DUSHANBE, June 30, 2014, Asia-Plus -- Tajik government has adopted resolution on state support and measures to ensure financial and economic recovery of Open Joint-Stock Holding Company Barqi Tojik (the state-owned utility responsible for generation, transmission, and distribution of electricity in Tajikistan).

Under this resolution, the government writes off Barqi Tojik’s debts for a total amount of 312.8 million somoni.

By this resolution the government also puts ban on further mutual settlement of accounts for consumption of electricity between Barqi Tojik and the Tajik Aluminum Company (TALCO).

We will recall that implementation of the plan of restructuring Tajik national power monopoly is going on.

According to Corporate Solutions’ website, restructuring of Barqi Tojik that was endorsed by the Government of Tajikistan in 2011 costs 7,231,400 Euros.

Tajik government plans to unbundle Barqi Tojik and create an enabling environment for private sector investment in the power sector, a contract for which was reportedly awarded to Corporate Solutions in association with Kema International (the Netherlands), Manitoba Hydro International (Canada), Janson Baugniet C.V.B.A (Belgium) and Moore Stephens CIS Ltd (the United Kingdom).

In 2009, Corporate Solutions concluded a technical assistance project which was instrumental in bringing the restructuring of Barqi Tojik high up in the Government''s agenda.  As part of that project a Restructuring Plan was prepared and Presidential Decree was issued on August 30, 2011 mandating the restructuring of Barqi Tojik.

The program is expected to pass through three phases: commercialization to 2013, competition to 2015, and privatization ending in 2018.

An independent regulatory body will also be set up to enable the private sector to participate in subsequent phases of the restructuring.

Tajikistan regularly undergoes long periods of electricity blackouts, with electricity usage rationed throughout much of the winter.