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Ministry of Justice

Republic of Tajikistan 

On September 14, 2021 No. 393

ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of September 2, 2021 No. 358

About the Program of the state investments for 2021-2025

According to article 11 of the Law of the Republic of Tajikistan "About the state forecasts, concepts, strategy and programs of social and economic development of the Republic of Tajikistan" the Government of the Republic of Tajikistan decides:

1. Approve the Program of the state investments for 2021-2025 and the List of the state investment projects for 2021-2025 (appendices 1 and 2).

2. To the ministries, departments and local executive bodies of the government in case of attraction of internal and foreign investments to attach priority significance to drafts of the Program of the state investments for 2021-2025 and to take necessary measures for program implementation.

Prime Minister of the Republic of Tajikistan

Emomalii Rahmon

Appendix 1

to the Order of the Government of the Republic of Tajikistan of September 2, 2021 No. 358

The program of the state investments for 2021-2025

1. Basic provisions

1. The program of the state investments for 2021-2025 (further PGI) is developed for the purpose of attraction of internal and foreign investments and development of new investment projects for development of national economy.

2. The Republic of Tajikistan as the member of the world community implements the political and economic relations on the international scene on the principles of partnership and mutually beneficial cooperation. Consecutive efforts of the Government of the Republic of Tajikistan in this process were directed to cooperation increase with partners in development and the world community.

3. PGI is directed to achievement of strategic objectives and Sustainable development goals.

4. PGI allows to mobilize external financial resources for development of priority sectors of national economy by means of implementation of projects of the state investments which financing sources are not determined.

5. Within PGI the purposes of the Government of the Republic of Tajikistan concerning improvement of favorable conditions for investing activities and private sector are considered. Expansion of participation of private sector in sectors of national economy promotes generation of the income, reducing level of poverty and improvement of welfare of the population of the country.

6. The projects included in PGI include investments of public institutions, departments and corporate structures. There are possibilities of financing of certain part of expenses at the expense of means of the government budget or guaranteed loans of the Government of the Republic of Tajikistan. Investment funds can have operating expenses and technical assistance provided that they will be considered as integral part of the project. Projects of technical assistance are provided separately.

7. The legal basis of development of PGI the Constitution of the Republic of Tajikistan, the Law of the Republic of Tajikistan "About the state forecasts, concepts, strategy and programs of social and economic development of the Republic of Tajikistan", the National strategy of development for the Republic of Tajikistan for the period till 2030 constitute, the order of the Government of the Republic of Tajikistan of March 27, 2018 No. 161 "About procedure for development of the state investment projects and program implementation of the state investments of the Republic of Tajikistan", industry and regional development programs of the country.

2. Overview of national economy and programs of the state investments

§1. Condition of national economy and realization of economic reforms

8. Tajikistan - the highland without outlet to the sea also borders on the Islamic Republic of Afghanistan, People's Republic of China, the Kyrgyz Republic and the Republic of Uzbekistan. Northern and southern speak rapidly the countries, and also the western and east parts of the country are divided by ridges.

9. The country has huge hydroenergy resources which provide 98% of power generation. Annual potential of production of electricity constitutes 527 billion kW/hour from whom only 6% are mastered now. At the same time availability of 280-330 sunny days and 2000 kW/sq.m of solar radiation a year create favorable conditions for use of solar energy as renewable energy resource. On expert evaluations, the potential of solar energy in Tajikistan constitutes about 16 billion MW/hour a year that can satisfy 10-20% of needs of national economy for energy and 60-80% of total requirements of the population within at least 10 months in year

10. Using the capacities for power generation from renewable sources, in the near future Tajikistan will be able to become the largest exporter of the electric power, the fourth in size, in the region.

11. Mountain conditions of the country testify to availability of huge mineral and not mineral resources and unique opportunities for development of mining industry. In Tajikistan it is revealed, reconnoitered and more than 600 minerals with 60 types of raw materials from which 35 fields accustom are registered on the state balance. Besides, about 800 fields of natural resources are reconnoitered, on 48 of which licenses for search and geological works are provided.

12. Development of the mining industry is based on huge sources of raw materials, labor power, cheap energy and the growing demand for non-ferrous metals in the world markets. In the country fields decorative and gemstones, and also stones for construction are reconnoitered the gold deposit and silver, zinc, antimony, tungsten, tin, rare precious metals.

13. The mining sector of the country in general has export character. By means of attraction of internal and foreign investments, advanced technologies and establishing conversion of raw materials of industry it is possible to provide considerable diversification and increase in export volume of end products with high value added, in particular jewelry, burned brick, cement, armature, stone plates, tin, tiles and panels, gypsum cardboard, decorative plaster, glass and glass products, metalwork and other products.

14. Attraction of foreign investments will promote construction of the new companies of the chemical industry for production of products with high value added, including mineral fertilizers, paint and varnish construction materials, the wide range of household detergents and means of hygiene, including means for washing, soap, shampoos, diapers, cosmetic ointments, toothpaste and other similar products.

15. Use of the existing opportunities for production of end products from aluminum provides favorable premises for requirements satisfaction of the markets of the country in different to the aluminum products, such as aluminum cables, household accessories, different materials for construction of constructions, cans and aluminum container for drinks, sanitary and other electric devices imported from other countries.

16. In the mountains of Tajikistan there are more than 3500 different types medical and herbs, and in the country of only 16 companies for conversion only of 45 types of herbs. At the same time Tajikistan annually imports medical supplies on the amount of 50 million US dollars. It testifies to even opportunities unused fully in this direction and is important for development of pharmaceutical industry as one of the most profitable sectors of world economy.

