Introduction

This Factsheet outlines the current progress in advancing Sustainable Public Procurement (SusPP) in Tajikistan based on a desk review. The review applies an analytical framework of six Pillars (or "building blocks") of SusPP systems.

The Framework is designed to make clear that countries do not need to follow a linear step-by-step path to build effective GPP systems. Rather it is important to examine local contexts and prioritize the Pillars with the most potential in the country. No matter where a country starts, a balanced approach to implementation calls for progress on all Pillars to some degree.

This Factsheet is organized as follows:

• "Country Overview" section with executive summary, indicative maturity rating, key achievements, potential pathways forward and timeline of key events related to advancing sustainable public procurement.
• "State of Play & Forward Looking Analysis" section that summarizes the research findings from the desk review for each Pillar theme.
• "Key Stakeholders Driving the Agenda" explores opportunities for ADB teams to open discussions with country counterparts and add value to the work of partners.

The Factsheet is intended to be a living document to promote knowledge sharing and support training activities at ADB. It will be revised and improved as new information is uncovered and advances are made. If you have new information, please contact ychu@adb.org.

The Government of Tajikistan has formally recognized sustainable and social procurement as a tool to achieve its green economy ambitions in its Strategy for the Development of a Green Economy, adopted in 2022. This Strategy expanded on the Government’s National Development Strategy 2030, which first aligned its development vision with the global 2030 Agenda for Sustainable Development. Progress is being made already in the procurement of electric vehicles as part of the country’s Electric Transport Development Program, also adopted in 2022. However, progress in other areas of sustainable and social procurement appears limited to date.

A new Public Procurement law (PPL) was passed in February 2023 as part of the country’s efforts to modernize its procurement system in its negotiations for accession as a member to the World Trade Organization (WTO) Agreement on Government Procurement. The new PPL, Article 21, promotes procurement that supports achievement of the nation’s sustainable and social development and assigns the Government responsibility for its promotion. This responsibility is passed down to the central procuring body, the Tajikistan Agency on Public Procurement of Goods, Works and Services.

However, sustainable and social procurement, in practice, remains limited. However, with the recent legislative and policy advancements, a strong foundation now exists to open discussions with the Government and expand activities. The shift to a green economy is vital for the country. While being one of the lowest emitters of greenhouse gas emissions (GHG) in the Central Asia region, Tajikistan is experiencing rapid melting of glaciers, significant reduction in water resources, floods, mudflows, droughts and other natural disasters that threaten this mountainous land-locked country. And with its significant renewable energy potential, significant opportunities exist to create new green and inclusive jobs for the Tajikistan people.

>> Visual snapshot of Sustainable Procurement Maturity Level

Maturity Level:

Very Early Stage

Official Procurement Portal: https://zakupki.gov.tj/

E-procurement Portal: https://eprocurement.gov.tj/ru/searchanno

Key Achievements

• Sustainable procurement recognized as a tool to achieve the country’s Green Economy ambitions
  
• 2023 Public Procurement Law (PPL) reform specifically promotes “sustainable and social procurement”
  
• Strong green foundations exists already with electricity grid mainly powered by hydropower and significant additional renewable energy potential
  
• Adoption of electric vehicles for public transport already underway, backed by strong government policies and programs
  

Potential Pathways Forward

• Raise awareness of new opportunity in reformed PPL to practice sustainable and social procurement
  
• Develop secondary legislation and instructions to provide detailed guidance on sustainable procurement procedures and criteria
  
• PIlot sustainable and social public procurements with interested government agencies, especially on electric vehicles, energy efficiency and food/catering
  
• Integrate sustainable procurement into other sectoral policies (energy efficiency, low-carbon transport, SME, gender) as a key policy tool
  
• Support diagnostics, trainings and tools development
  
• Expand the E-Procurement Portal to track indicators on sustainable procurement
  

>> Timeline of Implementation of Sustainable Procurement Activities

2021

2022

2023

2016

2011

Energy Efficiency Master Plan

National Development Strategy 2030 sets out several environmental and social goals for the nation

Government commits to 40-50% reductions of GHG emissions by 2030

Green Economy Strategy adopted and calls for sustainable public procurement to achieve its ambitions

Program to Develop Electric Transport adopted to create conditions for EV uptake

Strategy for the Development of a Green Economy in the Republic of Tajikistan for 2023-2037

New Public Procurement Law adopted that promotes “sustainable and social procurement”

Pillar 1: Government Vision & Awareness of SusPP

Governments that establish a clear policy vision on SusPP can accelerate the shift from procurement as an adminstrative to strategic function, making clear how SusPP can deliver on important national social and environmental goals.

