World Bank Approves $50 Million Grant for Tajikistan’s Economic Reforms

The World Bank’s Board of Executive Directors has approved a $50 million grant to support Tajikistan’s reform agenda, aimed at fostering competition, improving market conditions for the private sector, and strengthening public sector service delivery. The financing, announced by the Bank’s press service, comes from the International Development Association (IDA), its fund for low-income countries. The First Competitive and Inclusive Tajikistan Development Policy Operation (DPO) aligns with the country’s National Development Strategy 2030. Its primary goal is to help implement key government policies for building a more competitive and equitable economy. “We are proud to support these ambitious reforms designed to unlock the country’s economic potential and deliver tangible benefits to Tajik citizens,” said Wei Winnie Wang, Acting Country Manager for the World Bank Group in Tajikistan. “Fostering a more competitive and open market environment helps create new opportunities for businesses and consumers alike.” The DPO targets several priority areas: Increasing competition and improving governance in telecommunications and the digital sector. Expanding air transport connectivity. Strengthening the legal framework for foreign investment. Enhancing transparency in subsidies and power sector financing. By making energy sector funding more transparent, the reforms aim to encourage greater private investment in renewable energy. Another focus is improving the policy, legal, and financial frameworks for the Benefit Sharing Program (BSP) under the Rogun Hydropower Plant (HPP) Project. The BSP will channel part of Rogun’s electricity sales revenue to support poor and vulnerable households, complementing existing social safety nets. Development Policy Operations are one of the World Bank’s key tools for supporting policy and institutional reforms that drive sustainable growth and poverty reduction. The Bank last approved a similar operation for Tajikistan in 2023. Currently, the World Bank finances 26 projects in the country totaling $1.9 billion, combining IDA grants and highly concessional credits. As previously reported by The Times of Central Asia, poverty reduction in Tajikistan remains gradual. According to the World Bank’s Poverty, Prosperity, and Planet Report 2024, more than 25% of the population lives on less than $3.65 per day, even after the extreme poverty threshold was revised from $2.15 to $3.00.

International Development Association Allocates $25 million to Kyrgyz Universities.

The International Development Association (IDA) has announced it will  provide Kyrgyzstan with a $25 million interest-free loan over 50 years, with a ten-year grace period. The loan includes an allocation of $19.7 million to be divided between  five of the country's universities. The Academy of Medicine will receive $4 million, $1.3 million of which will be invested in laboratories for biochemical research, genetics, and molecular biology; $900,000 on equipment for pathomorphological research, and $800,000 on equipment for a laboratory for pharmaceutical bioequivalence studies. The remaining $1 million will be spent on laboratories, IT equipment, and software for new and expanded educational programs. Kyrgyz State Technical University will be allocated $3.2 million,  $2.2 million of which will be used for equipment and software for three laboratories, IT equipment, and software. The Kyrgyz National University (KNU) will also receive $3.2 million with $1.7 million allocated for scientific and IT equipment and software for teaching laboratories. The remaining $1.5 million will be spent on laboratories, IT equipment, and software for educational programs. Osh State University (OSU) will receive $2.8 million, with $300,000 reserved for the purchase of an ultrasound machine for breast examination, $1.5 million for an MRI machine, and $1 million for laboratory and IT equipment and software programs. The University of Agriculture has been allocated  $3.75 million, with $800,000 to be used to purchase equipment for an infectious animal disease diagnostic laboratory, $1.2 million for molecular genetic equipment, $550,000 for equipment for a histology and immunohistochemistry laboratory, $400,000 for equipment for the Department of Veterinary Medicine and Food Safety, and $800,000 for laboratory and IT equipment and software. The national budget will cover $5.3 million of the loan funds whilst the universities will pay off the remaining amount through revenue provided by laboratory services.