DUSHANBE, December 25, 2014, Asia-Plus -- The European Bank for Reconstruction and Development (EBRD) is continuing to support municipalities in Tajikistan in their efforts to improve people’s living conditions.

The EBRD Dushanbe Office says a new deal will allow the municipality of Norak, a city of 27,000, to get a modern dumpsite, create a new landfill and purchase solid waste collection and transportation equipment.

Currently waste collection in the city is in a dire condition, marked by the lack of proper collection points and the rise of unsanitary dumping sites.

The city is famous for its hydropower station, which boasts the second-tallest man-made dam in the world and the largest water reservoir in the country. Improved waste management will also increase the tourism potential for the region.

The EBRD is lending US$ 2 million, and the EBRD’s Shareholder Special Fund is providing an equal grant of US$ 2 million to the municipality-owned enterprise Khojagii Manziliyu-Kommunali (KMK - the central governmental agency responsible for water supply and wastewater services) under a sovereign guarantee.

Technical cooperation for the project’s feasibility study was provided by the EBRD’s Early Transition Countries Fund for US$ 355,000. The government of Austria will finance project implementation support for US$ 600,000. In addition, the project will also provide for a corporate development, stakeholder participation and a city support program for US$ 440,000.

Richard Jones, Head of the EBRD’s Resident Office in Tajikistan, said: “The EBRD is committed to helping the country to alleviate the problem of bad sanitation, which is especially acute in smaller cities like Norak.  Our work in Norak is part of our commitment to modernize municipal services in Tajikistan and in addition to extensive operations in water and waste water, we have now financed four solid waste projects.  In total the EBRD and its donor partners have committed over US$ 154 million towards better municipal services in Tajikistan and have a pipeline of roughly the US$150 million in development for the sector.”

Norak was one of the stops on a recent high-level visit to Tajikistan by EBRD President, Sir Suma Chakrabarti, in November 2014.  President Chakrabarti met with the Mayor of Norak and the Governor of the Khatlon province and discussed increasing cooperation between the Bank and the region. During his visit, the EBRD President also participated in a high-level energy roundtable at Norak HPP.

Since the beginning of its operations in Tajikistan, the EBRD has invested some US$ 400 million into different sectors of the country’s economy, focusing on areas that improve people’s lives, such as public utilities and infrastructure.