Tajik-Chinese industrial zone to be established in Tajik city of Istiklol

Construction of a large metallurgical plant to produce zinc and lead has begun in the city of Istiklol in the Sughd province in northern Tajikistan. It will be the first production facility of a new Tajik-Chinese industrial zone in the city, The Times of Central Asia reported.

The Governor of the Sughd province, Abdurakhmon Kodiri, visited Istiklol to get acquainted with the plan of the industrial zone.

According to the plan, the metallurgical plant will cost $200 million and will be built through Chinese investments. When put into operation, the plant will provide permanent jobs and good wages for 1,300 people, 90 percent of whom will be local residents.

China is currently the largest investor in Tajikistan’s economy, the Fergana information agency reported. Tajikistan’s debt to China has now exceeded $1 billion, which is half of the country’s foreign debt. Chinese companies own controlling interests in gold mining enterprises in the Zerafshan valley in northern Tajikistan. China has made large investments in building roads and tunnels in Tajikistan. China Exim Bank has provided $88 million for launching of three chemical facilities of the Tajik Aluminum Company (TALCO). Beijing has committed to provide another $6 billion to Tajikistan in the next three years, half of which to finance the construction of the 4th line of Central Asia-China gas pipeline. In addition, in September 2015, China’s state bank allocated 3.2 billion yuans (around $500 million) to the National Bank of Tajikistan for the support of the exchange rate of the Tajik currency, the somoni.