DUSHANBE, January 17, 2011, Asia-Plus -- The Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) yesterday ratified two preferential loan agreements between the Government of Tajikistan and the Export-Import Bank of China (China Exim Bank) for rehabilitation of the Dushanbe-Danghara highway and construction of a 220kV Khujand-Ayni power transmission line.

Presenting the loan agreement for US$192.2 million, Finance Minister Safarali Najmiddinov noted that the amount of that soft term loan was allocated for co-financing the Dushanbe-Danghara highway rehabilitation project, which would support socioeconomic development of the southeast region of the country.

According to him, the loan is repayable in 20 years with a 5-year grace period at 2 percent interest.  US$46 million will be drawn for rehabilitation of rural roads in Danghara district.  A total cost of the project is US$203 million, the minister noted.

On the loan agreement for US$36.9 million, Najmiddinov noted that the funds were allocated for financing a vital project in the energy sector, namely; the construction of the 220kV Khujand-Ayni power transmission line.  “35 million U.S. dollars are provided on preferential terms,” said the minister, “This loan also must be repaid in 20 years with a 5-year grace period at 2 percent.”

Meanwhile, the Majlisi Namoyandagon speaker Shukurjon Zuhurov expressed concern about how the loans attracted government will be repaid.

“While submitting such agreements for ratification, you ought also to submit concrete programs confirming that we will able to repay loans by the time fixed.  For example, if we attract a loan for development of Khatlon province, first of all, the province itself must be responsible for repayment of it.  And a document containing information about establishment of enterprises and creation of new jobs in this region in the medium-term prospect as well as prospects of the region’s GDP growth must be submitted to the parliament,” Zuhurov said.

The speaker added that people was also concerned how the government planned to repay loans and “we must validate our actions.”