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EBRD loan will upgrade Armenia's air cargo handling capacity
Ground facilities and air cargo handling services will be greatly improved at Armenia's Zvartnots Airport with financing from the European Bank for Reconstruction and Development (EBRD). The US$ 22.8 million (ECU 19 million equivalent) loan, signed today, will fund the construction of a new cargo terminal and taxiways, and equipment for loading and unloading cargo.
Jacques de Larosière, President of the EBRD, said upon signing: "This project will play a crucial role in the development of an efficient transport system for Armenia, a land-locked country which is heavily dependent on air-transport services. This will facilitate Armenia's efforts to develop new trading links with Western countries. The EBRD's loan will introduce modern cargo handling principles and establish proper control and registration of air cargo. We are happy to support the Armenian government's efforts to develop a commercial approach to cargo services which, we believe, will eventually lead to private investment in Armenian aviation".
The current facilities at Zvartnots Airport present a bottleneck to the free movement of goods to and from the greater Yerevan region. Congestion is common due to inefficient handling and lack of storage space. Cargo registration and security are insufficient, making it difficult for Western carriers to obtain adequate insurance cover.
The new cargo terminal will include an earthquake-proof structure providing 6,000 square metres of warehouse space. Construction of a new apron and taxiways to accommodate cargo aircraft will eliminate present inefficiencies in cargo handling. In addition to providing physical improvements, the project will introduce market-oriented management practices and mechanisms for registration and monitoring of imports and exports. Armenia will establish a monitoring function which will report independently on the exclusively civilian use of the airport.
The total cost of the project is estimated at US$ 27.8 million (ECU 23.6 million equivalent), with a foreign exchange cost of US$ 22.8 million which will be met by the EBRD. The local cost element of US$ 5 million consists of local labour and materials for the civil works, and will be financed by Zvartnots Airport and the Republic of Armenia.
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