Urban water supply in Tajikistan is generally in bad condition due to the lack of investments and maintenance since the break-up of the Soviet Union as well as to the insufficient institutional, financial and technical capacities. Deteriorated assets for water supply and wastewater collection and very limited wastewater treatment and high operations and maintenance costs due to the poor state of the assets are the main problems in water sector and citizens do not have reliable access to safe drinking water and people especially children, are frequently the ill with infections water-borne diseases.  

Swiss State Secretariat for Economic Affairs (SECO) intends to contribute to this second phase of the European Bank for Reconstruction and Development (EBRD) programme by co-financing projects in 3 cities in the North of Tajikistan and in Khorog. The overall objective of the Tajik Water Phase II is to further improve living conditions and economic opportunities of 21 cities through an improved water supply and sanitation. This includes safe and inclusive access to water and waste water treatment respectively as well as better hygiene.

“More than 70 million of USD has been contributed by the Swiss Government in water sector of Tajikistan and I am pleased that this agreement is another significant step in our long cooperation with the Government of Tajikistan. As water is the source of life and is very important for human being we are happy to improve the sector”- mentioned Mr. Peter Mikula.

“With the signing of this agreement, Switzerland makes a significant contribution to the development of the national economy and we hope that our close cooperation will continue."- said the Minister.

Switzerland has been active in Tajikistan since 1993, when it delivered humanitarian aid during the civil war. Since opening its diplomatic representation in 1999, the Government of Switzerland has provided more than US$200 million in programs that support Tajikistan’s development and is one of the major donors in the country.

According to a recent IFC survey, more than two-thirds of Tajikistan’s population do not properly use financial services, particularly deposits, loans, and accounts. Ninety percent of Tajik citizens have never heard of the country’s credit bureau, and about half never save money. This leads to debt and high default rates and delays home purchases and investment in children’s education, dragging down the economy.

Nearly all survey respondents want help with financial decisions. IFC’s new initiative will help consumers get a grip on their finances, stabilize the financial industry and strengthen the economy.

“Thanks to improved financial literacy, borrowers will avoid over-indebtedness and those individuals who have never used banking services will become interested in them,” said Nathalie Barbancho, Deputy Country Director of the Swiss Cooperation Office in Tajikistan which finances this initiative. “It will also help banks to expand their client base and portfolio quality.”

Educational materials focus on household budgets and personal finance management, and include smart borrowing tips, steps to prevent over-indebtedness, savings strategies, remittance advice, and details on the benefits of credit information reporting. The program is being implemented across the country in cooperation with local partners through banks and microfinance organizations, local TV and radio channels, and at airports.

“Financial literacy is about developing efficient household budgets and making sure people save enough money for productive use,” said Patricia Veevers-Carter, World Bank Country Manager for Tajikistan. “It’s also about understanding your rights as a borrower and making smartfinancial decisions.”

The initiative is part of the IFC Central Asia Micro and Responsible Finance Project and the World Bank Group Finance and Markets Global Practice’s Central Asia Financial Markets Infrastructure Project, and are funded by the Government of Switzerland.