Finance Technology Innovation NEWSLETTER. Issue 5, April 2018

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1 Finance Technology Innovation NEWSLETTER Issue 5, April 2018 Facility developed by the EBRD with support from the CIF PPCR, the UK and the EBRD ETC Fund EBRD Early Transition countries Fund ("ETC Fund") is supported by Canada, Finland, Germany, Ireland, Japan, Luxembourg, the Netherlands, Norway, South Korea, Spain, Sweden, Switzerland, Taipei China and the United Kingdom

2 ABOUT US Welcome to the fifth issue of the CLIMADAPT newsletter! CLIMADAPT climate resilience journalist of 2017 Awards ceremony On February 16th, 2018 CLIMADAPT project held a CLIMADAPT climate resilience journalist of 2017 Awards ceremony. The competition took place within the framework of the CLIMADAPT project from July 21, 2017, to December 31, 2017, with the aim of to increase media coverage of measures to raise awareness and mitigate the effects of the climate change in Tajikistan. In total 66 entries were received from 39 journalists published in various media (TV, newspapers, online publications and radio) channels. These works reflect the current opportunities to mitigate the effects of climate change and promote technologies that improve energy/water/soil management in Tajikistan. In their articles, journalists raised various climate change issues and discussed advantages of climate resilience technologies for households, farmers and SMEs (small -medium businesses) in Tajikistan. Materials for the competition were evaluated by a jury representatives of the European Bank for Reconstruction and Development and an independent journalist from Tajikistan. Jury members noted a high quality of journalistic materials, their public significance, and effectiveness in raising awareness of climate change mitigation and adaptation issues. Out of 39 participants, the jury selected and awarded seven best ones. Winners were announced at the dedicated ceremony held on 16 February in Dushanbe. CLIMADAPT project will continue its close cooperation with media in the future. For more details, please visit our website. CLIMADAPT facility, funded by EBRD, Climate Investment Funds and supported by the UK government, is here to promote the broader introduction of climate resilience technologies in Tajikistan. Tajik farmers, households, micro, small and medium-sized enterprises can benefit from financial support via credit lines provided by our partner banks and get advice from project consultant team and vendors to improve climate resilience of their businesses and households. Moreover, local entrepreneurs can expand their know-how by participating in our events, like technology workshops held across the country. Through these promotional events, organized in the various regions of Tajikistan, we have reached more than 500 beneficiaries so far. 10 million dollars of credit lines are available under the Programme, and with the efforts of our local partner banks, Bank Eskhata, IMON International, HUMO, Arvand and FMFB approximately 80% of the funds have already been allocated, reaching out to more than 2,700 households, farmers, and MSMEs. In this issue, you will find information about CLIMADAPT success stories of clients who have benefitted from our financial and advisory support. These cases were developed by the PFIs to showcase the positive environmental and economic outcomes from investing in climate resilience technologies in different regions of Tajikistan. More stories of some successful MSME and household clients who benefited from CLIMADAPT in improving their climate resilience and in expanding their business activities can be found on our website. If you have any questions, please contact us directly on info@climadapt.tj or reach us at Kairat Shalabay, Team Leader, CLIMADAPT PORTFOLIO AS OF 1st April beneficiaries consisting of households, farmers and MSMEs 7.8 million USD dollars disbursed 20 climate resilience technologies supported

3 FMFB JOINING THE CLIMADAPT Since the launch of the CLIMADAPT programme, EBRD has provided credit lines to BANK ESKHATA and microfinance institutions IMON, HUMO, and Arvand. The FMFB is the latest financial institution to join the programme. The loan to the FMFB in Tajik somoni worth US$ 1 million equivalent, will be used to finance investments in climate resilience technologies in the commercial and residential sectors. The FMFB provides a full range of banking services through its nationwide network of 7 branches and 29 banking service centers. The network covers all regions of Tajikistan, including remote parts of the country in Pamir and Garm, where the presence of other financial intermediaries is limited. CLIMADAPT project experts organized training programs for the staff of the FMFB to provide information on the project eligibility criteria, work-flow, appropriate innovative technologies, and marketing activities to create market awareness and to stimulate interest. The training took place in December 2017 and January 2018 in the FMFB branches in Khujand, Dushanbe, Kurgan-Tube, Garm, and Khorog cities. In total, more than 130 FMFB s staff participated in this training, resulting in substantially improved knowledge and skills related to the implementation of the CLIMADAPT. As a result of these training programs, FMFB loan officers are fully engaged for disbursement under CLIMADAPT. CLIMADAPT team will further support the FMFB in the implementation of the CLIMADAPT project and strengthen its institutional capacities in the area of climate resilience finance through the dedicated capacity building and promotional activities. GREENHOUSE FOR PRODUCTION OF TOMATOES In Tajikistan only 7% of the land is on plains and valleys, the rest are hills, mountains and highlands. Due to the limited land for cultivation, more and more farmers are choosing to grow their crops in greenhouses. A greenhouse is a covered structure that protects the plants from extensive external climate conditions and diseases, creates optimal growth microenvironment, and offers a flexible solution for sustainable and efficient year-round cultivation. A greenhouse coupled with a drip irrigation system saves farmers valuable resources such as energy, water and labour, it also ensures higher yields compared to field production and short payback period due to high margin for sold products. Having many years of experience in agriculture, Mr. Hasan Shirinov, a head of Nazri farm, constructed his first greenhouse for growing of tomatoes some years ago. Given the high price of tomatoes in our local markets during winter this enterprising farmer in Balkhi district, saw an opportunity to increase his income by building a the second greenhouse. Mr. Shirinov applied to the Rumi branch of First Microfinance Bank of Tajikistan for a CLIMADAPT loan in amount 100,000 Tajik Somoni. One of the experienced FMFB loan officers, Ms. Marifat Lolahonova, helped him to obtain a loan for the construction of the greenhouse. This modern greenhouse includes a drip irrigation system and is covered with a double layer of foil. Since this investment he has noticed that the use of this modern technology helped to him substantially decrease his use of water by 720 m3/year, improve yields and it saved also on mineral, fertilizer and labor costs.

