Faizobod serves as both the administrative seat of the Faizobod District and the entrance gate to the Rasht Valley. Although it dates back to the time of the Soviet Union, Faizobod's whole water and wastewater system has completely degraded over the years. The availability of clean drinking water is restricted, and the quality of the service is poor. The public water utility has a limited capacity for operation, and there are a number of serious operational issues that need to be addressed.
The project, worth EUR 2.7 million, is comprised of a financial package provided by the Government of Switzerland (EUR 1.35 million in capital grant) and the EBRD (EUR 1.35 million in sovereign loan). Moreover, SECO will provide additional technical cooperation package in the amount of EUR 200,000 to support procurement activities and construction supervision.
The intervention will improve local access to clean drinking water and sanitation to more than 30,000 residents in the Fayzobod region. Additionally, it aims to improve the operational sustainability of Khojagii Manziliyu Kommunali, a local utility company, as well as introduce and support a tariff reform. The implementation of a consumption-based billing system will allow for full cost recovery and create incentives for a more efficient use of drinking water and will have a positive impact on the economic development in the project area.
EBRD President Odile-Renaud Basso said: "Our Bank is pledging more resources to strengthen Tajikistan’s resilience to climate change and to reduce water consumption by upgrading water networks and associated infrastructure. Once the project has been completed, the local population will benefit from rehabilitated networks and better sanitation."
"Today, we're here to enjoy a long-standing partnership that was formed to work towards a common and relevant goal: giving everyone access to clean water and sanitation. We are filled with hope as we begin an additional chapter on the road to change and to make the future better and more stable for everyone in Tajikistan." -highlighted Salome Steib, Director of the SCO in Tajikistan.
This new round of funding builds on the first investment made in 2022, which amounted to EUR 4.9 million (comprised of a capital grant by the Government of Switzerland of EUR 3.6 million and a sovereign loan of EBRD of EUR 1.3 million). The main goal of the project is to advocate sustainable water use by lowering water losses while addressing important problems with the infrastructure supporting drinking water and wastewater.