Tajikistan Business Economy - The Times Of Central Asia

Viewing results 1 - 6 of 130

Tajikistan Raises Over a Billion Dollars More for Rogun Hydropower Plant

Tajik President Emomali Rahmon, speaking at a meeting with the constructors of the Rogun hydropower plant, said that negotiations with the World Bank for a $650 million grant -- and with the Asian Infrastructure Investment Bank for a $500 million loan -- are in their final stages. Earlier, agreements on preferential lending were signed with the Islamic Development Bank for $150 million and the Saudi Fund for Development for $100 million. In addition, Arab development funds, such as the OPEC Fund, Kuwait Fund, and Abu Dhabi Fund, have already decided to allocate an additional $100 million. Negotiations are underway with the Asian Development Bank and the European Investment Bank to attract grants and preferential loans. Rahmon noted that from 2008 to 2024, more than 42.5 billion somoni (about $3.8 billion) from the state budget and other sources were allocated to construct the hydropower plant. He emphasized that Rogun is a crucial facility that ensures the country's energy independence and economic development. According to him, 7.5 billion kilowatt-hours of electricity have been produced since the launch of the first two units in 2018. More than 17,000 workers and engineers are currently employed in the plant's construction, and their number continues to grow. Rahmon also noted the need for strict adherence to the work schedule. The installation of the next hydro unit is planned for the fall of 2026. The Rogun hydropower plant is located 110 kilometers east of Dushanbe, and is one of Central Asia's largest and most strategically important hydropower projects. Once completed, it will be the highest dam in the world, at 335 meters. Construction of the project began in 1976 but was suspended after the collapse of the USSR. Work resumed in 2016, and two turbines are producing electricity. In the future, the hydropower plant will have six turbines with a total capacity of 3,600 MW. Once completed, it will generate 17.1 TWh of electricity per year. The project also addresses water supply issues; the reservoir will irrigate 300,000 hectares of land and reduce sedimentation at the downstream Nurek HPP. Part of the energy is planned to be exported to neighboring countries.

Central Asia Home Uzbekistan Turkmenistan Tajikistan Tajikistan Business Economy Local Politics Kyrgyzstan Turkmenistan Business & Economy Business & Economy Kazakhstan Uzbekistan Business & Economy Kazakhstan Business & Economy Kyrgyzstan Business & Economy Features

Central Asian Economies to See Continued Growth in 2024 and 2025

The latest economic outlooks from the European Bank for Reconstruction and Development (EBRD) and Asian Development Bank (ADB) project continued economic growth in the five Central Asian countries in 2024 and 2025. According to the latest edition of the EBRD’s Regional Economic Prospects report, Kazakhstan’s economy will grow by 4% in 2024, with upside from public spending to restore flood-affected infrastructure and housing. The trade, transport, warehousing, services, and IT sectors were the main growth drivers for Kazakhstan in the first half of the year. The EBRD forecasts that in 2025, the country’s real GDP will likely grow by 5.5% amid the planned expansion of the Tengiz oil field. The Asian Development Bank’s (ADB) Asian Development Outlook (ADO) September 2024 projects 3.6% growth of Kazakhstan’s gross domestic product (GDP) this year, slightly lower than the bank’s previous forecast of 3.8% in April 2024. The reason is a weaker service expansion in the first half of the year, lower oil outputs, massive spring floods, and a slowdown in investment. ADB forecasts Kazakhstan’s economic growth to accelerate to 5.1% in 2025. The government of Kazakhstan anticipates the country’s economic growth at 5.6% in 2025. The EBRD report forecasts Kyrgyzstan’s GDP growth to reach 9% in 2024 before moderating slightly to 7% in 2025. The country’s growth potential stems from the expansion of tourism, investment in infrastructure, and gold exports. Both remittances and real wages have remained elevated, helping retail and wholesale trade grow. ADB projects 6.3% growth for Kyrgyzstan in 2024 and 5.8% in 2025. Kyrgyzstan’s Ministry of Economy forecasts economic growth of 6.3% in 2024 and 6% in 2025. Kyrgyzstan’s Minister of Economy, Daniyar Amangeldiev, has explained why the economic forecasts from international financial institutions sometimes differ from those of the Kyrgyz Ministry of Economy. According to Amangeldiev, the forecasts differ because international financial organizations often do not take into account specific measures and actions that the government plans, each of which would potentially impact the country’s economic growth. He added that international forecasts can be skeptical, based on data that may not reflect all the government's actions. According to the EBRD report, Tajikistan’s GDP growth is projected to reach 8% in 2024 and 7% in 2025. Hikes in public-sector salaries, pensions, and minimum wages drove domestic demand in the year's first half, boosting the retail and wholesale trade sectors. The resumption of precious and semi-precious metal exports increased public infrastructure spending, and fixed capital investment was a major growth factor. However, fluctuations in remittances from Tajik labor migrants working in Russia present a significant downside risk for the Tajik economy. ADB forecasts Tajikistan’s economy to grow 6.5% in 2024 and 2025. The EBRD report says Turkmenistan’s economy has shown stability in recent years, citing investment in public infrastructure projects, production facilities, and fixed capital investment as key growth factors. Launching a new single window for export-import operations has improved Turkmenistan’s customs efficiency and simplified transit procedures, enabling higher freight turnover. This has led to the expansion of the country’s transportation sector. The EBRD forecasts...

