Tajikistan with its water resources is one of the largest countries with hydropower engineering capacity in the world. Hydropower engineering resources of Tajikistan are unique. The country occupies the eighth place in the world by its hydropower engineering resources and one of the primary places by its specific resources. Tajikistan has capacity to produce up to 527 milliard kWh electricity with total capacity of 4070 megawatts of hydroelectric power stations, however, nowadays, the country uses only up to 5% of existing potential.

Currently the largest hydroelectric power stations of Tajikistan are Nurek Hydropower Plant located on Vakhsh River with the power capacity in 3000 megawatts where semiannual electricity generation rate makes over 11.2 milliards kWh, and Baypasinskaya Hydropower Plant with the power capacity of 600 megawatts and 2.5 milliards kWh annual electricity generation rate.  In addition, there are a number of hydropower stations with power capacity from 25 to 285 megawatts constructed and being in operation successfully in Vakhsk, Varzob, Syr-Darya Rivers. However, taking into consideration the existing hydropower engineering resources this is not sufficient, and it is obvious that the country will be developing its potential in this sphere in future.

According to assessments of many experts, it will take five-seven years and more than 2 milliards USD to rehabilitate the energy system of Tajikistan. At present there is a significant number of investment projects being implemented in energy sector of Tajikistan in partnership with such countries as Russia, Iran, China etc. Besides, other countries express their readiness to invest in energy sector of Tajikistan.

 

Potential Reserves of Hydro Power Resources

River basins Mean annual capacity,
MWt.
Mean annual energy,
TWt.hour.
Share in total volume,
%
Pyandj

14030

122,90

23,20

Gunt

2260

19,80

3,73

Bartang

2969

26,01

4,93

Vandj

1191

10,34

1,96

Yazgulem

845

7,40

1,39

Kuzul Su

1087

9,52

1,78

Vakhsh

28670

251,15

48,00

Kafirnighan

4249

37,22

7,00

karakul Lake

103

0,90

0,17

Surkhandarya

628

5,50

1,03

Zerafshan

3875

33,94

6,38

Syrdarya

260

2,28

0,43

Total

60167

527,06

100,00

 

Foreign direct investment in Tajikistan reached USD 209 million in the third quarter of 2013. The government has put a lot of emphasis on foreign investment for the development of new industrial activities, as well as for modernising existing ones. However, mediocre industrial productivity, a fragile and uncertain business environment as well as insufficient infrastructure are some of the factors that limit the attractiveness of the country.

Aluminum, cotton and energy are the sectors that currently attract most foreign investment. Tourism is also revealing its potential. Tajikistan offers a favorable climate to regional and cross-border investment.

China, Russia, Qatar, Great Britain, Turkey and Iran were the leading investor countries in 2013 (USD 184 million). Russia has notably invested in the construction of medium capacity hydroelectric central power plants and in the banking sector.

 

 

Tajikistan

Eastern Europe & Central Asia

United States

Germany

Index of Transaction Transparency*

8.0

7.0

7.0

5.0

Index of Manager’s Responsibility**

6.0

5.0

9.0

5.0

Index of Shareholders’ Power***

6.0

6.0

9.0

5.0

Index of Investor Protection****

6.7

5.9

8.3

5.0

 

Country Comparison For the Protection of Investors

Source: Doing Business – 2016.

Foreign Direct Investment

2012

2013

2014

FDI Inward Flow (million USD)

233

105

263

FDI Stock (million USD)

1,556.1

1,624.6

1,887.3

Number of Greenfield Investments***

10.0

7.0

6.0

FDI Inwards (in % of GFCF****)

17.2

8.2

19.7

FDI Stock (in % of GDP)

20.5

19.1

20.4

 

Tax Rates

Value added tax (VAT) 20%
Company Tax 25% (15% for enterprises producing goods)
Withholding Taxes
Dividends: 12%
Interests: 12%
Royalties: 15%
Social Security Contributions Paid By Employers 25%

 

Individual Taxes

Personal income tax

Progressive scale 8-13% is applied for calculating income tax of individuals. Employment income of the non-residents is taxable at 25%.

 

Country Comparison For Corporate Taxation

Tajikistan

Eastern Europe & Central Asia

United States

Germany

Number of Payments of Taxes per Year

28.0

16.7

10.6

9.0

Time Taken For Administrative Formalities (Hours)

276.0

238.0

175.0

218.0

Total Share of Taxes (% of Profit)

81.8

37.5

43.9

48.8

 

Business Setup Procedures

Setting Up a Company

Tajikistan

Eastern Europe & Central Asia

Procedures (number)

4.00

4.68

Time (days)

11.00

10.35