Selling to the Government
The current system of public procurement in Tajikistan was implemented in March 2006 by the adoption of the Law on State Procurement of Goods, Works, and Services based on the United Nations Commission on International Trade Law’s Law on Public Procurement.
Tajikistan is not a party of the WTO’s Agreement on Government Procurement, although it has observer status since 2014. The 2006 Law on State Procurement and several amendments regulates state procurement to ministries, state agencies, and companies and enterprises in which the state holds more than 50% of the shares.
The Tajik Agency on Public Procurement of Goods, Works, and Services - https://zakupki.gov.tj/ is the main coordinating agency in the Tajik government for state purchases. There is an active site with announcements for state procurement - https://eprocurement.gov.tj/ru/searchanno.
U.S. companies considering entering the Tajik market and becoming a government supplier must take into consideration the high level of corruption within the public sector, as well as competition from foreign companies that may use political and other types of leverage during negotiations for state investments. To obtain more information on procurement opportunities, interested U.S. companies are encouraged to contact the U.S. Embassy in Dushanbe.
U.S. companies bidding on government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center, coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.
Financing of Projects
Large infrastructure projects in Tajikistan are often financed through multilateral development banks. The following banks have conducted infrastructure projects in Tajikistan: Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), the World Bank, Eurasian Development Bank (EuDB), Islamic Development Bank (IsDB), Asian Investment and Infrastructure Bank (AIIB), the OPEC Development Fund, the Kuwait Development Fund, the Saudi Arabia Fund, and the Qatar Fund. Commercial financing, such as bank loans and private equity, is also used.
Government-financed projects have previously been funded through state-led PRC-funded loans, leading to China Export-Import (China ExIm) becoming the largest holder of Tajikistan’s foreign debt. New projects originating from PRC deals have now largely shifted to PRC-backed grants.
Currently DFC has no active projects in Tajikistan. Financing for feasibility studies may be available from the U.S. Trade and Development Agency (see contact information below, under Web Resources). Interested U.S. companies should also consider other sources of financing outside of Tajikistan.
Private capital markets are underdeveloped and poorly regulated. The Central Asian Stock Exchange (CASE) has a low volume and is not commonly traded on except for State-owned Enterprises.
Multilateral Development Banks and Financing Government Sales.
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). The Guide to Doing Business with Multilateral Development Banks overviews how to work with MDBs. The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
U.S. Commercial Service Liaison Offices at the Multilateral Development Banks
The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the World Bank. These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help businesses that create U.S. jobs learn how to get involved in bank-funded projects and how to connect to other parts of the International Trade Administration, including the U.S. Field; the overseas network of Commercial Service offices; and, in Washington, desk officers, sectoral experts, and the Advocacy Center.
Learn more by contacting the:
- Commercial Liaison Office to the Asian Development Bank
- Commercial Liaison Office to the European Bank for Reconstruction and Development
- Commercial Liaison Office to the World Bank
Each Post should re-confirm country status about borrowing from the MDBs. If you have any questions regarding your country status, contact Barbara White Barbara.White@trade.gov at the Advocacy Center.