Central Asia Home Uzbekistan Kazakhstan Local Politics Tajikistan Local Politics Tajikistan Uzbekistan Features Tajikistan Business Economy Local Politics Kyrgyzstan Business & Economy Kazakhstan Uzbekistan Business & Economy Kyrgyzstan Local Politics Kazakhstan Business & Economy Kyrgyzstan Business & Economy Features Uzbekistan Life & Culture Uzbekistan Local Politics

Pathway to Prosperity: Uzbekistan’s Ambitious Plan to Halve Poverty by 2030

A presidential decree, "On taking measures to reduce poverty and increase the population's well-being to a new level," has been adopted in Uzbekistan. Lifting half a million people out of poverty in the remainder of 2024 and a further million in 2025 was defined as the primary task of the state's socioeconomic policy and state bodies and organizations at all levels. The “From Poverty to Prosperity” program will be implemented based on the positive results of poverty reduction from past national experiences and international practices. The program will be implemented from November 1, 2024, based on the doctrine of “Seven Opportunities and Responsibilities for Poor Families.” Within the framework of this program, systematic work is carried out to achieve stable employment and higher incomes, education and vocational training, access to the use guaranteed state medical services, social services, and an overall improvement in living conditions. The “Uzbekistan – 2030” strategy also includes steps to reduce poverty in the country. It was stated that the Ministry of Poverty Reduction and Employment in Uzbekistan will work with Chinese experts and international organizations to develop a strategy for reducing poverty from 2024 to 2030. This will aim to halve poverty by 2026, raise the income of 4.5 million people at risk of falling into poverty by 2030, and lift three million young people out of poverty by utilizing their labor skills. According to data, at the end of 2020, approximately six million people in Uzbekistan lived below the poverty line. While evaluating the results of the transformation programs aimed at solving the problems of poverty, it was noted that in 2023, the poverty rate in Uzbekistan decreased from 17% to 11%, meaning such programs have already helped lift almost two million people out of poverty. It is planned that the poverty level in Uzbekistan will be reduced to 7% in the next three years. This work to reduce poverty has been lauded at the international level. Dr. Ambar Narayan, Manager of the Global Poverty and Equality practice of the World Bank in Europe and Central Asia, for example, has recognized that large-scale work on poverty reduction has been carried out in Uzbekistan since 2020. Naravan believes that prioritizing investment in economic mobility and developing opportunities for vulnerable sections of the population, including youth, women, and inexperienced workers, will help create more productive jobs and reduce hardship. Geoffrey Ijumba, acting head of the UNICEF office in Uzbekistan, has also praised Uzbekistan’s efforts to develop a nationwide action plan to end child poverty. “Prioritizing the problem of child poverty, as well as the development of appropriate measures and programs, will allow Uzbekistan to achieve its goals of reducing poverty, as stated in the ‘Uzbekistan – 2030’ strategy. It will also help achieve the MDG (Millennium Development Goal) targets of ending child extreme poverty and halving it according to the national definition,” Ijumba stated. Global Finance published a list of the poorest countries in the world in 2024 based on the International Monetary Fund's data. Kazakhstan...

