DUSHANBE, Tajikistan. August 23 — The Government of Tajikistan has committed to the financial rehabilitation of its state-owned energy company, Barki Tojik, through a partnership with the World Bank, with plans extending until 2031.
This initiative, reported by the international rating agency Standard & Poor’s Global Ratings, is based on data provided by relevant Tajik ministries and departments, aiding in the assessment of the country’s sovereign credit rating. S&P analysts have highlighted Barki Tojik’s substantial debt to private creditors and suppliers, attributing it to the sale of electricity below cost-recovery levels.
The government’s strategy includes raising domestic electricity tariffs to full cost recovery by 2027 while also reducing technical and commercial losses. In line with this plan, electricity prices for both domestic and industrial consumers were increased by 17% in 2022 and an additional 15% in 2024.
S&P notes that state-owned enterprises in Tajikistan, including Barki Tojik, carry obligations equivalent to about 35% of the country’s GDP, with Barki Tojik alone accounting for approximately 90% of this debt. Despite this, the government continues to guarantee Barki Tojik’s external loans, with the company’s total debt exceeding 37.4 billion somoni (around $3.4 billion) as of early 2024.
Historically, electricity tariffs were raised only in even-numbered years until 2016, after which annual increases became the norm. Exceptions were made in 2020 and 2021 due to the impact of the COVID-19 pandemic. The most recent tariff increase took effect on January 1st, with household consumers now paying 30.75 dirhams (2.9 cents) per kilowatt-hour.
Over the past decade, electricity costs for households have surged 3.4 times, rising from 9 dirhams per kilowatt-hour in January 2010 to the current 30.75 dirhams. The government attributes these increases partly to World Bank recommendations, which, since the early 1990s, have advocated for gradually raising tariffs to encourage more rational energy use.