17. For the purpose of effective use of the existing opportunities for production of medical supplies attraction of direct foreign investments is necessary for carrying out research and test works for development of modern herbal remedies on the basis of vegetation of Tajikistan and creation of laboratories, clusters of pharmaceutical industry for production and export of medical phyto-teas, drugs from medicative herbs, biological active additives, essential oils, medical cosmetic balms and ointment and other innovative products.

18. The favorable climate and plentiful water resources of the rivers create good conditions for development of the agricultural sector, including for cotton breeding, cultivation of silkworm, crop production, gardening, wine growing, cultivation of vegetables and melon cultures and receipt of two or three harvests during season.

19. In regions of the country there are extensive opportunities for creation of large agro-industrial clusters on conversion of agricultural raw materials to end products, in particular production of fabrics, children's, women's and men's wear, school, sports and overalls, the lower and bed linen, hosiery nosochnykh and knitted products, towels, cotton, silk, woolen and leather headdresses and scarfs, footwear, clothes, bags, suitcases and other accessories from skin, honey, confectionery, chocolate and fruit jelly, juice, tinned vegetables and fruit, meat and dairy products and other end products with exit to the markets.

20. Favorable geographical location of Tajikistan in the center of Asia, on route of "Silk way", along the highway which is under construction within the Central Asian regional economic cooperation between routes the South-South, Central Asia - the Southern Asia (CASA) creates favorable conditions for transformation it to the tourist and transit country.

21. Extent of highways constitutes more 26th 605,1 of kilometers, and the railroads of republican value - 953 kilometers. Also four main airports servicing international routes function.

22. With construction and reconstruction of highways in 2015-2019 the amount of freight transportation on roads of Tajikistan decreased on % 14,8, and the passenger traffic increased in time 1,5. At the same time huge opportunities in this direction are used not fully.

23. The geographical location of Tajikistan allows to use its airspace for transit of passengers and loads.

24. Increasing the number of air flights and routes from different parts of the world it is possible to increase repeatedly the level of the income of services of air navigation, passenger and freight transportation, and also tourism.

25. In view of current trends of tourism development and the announcement of 2019-2021 for years of development of the village, tourism and national crafts of special attention on the basis of use of extensive opportunities promotion of medical and recreational tourism, mountaineering, hunting, ecotourism, consumption of national dishes, studying of traditions and ancient crafts, cultural, historical and religious tourism in the country requires.

26. In recent years the tendency of migration of domestic doctors to foreign countries for work and studying of the best international practices is observed that promotes development of domestic medicine. With attraction of domestic and foreign investments for development of medical industry and medical services in the country opportunities for development of medical tourism (dental and neurosurgical services, services of plastic surgery, service in organ transplantation, etc.) which correspond to criteria of demand in the region extend and are available at cost.

27. In recent years implementation of modern digital technologies promotes in financial and bank sectors to expansion of access of the population to credit services and clearing settlements.

28. Digitalization process also widely develops in such spheres as provision of the state services, management of industrial and agricultural production, health care and education, trade, logistics and other areas.

29. Tajikistan still is at early stages of development of digital economy with the low level of penetration of broadband Internet access and its high cost in comparison with the countries of Central Asia.

30. In the conditions of lack of access of the country to the sea availability of high potential for implementation of digital economy creates favorable premises for development of domestic programming, development, export and remote implementation of the automated electronic programs in the organizations of foreign countries, expansions of remote employment for youth, women, girls, pensioners, disabled people and other vulnerable groups, active private sector development, clearing settlements and ensuring outstanding performance of activities of business entities.

31. Use of huge benefits of digital economy requires wide range of direct private and state investments for improvement of infrastructure and logistics, the electronic government and wide range of electronic services, digital literacy and modernization of education and science.

32. During 2015-2020 in the Republic of Tajikistan for the purpose of ensuring development of national economy and the market relations number of the considerable institutional reforms directed to strengthening of system of public administration, human development, quality assurance of development of national economy, financial stability, tax administration, rational use of natural resources, innovative development of real production sector and bystry industrialization of the country that allowed to achieve considerable progress in attraction of internal and foreign investments was implemented.

33. For reduction of investment and business climate in compliance with requirements of international standards at the national and regional levels state-private dialogue is adjusted. The country became the member of the World Trade Organization, the Convention of the UN on recognition of decisions of foreign Arbitration Courts, the Hague Convention about legalization of foreign official documents. Specific work is done in the field of privatization of state-owned property, ensuring access to financial resources, infrastructure of business development, implementation of international standards, quality and safety of products and upgrade of the state services for entrepreneurs and investors.

34. In the course of privatization of state property and implementation of individual projects on reconstruction of natural monopolies and large public industries of 90% of state assets it is transferred to private sector.

35. State policy in the field of economy is directed to full support of initiatives of private sector and entrepreneurship, and in this direction considerable measures for elimination of artificial administrative barriers and ensuring transparency of precepts of law in relation to subjects of entrepreneurship are performed.

36. The laws of the Republic of Tajikistan "Are adopted about the state protection and support of entrepreneurship" in the new edition, "About the investment agreement", "About public-private partnership", "About authorization system", "About the moratorium on checks of activities of subjects of entrepreneurship in spheres of production", the Concept of state policy of attraction and protection of investments of the Republic of Tajikistan and number of industry strategy and programs. Changes and additions in a row of regulatory legal acts are also made that is directed to investment attraction and business development.

37. For the purpose of simplification of the procedure of state registration of subjects of entrepreneurship for system of "Single window" the state fee for state registration, the number of the registering structures is cancelled it is reduced from 4 to 1, and terms of registration from 49 to 3-5 days.

38. The electronic portal of services for taxpayers by means of which 36 types of electronic services, including electronic submission of documents for registration of subjects of entrepreneurship, the tax declaration and the reporting, payment of taxes with use of national payment cards, "Master" and "Visa", VAT return, other consulting and information services are provided is started.