Sustainable public procurement

Sustainable public procurement has been recognized by the Government of Tajikistan as a tool to achieve its national development ambitions in its Strategy for the Development of a Green Economy in the Republic of Tajikistan for 2023-2037. Adopted in 2022, the Strategy focuses on implementing institutional reforms, efficient utilization of natural resources, attracting investments, adopting modern technologies, and strengthening international cooperation to promote green economic practices.

To achieve the objectives of the strategy, “public procurement policies favoring entities producing eco-friendly products and using sustainable production methods” is set out as a key action. Other priorities include increasing public investment in sustainable infrastructure like public transport and renewable energy sources, constructing energy-efficient buildings, and preserving natural capital. The Strategy also calls for targeted state support for research on environmentally friendly technologies. Ultimately, the Strategy seeks to enhance the living standards of the country's population through sustainable economic growth.

Other related development goals

The Government of Tajikistan has integrated the Sustainable Development Goals (SDG) into its National Development Strategy (NDS-2030). The NDS sets out several goals that sustainable procurement can contribute towards, including energy efficiency, low-carbon transport, renewable energy, sustainable agriculture, promotion of small and medium sized enterprises (SME) and gender equality in the workforce.

Tajikistan submitted an update to its Nationally Determined Contribution (NDC) in October 2021 with a conditional target of reducing emissions 40-50% by 2030 compared with 1990 levels. The NDC sets out various mitigation c-benefits from its planned adaptation actions across its key sectors (pp. 12-15), including:

• Low-carbon transport: The NDC envisions a transportation of the country’s urban mobility by switching to cleaner fuels and fuel efficient vehicles, as well as promoting public and non-motorized transport. The Government adopted an Electric Transport Development Program in 2022 that aims to create favorable conditions for adoption of electric vehicles. Under the Program, taxes and customs duties are waived on imports of EVs, including electric cars, electric buses, and trolleybuses. It also provides for creating infrastructure to support a network of electric vehicle charging points in the country.
  
• Energy efficiency: Designing energy-efficient buildings through improved appliances, equipment and building practices. Energy efficiency remains low in Tajikistan and remains an area of potential that has been hindered due to the lack of a coordinated approach.
  
• Construction & Waste: Promoting “green” investment projects and developing innovative technologies and infrastructure for the economic reuse and circulation of waste products.
  
• Agriculture: Promoting efficient irrigation technologies, climate-smart and conservation agriculture and improved disposal of agricultural waste.
  

In 2023, the Government instructed relevant ministries to speed up the process of supporting local production and purchase of EVs in the country. Electrification is considered a high impact action in Tajikistan given that 95% of the country's electricity was generated by hydroelectric power plants, mainly large and medium-sized plants.

Further renewable energy development is an area of significant economic potential for the country. Within its NDC, the Government committed to doubling its hydropower capacity by 2050. Its largely untapped solar and wind energy potential is estimated to be sufficient to meet 10-20% of energy demand. With its proximity to fast-growing energy markets in neighboring countries, leveraging the country’s renewable potential can contribute to regional energy security as well as contributing to green economic growth for its citizens. A key action can be to set specific targets to achieve on adoption of sustainable procurement, electric vehicles, energy efficiency and green buildings, as well as SME participation and women-owned businesses.

Areas of Potential

A significant milestone has been reached with the official recognition of public procurement as a tool to achieve national goals in the 2022 Green Economy Strategy. However, the Government of Tajikistan still lacks a specific policy or action plan to promote sustainable public procurement. An opportunity exists to foster further discussion of the benefits of sustainable procurement and integrate it formally as a priority tool in other sectoral policies.

Pillar 2: Legal & Regulatory Framework

Procurement law reform can be key to clear obstacles to implementation by establishing "value for money", not "lowest price", as a core procurement objective, and authorizing procurement approaches suited to SusPP.

Public procurement in Tajikistan is regulated by the Law No. 1955 About public procurements adopted on March 15, 2023 (PPL). The development of this legislation was motivated by the Government’s ambition to accede as a Member to the WTO Agreement on Government Procurement, under which it has held Observer Status since 2014. This updated legislation specifically promotes “procurement for sustainable and social development” in Article 21. The Law further defines this concept as procurements that:

• Reduce the negative impact and promote a potential positive impact on the environment;
  
• Expand opportunities for small and medium-sized businesses (SMEs), including women entrepreneurs, institutions and enterprises of the penal system, organizations of persons with disabilities; and
  
• In general, promotes corporate social responsibility, health care, and social well-being in the Republic of Tajikistan.
  

