Funding for priority projects in Tajikistan was discussed in Dushanbe on May 29 at a meeting of Tajikistan’s Minister of Economic Development and Trade, Mr. Zavqi Zavqizoda, with Silk Road Fund President, Mr. Cai Xuejun.
The Ministry of Economic Development and Trade (MoEDT) press center says that during the meeting, Mr. Zavqizoda, in connection with the Chinese government’s allocation of 26 billion yuan (US$3.6 billion) to finance Central Asian countries, presented Tajikistan’s investment opportunities.
The minister, in particular, proposed to discuss the financing of projects previously submitted for consideration of China, which was positively received. The projects include:
- Modernization of the Tajik aluminum smelter (TALCO);
- Construction of a solar power plant in Asht district, Sughd province;
- Establishment of a textile enterprise in Dushanbe based on the Tajik Textile Production Association LLC;
- Creation of a logistics center in Danghara district, Khatlon province;
- Construction of a joint industrial-technological park;
- Construction of greenhouses in Khatlon province
- Rehabilitation of the Guliston-Kulob highway in Khatlon province;
- Rehabilitation of the Rushan-Varshez village (Shugnan district) road in the Gorno Badakhshan Autonomous Region (GBAO).
It is noteworthy that in May of last year, Chinese President Xi Jinping announced plans to provide 26 billion yuan in grants to strengthen development capacity, reduce poverty, and create jobs in Central Asian countries.
According to the State Committee on Investment and State-owned Property Management of Tajikistan (GosKomInvest), China is Tajikistan’s main investor. The total volume of Chinese investments in Tajikistan’s economy from 2007 to 2023 amounted to about $3.9 billion, part of which was in the form of grants.
Additionally, China is the primary creditor of Tajikistan. According to the Ministry of Finance of Tajikistan, as of the beginning of 2024, Tajikistan’s debt to China amounted to US$900 million, which is 27.8% of the country’s total external debt.
In Tajikistan’s foreign trade turnover, China ranks second, only behind Russia.
According to data from the Agency for Statistics under the President of Tajikistan, the bilateral trade between Tajikistan and China last year valued at more than US$1.5 billion, which is 24.2% more than in 2022. This consisted of Tajikistan’s exports to China estimated at SUS$313.8 million and Tajikistan’s imports from China worth around US$1.2 billion.
The share of trade with China in Tajikistan’s total foreign trade turnover last year was 18%.
The Silk Road Fund is a China Government Guidance Fund to foster increased investment in countries along the Belt and road Initiative (formerly One Belt, One Road), an economic development initiative primarily covering Eurasia. The Chinese government pledged US$40 billion for the creation of the investment fund, established on December 29, 2014.
The Silk Road Fund is the only one of China’s sovereign funds which was formed with an explicit geo-economic strategic mission. It was created by President Xi Jinping to advance the policies and priorities of the Belt and Road Initiative and has closely followed the BRI’s focus on infrastructure, connectivity, resource development, and developing industrial capacity.
Source: Asia Plus
