BAKU, Azerbaijan, October 29. On October 27, a meeting was held in Dushanbe between Tajikistan’s President Emomali Rahmon and Vice President of the European Bank for Reconstruction and Development (EBRD) Matteo Patrone, during which the sides discussed prospects for expanding investment cooperation, including energy development, infrastructure modernization, and private sector support.
The meeting outlined potential areas for the next stage of the country’s investment cooperation with the international financial institution. Discussions focused on renewable energy development, power grid modernization, expanded financing for domestic enterprises and attracting private capital to infrastructure projects.
Of particular importance in this context is the multi-year strategic investment roadmap for 2026–2030, which envisages cooperation worth $900 million. According to information released following the meeting, the EBRD has implemented 201 projects in Tajikistan since 1993, with total investments exceeding 1.1 billion euros. These figures reflect the long-standing nature of the partnership and provide a basis for discussing new projects in energy, infrastructure and the private sector.
President Emomali Rahmon outlined areas in which further cooperation with the Bank could have practical significance for the economy. These include improving the reliability of electricity supplies, expanding businesses’ access to long-term financing, developing water infrastructure and creating more opportunities for private businesses to participate in investment projects. Implementation of these priorities will depend on the preparation of specific initiatives, agreement on financing terms and the attraction of additional investors.
Solar energy development remains one of the most promising areas. During the meeting, Emomali Rahmon proposed considering the EBRD’s participation in financing the construction of solar power plants with private capital. For Tajikistan, this area is linked not only to expanding the power system’s generation capacity but also to ensuring reliable electricity supplies to households and businesses and increasing clean energy exports to neighboring countries.
The development of electricity transmission and distribution infrastructure will be an important condition for implementing these plans. Grid modernization and reducing losses, which were also discussed at the meeting, could improve the efficiency of existing generating capacity and facilitate the connection of new energy sources. In the longer term, combining investments in generation and power grids could create conditions for a more resilient electricity system and expanded regional energy cooperation.
At the same time, solar projects will require mechanisms for allocating risks among the government, international financial institutions and private investors. Potential instruments include long-term lending, technical assistance and public-private partnerships. The specific model will depend on project parameters, financial viability and the terms agreed upon by the parties.
Another important area identified by the president of Tajikistan was expanding direct financing for manufacturing enterprises and improving small and medium-sized businesses’ access to long-term funding. Particular attention was given to companies operating in the regions, for which the cost of borrowing and the availability of financial instruments can play a significant role in investment decisions.
This approach is gaining additional relevance amid the country’s economic growth. According to the EBRD, Tajikistan’s real GDP increased by 8.2% in the first half of 2026. The Bank forecasts growth of 7.9% for 2026 and 7% for 2027. Fixed capital investment increased by 35.9% year on year in January–July, while exports rose by 57.2% in the first half of the year. At the same time, imports increased by 38.6%, contributing to a wider foreign trade deficit.
Against this backdrop, access to financing could become one of the factors supporting further manufacturing development and strengthening domestic companies’ ability to invest in equipment, expand production and enter foreign markets. However, the results will depend on whether new financial instruments are accessible to businesses and meet their needs in terms of maturity, cost and currency.
Emomali Rahmon also emphasized the importance of expanding financing in the national currency and preparing domestic enterprises to issue bonds. The development of these mechanisms could gradually broaden sources of capital beyond traditional bank lending. For companies, this could provide an opportunity to diversify financing, while for the domestic financial market, it could expand the range of investment instruments.
However, developing this market will require appropriate infrastructure, greater transparency in corporate reporting, and preparations for issuers to meet investor requirements. The EBRD’s involvement could therefore include not only financing but also technical support to help enterprises prepare to raise capital through the market.
The meeting also addressed improving access to drinking water, modernizing sewerage and irrigation systems, improving the management of state-owned enterprises and preparing public-private partnership projects. These areas cover both economic infrastructure and essential services that affect living conditions and business activity.
Modernizing water supply and sewerage systems may require substantial long-term investment, particularly given the need to upgrade existing facilities and improve operational efficiency. Investment in irrigation could support agricultural development, although the practical impact will depend on project scale, the quality of water resource management and the capacity to maintain the infrastructure over time.
Public-private partnerships, in turn, could broaden opportunities for attracting private investors to infrastructure initiatives. This mechanism involves allocating responsibilities and risks between the government and businesses, but its application requires thorough project preparation, transparent selection procedures and clear financing terms.
Other areas of cooperation include education, digitalization, and grants and technical assistance for social and climate-related projects. Further progress will depend on which initiatives are identified as priorities under the 2026–2030 investment roadmap.
In the coming years, the Tajikistan–EBRD partnership could move from setting priorities to financing specific projects. Investment could be directed toward the construction of solar power plants, power grid modernization, and water supply infrastructure. The pace of implementation will depend on project preparation, agreement on financing terms, and the attraction of private capital.
Another potential area is expanded support for manufacturing and small and medium-sized businesses. The development of long-term lending in the national currency and corporate bond issuance mechanisms could provide enterprises with additional sources of financing to expand production capacity and diversify economic activity.
Cooperation could also encompass a broader range of infrastructure projects involving private businesses. The use of public-private partnership mechanisms could open up additional investment models, provided that projects are economically viable, risks are allocated transparently, and long-term operating conditions are clearly defined.
Taken together, these areas could form a comprehensive cooperation model combining investment in energy and infrastructure with support for the private sector, education and digitalization. The scale and pace of implementation will be determined by the projects agreed upon, the availability of financing and the readiness of public and private participants to carry out the initiatives.
The meeting between Emomali Rahmon and Matteo Patrone thus established a broad set of priorities for further cooperation between Tajikistan and the EBRD. The next stage will be to translate these priorities into concrete investment decisions. The final structure of cooperation for 2026–2030 will depend on the projects agreed upon, financing availability, private investor interest, and the pace of preparing initiatives in energy, infrastructure, and manufacturing.
