Report on operations of the State Institution “Project Implementation Unit for Access to Green and Rural Development Finance” under the Ministry of Finance of the Republic of Tajikistan as of December 31, 2016
State Institution “Project Implementation Unit for Access to Green and Rural Development Finance” under the Ministry of Finance of the Republic of Tajikistan is implementing Components of the credit lines for a total amount of US $37. 4 million.
Including through:
- US $9.0 million – grant of the World Bank;
- US $13.6 million – grant of the Asian Development Bank;
- US $8.8 million – credit of the World Bank;
- US $5.7 million – share of the beneficiaries and credit organizations;
- US $0.3million – share of the Government of the Republic of Tajikistan.
It is worth noting that the Unit is implementing components together with the Ministry of Agriculture of the Republic of Tajikistan, State Unitary Enterprise “Khojagii Manziliyu Kommunali”, Agency for Land Reclamation and Irrigation, and Committee for Environmental Protection.
The Unit's activities are carried out through banking and credit institutions with the aim of providing affordable lending and the main purpose of the components are:
- strengthening the microcredit system in Tajikistan in the electricity sector;
- use of alternative energy sources for purchase of energy-efficient technologies;
- providing affordable finance to the vulnerable groups of population, especially women;
- improving the financial literacy of the population;
- increasing the level of commercialization of agricultural products;
- improved access to the modernized warning systems in the field of climate change.
In 2016, the total amount of the disbursed funds was US $3.4 million or 101% of the plan.
In general, since the beginning of the implementation of the projects, the total amount of disbursed funds is US $14.2 million, including US $13.4 million of grant funds, US $94.5 thousand of loan funds, US $696.7 thousand - funds from the share of beneficiaries, and US $56 thousand - share of the Government of the Republic of Tajikistan.
At the moment, the Unit works on the basis of sub-loan agreements with “Imon International”, “Humo”, “Dastras”, “Fardo”, “Arvand”, “Access Bank”, “Eskhata Bank”, and “Oxus”.
Based on sub-loan agreements, as of December 31, 2016, credit institutions were granted US $12 million, including US $10.9 million out of the ADB funds and US $ 1.1 million out of the World Bank funds.
In accordance with the ADB requirements, funds for the credit institutions are issued in national currency, taking into account the refinancing rate established by the National Bank of Tajikistan, for a period of 3 and 5 years. According to the requirements of the World Bank, loans are issued in TJS, taking into account the refinancing rate, and in US dollars at a rate of approximately 4% (taking into account the LIBOR rate of 6 months plus 3%) for a period of 5 years, including grace period.
It should be noted that since the beginning of the credit line implementation, financial institutions have issued loans in the amount of 79.4 million TJS, to 8800 Tajik citizens. The coverage of the financing was 52 cities and districts of Khatlon and Sughd regions, and Districts of Republican Subordination.
The funds were issued for the purchase of energy-efficient equipment, development of livestock breeding and crop production, creation of greenhouses, creation of irrigation and arable lands cultivation system, purchase of solar panels, development of fish farming, poultry breeding, and beekeeping, development of horticulture, leasing of agricultural machinery, and processing of agricultural products.
In 2017, the Unit will continue to work fruitfully in the implementation of the projects to provide population with affordable financial resources.
