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Tajikistan: Aviation Sector Reforms


Read more about the project 


The Programmatic Development Policy Grants (PDPG) I, II and III have been implemented by the World Bank Group in Tajikistan with an objective to increase access to the land-locked country, with the investment amount of $10 million, $10 million, and $20 million respectively. Over the long run, the reforms of its aviation sector aim at creating the foundation for more competitive, efficient, reliable, and safe aviation service.

To achieve the objectives, the operation supported wide-ranging reforms of aviation sector. These included the separation of the policy making function from technical regulation and accident investigation, with the aim of increasing the transparency and performance of these functions. It also involved unbundling Tajik State Airlines to create several new companies, one to operate the state owned airline, one to operate air traffic control, and four to operate the nation’s airports. These measures are reflected as prior actions in each of the three PDPG operations.

As of fiscal year 2009, the recipient country government has satisfactorily implemented the restructuring of the aviation industry in terms of the separation of airport, airline and air traffic control functions in accordance with the agreed program.

The observed outcome of the project, is that the number of passengers traveling through the international airport in Dushanbe has been rising steadily since 2004 as indicated by the table below. In addition, the number of flights and of airlines operating regularly scheduled flights to Dushanbe also rose significantly. However, the costs and convenience of air travel are still far worse in Tajikistan than in most countries in the region. One reason is that government still imposes significant restrictions on foreign airlines wishing to serve the country, which must be interpreted as to limit competition with the state-owned carrier as well as with newly established domestic private operators.

The upcoming projects, PDPG 4, 5 and 6, including prior actions to further promote the objectives for the aviation sector, are anticipated to board in June 2010. PDPG 4 includes the adoption of an aviation sector policy, PDPG 5 and 6 will include reforms specified in an action plan, which is currently being discussed with the government.

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