39. Within simplification of system of licensing the number of permissions was reduced to 56, and procedure for provision of 30% of permissions is adjusted in electronic form. For provision of necessary information on procedures of receipt of permissions and licenses the www.ijozat.tj online portal is created.

40. For the purpose of reforming of checks of activities of business entities within work of Coordination council of inspection bodies, the number of inspection bodies is reduced from 31 to 25 units. The ultimate goal of reform - to reduce the number of inspection bodies to 20 units.

41. The initiative of the President of the Republic of Tajikistan imposes moratorium on all types of checks of activities of business entities in occupational sector till January 1, 2021 which covered 1948 companies in 24 industries. As a result of reforms in this sphere the number of checks decreased from 300 thousand in 2016 to 48 thousand in 2019, that is by 6 times.

42. For ensuring broad access for entrepreneurs and the population to financial services and borrowing facilities bureaus of credit histories, electronic registers of pledge of personal and real estate are created, the effective legislative reform of system of secure transactions promoting strengthening of the rights of creditors and implementation of the principles of corporate management is performed. These fruitful reforms led to increase in line items of the country on 113 Items on the indicator of access to the credits and achievements of the 11th place by Tajikistan in the report of the World Bank "Business" that created favorable conditions for implementation of modern financial technologies in our country.

43. Realization of considerable reforms on enhancement of the industry legislation, digitalization of the database of the ministries and state departments, upgrades of services for entrepreneurs and the population, to creation of national systems of "Single window" for registration of business entities, receipts of construction licenses, connections to system of supply of electricity, registration of the real estate, registration of export-import and transit transactions, and also implementation of online procedures promoted reducing time and costs for business.

44. For the purpose of implementation of actions on the organization of activities in the field of public-private partnership, capacity-building, advanced training and technical assistance in projects implementation of public-private partnership in the field of infrastructure and social services GU "Center of Projects Implementation of Public-private Partnership" is created. Now within the mechanism of public-private partnership 5 projects in the field of power, transport, health care, education and water supply on the amount more than 280 million somoni are implemented.

45. In cooperation with the central and local authorities of the government and private sector work on 7 projects which will be implemented in the near future is conducted.

46. Public institution the "Fund of support of entrepreneurship" created in 2013 in 2020 the National industrial and export bank of Tajikistan Sanoatsodirotbank is transformed to the state unitary enterprise. Today the this organization for the purpose of upgrade and creation of workshops and the companies for production of import-substituting and export-oriented products in regions of the country supports 196 business projects on the amount of 298 million somoni, including 33 business projects of female entrepreneurs on the amount of 22 million somoni, 19 projects of young entrepreneurs on the amount 47, by 4 million somoni and 171 startups of projects on the amount of 171 million somoni.

47. Allocated funds are allocated in such industries as conversion of agricultural products, production of confectionery and food, workmanship, conversion of skin and production of footwear, furniture, educational services, production of medical supplies, construction materials, creation of refrigerating constructions, conversion of marble and local granite and in other industries.

48. For the purpose of tourism development and effective use of the available opportunities of this direction the international airports are reconstructed and put into operation and online procedure for issue of electronic visas to the international tourists is implemented. The authorized state body - Committee on tourism development under the Government of the Republic of Tajikistan is created, are developed and accepted the Strategy of development of tourism for the period till 2030 and the Development program of tourism for 2018-2020 and the Law of the Republic of Tajikistan "About tourism" in the new edition. Are created Coordination council on tourism development and departments of tourism under law enforcement agencies.

49. Newly created travel agencies are exempted by the corresponding order of the Government of the country from the income tax in the first 5 years of activities, and import of materials and the equipment for construction of tourist infrastructure are exempted from the VAT and customs duties.

50. For the last four years the Government of the country entered in addition 40 types of privileges and incentives for protection and support of entrepreneurship and investment attraction in industry of light industry, rural farms of pharmaceutics, poultry farming, livestock production, tourism and into other priority sectors.

51. For the purpose of support of startups and development of small and medium business by means of the methodical, information, consulting and training support in 2018 the Public institution "Forming and development of entrepreneurship of Tajikistan" with the regional divisions in the cities of Dushanbe, Bokhtar, Kulob, Khujand and Khorog is created.

52. Achievements of reforms of the last years laid the foundation for increase in line items of Tajikistan in the report "Business" of the World Bank (from the 165th place in 2015 to the 106th place in 2020) on 59 Items and inclusions of the country in the Top 10 list of the countries of reformers in 2015 and 2020.

53. Since 2017 sovereign credit rating of the country is estimated and supported by the international rating companies Standard & Poor "s and Moody" s Investors Service at the B, sustainable development and B-level. For the first time during the independence the Republic of Tajikistan issued eurobonds on the amount of 500 million US dollars and entered the world market of the capital.

54. The undertaken reforms promoted steady increase in number of the small and medium companies with 206,5 of thousand in 2015 to 328 thousand in 2020 therefore today the share of private sector in GDP constitutes 70%, employment - 68% and tax revenues in the state budget - 80%.

55. As a result of implementation of modern financial technologies access for entrepreneurs and the population to financial credit resources of bank system gradually extends. In 2019 the amount of the credits issued by bank system to economy made 9, 5 billion somoni that after the relation to 2018 increased by % 25,5.

56. Statistically, general inflow of foreign investments for the last five years constituted 31, 2 billion somoni from which 14, 1 billion somoni - direct investments, and 17 billion somoni - other investments.

