Tajikistan joined ADB in 1998. To date, ADB has approved over $1.5 billion in concessional loans, grants, and technical assistance to the country.

Mr. Nakao reiterated ADB’s support for the country’s development goals and congratulated the government on its leadership as chair of the Central Asia Regional Economic Cooperation (CAREC). Tajikistan is hosting the 16th CAREC Ministerial Conference in Dushanbe this week.

“ADB values its deep and strong ties with Tajikistan and will continue to support the country’s development priorities,” said Mr. Nakao. “ADB plans to provide over $280 million to Tajikistan during 2018-2020 by supporting energy sector reforms and infrastructure investments, improving water resource and disaster risk management, urban development, health and education, and rehabilitating key transport corridors.”

Mr. Nakao commended Tajikistan for its progress in implementing ADB projects that are helping the country improve transport connectivity and energy supply, and expressed appreciation for the government’s strong ownership of ADB projects. “Tajikistan is one of the best performers among ADB member countries in effectively implementing projects,” Mr. Nakao said. ADB is the largest development partner in Tajikistan in terms of its lending volume.

Tajikistan’s economic performance has remained steady, despite a difficult external environment marked by volatility in key commodity prices. ADB recently revised upward its growth forecast for the country to 5.0% for 2017. “Tajikistan’s midterm economic outlook is favorable, given rich natural resources, improving infrastructure, and reform efforts by the government to expand the private sector’s role in the economy,” Mr. Nakao said.

During the visit, Mr. Nakao joined President Rahmon in a groundbreaking ceremony for the Dushanbe-Kurgonteppa road rehabilitation project, which ADB has supported with $65 million in financing in its initial phase. The road is a strategic north-south link, one of the most heavily traveled roads in the country, and is part of CAREC corridors 2, 5, and 6. The project will expand the road from two to four lanes, improve the surface condition, and provide modern safety features, including road signs, lighting, pedestrian crossings, and bus stops. It will also introduce clean energy technologies—solar street lighting and solar-based backup systems—to boost power reliability and efficiency.

Mr. Nakao, together with Minister of Foreign Affairs Sirojidin Aslov, visited Gorno-Badakhshan Autonomous Region and Sarez Lake to assess Tajikistan’s vulnerability to climate change. Tajikistan suffers from severe floods and mudflows annually because of its mountainous terrain, exacerbated by climate change. ADB is helping the country manage its water resources to boost food production and climate change adaptation capabilities. It is helping to rehabilitate and construct climate resilient irrigation channels, river embankment, and rural water supply schemes, while improving food production.

Mr. Nakao joined Minister of Energy and Water Resources Usmonali Usmonzoda to view the Nurek Hydropower Plant, Tajikistan’s main source of power, producing over 60% of the nation’s electricity. ADB recently completed a $55 million project to stabilize the plant’s switchyard, reduce maintenance costs, and extend the life of the facility.

Mr. Nakao will conclude his visit to the country on 27 October at the CAREC Ministerial Conference, where delegates from 11 countries will gather to adopt the CAREC 2030 strategy.

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“Asia is making the transition to growth led by domestic and regional demand,” he said. “But Asia cannot be complacent. To achieve sustainable growth, I believe Asia must become more innovative, more inclusive, and more integrated.”

The new ADB President emphasized the need for an enabling environment in which the private sector can grow, innovate, and create jobs. Critical elements include conducive regulatory systems, support for start-ups, broad-based financial systems, and infrastructure development. Governments must also invest more in their people, providing vocational and tertiary education, and accessible, cost-effective health services.

“All of these must be underpinned by good governance. The rule of law and its just implementation, accountability, and protection of property rights are essential in building a better a climate for investment and innovation,” Mr. Nakao said.

With more than 800 million people in the Asia-Pacific still living in absolute poverty, the region has to address rising inequality, Mr. Nakao noted. For the region’s growth to be sustainable, it also needs to be inclusive, requiring the region to address issues like income inequality, access to good education and health services, gender equity, and provision of social safety nets.

“Inclusive growth is ultimately an issue of empowerment,” Mr. Nakao said. “Empowerment is not just a means of development, but should also be a primary objective of development.”

More can be done toward creating a truly integrated Asia, the President noted, pointing to the success of the Greater Mekong subregion, Central Asia, and South Asia in connecting transport and energy networks, and the potential for improved ICT connectivity to integrate isolated Pacific island economies into the Asia and Pacific region.

“The re-engagement of Myanmar presents a great opportunity for deepening integration, with the promise of substantial gains for Asia and the world as a whole,” he said.

The President noted that Asia’s growth in the world economy brings with it a new responsibility – the responsibility to contribute to solving global issues like climate change and the post-2015  Millennium Development Goals agenda.

In considering ADB’s role in the region, Mr. Nakao highlighted the need for finance, leverage, and knowledge to better meet the region’s needs. He committed ADB to step up efforts to leverage bilateral official sources of finance, private sector finance, and public-private partnerships, and to combine finances more closely together with development knowledge.

The President also announced the initiation of a mid-term review of Strategy 2020 “based on the progress of its implementation, and also on developments in Asia since its adoption in 2008.” He said ADB will also consider a long-term strategic vision for the Asian Development Fund in line with the region’s changing needs.

While the general capital increase in 2009 and successful ADF replenishments have strengthened ADB’s financial resources, the President noted that ADB must “continue examining how we can secure the resource base needed in order to continue to pursue our objectives well.”

Mr. Nakao closed his address by saying that “Perhaps what matters most is ADB’s performance and the results it achieves … I will place the highest priority on outcomes to ensure we respond to the region’s needs as efficiently and effectively as possible.”

Regarding human resources, Mr. Nakao said: “ADB is fortunate to have a diverse staff of talented, professional, and determined women and men. I intend to promote the potential of all our staff through a proactive talent management process.”

Source:This article was first published by the Asian Development Bank (www.adb.org)

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