ADB loan to fund Tajikistan cotton sector's recovery
04 Dec '06
3 min read
The project will help develop the cotton market by promoting the adoption of internationally recognized quality standards for fiber cotton.
It will also help establish two bonded warehouses to be operated by the private sector that meet international standards to expedite the export of baled cotton.
“Through this project, ADB will support the Government's commitment to genuine development change by addressing the crucial and immediate concerns affecting the agriculture sector,” says Neeraj Jain, ADB's Country Director for Tajikistan.
ADB's support comprises a $5.5 million loan and a $6.5 million grant from its concessional Asian Development Fund. The loan carries a 32-year term, including a grace period of 8 years, and an interest rate of 1 percent per annum during the grace period and 1.5 percent per annum after.
The Government and private sector will shoulder the balance of $3.29 million, to meet the project's total estimated cost of $15.29 million. The Executive Office of the President is the executing agency for the project, which is due for completion in 2010.
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