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EIB supports development of water sector in Armenia

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  • EIB supports development of water sector in Armenia

    Financial Services Monitor Worldwide
    July 5, 2014 Saturday

    EIB supports development of water sector in Armenia


    The European Investment Bank (EIB) is providing two loans totaling EUR
    30.7 million to finance improvement of the quality and reliability of
    water supply services and the upgrading of wastewater treatment in
    Armenia.


    The EIB funds will help to improve the living standards of Armenia's
    citizens and contribute to accelerating the social and economic
    development of the country. The EIB loans will consist of: EUR 25.5
    million for the rehabilitation and construction of water and sewage
    infrastructure in Armenia's secondary cities and small communities;
    and EUR 5.2 million for the upgrading of water supply infrastructure
    in selected areas of Armenia's capital Yerevan and several surrounding
    villages, a press release says.

    The EIB loan of EUR 25.5 million will help to implement over the
    period 2014-2018the program of water infrastructure rehabilitation
    carried out by four regional water supply companies in rural Armenia,
    improving water services for some 400,000 people. This program will be
    co-financed with EUR 30 million from the German development bank KfW
    and an EU Neighborhood Investment Facility (NIF) donation of EUR
    15million, consisting of a EUR 12million investment grant and a EUR
    3million technical assistance grant. An additional grant of EUR
    2.5million will be provided by the German cooperation ministry (BMZ).

    This is the first EIB loan extended in the Eastern Neighborhood in the
    framework of the Mutual Reliance Initiative (MRI) jointly developed by
    the EIB, KfWand the French Agency for Development (AFD). The MRI aims
    to maximize the complementarities and synergies between the partner
    institutions and set up a simplified partnership between financiers,
    which benefits project promoters through lower transaction costs and a
    larger financing capacity to support their investment projects. In the
    Armenian water sector project, KfW is the lead financier and as such
    was responsible for appraising the project and preparing key
    documentation.

    The EIB loan of EUR 5.2 million will support a project to be
    implemented during 2013-2015 focusing on improving the water supply
    services in Yerevan. The project will improve the reliability of the
    service and reduce technical and commercial losses as well as energy
    consumption and maintenance costs. This project will be co-financed
    with some EUR 5.3 million from the European Bank for Reconstruction
    and Development (EBRD) and a NIF grant of EUR 5.5 million.

    The EIB has so far provided loans in Armenia, including the current
    projects, amounting to some EUR 158 million supporting investments
    important for the country's development in the areas of transport,
    public transport and water sector infrastructure and indirectly
    financing undertakings of small and medium-sized enterprises (SMEs)
    through EIB partner financing institutions. 2014 Global Data Point.


    From: Baghdasarian
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