57. Inflow of direct foreign investments for this period is directed generally to such industries as geological exploration and production of minerals - 6, to 7 billion somoni, the industry - 3, by 5 billion somoni, the power engineering specialist - 599 million somoni, communication - 99, in 2 million somoni, financial services - 71, in 1 million somoni, construction - 41, in 7 million somoni, agricultural industry - 61 million somoni, education - 31, in 5 million somoni and other spheres - 117, in 3 million somoni.

58. Within signed investment agreements in economy of the republic more than 10 billion somoni of direct foreign investments are attracted, constructed and entered into productions of 15 powerful production enterprises.

59. Along with the above achievements, the share of private investments into GDP in 2019 constituted only 4% that on 6 percent points below the planned indicator and on one percent point below than in 2015.

§2. Macroeconomic indicators and ensuring process of strong growth

60. Expenses on PGI are integral part of medium-term expenses within the budget (further - SRVB). SRVB shall have complex priority and consider planned targets of strategic documents of development of national economy, credit obligations and measures of economic policy.

61. Expenses of the budget reflect planned economic development of the Government of the Republic of Tajikistan and the rate of inflation the next years. During this period increase in budgeted expenses, generally in sectors of power, transport, education, health care and social protection is expected. The government of the Republic of Tajikistan will strengthen process of preparation of the budget of the country for the purpose of improvement of targeting of expenses and control of expenditure of the budgetary funds allocated for increase in level of living of the population of Tajikistan.

62. According to economic and financial policy of the Government of the Republic of Tajikistan within funding mechanism for the purpose of increase in level of living and assistance to development of sectors of economy the macroeconomic policy and financial measures in the medium term will be aimed at effective realization of policy, ensuring sustainable economic development, rate stability of national currency and low inflation rates.

63. The government of the Republic of Tajikistan will perform permanent monitoring of external public debt and to quarterly publish information on external debt in mass media.

64. For ensuring process of sustainable national economic development in Tajikistan the complex system of strategic planning was activated, and all sectors and regions of the country are covered by programs of social and economic development. During this period concepts, strategy and other program documents were accepted, the strong basis for ensuring uninterrupted sustainable development of national economy on the basis of macroeconomic forecasting with use of econometric models, medium-term and long-term programming is laid.

65. In 2015-2019 the annual average growth of economy was provided at the level of 7%, and the real amount of gross domestic product for this period increased in time 1,6.

66. As a result of realization of constructive measures of the President of the Republic of Tajikistan, the purposes and priorities of the Medium-term development program for 2016-2020 nominal GDP of the country in 2019 constituted 77, 4 billion somoni, and real growth rate made % 7,5 that on 29 billion somoni or in 1, it is more time, than in basic (2015) to year. In 2020 taking into account negative effects of distribution of pandemic of coronavirus nominal GDP constituted 82, 5 billion somoni, and real rate of its growth made % 4,5. At the same time GDP amount per capita in 2020 made 8765, 1 somoni which in comparison with 2015 increased on 3087, 3 somoni or in time 1,6.

67. During this period total income of the government budget increased with 16, 6 billion somoni in 2015 to 29, 5 billion somoni in 2020 from year to year.

68. Total expenses of the government budget in relation to GDP in 2020 constituted % 30,2 that on 4,2 percent point above forecast indicator (26%).

69. Apparently from the main macroeconomic indicators of the Republic of Tajikistan for 2015-2020 as a result of carrying out the corresponding reforms and the taken measures by the Government of the Republic of Tajikistan, the purposes and certain strategic national tasks in general are implemented, having created favorable premises for further sustainable development of the country.

70. The amount of the public external debt in 2019 made 2925, 3 million US dollars or 36% in relation to GDP that is 8,1 percent points higher, than in 2015 (% 27,9).

71. Attraction of financial resources from partners in development for investment into important national priority objects which are at stage of construction and recovery now is the reason of increase in external debt.

72. For the last five years providing real amount of GDP was exceeded by the plan. Stable growth of national economy in 2016-2019 is generally caused by growth of the industry in 1,8 of time, agricultural industry in 1,2 of time, the general internal market turnover in 1,5 of time, passenger traffic in 1,2 of time, paid services in 1,1 of time, transportations in 1,2 of time and financing of fixed assets from all financing sources in time 1,3.

73. Industrial output increased with 15, 7 billion somoni of 2015 to 30, 8 billion somoni of 2020, or in almost twice more therefore its share in GDP constituted % 17,4 that in comparison with 2015 is one 5,1 more than percent point.

74. For 2016-2019 the production volume of cement increased by 3 time, coal in 1,9 of time, cotton fiber in 4,4 of time, vegetable oil in 2,2 of time and confectionery in time 2,5.

75. The share of agricultural industry in GDP in 2020 constituted % 22,6 that on 1 percent point it is lower than 2015. It demonstrates successful transition from agrarian and industrial model to industrial and agrarian model and conversion of agricultural products on industrial enterprises.

76. During 2016-2020 80 projects of the state investments within which on development of real sectors in economy 2 billion US dollars, in particular power, transport, agricultural industry, irrigation, water supply, development of local infrastructure, education, health care, social protection of the population, environment protection, public administration and other sectors are attracted and mastered are implemented.

77. Now in Tajikistan 70 projects of the state investments on the amount 3, at the expense of borrowing facilities, 1592 million US dollars at the expense of grants, 128 million US dollars of fee of the Government of the Republic of Tajikistan and 36, in 3 million US dollars from other sources are implemented by 5 billion US dollars, including 1771 million US dollars.

78. Since the beginning of projects implementation of the state investments till present (31.12.2020) 8 million US dollars or 44, by %, from them 745, in 8 million US dollars within the credits or 42%, grants 751, of 9 million US dollars or 47,2 of %, fee of the Government of the Republic of Tajikistan 40, 2 million US dollars or 31,3 of % and other sources 29, in 8 million US dollars or 82,2 of % are mastered funds for the amount 1567,.

