Part of the funding will be used to install a 120km transmission line in Tajikistan.
The funding is expected to facilitate the development of regional renewable electricity trade in Central Asia, EIB said.
EIB vice-president Wilhelm Molterer said: "The EIB loan will help improve the reliability and capacity of vital energy infrastructure needed for improving the quality of life of Tajik citizens and for further economic development in the region.
"The new energy infrastructure will foster electricity trade with neighboring countries and make it possible to attract foreign investors due to safer energy supplies."
The project is part of the Central Asia – South Asia Electricity Transmission and Trade (CASA-1000) regional electricity scheme.
The programme is designed to develop sustainable conditions for clean electricity trade from hydropower plants (HPP) in countries, including Tajikistan, Kyrgyzstan, Afghanistan and Pakistan.
EIB has also agreed to finance the construction of a new 500/220kV substation and extension of two existing power substations in Tajikistan as well as extension of a substation in Kyrgyzstan.
