Supporting Agribusiness
and Tourism Activities
in Khatlon and GBAO

THE PROJECT CONSISTS OF FOUR COMPONENTS, STRUCTURED BY ACTIVITY AND BENEFICIARY:

  • Component 1 aims to improve public infrastructure for agribusiness and tourism development.
  • Component 2 supports micro, small and medium enterprises (MSMEs) and entrepreneurs in agribusiness, community tourism and related sectors through matching grants.
  • Component 3 aims to strengthen skills, entrepreneurship and business development services so that potential beneficiaries can take full advantage of the grant programs under Components 1 and 2.
  • Component 4 provides project coordination and implementation, as well as grant management and administration.

GRANTS AND MATCHING GRANTS

COMPONENT 1 AND COMPONENT 2 OF THE REDP INCLUDE GRANTS AND MATCHING GRANTS TO SUPPORT AGRIBUSINESS AND TOURISM DEVELOPMENT IN KHATLON AND GBAO. DIFFERENT TYPES OF GRANTS INCLUDE:

  • Grants to communities, municipalities and non-profit organizations to improve tourism and agribusiness infrastructure and develop local tourist attractions:
    • Grants to communities, municipalities or non-profit organizations to improve tourism infrastructure or develop local tourist attractions.
    • Grants to communities or municipalities to improve the infrastructure of public agricultural markets (bazars).
  • Funding threshold for community infrastructure grants:
    • For general competitive bids for community-based tourism infrastructure, up to 80,000 USD per grant application in Khatlon Oblast and GBAO will be allocated.
    • There is no limit on the minimum grant amount.
    • Funding will be 100% up to the threshold specified in the bids.
  • Matching grants to support MSMEs and entrepreneurs in tourism, agribusiness and related services:
    • Matching grants to farmers and MSME agribusinesses to support post-harvest storage and processing.
    • Matching grants to farmers and processors in two agribusiness value chains.
    • Matching grants to tourism-related MSMEs to improve services.
  • Funding limits for Component 2:
    • Unless otherwise specified in the Call for Proposals, there is a maximum limit of $20,000 for individual farmers and individual MSMEs.
    • The percentage of equity grant funding is normally no more than 80% of total project funding. In exceptional cases for applicants from vulnerable groups, the maximum percentage may be increased up to 90%.

ELIGIBILITY REQUIREMENTS FOR THE GRANT PROGRAM

FOR GRANTS

    Beneficiaries of grants to improve tourism and agribusiness infrastructure and develop local tourist attractions include:
    • Municipalities - local self-government bodies, including local representative bodies of state power and local executive bodies of state power.
    • Communities, defined as jamoat - self-governing body in villages, which is elected by villagers and resolves issues of local importance within its competence.
    • Non-profit organizationsare defined as voluntary, self-governing, non-profit association of citizens or legal entities united on the basis of common interests to achieve the goals specified in the charter.
    Beneficiaries may submit their applications jointly, but one of the beneficiaries must be the lead, and the grant agreement is signed between the PIU and the lead organization.

FOR MATCHING GRANTS

    The following MSMEs and entrepreneurs operating in the tourism, agribusiness and related hospitality industries are eligible for matching grants:
    • Officially registered individual farmers:
      • without forming a legal entity.
      • with formation of a legal entity.
    • Formally registered farmers' groups, or associations:
      • Simple partnerships.
      • Cooperatives.
    • Formally registered micro, small and medium enterprises (MSMEs) operating in tourism, agribusiness or other related sectors.
    • Formally registered individual entrepreneurs operating in tourism, agribusiness or other related sectors:
      • with formation of a legal entity.
      • without forming a legal entity.
    • Artists are defined as a natural person working on the basis of a patent, Government Decree No. 451 of 31.08.2012.
    • Craftsmen are defined by the Law "On Craftsmanship" No.1619 of 20.06.2019, Article 1, as a natural person with skill, mastery, knowledge and (or) professional specialization, engaged in craft activities.
    • Associations and officially registered groups of such registered entrepreneurs and MSMEs.
    • Tour Operators – All tour operators that can be identified from the moment they receive a license from the KRT under the Government of Tajikistan.
    • Registered start-ups are eligible to receive funding in the form of co-financing grants.
    • The informal sector will not be supported by the grant program. Potential informal beneficiaries can apply for matching grants and receive support under the matching grants program if they become formal. Grantmakers can support their formalization process.
    Ownership Requirement: MSMEs supported under the Grant Program must have domestic majority ownership (50.1% or more) and must not receive funding for goods and services to be funded by grants from other sources. Group or association ownership must also be predominantly domestic (50.1% or more).

OTHER ELIGIBILITY REQUIREMENTS

    Geographic Location: Projects funded by grants and matching grants must be implemented in Khatlon Region or GBAO. Some grant beneficiaries, such as tour operators, may register and have their main office in other districts of Tajikistan, but they must operate in Khatlon Region or GBAO. Grants and related grant funds will only be used for projects and investments in Khatlon and GBAO.
      Documentation requirements for the beneficiaries:
      1. Individual farmers must submit registration documents and a certificate of land use;
      2. associations and officially registered groups should submit registration documents; and
      3. individual entrepreneurs, MSMEs and NGOs must submit registration documents, in addition to a license (for some activities) and balance sheets.

SUBMIT APPLICATION

    Interested parties (organizations, businesses) are encouraged to contact the local grant facilitator in their region (see Contacts for details) to first check their eligibility for a grant. If eligible, the grant initiator works with the applicant to prepare a grant application, which includes the development of a simple business plan for the project, a budget, and necessary documents such as business registration or a license under Tajik law. The completed grant application is reviewed by the Grant Committee organized by the Project Implementation Unit of the Ministry of Finance of Tajikistan.

CONTACT THE GRANT FACILITATORS

    The best way to apply is to contact a local facilitator in your area. A list of grant facilitators can be found in the "Contacts". The grant facilitators will explain the requirements and guide you through the grant application process.