Central Asia Uzbekistan Tajikistan International Affairs International Affairs Tajikistan Tajikistan Business Economy Business & Economy Uzbekistan Business & Economy Uzbekistan International Affairs

Tajikistan Continues Electricity Supply to Uzbekistan and Afghanistan

It is being reported that Tajikistan delivered more than $82.3 million worth of electricity to neighboring countries from January to August of this year. The export of electricity is $2.8 million (3.3%) less than in the same period of 2023. During this period, Tajikistan's electricity production amounted to about 15.4 billion kilowatt-hours, of which about 1 billion kilowatt-hours (6.5% of the total production) were exported. More than 80% of electricity exports go to Afghanistan, and the remaining 20% to Uzbekistan. Tajikistan signed an agreement on the export of electricity for 2024 with these two countries. Electricity exports to Uzbekistan are carried out only in the summer, and supplies to Afghanistan will continue in the autumn-winter season, but in small volumes — “exclusively for the preservation of infrastructure.” For information, a memorandum of understanding has been signed between Tajikistan and Kazakhstan, providing electricity supply produced by the Rogun hydropower plant until 2032. Agreements on the supply of electricity to Kazakhstan and Uzbekistan are one condition for external financing of the Rogun project. The Times of Central Asia has reported that when the Rogun hydropower plant in Tajikistan reaches full capacity, about 70% of the electricity produced will be exported to other Central Asian countries.

Central Asia Tajikistan International Affairs Tajikistan Local Politics International Affairs Tajikistan Tajikistan Business Economy Business & Economy

Saudi Fund Contributes $100 Million Towards Rogun Hydropower Plant in Tajikistan

The Saudi Development Fund has allocated $100 million to finance the completion of the Rogun hydropower plant in Tajikistan. This was announced by the Ambassador Extraordinary and Plenipotentiary of the Kingdom of Saudi Arabia to the Republic of Tajikistan, Walid bin Abdulrahman Al-Rashidan, at a press conference dedicated to the 94th anniversary of the Kingdom of Saudi Arabia's founding. “This project is strategically important for the country, as it will ensure energy security and sustainable economic growth. The Rogun HPP is a key element of Tajikistan's energy infrastructure; it will significantly increase electricity production and strengthen its position regionally,” Al-Rashidan said. Saudi Arabia’s financial support strengthens bilateral cooperation in energy and economic relations. The estimated cost of completing the construction of the Rogun HPP is $6.4 billion. Once it reaches full capacity, about 70% of the electricity generated will be exported to other Central Asian countries. According to a report by the Eurasian Fund for Stabilization and Development (EFSD), the financing of the Rogun HPP is one of the main risks for Tajikistan’s budget and debt sustainability. A possible increase in the cost of hydropower construction could reduce funding for other essential infrastructure projects and social spending. Analysts emphasize that “in the face of uncertainty regarding funding sources, starting in 2025, the government of Tajikistan may have additional needs for budgetary support from international financial organizations.”

Central Asia Tajikistan International Affairs International Affairs Tajikistan Tajikistan Business Economy Business & Economy

Rahmon Invites German Chancellor to Cooperate on Rogun HPP

During the summit of Central Asian countries and Germany on September 17 in Astana, Tajik President Emomali Rahmon spoke with German Chancellor Olaf Scholz on expanding Tajikistan’s cooperation with Germany and furthering Germany's business interests in the country. The president noted the significant contribution made by the German Society for International Cooperation and the German Development Bank to Tajikistan's implementation of its national strategies. With regard to future projects, the parties discussed developing effective cooperation in economy and trade, industry, hydropower, solar and wind energy, transport, and agriculture. The two leasers also exchanged views on mining and processing minerals and scarce earth metals, the expansion of bilateral cooperation in industry and agriculture, and the prospects of exporting products from Tajikistan to Germany. Talks also covered global problems related to drinking water, melting glaciers, climate change, and food security. Olaf Scholz confirmed Germany's interest in cooperating with Tajikistan in energy fields, including hydropower and other green energy sources, mining, environmental protection, and security, and emphasized, “we encourage cooperation with Tajikistan to global German companies." According to the president's press service, Emomali Rahmon recalled Germany’s contribution to the construction of the Tajikistan and Sebzor power plants in Badakhshan and the modernization of the Nurek hydroelectric power plant. Looking ahead, the president expressed confidence that such cooperation could continue on the Rogun power plant. The estimated cost of completing the construction of the Rogun HPP is $6.4 billion, and when fully operational, about 70% of the electricity produced will be exported to other Central Asian countries. The meeting closed with Rahmon inviting Scholz to come to Tajikistan on an official visit.