World Bank approves $50mn grant to advance Tajikistan’s economic reforms and market competitiveness — Daryo News

World Bank approves $50mn grant to advance Tajikistan’s economic reforms and market competitiveness

The World Bank’s Board of Executive Directors has approved a $50mn grant to support Tajikistan’s reform agenda aimed at boosting private sector growth, enhancing competition, and improving public sector efficiency.

Source: Google Images

The funding, provided through the International Development Association (IDA) under the First Competitive and Inclusive Tajikistan Development Policy Operation (DPO), aligns with the Tajikistan National Development Strategy 2030. The initiative seeks to foster a more competitive, equitable, and resilient economy.

“We are proud to support these ambitious reforms designed to unlock the country’s economic potential and deliver tangible benefits to Tajik citizens,” said Wei Winnie Wang, Acting Country Manager for the World Bank Group in Tajikistan. “Fostering a more competitive and open market environment helps create new opportunities for businesses and consumers alike.”

The DPO focuses on several key reforms, including:

• Boosting competition and improving governance in the telecommunications and digital sectors.
• Enhancing air transport connectivity and competition in civil aviation.
• Strengthening the legal framework for foreign investment.
• Increasing transparency of subsidies to private investors.
• Improving transparency in power sector funding to encourage renewable energy investments.

The program also supports the development of a Benefit Sharing Program (BSP) under the Rogun Hydropower Plant project. The BSP will allocate part of the plant’s electricity revenue to assist poor and vulnerable households, reinforcing existing social safety nets.

Development Policy Operations are financing tools used by the World Bank to back policy and institutional reforms for sustainable growth and poverty reduction. Tajikistan last received DPO financing in 2023.

The World Bank currently finances 26 projects in Tajikistan, with total commitments of $1.9bn in IDA grants and concessional credits. The institution has reaffirmed its commitment to helping the country improve living standards and meet the needs of its young and growing population.

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