Article 21 highlights that procuring entities can break down procurements into lots in order to expand opportunities for participation of SMEs. Minimal environmental and social standards may be imposed on the winning bid based on existing regulatory requirements in the country.

Bids are to be awarded on the basis of the “most advantageous bid” that can include price and non-price criteria, specifically “total life cycle costs” (Article 46). All non-price evaluation criteria should be, if possible, quantifiable and set out in monetary terms to allow objective evaluation between bids.

The central procurement body, the Agency on Public Procurement of Goods, Works and Services, is authorized to conclude framework agreements for mandatory use by procuring entities for common use and urgent items (Article 54). This approach can be useful to introduce a whole-of-government approach to practicing environmentally-friendly or social procurements while reducing the burden on individual procuring entities.

Areas of Potential

The recent legislative advancements have removed any legal uncertainty that sustainable procurement can be practiced in government procurements. More work is needed to develop regulations and instructions to clearly set out the process to implement these new procurement practices.

Pillar 3: Institutions & Capacity

Procurement

The Government of the Republic of Tajikistan has been granted competencies to “determine measures aimed at procurement for sustainable and social development (PPL Article 6.3). This responsibility falls upon the Agency on Public Procurement of Goods, Works and Services as the government’s central procuring body, created by Order No. 228 of 2010.

In general, the procurement system in Tajikistan is decentralized with each ministry or government agency responsible for managing their own procurements once they have obtained a “qualified procuring entity” status (Article 11). For procuring entities that have not been certified, procurements are carried out by the Agency on Public Procurement of Goods, Works and Services.

Green Economy

The Green Economy agenda in Tajikistan is being driven by the Deputy Minister of Economic Development and Trade. The Ministry hosted a multi-stakeholder dialogue to jointly discuss the development of the Green Economy in Tajikistan. The event brought together several institutions, including the Ministry of Economic Development and Trade, Ministry of Agriculture, the Centre for Strategic Research under the President of Tajikistan,

the State Committee on Investments and State Unitary Enterprise TajInvest, several investment promotion groups and the Internet community “Economic News Tajikistan”. This provides a listing that could also be engaged in sustainable procurement activities.

The promotion of EVs in the country is led by the Ministry of Industry and New Technologies and the Ministry of Transport.

Training

No specific capacities or training programs on sustainable and social procurement were identified in this desk review. Guidance and trainings on both the benefits of and process of designing sustainable procurement could be helpful to expand adoption of such practices in Tajikistan. The creation of an inter-ministerial body to coordinate an all-of-government approach to implementing sustainable procurement can also accelerate implementation.

Pillar 4: Market Practices

Market dialogue throughout the procurement process helps procuring entities to choose realistic sustainability criteria and ensure suppliers succeed in delivering on sustainability commitments over the contract duration.

Market dialogue

The PPL specifically allows procuring entities to conduct preliminary consultations with the market, including independent experts and bodies or businesses (Article 17). Such consultations must be carried out collectively with the advice gathered used to design procurements. This approach can help procuring entities attract a competitive market response while opening the door to green and social innovations.

The PPL also allows procurements to be designed as two-stage competitions (Article 47) and competitive negotiations - both approaches allow significant opportunities for procuring entities to learn about market capacity from potential bidders during the procurement process.

Financing

Tajikistan’s leading microlending institution, Imon International, received a US$ 6 million financial package to support microbusinesses and green lending through support from the European Bank for Reconstruction and Development (EBRD) and Green Climate Fund (GCF). The Government has estimated funding requirements of US$ 21.5 billion to implement its Strategy for the Development of the Green Economy for 2023-2037” including for introducing modern and innovative technologies.

Businesses

In line with the growing interest in electric vehicles, a local taxi company based in Dushanbe, named Yak Tax, has taken the initiative to promote sustainable transportation options. They have introduced a new category on their taxi booking app, allowing customers to book electric vehicles for their rides. Consequently, several electric cabs, distinctively painted green, have been spotted on the streets of Dushanbe during the year 2022.

At a 2022 multi-stakeholder dialogue on the Green Economy in Tajikistan, several private sector attendees participated including the Chamber of Commerce and Industry, Advisory Council for improving the investment climate under the President of Tajikistan, National Associations of Small and Medium Business of Tajikistan, and Union of Professional Consultants of Tajikistan. Businesses also exhibited their green products and services.

The Aga Khan Development Network runs an Accelerate Prosperity (AP) initiative, a business accelerator that provides technical expertise, creative financing solutions and market connections for small and growing businesses. In Tajikistan, the AP initiative focused on improving business opportunities in the agricultural and tourism sectors. These sectors were prioritized given that job creation and food security were leading community concerns.

