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Tajikistan Secures New Chinese Loans and Investment

On June 7, Tajikistani President Emomali Rahmon returned home from a week-long tour of China. The tour included a five-day state visit followed by Rahmon’s participation in the 12th summit of the Shanghai Cooperation Organization (SCO) in Beijing. Following the trip, the Tajik President’s office announced that ten new deals signed in Beijing would bring Tajikistan about $1 billion in new Chinese investment, loans and aid. Experts suggest that the new deals will increase China’s economic clout in Tajikistan, giving Rahmon more leverage in dealings with Moscow.

As part of the deals inked during the visit, Beijing has pledged to invest some $600 million to build a large cement plant in Tajikistan’s southern district of Shahritus, on the border with Uzbekistan. When completed, the plant is expected to produce three million metric tons of cement annually, using local limestone reserves. According to Rahmon’s press service, the plant will be a joint project between the Chinese government-run National Materials Group Corporation and the state-owned Tajik Aluminium Company (Talco) (president.tj, June 7). Eager to break its dependence on cement imports, Dushanbe previously negotiated similar deals with Tehran and Islamabad (news.tj, June 11, 2011; June 1). However, joint projects with Iran and Pakistan have taken too long to get off the ground, leading Tajikistan to seek Chinese investment instead.

Beijing has also pledged to build a coal-driven combined heat and power (CHP) plant in Tajikistan’s capital, Dushanbe. Although negotiated over a year ago, the $200 million project stalled because of disagreements over the plant’s technical specifications. Following Rahmon’s return from Beijing, it was announced that Chinese specialists will begin the construction of the plant “within the next several days” and will complete the project within a year. The CHP plant project is part of the Tajikistani government’s effort to use the country’s coal resources in tackling power shortages. China is also helping Tajikistan’s state-owned cement factory in Dushanbe and a number of other enterprises to switch from imported natural gas to local coal (president.tj, June 7; news.tj, April 28, 2011).
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Filed under Energy, Industry, Tajik-Chinese relations, Tajikistan