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Eng - UNDP in Tajikistan

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DEVELOPMENT PARTNER PROFILE<br />

on accelerat<strong>in</strong>g the land reform process, improv<strong>in</strong>g agricultural services and enhanc<strong>in</strong>g the target<strong>in</strong>g of the social safety net for the most<br />

vulnerable.<br />

Technical support <strong>in</strong> the country takes the form of two long-term technical assistants, one be<strong>in</strong>g based <strong>in</strong> the M<strong>in</strong>istry of Agriculture and the<br />

other one <strong>in</strong> the M<strong>in</strong>istry of F<strong>in</strong>ance.<br />

NGO Food Security programme: In addition to its foreign exchange facility and budgetary support, the FSP also supports a number of<br />

agricultural projects carried out by European NGOs. These projects are be<strong>in</strong>g implemented s<strong>in</strong>ce 1996.<br />

3- European Commission Initiative for Democracy and Human Rights (EIDHR)<br />

This programme, launched <strong>in</strong> <strong>Tajikistan</strong> <strong>in</strong> August 2003, aims at support<strong>in</strong>g small-scale <strong>in</strong>itiatives <strong>in</strong> the fields of promotion and protection of<br />

human rights; promotion of penal reform and prisoners' rights; support to democracy and good governance, media freedom, rule of law and<br />

security structures (police/armed forces); conflict prevention. The EIDHR budget for 2003-2005 was EUR 1.1 million and supports 21<br />

projects, 7 of which are <strong>in</strong> the process of submitt<strong>in</strong>g f<strong>in</strong>al reports, 6 on-go<strong>in</strong>g projects and 8 projects are under preparation.<br />

4- Macro-F<strong>in</strong>ancial Assistance<br />

The EC has provided exceptional f<strong>in</strong>ancial assistance to <strong>Tajikistan</strong> <strong>in</strong> the form of a loan of EUR 60 million, which was disbursed <strong>in</strong> March<br />

2001 soon after <strong>Tajikistan</strong> had settled its outstand<strong>in</strong>g loan arrears of EUR 79 million towards the EC. Under the exceptional f<strong>in</strong>ancial<br />

assistance, the EC also made available a total maximum grant amount of EUR 35 million which has been paid <strong>in</strong> several tranches over the<br />

past five years.<br />

The assistance is conditional on satisfactory implementation by <strong>Tajikistan</strong> of the economic programme supported by the IMF through its<br />

Poverty Reduction and Growth Facility (PRGF) arrangement. Secondly, specific conditionality on structural reforms is attached to the<br />

payment of each grant tranche. F<strong>in</strong>ally, <strong>Tajikistan</strong> shall reduce its <strong>in</strong>debtnedness towards the Community by an agreed amount before further<br />

grant tranches are released.<br />

5- European Commission Humanitarian Aid Department (ECHO)<br />

ECHO provides fund<strong>in</strong>g to <strong>in</strong>ternational organizations implement<strong>in</strong>g humanitarian assistance programmes. ECHO’s mandate is to respond to<br />

emergency humanitarian crises <strong>in</strong> the immediate aftermath of a natural or man-made disaster, or conflict, with the aim of sav<strong>in</strong>g lives. All<br />

fund<strong>in</strong>g is <strong>in</strong> the form of cash grants, paid at headquarters level to implement<strong>in</strong>g agencies (EU-based non governmental organizations, UN<br />

agencies and Red Cross and Red Crescent Societies.<br />

The budget/fiscal year is January-December. The programm<strong>in</strong>g year for <strong>Tajikistan</strong> is currently May-April. The priority sectors of <strong>in</strong>tervention<br />

are health (medical, tra<strong>in</strong><strong>in</strong>g), dr<strong>in</strong>k<strong>in</strong>g water and sanitation. Household food security. ECHO also funds some disaster preparedness activities<br />

<strong>in</strong> Central Asia, with a focus on <strong>Tajikistan</strong>, through its programme DIPECHO.<br />

S<strong>in</strong>ce 1992, close to EUR 160,000 have been allocated to <strong>Tajikistan</strong> to cover humanitarian needs. In addition, some EUR 7.5 million have<br />

covered disaster preparedness activities <strong>in</strong> the country through DIPECHO s<strong>in</strong>ce 2003.<br />