79. In 2020 within realization of joint projects 5 million US dollars, including 8, by 3 million US dollars at the expense of fee of the Government of the Republic of Tajikistan, the credits of international financial institutions of 168 million US dollars, grants 140, in 9 million US dollars and other financing sources 2, in 2 million US dollars are mastered 319,.

80. In the field of power and transport in 2020 8 million US dollars, educations and health cares 42, by 6 million US dollars, agricultural industry and irrigation 29, in 9 million US dollars, water supply 15, in 6 million US dollars and other industries - 23, in 1 million US dollars are mastered 207,.

81. The volume of investment into fixed capital during 2016-2020 increased more than by 5 times and reached 55 billion somoni. For this period at the expense of all financing sources are constructed and put in operation of 5,5 of one million square meters of housing, educational and preschool institutions on more than 77 thousand places, medical institutions on more than 5 thousand beds.

82. As of January 1, 2021 in free economic zones of the country 72 subjects are registered, from them 30 subjects are registered in SEZ "Sugd", 11 subjects are registered in SEZ "Pyandzh", 25 subjects are registered in SEZ "Dangara", 1 subject is registered in SEZ "Kulob" and 5 subjects belong to SEZ "Ishkashim".

83. In general on creation of free economic zones 43, 3 million somoni in 2020 were invested more 1, 9 billion somoni, including.

84. The share of private sector in GDP for 2016-2020 increased from 54% to more than 70%.

85. During 2016-2020 more than 150 000 permanent and seasonal workplaces are annually created, and the number of the people migrating in job searches for the last five years decreased by 50%.

86. Cash incomes of the population increased in time 1,9, and the average salary of one worker - in time 1,2.

87. During 2016-2020 population of Tajikistan increased with one million 8,5 to one million 9,3 that on 800 000 people or over 9% are more in comparison with 2015. In 2019 average life expectancy of the population increased up to 75 years.

88. According to official figures in 2019 the number of given rise was made by 231 thousand people. The crude birth rate and crude death rate on 1 000 populations make respectively 25 and 3,6, of people that demonstrates proper implementation of measures of planning of family, health care and sanitation.

89. Level of poverty decreased with % 31,3 in 2015 to % 26,3 in 2019. It should be noted that the Republic of Tajikistan is included by the World Bank in the list of 10 countries with the highest level of reducing poverty for the last 15 years.

90. According to estimates of the international organizations, including the World Economic Forum, indicators of the Republic of Tajikistan improved.

91. In 2020 the Republic of Tajikistan took the 98th place according to the Index of healthy longevity, the 57th place among 141 countries according to digital skills of adult population and the 30th place on analytical thinking in education.

92. Tajikistan takes the 2nd place on access to the electric power, the 50th place on quality of road infrastructure, the 37th place by efficiency of railway services among 141 countries and the 91st place among 133 countries according to the Index of food security with receipt of 42,6 from 78,1 - the greatest possible points on index of product quality of food.

93. According to the analysis of the World Economic Forum of 2019 Tajikistan in the international rating of efficiency of the legislation takes the 30th place on enhancement of procedures of state regulation, the 20th place on burden of state regulation and the 34th place by efficiency of the legislation in the field of the dispute resolution among 141 countries of the world.

94. Taking into account distribution of pandemic of coronavirus, availability of geopolitical problems, trade disputes and economic sanctions between the countries, and also unstable fluctuations in the world markets some target macroeconomic indicators were reviewed by the Ministry of Economic Development and Trade.

95. For achievement of effective objectives it is important to take necessary measures for prevention of impact of negative external factors, increase in competitiveness of national economy, stimulation of economic activity, improvement of the business and investment climate, strengthening of production capacities and creation of new workplaces.

§3. Information on realization "the State program of investments for 2016-2020"

96. Attraction of foreign investments for implementation of priority projects in the conditions of limited internal capital investments is one of key factors of further development of national economy.

97. For the purpose of attraction of foreign investments in industries of national economy the Ministry of Economic Development and Trade together with the ministries and departments of the republic is developed for implementation of priority projects the Program of the state investments for the medium term.

98. The state program of investments for 2016-2020 (further - by GPI 2016-2020) it is developed for the purpose of attraction of foreign and internal investments, including the credits, grants and technical assistance for implementation of priority projects in different sectors of economy it is approved by the order of the Government of the Republic of Tajikistan of December 30, 2015 No. 772.

99. According to the orders of the Government of the Republic of Tajikistan of August 23, 2016 No. 381, of August 1, 2018 No. 383 and of December 31, 2019 No. 659 made changes and additions for the purpose of exception of the implemented projects and inclusion of new priority projects.

100. The total quantity of projects of the state investments of PGI for 2016-2020 taking into account all changes and amendments constitutes 1210 units, and the total cost of projects constitutes 39, 7 billion US dollars. In particular, projects the financing source which it is determined constitutes 341 units (% 28,2) for the amount 8, of 9 billion US dollars (Appendix No. 2).

101. From total number of projects with certain financing source within this program 80 projects from which 41, % treat the energy sphere, % 39,8 - the transport sphere, % 8,8 - agricultural industry and irrigation/irrigation, % 5,5 to the sector of education, 2% - to water supply and the sewerage, % 1,6 to other industries and only 1% - the sector of economic management (Appendix No. 3) were implemented.

102. Set of the implemented projects of the state investments in the Republic of Tajikistan as of January 1, 2021 consists of 70 units (29 grant projects, 6 credit projects and 35 projects which are both in credit and in grant joint financing) which total amount constitutes 39, 9 billion somoni (3, 53 billion US dollars).

