DUSHANBE, December 25, 2014, Asia-Plus  -- The Government of Tajikistan and the European Bank for Reconstruction and Development (EBRD) have signed an agreement on sovereign guarantee for the Tajik Water II – Khorog GBAO Water Rehabilitation Project, according to the Ministry of Finance (MoF) Secretariat.

The document was reportedly inked in Dushanbe on December 24 by Mr. Abdusalom Qurbonov, Minister of Finance of Tajikistan and Mr. Richard Jones, Head of the EBRD’s Resident Office in Tajikistan.

The Tajik Water II Project (the Project) is an additional project under the Integrated Approach and provide additional financing to continue important water supply and wastewater improvements in the 20 cities where the Bank already works through Khojagii Manziliyu-Kommunali (KMK - the central governmental agency responsible for water supply and wastewater services).

The EBRD reportedly extends a loan of up to USD 2 million to the Khorog Water Company and KMK, the owner of the Khorog Water Company.  Tajikistan provides the sovereign guarantee to KMK and Khorog Water Company.

The overall objectives of this project are to: 1) further rehabilitate the water supply and make selected wastewater improvements; and 2) further improve financial and operational management of the Khorog Water Company.

According to the MoF Secretariat, the total project cost is USD 5.7 million.  The project is reportedly co-financed by the Swiss State Secretariat for Economic Affairs (SECO).