Description: 

This Project aims to enhance the climate resilience of Tajikistan’s hydropower-dominated energy sector through a multilayered approach, with a focus on Sugd province.

Background:

Tajikistan is one of the world’s most vulnerable countries to climate change, which directly affects its hydropower capacities. Tajikistan’s Second National Communication to the UNFCCC pointed out that the country’s hydropower plants depend on river basins with glacial melt water and snowmelt, which makes them highly vulnerable to climate change. Most climate models predict big changes in the dynamics of 7 Tajik glaciers, snowmelt and precipitation.

Hydropower provides 98% of Tajikistan’s electricity, making the entire energy sector highly sensitive to climatic variability. The vulnerability is aggravated by long-term underinvestment, over-reliance on outdated hydropower systems, policy failures and weak corporate governance. Facility upgrades are needed urgently to avoid major technical failure risks that would jeopardize electricity supply and damage Tajikistan’s economy. Large parts of the country already suffer from unstable power supply and severe power outages during winter. This leads to social costs such as health impacts of indoor air pollution caused by burning wood and coal.

Objectives and Outputs:

The project will support priorities development of the Government of Tajikistan (GoT), as well as raise awareness into the concrete improvements implementation. The energy sector reform was one of the flagship initiatives approved at the Development Forum in December 2012.

The project aims to improve the environment for climate-resilient energy security, as well as improve the framework for evidence-based policy and investment making, with gender perspectives and vulnerable groups’ needs in mind. The project will strengthen institutional capacities for climate-resilient hydropower operations (specifically, the Barki Tojik and the Ministry of Energy & Industry), and implement the first phase of a climate-resilient upgrade of a major hydropower plant as a demonstration project.

The Project will be complemented by a parallel PPCR/EBRD project for a ‘Tajikistan Small Business Climate Resilience Financing Facility’, which will address the demand side by financing energy efficiency improvements in the agricultural, small and medium enterprise, and residential sectors. Reducing energy demand through supply-side efficiency improvements is an important cost-effective way to ease the energy system and make it more resilient to climatic variability on hydropower generation.

The PPCR Phase I study and the stakeholder workshop identified that dam operating rules need to be revised according to updated meteorological and hydrological conditions. Currently, hydropower dams in Tajikistan are still using rule regimes of the Soviet period. The revision will take place strictly within the boundaries of the existing international agreements that govern the management of the Syr Darya basin. A feasibility study was carried out from Phase I PPCR study and used them to identify options for improving the safety of the dam.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

Project Details
Concept Note | Cover Note | Project Document | Proposed Decision | Workshop Report Annex I | Project Approval Request | MDB Preparation and Supervision Services (MPIS)

Approved on March 6, 2014 (Approved Decision
Approved amount(s):
USD 10.0 million (concessional finance)

Proposed Decision | Letter from EBRD
Approved on June 18, 2014 (Approved Decision)
Approved amount(s):
USD 11 million (grant funding)
USD 175,000 (Second tranche)

Comments from the Trust Fund Committee:
Japan (February 26, 2014)  
United Kingdom (March 5, 2014)