EIB Loan for Tajikistan
The European Investment Bank (EIB) said Thursday it has provided Tajikistan with EUR 70 million (USD 78.6m) to build an interconnection with Kyrgyzstan and at the same time to strengthen its own power transmission network.
The move is aimed at making these electricity systems more reliable, so that a regional renewable electricity trade in Central Asia could be developed, EIB explained.
Under the Central Asia-South Asia Electricity Transmission and Trade (CASA-1000) initiative, which covers Tajikistan, Kyrgyzstan, Afghanistan and Pakistan, the scheme will focus on alleviating power supply shortages by transporting electricity generated from hydropower plants (HPP). It will also yield export revenues for Tajikistan and Kyrgyzstan.
The project envisages constructing 477 kilometres (296.4 miles) of 500-kV power lines between the two countries. Part of the loan will also be used for the installation of a 120-kilometre line solely in Tajikistan.
Moreover, EIB will finance the extension of two existing power substations in Tajikistan and another in Kyrgyzstan along with the construction of a new 500/220-kV one in the former country. “The new energy infrastructure will foster electricity trade with neighbouring countries and make it possible to attract foreign investors due to safer energy supplies,” EIB vice-president, Wilhelm Molterer, noted.