The European Bank for Reconstruction and Development (EBRD) will provide Tajikistan with a loan and grant package totalling approximately €50 million to help reduce electricity losses in two regions of the country.
According to the Ministry of Finance, total financing amounts to €49.6 million, including €28 million in loans, with the remainder provided as a grant.
The loan terms are highly concessional. The interest rate is set at 0.5% per annum plus Euribor, meaning a fixed margin is added to the benchmark rate, which fluctuates based on market conditions. For example, if Euribor stands at 0.2% at the time of disbursement, the total interest rate would be 0.7%.
The loan will be repaid over 20 years. During the first six years, only interest payments will be required, while the principal will be repaid over the remaining 14 years.
Presenting the agreement to parliament, First Deputy Minister of Finance Yusuf Majidi said the primary objective is to reduce energy losses, replace outdated infrastructure, introduce modern metering systems, and improve billing and revenue collection. The project involves modernisation of electricity distribution networks across nine regional branches in the Sughd and Khatlon regions.
The need to address electricity losses has also been highlighted by President Emomali Rahmon. In an address to parliament, he cited figures showing that during the first 11 months of 2025, electricity losses totalled 3 billion kWh-500 million kWh less than in the same period a year earlier.
