World Bank to Support Reconstruction Efforts in Tajikistan

Contact:  Marjorie Robertson (202) 458-8408
Fax: (202) 522-0321
To obtain project documents please contact the World Bank's Public Information Center (PIC)
at tel: 202-458-5454, fax: 202-522-1500, email: pic@worldbank.org

WASHINGTON, January 29, 1998 The World Bank today approved a US$10 million equivalent (SDR 7.4 million) Post-Conflict Emergency Reconstruction Project Credit to Tajikistan to support the Governments effort to reintegrate the Karategin-Tavildara Valley area into the national economy through a targeted program of short-term reconstruction of physical and social infrastructure and emergency support to agricultural development.

Tajikistan and the World Bank. At the request of the Government, a World Bank mission visited Tajikistan in September 1997 to outline a possible assistance program. In response to the Government's concerns, the World Bank prepared two operations: (a) the Post-Conflict Rehabilitation Credit of US$10 million, approved in December 1997, to help the Government address immediate general budgetary needs associated with the peace agreement; and (b) the Post-Conflict Emergency Reconstruction Project to address the specific reconstruction needs of the Karategin-Tavildara Valley area. The credits are, therefore, part of a broader effort to address the after-effects of Tajikistan's crisis.

The project will help finance the following:

• Agricultural Support: the emergency purchase and distribution of seed and fertilizer to private farmers for the Spring 1998 planting season (US$0.6 million equivalent, or 6 percent of base cost);
• Bridges and Roads: the repair or reconstruction of an estimated 15 destroyed or damaged bridges, and completion of a 4 kilometer by-pass road for the town of Darband to replace the current non-functional road (US$5.1 million equivalent, or 51 percent of base cost);
• Small Community Works: the reconstruction, repair and/or rehabilitation of destroyed, damaged or dilapidated schools, health care facilities, and other community facilities, and the implementation of other programs of small works benefiting local communities in the Karategin-Tavildara Valley area (US$2.3 million equivalent, or 23 percent of base cost); and
• Other Infrastructure Works: the repair and rehabilitation of war-damaged infrastructure in the power and agriculture sectors (US$1.9 million equivalent, or 20 percent of base cost).

Total project cost is US$11 million equivalent, which includes Physical Contingencies. In addition to the World Bank contribution of US$10 million equivalent, the Government of Tajikistans contribution is US$1 million. Since Tajikistan joined the World Bank and IDA in 1993, commitments total approximately US$87 million for 5 projects.

Background: Civil War in Tajikistan Tajikistan became an independent country in 1991 as a result of the breakup of the Former Soviet Union. Civil war began in May 1992 as different regional and political groups struggled for a redistribution of power following the collapse of the Soviet system. Armed conflict continued for the next four years with varying intensity, most heavily between 1992 and 1993. An estimated 50,000 people died, 600,000 people were displaced within the country, and 60,000 others fled to neighboring Afghanistan as a result of the war. Whereas during the first two years the heaviest fighting and destruction occurred in the southern region of Khatlon and government-controlled areas, in subsequent years hostilities moved to the center and eastern regions of Karategin and Tavildara valleys, areas controlled by the United Tajik Opposition (UTO) opposition. Complex and protracted negotiations between the Government of Tajikistan and the UTO began in 1994 with the signing of a first cease-fire in Teheran and culminated in the signing in Moscow on June 27, 1997 of the Peace Agreement. The Karategin and Tavildara valleys occupy a strategic position as they control the roads that link Dushanbe with the eastern part of the country, and with the Kyrgyz Republic. The area is fertile, and during the Soviet era, was a net exporter of agricultural products. As part of the peace negotiations, a cease fire agreement was signed in January 1997 that left the area under the military control of the UTO forces. Consequently, the Karategin-Tavildara Valley area remained cut-off from the rest of the country for several years and, unlike other parts of the country, received no support from the Government. Even in the absence of open fighting, the continuing state of war and insecurity and the lack of monetary resources prevented regular maintenance and repair work on infrastructure and community facilities. The Peace Agreement between the UTO and the Government is an opportunity for establishing an environment that is conducive to macro-economic stabilization structural reform and increased growth. Both the Government and the UTO have indicated a willingness to begin the reconciliation and reconstruction processes as quickly as possible. The proposed operation is therefore an effort to respond to some of the immediate needs of the country and contribute to the successful implementation of the peace process. Although other donors are active in Tajikistan and IDA's efforts are part of a broader program, no other major donors are involved in this important geographical area.