103. In structure of implementable projects on loans 0 billion somoni (1, 77 billion US dollars) or % 50,2, are the share 1 billion somoni of grants - 18, 20, (1, 6 billion US dollars) or % 45,1, of contribution of the Government of the Republic of Tajikistan - 1, 45 billion somoni (128, 5 million US dollars) or 3,6 of % and for other sources, including contribution of the state companies, local executive bodies, communities (beneficiaries), etc. is necessary 410, to 2 million somoni (36, 3 million US dollars) or 1%.

104. Financing source of set (portfolio) of implementable projects of the state investments generally are the following sources: 

Asian Development Bank - 856, 1 million dollars or 24,3 of % of total portfolio;

The World Bank - 757 million dollars or 21,5 of %;

The European Bank for Reconstruction and Development - 638, 6 million dollars or 18,1 of %;

The People's Republic of China - 331, 4 million dollars or 9,4 of %;

Islamic Development bank - 163, 3 million dollars or 4,6 of %;

The European Investment Bank - 117, 9 million dollars or 3,3 of %;

The Saudi Fund of Development - 90, 0 million dollars or 2,6 of %;

The Asian Infrastructure Investment Bank - 87, 5 million dollars or 2,5 of %;

OPEC fund - 72, 0 million dollars or 2,0 of %;

German Bank of Development - 55, 4 million dollars or 1,6 of %;

The international Fund of Agricultural Development - 53, 1 million dollars or 1,5 of %;

other international financial institutions or donor countries 140, 7 million dollars or 4,0 of %;

contribution of the Government of the Republic of Tajikistan - 128, 5 million dollars or 3,6 of %;

other sources (contribution of the domestic state enterprises, local executive bodies, communities, etc.) - 36, 3 million dollars or 1%.

105. Within implementable projects in 2020 it is mastered 3, one billion somoni (equivalent 319, by one million US dollars) that constitutes 92% of the annual plan (3, 9 billion somoni or 346, 5 million US dollars), including on industries: 210.

power within 10 projects 6 million dollars (1, 5 billion somoni) or 106% of the financial plan for 2020 are mastered 136,;

transport within 12 projects 3 million dollars (805, 7 million somoni) or 94% of the plan are mastered 71,;

educations within 5 projects it is mastered 23, by one million dollars (261, in 0 million somoni) or 95% of the plan;

housing and communal services within 20 projects 0 million dollars are mastered 22, (248, 6 million somoni) that constitutes 72% of the plan;

health care and social protection of the population on 6 projects - 19, 7 million dollars (222, 6 million somoni) or 113% of the plan;

the agricultural industry and irrigation/irrigation within 7 projects is mastered by 30 million dollars (337, in 9 million somoni) or 102% of the plan;

ecology and emergency situations within 5 projects 8 million dollars (144, 6 million somoni) or 52% of the plan are mastered 12,;

other industries (customs, finance, tourism, etc.) within 5 projects 1 million dollars (46, 3 million somoni) or 30% of the plan is mastered 4,.

106. Financing sources of 341 projects for total amount 8, of 9 billion dollars are provided in the Program. Due to the implementation of 191 state investment projects interest is expressed by the international financial institutions and in this direction negotiations are conducted (Appendix No. 4).

107. According to the analysis, within GPI of 2016-2020 (credit and grant projects) in 2016 - 2020 years it is mastered more 3, 6 billion US dollars.

108. In PGI 2016-2020 to the program projects are divided into two tables, in particular projects financing sources which constitute the credits (the summary table No. 3 GPI 2016-2020) and projects financing sources of which constitute grants and technical assistance (the summary table No. 4 GPI 2016-2020). The majority of projects are included in the summary table No. 4, that is new and implementable projects of grants and the technical help for 2016-2020 which require attraction of grants and technical assistance.

109. The majority of projects by search of financing sources according to requirements of financial institutions and partners in development obtain loans, grants and contribution of the Government of the Republic of Tajikistan.

110. The financing source of the project is determined by the industry department submitting the project application.

111. Some projects having certain financing source join in group of the implemented projects at stage of search of the investor.

112. For the purpose of implementation of priority state investment projects within this program effective measures in combination with the Program of the state external borrowings were taken.

113. For 2016-2020 number of investment agreements with partners in development and financial institutions are signed. According to the Ministry of Finance, for the accounting period in Tajikistan signed 112 loan and grant agreements for the total amount of the 2nd 757, 31 million US dollars according to 93 state investment projects from which 1416, 23 million US dollars are provided in the form of loans, grants 1341, to 08 million US dollar. 226. 227. The main investors of the state investment projects within investment agreements are Asian Development Bank, the World Bank, the European Bank for Reconstruction and Development, Islamic Development bank and others.

114. Small-scale projects in different areas are implemented by directly public organizations of development, such as UNICEF, JICA, GIZ and others.

115. The analysis of industry structure "Program of the state investments for 2016-2020" shows that from total quantity (1210 projects) the relevant ministries and departments and government institutions do not find financing sources for 869 (72% of total quantity) investment projects for total amount 30, of 8 billion US dollars. These projects include the 115th project of the transport sector (52% of total cost of the project), 92 projects of the energy sector (33%), 133 projects of agricultural industry and irrigation/irrigation (% 7,4), 276 projects of water supply and the sewerage (3.6%), 78 projects in the multisector and other sectors (% 1,7), 95 projects in the sector of education (% 1,7), 73 projects in health care sector and social protection of the population (% 0,7) and 7 projects in the sector of management of economy (% 0,2) which industry structure is provided in the table No. 5 (Appendix 4).

