EBRD lends support to Tajik telecoms sector

The European Bank for Reconstruction and Development (EBRD) is lending the privately-owned Tajik telecommunications company ISP Telecom-Technology with a loan of US$2.7mn.

The funds will be used to co-finance essential communications links and the expansion of the company’s networks.

ISP Telecom-Technology was set up in 1994, in 1998 became the first internet provider in Tajikistan. It opened the first internet café in the capital Dushanbe in 2000 and the same year installed its first satellite station enabling it to offer internet services to customers in cities in the remote north of Tajikistan. The company also offers voice and data links, calling cards and is expanding rapidly into the access area.

Michelle Senecal de Fonseca, EBRD director telecommunications, comments on the country’s telecoms sector: “Despite rapid growth in recent years Tajikistan has a slower penetration rate than other countries in the region. Therefore the loan to ISP Telecom-Technology serves as an example for what the bank can do as both business and private customers will benefit from improved and enhanced internet and telecoms services.”

The EBRD finance is provided under the direct lending facility for Tajikistan, an instrument to meet the growing demand for medium-sized loans, with medium to long term maturities, in early transition countries.

The EBRD’s early transition countries Initiative was launched in April 2004, and includes Armenia, Azerbaijan, Georgia, the Kyrgyz Republic, Moldova, Mongolia, Tajikistan and Uzbekistan.