IMPROVING TAJIKISTAN’S ROAD NETWORK
Tajikistan is a landlocked country in the Central Asia and heav- ily dependent on transport corridors for trade, investment, economic growth, job creation, and poverty reduction. Sever- al Central Asia Regional Economic Cooperation (CAREC) cor- ridors (2, 3, 5, and 6) cross its territory, which highlights the importance of road network con- nectivity and regional integration for the coun- try. The modernization of the key road routes, half of which require significant rehabilitation, has been given high priority by the govern- ment, aiming to address the issues of high transport costs and limited access to markets and services. To support the government efforts in the rehabilitation of the road network, in 2009 the OPEC Fund approved a US$13 million loan, which disbursed between 2012 and 2018. The project was co-financed by the Islamic Development Bank and other Arab Coordination Group members. The project fi- nanced the construction of 40 km of a standard 2-lane sec- tion (Category III) of the Kulyab-Kalaikhumb road, between
Shurabad and Shagon. The project also included construction of 9 new bridges and rehabilitation of one existing bridge, as well as 85 new culverts. Earthworks including drilling and blasting, construction of retaining walls and shore protection
works were also part of the project civil works. Finally, the project also covered the procure- ment of 39 machinery units for the mainte- nance of the constructed road. This project was one of several phases to reconstruct the full Kulyab-Kalaikhumb road, linking the east-
ern and western regions of the country.
As a result of the project, by the time of project evaluation trav- el time, vehicle operating costs and traffic volume significantly improved. Moreover, the project is thought to have strongly contributed to the increased regional trade and tourism activ- ities, benefiting the local population. A complete analysis of the impacts of the reconstructed Kulyab-Kalaikhumb road will be conducted after the completion of the last phase, which is an ongoing project co-financed by the OPEC Fund.
SUPPORTING MICROFINANCE AROUND THE WORLD
After the global credit crunch in 2008, microfinance in- stitutions (MFIs) worldwide saw tightening liquidity and rising costs of borrowing. Financing from both domes-
MEF’s portfolio is largely focused on partner MFIs with loans to micro enterprises. MEF invests in MFIs based on careful evaluation of investment proposals, including impact and environment, social, governance (ESG) assessments.
tic and international banks became scarce and expensive and lenders be- came more risk averse. In response to the credit contraction, national and multinational development agencies
Between 2009 and 2021, MEF in- vested US$2.6 billion in 291 MFIs in
established liquidity facilities, such as the Microfinance Enhancement Facility (MEF), established by the World Bank subsidiary International Finance Corporation (IFC) and Germany’s Kreditanstalt für Wiederaufbau (KfW). In 2009, the OPEC Fund invested a total of US$40 million in class B shares of MEF. Other investors include Sweden’s government agency for development cooperation (Sida), Germany’s Federal Ministry for Economic Cooperation and Development, the Austrian Development Bank OeEB and private investors.
59 countries through 800 loans. 640,000 final borrowers — 84 percent women and 56 percent in rural areas — have been reached by the supported MFIs with MEF resources, with each beneficiary borrowing an average of US$1,453. As of end-2021, MEF’s total loan portfolio stood at US$545 million — of which 52 percent in local currencies — with 143 partner MFIs in 42 countries. The top 5 exposure countries are India
(17 percent of outstanding loan portfolio), Cambodia (8 percent), Ecuador (7 percent), Georgia (7 percent) and Bolivia (6 percent).
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