DUSHANBE, June 26, 2013, Asia-Plus -- The Asian Development Bank (ADB) is providing a $10 million grant for an Access to Green Finance project to help Tajik families increase power access and efficiency through financing of “smart” green energy solutions, press release issued by the ADB Tajikistan Resident Mission (TJRM) says.

The project is also being supported by a $750,000 grant from the Japan Fund for Poverty Reduction for capacity building technical assistance.

Tajikistan depends on hydropower for 98% of its electricity needs. In summer, when demand is low but glacial melt is high, there is an electricity surplus. But in winter when rivers freeze, and demand for heating is high, hydropower generation declines resulting in limited lighting and heating for three out of four Tajiks.

The project will promote energy efficiency and environment-friendly homes. It will provide loans through microfinance institutions to households and small businesses to buy and fit energy-efficient roofs and doors, double-glazed windows, insulated ceilings and floors, advanced water pumps, solar water heaters, and other products.

“People need to know that energy efficient alternatives pay even though there are considerable initial costs,” said C.C. Yu, ADB’s Country Director for Tajikistan. “This innovative project will help remove the barriers to energy efficient products by increasing public awareness and providing affordable financing.”

The project will particularly target women borrowers, and support private sector development by stimulating local production of innovative green energy products and services.

The Government of Tajikistan and subborrowers will provide counterpart funding of $1.12 million for the project, which is due for completion in 2019. The Ministry of Finance will be the executing agency.

Tajikistan joined ADB in 1998, and to date, the institution has approved total assistance of around $980 million in concessional loans, grants and technical assistance to the country. ADB’s operations benefit the population by reducing isolation, increasing communication, broadening access to electricity, improving social services, and creating more income generating opportunities.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2012, ADB assistance totaled $21.6 billion, including cofinancing of $8.3 billion.