The European Bank for Reconstruction and Development (EBRD) signed deals worth over €10.5 million to fund water supply and heating projects in Tajikistan, the bank disclosed. EBRD Vice President Mark Bowman inked the agreements during a visit to the capital Dushanbe. The package includes €4.8 million for modernizing water supply in Yavan city in the Khatlon region and $6 million for upgrading district heating in Dushanbe. Both projects combine loans with EBRD grants to help cities provide better services to residents. The financing aims to build sustainable municipal infrastructure across the Central Asian country.
Tajikistan struggles with aging Soviet-era infrastructure that often fails to deliver reliable water and heating to urban areas. Many cities face frequent water shortages while heating systems break down regularly during harsh winters. The country relies heavily on hydroelectric power but needs better distribution networks to reach all residents. Municipal utilities lack modern equipment and billing systems, making it hard to maintain services or collect revenue. International development banks have been working to upgrade basic infrastructure across Central Asia.
The Yavan water project will get €2.4 million in loans plus €2.4 million in grants to build new water mains and reservoirs while upgrading existing networks. Officials said the money will also fund a modern billing system to help the utility operate more efficiently. The Dushanbe heating upgrade gets $3 million in loans and $3 million in grants, adding to an original loan signed in 2021. This marks the first project under EBRD’s Green Cities program designed to reduce environmental impact from municipal utilities.
EBRD has now invested more than €1 billion in Tajikistan through 185 projects since starting operations there. Working with donor partners, the bank has provided over €133 million in loans and grants for 14 water supply and treatment projects across 23 cities. The new financing continues EBRD’s focus on helping Tajikistan modernize basic services while building greener infrastructure. These upgrades should improve daily life for thousands of people who currently lack reliable water and heating access.
