Plans under the project include modernizing Khujand’s sewerage network and reconstruction of an old wastewater treatment facility, which is not in use disuse following the collapse of the Soviet Union.
Khujand, which is the capital of the Sugd region, needs to upgrade its municipal infrastructure to improve wastewater management.
Khujand Water Company will receive a $3.5m loan from the EBRD and a $5.35m grant from SECO for the improvements.
Some of the money will also be utilized to upgrade the water supply, providing running water for around 15,000 people.
EBRD head of office in Dushanbe Richard Jones said: "We are proud to contribute to a better quality of life for people in Khujand and the many other Tajik cities where we invest in clean water and better wastewater management. The planned modernisation programme will significantly reduce pollution and public health hazards."
SECO country director Peter Mikula said: "The cooperation between SECO, the EBRD and the city of Khujand dates back to 2004 and our first joint water project in the city. The projects have been highly successful and the project structure has served as a model for water projects elsewhere in the country and the region."
