Development of a transmission line, which would transfer electricity generated by hydropower between Tajikistan and Kyrgyzstan, is being supported by funds from the European Investment Bank (EIB).

The Bank has lent EUR 70 million for the construction of the 500kV, 477km long line to interconnect the countries electricity networks, while strengthening the internal backbone network of Tajikistan.

The EIB will also finance the extension of three existing power substations: two in Tajikistan and one in Kyrgyzstan, and the construction of a new 500/220 kV substation located in Tajikistan.

The project is a part of a larger regional electricity scheme, the "Central Asia – South Asia Electricity Transmission and Trade" ("CASA-1000") initiative, covering four Asian countries – Tajikistan, Kyrgyzstan, Afghanistan and Pakistan. It is essential for developing the conditions for sustainable trade in renewable electricity based on electricity generation from hydropower resources in the countries concerned. It will alleviate shortages of power supply in the South Asian countries and enhance export revenues in Tajikistan and Kyrgyzstan.

"The EIB loan will help improve the reliability and capacity of vital energy infrastructure needed for improving the quality of life of Tajik citizens and for further economic development in the region," said Wilhelm Molterer, EIB Vice-President. "The new energy infrastructure will foster electricity trade with neighbouring countries and make it possible to attract foreign investors due to safer energy supplies."