Apart from these five ma<strong>in</strong> f<strong>in</strong>ancial <strong>in</strong>struments, programmes <strong>in</strong> the areas of m<strong>in</strong>e action, migration, cross-border cooperation and<br />

contributions to the Global Fund aga<strong>in</strong>st AIDS, TB and Malaria are executed.<br />

Future Programm<strong>in</strong>g Direction<br />

As of 1 January 2007, the European Commission is implement<strong>in</strong>g its external aid through new <strong>in</strong>struments, whereas the old ones have been<br />

ended. The ma<strong>in</strong> <strong>in</strong>strument for external aid to <strong>Tajikistan</strong> will be channeled through the Development and Cooperation Initiative (DCI). The<br />

new DCI provides more types of measures of support, and does not only focus on technical assistance. The new programme foresees also the<br />

possibility to provide budget support, <strong>in</strong>vestments, contributions for loan, f<strong>in</strong>anc<strong>in</strong>g and targeted adm<strong>in</strong>istrative measures and tw<strong>in</strong>n<strong>in</strong>g.<br />

The European Commission's 2007 - 2013 Regional Assistance strategy for Central Asia was <strong>in</strong>formally endorsed by the EU Member States<br />

on 28 November 2006. Focal areas are the promotion of good governance and economic reforms; development of regional cooperation and<br />

poverty alleviation. The strategy is at present under scrut<strong>in</strong>y by the EP and it is planned that the document can be formally approved by the<br />

Commission <strong>in</strong> March 2007.<br />

To reflect greater engagement of the EU <strong>in</strong> the region, the EC assistance budget under 2007-2013 for Central Asia will be significantly<br />

<strong>in</strong>creased to a total € 719 mio - an <strong>in</strong>crease of over 90% compared with 2000 - 2006 allocations, with average annual allocation to the region<br />

up from € 54.5 mio <strong>in</strong> 2006 to € 139 mio <strong>in</strong> 2013. Dur<strong>in</strong>g the Indicative Programme 2007 - 2010, a total EC grant of ~ € 315 million is<br />

planned for Central Asia under DCI, i.e. an average annual budget of € 78.4 mio per year. A total amount of 66 million Euros has been<br />

earmarked for the period 2007-10 for <strong>Tajikistan</strong>. Out of the 66 million Euros for 2007-2010, 23 million are dedicated to a budget support<br />

programme <strong>in</strong> the sector of social protection. The rema<strong>in</strong>der goes to Private Sector Development, health and poverty alleviation.<br />

The bulk of EC assistance to Central Asia - 78% will be directed at bilateral assistance, <strong>in</strong>clud<strong>in</strong>g 8% for education and S& T cooperation.<br />

For the first time an explicit f<strong>in</strong>ancial envelope has been made available (€ 4.4 mio) to allow mobilization of teachers and students under the<br />

Erasmus Mundus programme - part Central Asia. For bilateral cooperation with <strong>Tajikistan</strong>, around EUR 66 million are foreseen which is 30%<br />

of the bilateral envelope.<br />

Attention will be paid to support<strong>in</strong>g Central Asian regional cooperation to l<strong>in</strong>k Caspian bas<strong>in</strong> States with the Black Sea and the Western<br />

Newly Independent States which will benefit from the European Neighbourhood Policy f<strong>in</strong>anc<strong>in</strong>g <strong>in</strong>strument (ENPI): 22% of assistance will<br />

be dedicated to facilitate closer <strong>in</strong>ter - state cooperation both with<strong>in</strong> Central Asia and between Central Asia, South Caucasus and the EU,<br />

particularly <strong>in</strong> the energy, transport, environmental sectors. Provision will also enable the participation of Central Asian countries <strong>in</strong> ENPI<br />

East regional programmes: the alignment of regional cooperation priorities for Central Asia with the ENPI East regional strategy lies at the<br />

heart of future assistance policy and programmes and will strengthen l<strong>in</strong>ks with Eastern Europe.<br />

Source: Aid Coord<strong>in</strong>ation and Project Monitor<strong>in</strong>g System Database<br />

© State Committee on Investments and State Property Management of the RT<br />

49

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