4 SOLAR WATER HEATER FOR RURAL HOUSEHOLD Mr. Sorbon Ozodiev lives with his family in a house located in Jaikhun district of Khatlon region. Due to the interrupted electricity supply and availability of almost 300 sunny days a year, he decided to install a solar water heater in his house. For this, he has referred to CLIMADAPT partner company LLC Homsol, which proposed a suitable model in line with household s daily hot water needs. The CLIMADAPT team has been cooperating with Homsol in the promotion of solar technologies, delivering presentations for sub-borrowers to improve their understanding how these specific technologies can support them. In order to buy and install the equipment, Mr. Ozodiev has obtained a CLIMADAPT loan from Eskhata Bank. Since October 2017 Mr. Ozodiev and his family members enjoy hot water heated by renewable solar energy which significantly reduced his monthly electricity bills. This small investment will save 4,642 kwh annually and while improving the living standards of his family it will also save in his running costs. Mr. Ozodiev s success and improved quality of life has inspired his neighbors to install several similar solar systems in their own houses. CLIMADAPT loan product was advised to Mr. Ozodiev by Eskhata Bank s loan officer Mr. Farid Nazarbekov, Jayhun branch of Khatlon region. BENEFITS OF EFFICIENT IRRIGATION FOR ORCHARD Mr. Shamsuddin Sharifov has over 1.5 ha of orchard in the Vakhsh district, which include apricots and apples. The orchard is located in the hills and it was regularly suffering from insufficient irrigation. This entrepreneur decided to install a pipe irrigation system to provide sufficient and regular water supply for the trees. For this purpose, he obtained a CLIMADAPT loan from MDO HUMO and purchased plastic pipes and energy-efficient water pump. Using the CLIMADAPT loan the client has achieved a significant reduction in water use by 5,750 m3/annum and 2,875 kwh of annual electricity savings. The yield has increased by 15 % and the quality of the fruits has improved, being one of the main outcomes of the project. The gardeners of the Khatlon region suffer from limited access to water, however Mr. Shamsuddin Sharifov s successful experience with the installed efficient irrigation system has now also been replicated by a neighboring farmers who has installed a similar system in their orchards. Mr. Izatullo Ibragimov, loan officer of HUMO, helped Mr. Sharifov to receive a CLIMADAPT loan. Based on gained knowledge and experience Mr. Sharifov is going to increase his orchard area and introduce other types of fruit trees, which will generate additional income in the future.

5 IMPROVING THE IRRIGATION EFFICIENCY OF A FARM Ms. Mahbuba Ganieva lives in a Jabbor Rasulov district of Sughd region and together with her family grows corn. Ms. Mahbuba Ganieva is using a water well for irrigating her crops but the well and water pump wore out over time, and she started facing water shortages due to frequent breaks and water leakages. This has led to lower harvest and increased maintenance costs. To resolve this, she approached MDO Arvand with a loan application for the old well restoration of an old well and the acquisition of a new energyefficient pump. This loan application was processed by Mr. Jahongir Rahimberdiev, loan officer of Arvand branch in J.Rasulov district, Sugd province. As part of the CLIMADAPT project, Ms. Mahbuba Ganieva received a loan of 50,000 somonis, and with the support of these funds, she was able to completely restore her well and install a new pump. Ms. Mahbuba Ganieva is very pleased with results as she now has reduced the costs for electricity and repairs, and the water supply from the well has doubled giving her the opportunity to water all of her lands in sufficient quantities. This year Ms. Mahbuba Ganieva expects a rich harvest compared to the previous years. The potential of agriculture in Tajikistan is huge, and we re grateful for the support we received from Arvand and CLIMADAPT to get closer to our goals," said Ms. Mahbuba Ganieva. Thanks to efficient pump, this farm will benefit from annual electricity savings of 7,035 kwh. It will also eliminate water leakages and losses. These measures will ensure regular irrigation and increase farm s yields. HOW CLIMADAPT HELPED A FURNITURE MAKER TO EXPAND The company Yakubovs, which produces furniture and plastic profiles for windows was set up by two brothers Mr. Sheroz Yakubov and Mr. Suhrob Yakubov. They started their business by importing plastic profiles from Turkey and then began to produce profiles and later on furniture. Furniture products are aimed at households located in Khujand city and the nearest cities and even neighboring Uzbekistan and Kyrgyzstan. Brothers have been planning the expansion of furniture production to include office furniture for offices of business customers. For this, they approached IMON International with a loan request and received a CLIMADAPT loan. With the support of Mr. Abdujalol Nusratov, a loan officer of IMON International branch in Isfara, the company received a timely funding to implement its growth plan. The funds were used to purchase the new equipment. As a result, they opened another shop for furniture production and had met their product expansion goals. It s great that we could access this loan and I hope other entrepreneurs take note going forward," said Mr. Shehroz Yakubov. The equipment has high productivity and also consumes less electricity - the energy savings exceed 15,900 kwh per year. Nowadays, brothers are planning to make another investment in the production of plastic windows, in which Tajikistan is still highly import-dependent.