116. In spite of the fact that the relevant ministries and departments, and also local executive bodies of areas, cities and areas took number of steps for realization of GPI 2016-2020, analysis show that there is variety of reasons, negatively influencing effective program implementation, including:

- 98% of investment projects are transferred to GPI 2016-2020 from the previous programs because did not find financing sources;

- despite established procedure, most the ministries and departments during the meetings and negotiations on attraction of foreign investments represent to investors the projects which are not included in PGI that interferes with effective program implementation;

- some small and medium projects with similar names are implemented out of PGI and the industry ministries, departments and local executive bodies of areas, cities and areas are not informed on their realization. As a result projects under other names in PGI remain for many years, repeat and lose the priority.

117. PGI are developed for the purpose of finding of source of external and internal financing for projects implementation of the state investments for which the financing source is not determined. The concept of investment according to the current legislation is attachment the investor in the form of tangible and intangible assets in the territory of the Republic of Tajikistan for the purpose of profit earning.

118. The summary table No. 4 PGI 2016-2020 for the corresponding years consists of the sector of capital construction and is performed only at the expense of the government budget by customers - the ministries, departments and local executive bodies of the government of areas, cities and areas for the purpose of maintaining in operation of fixed assets and capacities.

119. Indicators of capital investments for the corresponding years are determined by annually corresponding orders of the Government of the Republic of Tajikistan "About measures for implementation of the Law of the Republic of Tajikistan on the Government budget of the Republic of Tajikistan for the corresponding years". Based on the established indicators customers develop the list of objects for the corresponding year in coordination with the Ministry of Economic Development and Trade and is transferred to the Ministry of Finance for financing in accordance with the established procedure.

120. The material and technical resources of the relevant structural division of the Ministry of Economic Development and Trade need improvement for ensuring necessary level of process of development, monitoring and assessment of the state investment projects.

121. In view of the existing problems and the experience got during realization of the previous state investing programs is recommended to take the following measures for improvement and, at appropriate level, creations of system for development, monitoring and assessment of effective realization of PGI: 

- to perform further attraction of internal and foreign investments by the ministries, departments and local executive bodies only within PGI for 2021-2025;

- in case of project development of PGI not to consider the drafts of the previous programs duplicating and lost priority;

- create the electronic database of the state investment projects and PGI with attraction of financial resources of partners in development;

- develop and implement the electronic register of the state investment projects, credit and grant projects, and also projects of grants and technical assistance;

- develop and implement the automated monitoring system and estimates of realization of PGI with use of the best international practices and with attraction of financial resources of partners in development;

- strengthen material and technical resources and personnel resources of the relevant structural division of the Ministry of Economic Development and Trade.

3. The forecast of the program of the state investments for 2021-2025.

§1. Investing programs

122. PGI 2021-2025 includes the 898th project for total amount 19, of 1 billion dollars, including 62 new projects on the amount 540, 6 million US dollars. From "The program of the state investments for 2016-2020" it is transferred to the new Program of 836 projects for total amount 18, 6 billion US dollar.

123. From 898 projects, including 64 projects 103 projects on the transport sector (4507 million US dollars or 24%), 135 projects on the agricultural sector and irrigation/irrigation (2 481 million dollars or 13%), 272 projects on the sector of water supply and sanitation (1222 million dollars or 6%), 121 projects in other sectors (1394 million dollars or 7%), 92 projects on the sector of science and education (821, 4 million dollars or 4%), 88 projects on health care and social protection of the population (589, 9 million dollars or 3%), 15 projects on the sector of management of economy are the share of the energy sector (7 824 million US dollars or 41%) (245, 5 million dollars or 1%) and 7 projects are the share of the sphere of trade and service sector (23, to 6 million dollars or 0,1 of %).

124. On regional structure the Program of the state investments for 2021-2025 covers all regions of the country, from 898 drafts of 160 projects for total amount 5429, of 6 million US dollars or 28,5 of % (on amount of money) 334 projects for the total amount of 4856 million US dollars or 25,5 of %, the 218th project for the total amount of 3937 million US dollars or 21 percent, 107 projects on projects of the national level with a total amount of 2855 million US dollars or 15% on areas of republican subordination, 43 projects on the amount of 1206 million US dollars or 6% for GBAO and 36 projects for the total amount of 738 million US dollars or 3,8 of % for the city of Dushanbe fall on Sughd area, to Khatlon Region.

125. According to regional structure new 62 projects, PGI for 2021-2025 cover all regions of the country, including 26 projects for the total amount of 283653 thousand US dollars or 52, are the share % (on amount of money) of projects of republican level, 13 projects for the total amount of 116977 US dollars or 21,6 of % for Sughd area, 13 projects for total amount 73955, of 4 thousand dollars of the USA or 13,7 of % for Khatlon Region, 7 projects for the total amount of 50734 thousand US dollars or 9,4 of % for areas of republican subordination, 2 projects total cost of the 11th 880, 9 thousand US dollars or 2,2 of % for the city of Dushanbe and 1 project total cost of 3 407 thousand US dollars or 0,6 of % for GBAO. 

§2. Financing sources of investment projects

126. Financing sources of the state investments are donor means, the government budget and other internal and external financing sources.

127. PGI classifies credit and grant projects under three Sections:

- projects which financing is approved (agreements with investors are signed);

- projects, financing of some are already determined, or the projects which are in process of search of financing source (which small amount is at stage of negotiations with certain donors);

- the implemented and again offered projects of grants and technical assistance which financing did not make a reservation.

128. For the purpose of classification of projects, each investment project included in part B of "Credit and grant projects" of PGI 2021-2025, are designated by such signs:

- management of economy - ESM;

- agricultural industry - AGR;

- irrigation/irrigation - IRW;

- water supply and the sewerage - WSS;

- power - ENE;

- transport - TRA;

- ecology - ECO;

- education - EDU;

- health care and social protection of the population - HEA;

- trade and services - STUR;

- and other industries - MUL.

