The European Bank for Reconstruction and Development (EBRD) will extend a sovereign loan of up to €7.5mn to Tajikistan’s state enterprise for Kulob water and wastewater services (KMK) in order to rehabilitate key water supply and wastewater infrastructure in the city. 

The water infrastructure in Kulob, a 2000-year-old city, requires urgent investments, as regular access to safe drinking water and timely water treatment are needed for the city’s sustainable development under the COVID-19 pandemic and for hygiene and health reasons. The EBRD has invested over €731mn via 139 projects in Tajikistan’s economy to date.

The funding will benefit over 100,000 inhabitants of Kulob, Tajikistan’s fourth-largest city, granting them access to an improved water supply and water treatment services following major upgrades to water mains, intakes and pumping stations. It will also help modernise KMK’s wastewater treatment plant, the wastewater network and facilitate the procurement and installation of water meters.

Upon implementation, the city of Kulob is expected to be able to reduce its water losses by up to 35%.

The project will receive grant support from the EU’s Investment Facility for Central Asia (IFCA)  to co-finance capital expenditures. The project is also set to benefit from a technical assistance package of €1.25mn, approved by the IFCA and EBRD’s Shareholder Special Fund. The package will finance project implementation support along with a corporate development programme for the creation of a Kulob regional water company and the implementation of International Financial Reporting Standards.