improve due to the surplus of electricity in the southeastern neighbor. 

According to the ADB, the project is planned to be implemented by 2022. It became feasible thanks to the visit of Shavkat Mirziyoyev to Tajikistan in March of this year - at that moment, the presidents of two countries agreed to restore the transit of electricity. 

The system of the unified power grid of the Central Asian republics created during Soviet Union period after 1990. It gradually collapsed - Turkmenistan left it, and then the transit of energy from Tajikistan to Uzbekistan was ceased. 

Restoration of the past ties proves that both relations and political climate in the region are changing and drifting towards true cooperation and collaboration.