The European Bank for Reconstruction and Development (EBRD) is contributing to the development of trade and transport routes in the region by financing a major transport project in Tajikistan. The EBRD is financing a sovereign loan of up to €38 million for the improvement and expansion of the Dangara to Guliston road, aiming to increase the capacity of this strategic road.
Contribution to the Economic Importance of the Hatlon Region
Built in the 1930s, this road provides a critical link between the north and south of the Khatlon region, which accounts for a large portion of Tajikistan’s agricultural production. Khatlon produces 53 percent of the country’s agricultural production and is home to 35 percent of its population. The road is vital to the region’s development and economic growth.
Road Improvement Project and New Infrastructure
The EBRD’s financing support covers the improvement of a 49-kilometer section of the road and the construction of a charging infrastructure for electric vehicles. This improvement will be realized by converting the existing single-lane Category II road into a dual-lane Category I road. This innovation will increase the capacity of the road and accelerate trade between the Khatlon region and other regions. In addition, various improvements will be made along the road, such as lighting, bicycle paths and sidewalks for disabled individuals and parents with children.
Innovative Infrastructure for Electric Vehicles
This project is one of the first roads in Tajikistan with charging infrastructure for electric vehicles. It will be an important step to promote the use of electric vehicles and increase sustainable transportation. EBRD’s support will not only be limited to improving this road, but will also contribute to the growth of the country’s electric vehicle infrastructure.
Contribution of the Asian Development Bank
In addition to EBRD financing, the Asian Development Bank (ADB) will contribute US$86,7 million (approximately €83,5 million) in grant financing to the project. This collaboration will help accelerate trade and strengthen transport infrastructure in the region, ensuring the wider and more effective implementation of the project.
Support for Sustainable Electric Mobility
The EBRD will also provide a technical cooperation grant for the development of a national electric mobility action plan that will simulate public and private sector investments in sustainable electric mobility in Tajikistan. The action plan aims to increase the use of electric vehicles and modernise the country’s transport infrastructure.
Investment in Tajikistan and Future Perspective
To date, the EBRD has invested more than €183 billion in Tajikistan through 1 projects. These projects have made significant contributions to the country’s economic development, while continuing to promote international collaboration and sustainable transport solutions. Such projects will help strengthen the regional economy by improving Tajikistan’s trade and transport infrastructure.
