Background

1. OSHC Barqi Tojik, an Open Stock Holding Company owned by the state, is a vertically integrated power utility operating under the direct control of the Government of the Republic of Tajikistan and is responsible for the generation, transmission and distribution of electricity in the Republic of Tajikistan. The company serves a consumer base of approximately 1.6million and employs over 11,3 people. Its largest consumer is Tajik Aluminium Company (TALCO), which accounts for approximately 8% of domestic electricity sales in Somoni (16,2% in kWh). Residential consumers, amounting to about 1.49 million, account to approximately 46,6% of domestic electricity sales in Somoni (48,5% in kWh).

2. OSHC Barqi Tojik conducts its distribution/sales functions through its head office in Dushanbe and 30 subsidiary and reporting entities, which are scattered throughout the country. Currently there are 17 electricity distribution networks involving 57 distribution centres with sales/accounts receivable responsibilities.

3. The power sector of Tajikistan is facing some challenges with operational and financial efficiency which need to be addressed urgently. High technical and commercial losses, poor revenue collection experience, ineffective accounting/reporting systems and management practices have resulted in OSHC Barqi Tojik having to rely on the Government for budgetary support to sustain the company’s operations.

4. OSHC Barqi Tojik is being supported by the World Bank with financial and technical assistance to improve the quality of electricity services and achieve institutional development objectives. 

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