DUSHANBE (TCA) — The Eurasian Development Bank (EDB), managing the Eurasian Fund for Stabilization and Development (EFSD), and the Ministry of Finance of Tajikistan signed a US $40 million credit agreement to finance the Nurek HPP Rehabilitation (Phase 1) investment project, EDB said on July 4.
Phase 1 of the Nurek HPP Rehabilitation project is the EFSD’s first investment project in Tajikistan. It envisions the purchase, supply, installation, and commissioning of six single-phase auto-transformers to replace the obsolete equipment installed at the plant’s switchyard over 40 years ago. The credit is extended for twenty years, with an eight-year grace period for principal repayments.
It is part of a bigger project to reconstruct the Nurek HPP, which consists of two phases, with financing totalling up to US $700 million. The first phase of reconstruction is currently underway. It is financed, in addition to the EFSD, by the International Development Association (the World Bank Group) and the Asian Infrastructure Investment Bank.
Project implementation is expected to be launched this year. It is intended to improve the safety and reliability of the hydropower plant, ensure uninterrupted electricity supplies, and reduce costs of operations and repair of auto-transformers.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB’s charter capital totals US $7 billion. The member states of the Bank are Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, the Russian Federation, and Tajikistan.
The Eurasian Fund for Stabilization and Development (EFSD) amounting to US$8.513 billion was formed on 9 June 2009 by the governments of the same six countries. The objectives of the EFSD are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration in the region. The EFSD member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the EFSD Resources Manager.