IN THE FIELD
Transforming Tajikistan
E merging from the shadows of the Soviet Union, Tajikistan is rebuilding its economy and gradually deepening its integration into the global economy. Over the last decade, the country has posted strong economic growth averaging 7.1 percent, according to the World Bank. Strengthening exports is an important way to continue boosting the economy of this landlocked country, which is the smallest nation in Central Asia with a population of 10 million. This requires competitive goods, services and products. In Tajikistan, aluminium and cotton account for over 75 percent of exports, followed by electricity. Thanks to its mountainous landscape and huge hydropower dams inherited from Soviet times, the country has vast energy resources. However, to succeed in external markets, it is also necessary to have the proper connections. Goods need roads, whereas electricity needs transmission lines for delivery. Recognizing the key role infrastructure plays in sustainable development, the OPEC Fund has long been engaged in this particular sector. Already in 2000, a first loan for a road rehabilitation investment was approved. To date, road projects account for seven of 13 public sector operations completed in Tajikistan.
Before this backdrop, the December 2023 visit by OPEC Fund President Abdulhamid Alkhalifa and his delegation to Tajikistan served as a perfect opportunity to sign a US$10 million loan to co-finance the Guliston-Farkhor-Panj-Dusti road reconstruction project. The 133-km road, originally built in 1932, is a transport artery connecting the country’s south and west, while also providing access to the Asian Highway Network. Once completed, the road will provide the shortest route between Afghanistan and China. Exploiting the economic potential of the infrastructure, Tajik planners see opportunities in tourism, mining and energy. A free economic zone in the border region with Afghanistan is also under preparation. President Alkhalifa emphasized: “Building modern social and physical infrastructure is crucial for the future socio-economic development in Tajikistan.” He also reiterated the OPEC Fund’s commitment: “We are ready to further expand our long-
standing partnership.” To date, the institution has approved 17 project loans for around US$160 million, covering the transport, health, education, energy and water sectors. The OPEC Fund delegation, which included Public Sector Director Musab Alomar and Country Manager Olga Mikhailova, also had the opportunity to see a major energy development project in Rogun on the Vakhsh River in southern Tajikistan, where a new hydropower plant is currently under construction. The facility is a cornerstone of the country’s National Development Strategy 2030, designed to generate 3,780 MW by 2032. The visit included meetings with the President of Tajikistan, Emomali Rahmon, and the Minister of Finance, Faiziddin Qahhorzoda, in the capital Dushanbe as well as the signing of an US$8 million loan in support of the National Education Development Strategy. OPEC Fund President Alkhalifa noted: “Education is the fastest way to prosperity.” The country has a young and growing population. However, all too often people are forced to seek their fortune abroad: The share of households with a family member abroad reached 48 percent last year, with the share of households receiving remittances rising
Building modern social and physical infrastructure is crucial for the future socio-economic development in Tajikistan. We are ready to further expand our long-standing partnership.
Abdulhamid Alkhalifa, OPEC Fund President
to almost 22 percent in June 2023, the World
Bank says. Building roads, financing energy access, and supporting local education are now creating the conditions for domestic growth and development .
OPEC Fund President Abdulhamid Alkhalifa meets Minister of Finance Faiziddin Qahhorzoda
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