June 20, Asia-Plus -- On Tuesday June 20, Tajik Industries Minister Zayd Saidov and Iranian Ambassador to Tajikistan Nasser Sarmad-Parsa signed in Dushanbe an agreement on launch of Tajik-Iranian joint venture on assembling tractors in Dushanbe .  Mr. Mohsen Arabbaghi, director of Iranian tractor-producing company, attended the agreement-signing ceremony. 

The enterprise will be launched on the basis of open joint-stock company (OJSC) “Humo” (formerly “Tajikagregat” plant).  Technical equipment on assembling wheeled tractors has also been installed at the plant.     

After the document-signing ceremony, Mr. Arabbaghi told journalists that at first they planned to assemble some 500 tractors and increase production up to 1,000 tractors by the end of this year.  “In future, we plan to assemble 2000 tractors a year, taking into account exports,” Arabbaghi said, adding that the tractors will be exported only after Tajikistan meets its needs in these machines. 

It is supposed that tractors assembled in Tajikistan will be exported to Afghanistan and Central Asia ’s countries.   

Tajik Industries Minister Zayd Saidov speaking to journalists said that at present little more than 10,000 tractors were working in the agricultural fields in Tajikistan while the country’s agrarian sector needed 31,000 tractors of various types of tractors.  “The price of tractor assembled in Tajikistan will be more than US$11,000 – US$12,000,” said the minister, “The price will depend on capacity of engine.”

Zayd Saidov also noted that to purchase the tractor farming units would be able to receive a loan from AgroInvestBonk.  “Besides, the Government and the National bank of Tajikistan will provide assistance to them in purchasing the tractors,” Mr. Saidov said.

At first, all assembling parts will be supplies from Iran , but Tajikistan plans to arrange its own production of assembling parts. 

“ Tajikistan owns 49 percent of the shares and the Iranian side assumes the 51% ownership interest in this joint venture,” the Iranian tractor-producing company director said. 

Iran has invested US$10 million in this project.  Of this amount, US$4 million have already been assimilated. 

According to information from the Tajik Ministry of Agriculture, Tajikistan annually loses some 30 percent of harvests for shortage of agricultural machines.