On 5.11.2015, the most important addendum to subloan agreements were signed between microfinance organizations "Arvand" and "Imon International" and State Institution "Project Management Unit for "Access to Green and Rural Development Finance" under the Ministry of Finance of the Republic of Tajikistan.
"This is an important step towards more successful implementation of Green Finance Project. Our center opens more opportunities for improvement of microcredit environment in the republic. Addendum to Subloan agreements is a new push, in the first place, for the microfinance institutions with which we work" - said Nozimov I. - Deputy Director of the PMU.
It should be noted that this agreement is an addendum to the previously signed agreement and will be construed solely as an addendum, and not a separate part.
"This addendum is very important to us, as the year comes to an end and we need to get new loans for micro crediting of the population. The imminent signing of the second tranche will allow us to disburse these funds in the near future"
As it was noted earlier, subloans were provided to two microfinance institutions. The total amount is about 7 million USD and the agreement will be valid for three years. Duration of subloan agreement will be 36 months from the date of signing.
State Institution Project Management Unit for “Access to Green and Rural Development Finance” is based at the Ministry of Finance of the Republic of Tajikistan. The group of consultants from various fields is working there on a permanent basis. The purpose of project is to adjust the line and the system of microfinancing of Tajikistan in order to provide development of energy-saving and environmentally friendly houses, equipment and devices for heating. The project aims to improve the conditions of families and households and address their environmental and green requirements. At the moment, Tajikistan is 98% dependent on hydropower. More than 73% of the population lives in rural areas, where improvement of housing conditions is much-needed, especially with consideration that many of the houses are built in 1960-1970.
Through selected MFIs, the project provides loans to households and small entrepreneurs for the purchase of Green equipment. As well in order to help low-income families, the innovative support and mechanisms for its implementation are applied. The project will improve understanding of the population about green......, will help in energy savings and will give an idea about the access to smart green energy proposals. Support from the MFI builds the capacity and promotion of the project. Also under the project and MFI by SI PMU, engineers for "smart green energy offers" are working on permanent basis and assess client needs, discuss options, and advise on constructive credit policy.
Monitoring with support of monitoring and design experts is conducted permanently. Research on target indicators, sources of data, reporting mechanisms and risks is provided constantly.
At the moment, the project provides increased and the most open access to finance for the purchase of "smart green energy offers".