DUSHANBE, November 8, 2013, Asia-Plus -- Despite the progress made in improvement of power supply and enhancement of service, Pamir Energy Company (PamirEnergy) has a number of unsolved problems.

To improve power supply for customers in Rushan, Vanj and Darvoz districts it is necessary to construct 110kV power transmission lines, the PamirEnergy press center reports.

Besides, new power generating facilities are needed to meet increasing requirements in electricity in the region.

A major part of concession assets that have been in operation nearly 40-50 years need full modernization, the PamirEnergy press center stressed, noting that the company has to create appropriate conditions to solve these problems and attract necessary investments.

“Therefore, despite the progress made in technical and service spheres, the financial situation of PamirEnergy still leaves much to be desired.  The company hopes, first of all, for opportunities of the public-private partnership (PPP) for solving the mentioned problems,” the press center noted.

Maximum use of the PPP opportunities has reportedly allowed PamirEnergy bringing power supply in Khorog and nearby districts of Shugnan and Roshtqala as well as parts of Ishkashim and Rushan districts to 24 hours a day.

PamirEnergy is a joint project of the Government of Tajikistan, the Aga Khan Fund for Economic Development (AKFED), the World Bank’s private finance division, the International Finance Corporation (IFC), and the Swiss Agency for Development and Cooperation (SDC).  A total cost of the project is some 26.5 million U.S. dollars, including the Tajik government’s contribution of 10 million U.S. dollars.

The company has a 25 year concession on the assets formerly under the management on Barqi Tojik (Tajik electricity supplier) in Gorno Badakhshan.  In exchange for this concession (management right), PamirEnergy has invested in completing the Pamir hydropower station, rehabilitating power generation, transmission and distribution assets, and improving the management of the company.