Tajikistan received an independent credit rating to certify the international creditors in the republic's solvency.
Moody's has issued a provisional rating for Tajikistan at level B3, but Standard & Poor's (S&P) rates Tajikistan at B-/B, meaning it is between the criteria for the B- level and the B level.
Tajikistan's updated credit rating from this summer reflect both the challenges facing the country and the opportunities it has for economic growth, Jack Anderson, an Analyst at Global Risk Insights and expert on Central Asia, told Trend.
“Investors recognize that Tajikistan is a difficult place to invest. However, S&P says that Tajikistan is making good progress on property rights and pension reforms. Because the Tajik government continues to support private property rights and can responsibly manage its pension system for its citizens, investors are starting to trust Tajikistan,” he said.
They are demonstrating this trust by avidly purchasing $500 million of Eurobonds to finance the Rogun hydroelectric dam, according to the expert.
Earlier, Uzbekistan opposed the construction of this HPP due to several reasons including the danger of constructing such a high wall in an area known for high seismic activity.
Moreover, during the time the reservoir for the dam is being filled, less water would flow into the Amu-Darya river. This, in turn, would have a negative effect on agriculture in Uzbekistan and further downstream.
“Uzbek President Shavkat Mirziyoyev has been less hostile than former President Islam Karimov on the subject of hydroelectric dams in Kyrgyzstan. Only one Uzbek official, Foreign Minister Abdulaziz Komilov, has spoken publicly about Rogun, when he said in July that Uzbekistan would not ask for the construction to stop,” Anderson said.
Instead, Uzbekistan is asking for cooperation under regional agreements, according to the expert.
“This is a good sign that the Uzbek government does not want a major conflict over water resources. Mirziyoyev could work with the Tajik government to ensure electrical and water supplies are properly managed in the region," he added.
The Rogun hydropower plant (HPP) construction project was developed during the Soviet era. Construction of the plant was initiated in 1976, but stopped after the collapse of the Soviet Union. Currently, the ambitious project’s future is unclear.