129. PGI is developed on the basis of requirements of "Procedure for project development of the state investments and program implementation of the state investments of the Republic of Tajikistan" which is approved by the order of the Government of the Republic of Tajikistan of March 27, 2018 No. 161.

130. The Interdepartmental working group for assessment of project investment requests with involvement of representatives of the relevant ministries and departments for project development of PGI is created.

131. The ministries, departments and local executive bodies of the government of areas, cities, areas, the organizations and organizations represent the state investment projects to the Ministry of Economic Development and Trade for inclusion in the PGI project.

132. The working group considers investment project requests of the ministries and departments, executive bodies of the government of areas, cities, areas, the organizations and organizations proceeding from the purposes and priorities of strategic documents of the country, industry development programs, programs of social and economic development of areas, the cities, areas and provides the Commissions on selection of projects of the state investments.

133. The commission on selection of projects of the state investments under the leadership of the First Deputy Prime Minister of the Republic of Tajikistan considers and selects projects of the state investments for inclusion in the Program of the state investments of the Republic of Tajikistan.

134. New investment projects join in the program after studying, assessment and decision making by the Commission on selection of projects of the state investments then they are considered priority for financing.

§3. Credit and grant projects, projects of grants and technical assistance of PGI 2021-2025

135. Credit and grant projects, projects of grants and technical assistance of PGI 2021-2025 in general constitute 898 projects for total amount 19, of 1 billion US dollars and are divided into two parts (And yes B).

136. Part A includes in general 807 grant projects and projects of technical assistance for total amount 12, of 1 billion US dollars.

137. In the course of separation of projects on industries within grant projects and projects of technical assistance, 9 billion US dollars are the share of industries of education, health care and social protection of the population, water supply and sewerage 1, that constitutes 19,8 of percent of total amount of grant projects and projects of technical assistance.

138. 249 million US dollars are the share of the sector of management of economy that constitutes 2% of the amount of projects of grants and technical assistance. This financing is intended for reforms of the sphere of public administration, capacity-building in economic and financial management and tax administration.

139. On sectors power, the industry and transport 6 billion US dollars are necessary 7, that constitutes 63,3 of % of the total amount of projects of grants and technical assistance.

140. Investment projects in sectors of agricultural industry and irrigation/irrigation, trade and servicing and in other sectors constitute 2, 2 billion US dollars that constitutes 18,3 of % of the total amount of projects of grants and technical assistance.

141. Part B includes credit and grant projects and constitutes 91 projects for the total amount of 7 billion US dollars.

142. For the planned five years within credit and grant projects financing is provided in amount 2, by 17 billion US dollars.

143. As shows the industry analysis of means of credit and grant investment projects, 65% of means are the share of infrastructure industries, including power and transport which constitute basis of projects of the 5-year period. The infrastructure supported in due condition will increase productivity and economic growth in all sectors, will provide access to the markets, will give impetus to increase in competitiveness and activation of private sector.

144. According to the National strategy of development for the Republic of Tajikistan for the period till 2030 development of infrastructure will expand access of the needy population to water, electricity and transport, having increased quality and level of living of the population.

145. On social projects, including on projects of health care sector and social protection, educations, water supply and sanitation 6 billion US dollars are necessary 2, that constitutes 13,5 of % of the total amount of new projects.

146. Investment projects of agricultural industry and irrigation and other industries constitute 4, 2 billion US dollars or 21,5 of % of total amount. 

4. Strategic priorities of industries of national economy

§1. Agricultural industry and irrigation

147. Providing the population of the country with food, increase in level of the income and employment, and also protection of the natural resources necessary for reproduction expansion, depend on development of agricultural industry.

148. The agrarian sector makes the significant contribution to development of national economy, at the same time about two thirds of production enterprises of the country are the agro-industrial companies.

149. The agricultural industry is the most water consuming sector to which share about 94% of the used water resources fall. 90% of agricultural products in Tajikistan are made on the irrigated lands.

150. Hydraulic engineering constructions very much became outdated, big reservoirs, channels and ditches on which the meliorative condition of tens of thousands of hectares of the irrigated lands depends require special attention, lacking for vehicles and digging mechanisms.

151. Tasks and priorities of development of the sector of agricultural industry and irrigation: 

increase in production of competitive domestic import-substituting and export products;

increase in level and quality of life of rural population of the country;

ensuring food security of the country;

improvement of economic and social situation, and also material and technical resources of the organizations of industry;

transfer of intraeconomic constructions on balance Association of water users;

periodic increase in rates for services of water supply for covering of actual costs of the sector.

152. Measures of irrigational policy is the following: 

recovery of the failed pumping points of industry;

improvement of meliorative condition of lands, prevention of washing off of the soil and protection of lands, development and introduction of idle lands in agricultural turnover;

organization and strengthening of activities Association of water users;

within the Program of reforming of the water sector phased transition from administrative method of management to basin method of management and transition for payment water supply service fees through non-cash system, billing system;

development of the new irrigated lands;

prolongation the term of reduced rates for the electric power for pumping points;

introduction of single tariffs for the electric power for pumping points and vertical wells;

supply of irrigation water to lands of agricultural purpose on contractual basis and on demand;

systematization of rational use of water;

implementation of census of actual state of irrigational constructions.

§2. Energy sector

153. The energy sector is one of priority and important sectors of national economy and plays key role in promotion of economic activity and satisfaction of basic needs of the population.

154. The government of the Republic of Tajikistan pays special attention to development of the energy sector and considers its considerable potential basis for development of economic and social industries and reducing level of poverty in the country.

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