DUSHANBE, January 24, Asia-Plus -- The Asian Development Bank (ADB) plans to provide a US$25 million loan to Tajikistan this year, according to ADB Tajikistan Resident Mission. 

A source at the ADB Dushanbe Office said that the loan will be proved for the third phase of the road linking Dushanbe via Vahdat and Nuroobod to Saritash (Kyrgyzstan).  At present Tajikistan’s Ministry of Transport is conducting a feasibility study for implementation of the third phase of this road     

The first phase of the project is scheduled to be finished in early 2008.  This phase of the project is improving 140 kilometers of the road from Dushanbe to Nuroobod and 77 kilometers of rural roads.  A total cost of the first phase is $23.6 million.

The Asian Development Bank supported the second phase of the project through a US$29.5 million loan.  This phase of the road is improving about 89 kilometers of the central and border sections of the project road, along with 60 kilometers of rural roads.

The project will substantially reduce the obstruction to trade caused by poor road conditions and, consequently, promote regional trade and cooperation.  The road is part of a network in Central Asia that directly links Kazakhstan, Kyrgyzstan, China, Tajikistan, Afghanistan, and Uzbekistan.  It is also part of a larger network providing links to the ocean ports of Iran and Pakistan to the south, and to the Russian Federation into the north.

The road also serves as the only substantial link between Dushanbe and the Rasht Valley, an area in Tajikistan with a high incidence of poverty. The Rasht Valley used to be a large producer of fruit marketed throughout the former Soviet Union, but production has declined significantly since independence, in part due to poor road conditions.  With improved roads, the valley''s inhabitants will have better access to markets in Dushanbe and other cities in the region.  

ADB''s loans provided for the first and the second phases have come from its concessional Asian Development Fund.   The loans carry a 32-year term, including a grace period of 8 years. Interest will be 1% per annum during the grace period and 1.5% per annum for the rest of the term.