ADB to Help Raise Rural Incomes and Production in Tajikistan

MANILA, PHILIPPINES - ADB will help raise household incomes in rural Tajikistan through a project backed by a US$17.1 million assistance package to increase productivity, introduce better land management, and develop the rural infrastructure.

Agriculture provides the major source of livelihood for more than 64% of Tajikistan's population and contributes about one quarter to gross domestic product. But despite this importance, the sector is still falling short of its potential to contribute to growth, poverty reduction, rural development, and exports.

Among the key constraints are sub-optimal farming decisions, an unpredictable business environment, extensive land degradation caused by salinity, waterlogging or soil erosion, scarcity of support services, poor infrastructure, and weak institutions. In addition, women face special problems that affect their equal access to resources, services, and opportunities.

Focusing on five raions (districts) – Raizabad, Rogun, Rudaki, Vahdat, and Varzob – located around the capital, Dushanbe, the project will tackle all these issues, introducing reforms on land use security, agro-processing, and marketing, and enterprise development.

It will undertake a nationwide pasture land assessment; prepare a road map of policy, strategy, legislation, and investment; provide essential agriculture and business support services, rehabilitate small scale but essential community infrastructure such as access roads and bridges, irrigation and drainage systems, and water supplies; and address land degradation.

“The project takes a holistic and coordinated approach to rural development to enhance opportunities and shift production away from subsistence farming to more commercial production,” says John Whittle, an ADB Principal Agricultural Economist.

“Without such action, incomes will remain low and rural poverty rates will stay high as low crop and livestock yields perpetuate an environment unconducive to commercial activity.”

The total cost of the project is estimated at $23.2 million, of which ADB will finance from its Asian Development Fund a loan of $8.8 million and a grant of $8.3 million. The loan carries a 32-year term, including a grace period of eight years. Annual interest is 1% during the grace period and 1.5% for the rest of the term.

The grant-funded segment will develop awareness of land management and business opportunities, a modern curriculum for pasture land management, train staff, and help raions to plan and maintain infrastructure.

The project is expected to be supported with a grant of $3.5 million from the Global Environment Facility. The Government will finance $1.65 million equivalent and beneficiaries will contribute $1 million.

The Ministry of Agriculture is the executing agency for the project, which is due for completion around the end of March 2014.

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