Pillar 5: Procurement Operations

Various tools and procurement approaches can be employed to help procurers more easily identify environmentally friendly goods and services and attract a competitive market response.

Sustainable procurement practices remain limited in Tajikistan. Some progress is being made in the purchasing of electric vehicles by government entities. In December 2022, a new electric bus was introduced on the streets of Dushanbe, the capital city of Tajikistan. The electric bus was assembled locally at the Akia Avesto plant in Dushanbe. One of the notable features of this electric bus is its impressive range, as it can travel up to 200 kilometers on a single charge.

However, in general, the country lacks any specific guidance, manuals and criteria sets that can help procuring entities to design sustainable procurements. The Government, through the Public Procurement Agency, has the legislative mandate to promote sustainable procurement. However, no evidence was found in this desk review of the Agency organizing sustainable procurement approaches, such as through framework or joint agreements, listings or directories. Work is needed to show how sustainable procurement can work in practice in the country, including through pilot procurements and demonstrations in ADB-financed projects.

Pillar 6: Monitoring & Impact Measurement

Monitoring systems are essential to gather the information needed to keep SusPP implementation on course and communicate on the benefits achieved for the country.

No monitoring system exists in Tajikistan to track public procurements, including any indicators on sustainable procurements. The Government launched an updated E-Procurement Portal in 2019 with World Bank financing, mainly motivated by anti-corruption and efficiency concerns. More updates are planned to the Portal including introducing new methods of public procurement, supporting small and medium-sized enterprises, and establishing an independent institution for reviewing bids complaints. This Portal could potentially be leveraged in the future to track sustainable procurements digitally and efficiently.

Projects Supported by ADB

ADB helps Tajikistan progress toward inclusive, green, and resilient development. ADB has supported capacity building of executing and implementing agencies within the Government of Tajikistan on procurement and disbursement functions through training, workshops, and on-the-job consultations. The ADB has also completed knowledge work on the energy market (December 2022) and small and medium sized enterprises (November 2022). The ADB also supported a project “Tajikistan: Access to Green Finance Project” that provided better financial access to smart green energy solutions (SGES) through household loans (evaluated in February 2022).

Other Initiatives supported by National/International Agencies

The World Bank approved $50 million in grant financing from the International Development Association for the Tajikistan Development Policy Operation (DPO). The grant will support key reforms aimed at improving the business environment, strengthening public sector governance and enhancing resilience to shocks. The World Bank has also supported the Public Finance Management Modernization Project II in the form of a US$ 6 million grant from the International Development Association (IDA). The project supported the implementation of e-procurement and development of a regulatory and institutional framework for public procurement.

The European Bank for Reconstruction and Development (EBRD) and Green Climate Fund (GCF) provide US$ 6 million to Tajikistan’s microlender Imon International to support microbusinesses and green lending.

The European Union and GIZ are both active in supporting the development of the Green Economy concept in Tajikistan through various projects.

References

ADB Member Fact Sheet, 2023. Tajikistan.

International Energy Agency, 2022. Tajikistan 2022: Energy Sector Review.

International Energy Agency, 2021. Cross-Border Electricity Trading for Tajikistan: A Roadmap.

Government of the Republic of Tajikistan, last updated 2015. Order No. 228 About Agency on public procurements of goods, works and services under the Government of the Republic of Tajikistan.

Government of the Republic of Tajikistan, 2016. National Development Strategy (NDS-2030).

Government of the Republic of Tajikistan, 2021. Updated Nationally Determined Contribution.

Government of the Republic of Tajikistan, 2022. Decree No. 482 “On the Green Economy Development Strategy in the Republic of Tajikistan for 2023-2037” dated September 30, 2022.

Government of the Republic of Tajikistan, 2022. Decree No. 532 “On the Electric Transport Development Program in the Republic of Tajikistan for 2023-2028” dated October 31, 2022.

Government of the Republic of Tajikistan, 2022. Decree No. 532 “On the Electric Transport Development Program in the Republic of Tajikistan for 2023-2028” dated October 31, 2022.

Government of the Republic of Tajikistan, 2023. Law No. 1955 “About public procurements” adopted on March 15, 2023,

Opitz-Stapleton, S. et al., 2022. Understanding the climate and net zero transition risks and opportunities in Tajikistan. Policy brief. London: ODI (www.odi.org)

OSI and IDFI. 2018. Tajikistan: Public Procurement Law Assessment. Tbilisi, Georgia.

The World Bank. Global Public Procurement Database “Tajikistan country profile for 2021”.

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