DUSHANBE, Tajikistan, November 30. Tajikistan is urged to integrate both internally and externally funded projects into a unified pipeline, Trend reports.
This recommendation is part of a new report from the International Monetary Fund’s (IMF) Fiscal Affairs Department.
The report further highlights key areas for improvement, such as the need to clarify and enforce project appraisal regulations and incorporate climate change considerations into project evaluation and selection criteria.
It stresses the importance of creating a fiscal risk statement that includes all potential liabilities, including climate-related risks, to improve decision-making and risk management. Addressing staffing and capacity gaps, particularly in climate change management, is also crucial for strengthening the system.
As per the IMF, Tajikistan has its ducks in a row when it comes to managing public investments in certain areas, such as hitting fiscal targets, planning budgets for the long haul, keeping the funds flowing for maintenance, and keeping a close eye on public assets.
However, there are a few chinks in the armor, particularly when it comes to thinking outside the box for financing infrastructure and keeping a close eye on investment portfolios.
The analytics note that there is a noticeable gap between the planned design of some parts of the investment management system and how well they actually work. For example, the effectiveness of project evaluation, funding for maintenance, and selecting projects is much lower than expected. This is mainly due to weak implementation of project appraisal processes, particularly for projects funded internally, and a lack of clear, detailed criteria for selecting projects.
According to the IMF, Tajikistan has focused on infrastructure development to support its sustainable growth and climate goals. Since the mid-2000s, public investment has increased significantly, with a notable emphasis on projects like the Rogun Hydropower Plant.
Expected to be completed by 2035, Rogun will be the largest hydropower plant in Central Asia, boosting the country’s energy capacity. Given Tajikistan’s reliance on hydropower and its vulnerability to climate change, managing public investment with climate sensitivity is crucial.