World Bank Approves $100 Million Grant for Tajikistan Reforms

The energy sector reforms focus on improving tariff systems, increasing operational efficiency, and strengthening governance to attract investment in renewable energy projects.

The World Bank has approved a US$100 million grant from the International Development Association (IDA) to help Tajikistan accelerate economic reforms designed to strengthen the private sector, improve public services, and create more and better-paid jobs. The financing supports the Second Competitive and Inclusive Tajikistan Development Policy Operation, building on a previous reform package approved in August 2025. The programme is aligned with Tajikistan's National Development Strategy 2030 and focuses on making the economy more competitive while reducing its reliance on remittances and externally funded public investment.

World Bank Country Manager for Tajikistan Gael Raballand said the country has shown a strong commitment to implementing reforms that can improve daily life through more affordable internet services, better air transport, increased private investment in the energy sector, stronger social assistance, and greater transparency in state-owned enterprises.

Digital, aviation and energy sectors set for major changes

The reform programme introduces measures to improve competition and governance across several key sectors. In telecommunications, changes to spectrum allocation and market competition are expected to reduce internet costs and expand access to digital services. Civil aviation reforms will introduce more transparent airport pricing and strengthen safety oversight, making air travel more competitive while encouraging additional airlines to operate in the country.

The package also includes measures to attract foreign investment by improving investor services, strengthening dispute resolution, and simplifying work permit procedures. To support fairer competition, the Government will reduce preferential state aid, establish a public registry of support measures, and advance a new Competition Law. State-owned enterprises will also face stronger disclosure requirements and corporate governance standards to improve accountability and public confidence.

Social support and transparency also strengthened

The energy sector reforms focus on improving tariff systems, increasing operational efficiency, and strengthening governance to attract investment in renewable energy projects. These changes are expected to improve electricity supply, reduce pressure on public finances, and build a more resilient energy system that is less vulnerable to natural hazards such as floods and landslides.

The programme also updates the country's targeted social assistance system to better support vulnerable households. In education and healthcare, the Government will publish detailed budget allocations and spending for schools and primary healthcare facilities, increasing transparency and accountability. The World Bank expects the reforms to strengthen economic resilience, expand employment opportunities, improve governance, and ensure that the long-term benefits of the Rogun Hydropower Plant Project reach poor and vulnerable communities. IDA currently finances 25 projects worth US$1.93 billion in Tajikistan, while the International Finance Corporation (IFC) manages an investment portfolio of US$69 million across seven private sector clients.