|World Bank Portfolio in Tajikistan|
|Number of projects||17|
|IDA grants and credit||$655 million|
About the World Bank Group in Tajikistan
Tajikistan joined the World Bank in 1993 and the International Development Association (IDA) in 1994. During this time, the World Bank invested over $1.4 billion to support Tajikistan’s efforts to reduce poverty and improve people’s lives.
Over twenty-five years, the partnership with Tajikistan has evolved in line with changes in local needs and the global economy. Initially, the World Bank focused on post-conflict reconstruction projects in the late 1990s and provided emergency funding in response to food insecurity and natural disasters.
Starting in 2000, investments have aimed to restore productivity-led growth and job creation through improved education, better access to healthcare and safe drinking water, enhanced land rights, diversification of agriculture in rural areas, and an improved business environment.
Following the 2008 and 2014 economic shocks, which impacted Tajikistan through reduced remittances and lower export commodity prices, Bank support aimed at protecting the poorest households and creating income generation opportunities in rural regions.
Subsequent strategies focused on supporting second generation reforms in agriculture, energy, health, and education, to increase acess to and quality of services for the population. At the same time, the World Bank Group worked closely with the government of Tajikistan, the private sector, civil society and development partners to improve the business environment, promote private investments for better job creation and create sources of sustainable economic growth.
The current World Bank Group Country Partnership Strategy aims to support Tajikistan’s transition to a new growth model led by investment and exports. The active World Bank portfolio in Tajikistan includes 16 projects (including regional projects) with a net commitment of $560 million. The largest share of the portfolio is in the energy sector (44%), followed by water (16%) and urban and rural development (12%). Other sectors supported by the Bank Group include transport, governance, agriculture, health, education, and social protection.
Tajikistan and the World Bank Group are currently consulting on strategic priorities to be addressed jointly under the new Country Partnership Framework for 2019–23. This new strategy aims to support the country’s efforts to transform the economy along the “industrial-innovative scenario” spelled out in Tajikistan’s National Development Strategy to 2030.
Tajikistan became a member of the International Finance Corporation (IFC) in 1994. The IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. Since 1997, the IFC has invested $152 million to support 40 private sector projects in the financial, hydropower, retail, tourism, and manufacturing sectors.
The IFC’s Advisory activities focus on improving the business environment, promoting private sector development, strengthening the financial sector, supporting the improvement of corporate governance practices, promoting electronic and digital financial services, supporting agribusiness, and enabling private sector involvement in infrastructure. The IFC’s investment portfolio in Tajikistan stands at $32 million. The current portfolio comprises 45% in the financial market and 37% in telecommunications, while the rest is distributed among food, retail and agribusiness.
Tajikistan’s portfolio is complemented by Trust Fund grants to the amount of $356 million. These grants cover important sectors including education, energy, agriculture, food security and social sectors. Some of the World Bank Group’s technical assistance in Tajikistan is financed directly by the country’s various bilateral and multilateral development partners.
As an institution of global expertise in development, the World Bank Group invests heavily in research to understand country development experience and shares this cross-country knowledge through analytical and advisory services. In Tajikistan, over 100 publications have been produced on economic and other sector issues since 2000. In addition, advisory services have brought international experience to Tajikistan on private sector development, health, education, energy, agriculture, investment strategies, and climate change.
Tajikistan became a member of the Multilateral Investment Guarantee Agency (MIGA) in 2002. MIGA has not, so far, provided any political risk guarantees for investment projects in Tajikistan.