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Levan Sharvadze, Operations Leader
sharvadl@ebrd.com

Kotayk Solid Waste Management Project

Country:Armenia
Project number:39603
Business sector:
Public/Private:Public
Environmental category:A
Target Board date:25 Apr 2012
Status:Cancelled
PSD disclosed:8 Dec 2011

Project Description

The EBRD is considering providing a €3.5 million sovereign loan to the Republic of Armenia for the construction of the first EU compliant regional landfill and relevant infrastructure in the country.

The landfill will be located in Hrazdan, capital town of Kotayk distrcit in the central part of Armenia, and will be used by eight municipalities in the nearby region - Hrazdan, Abovian, Charentsavan, Yeghvard, Nor Hachn, Tsakhadzor, Byureghavan and Sevan (Participating Municipalities).
The project will require the tendering out of waste collection to the private sector and the creation of a fully commercial solid waste management company (the “Company”).

The project will also include the aquisition of vehicles, bins and equipment for waste management.  

Transition Impact

  • Framework for markets
    The Participating Municipalities will be charged a full cost recovery tipping fee as part of the project structure within two years of the landfill becoming operational. In addition, public service contracts defining the responsibilities of the Company and the Participating Municipalities will be developed.  
  • Institutional building
    Technical co-operation services will be provided to assist participating municipalities in establishing a commercially driven solid waste company. Subsequent capacity building will be provided to implement efficient operations in accordance with a business plan, and in accordance with EU directives on solid waste.
  • Private sector participation
    Private participation in the collection of waste will be developed through the tendering of collection services.
  • Demonstration effect of new processes
    The Project will put in place the first sanitary landfill in Armenia to be built and operated in accordance with applicable EU Directives. Besides physical technology, the Project will also help develop better public awareness of the benefits of anti-littering and recycling through public promotion campaigns and incentives. This would be the first commercially driven approach in Armenia, with significant demonstration effects to other cities and solid waste companies.

The Client

Sovereign loan to the Republic of Armenia with on-lending to the Participating Municipalities, which will establish and own the company for solid waste management to operate the landfill.

EBRD Finance

€3.5 million sovereign loan, which will be on-lent to the Participating Municipalities.  In addition, the European Union Neighbourhood Investment Facility (“NIF”) has approved a grant in the amount of €3.5 million to provide co-financing for the Project.

Project Cost

The project cost is €8.07 million, including post signing technical cooperation.

Environmental Impact

The Project is expected to provide significant environmental and social benefits for the Kotayk Region and Sevan municipality by introducing a modern system for the collection and disposal of municipal solid waste.

Several alternative locations were studied for the landfill site and the site next to the existing landfill near Hrazdan was selected as the preferred site, because it meets the criteria better than other locations. The landfill site and access road to it are located far from protected nature areas, rivers and/or lakes.

Following an assessment of different waste collection alternatives, an ordinary waste collection system including containers/hooting, bring banks and direct transportation of waste for disposal to regional sanitary landfill was recommended by the consultants. Bring banks will form an adequate starting point for the stimulation of waste separation and preparation of the ground for a future dual waste collection system.

The new landfill is designed to comply with national requirements and the relevant EU Directives. Waste will be transported in closed trucks and along the existing roads. The landfill will have a clay and geosynthetic liner for protecting the soil, surface water and groundwater from contamination. The leachate will be collected and treated. The new landfill will have a system for monitoring of gas emissions, groundwater and surface water runoff.

The new landfill will be equipped with all the required equipment. A landfill gas flaring system will be established at the regional landfill after the final cover is installed for the landfill cells.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

Pre-Loan Signing

  • Feasibility Study (€380,000 – financed by the EBRD Shareholder Special Fund)
  • Environmental and Social Due Diligence (€120,000 – financed by the EBRD Shareholder Special Fund)

Post Loan Signing

  • Project Implementation and Procurement Support.  The consultants will provide assistance with engineering design, preparation of tender documents, tender evaluation, contract award and administration, financial control, project management, and reporting services. (€600,000 to be financed by the Government of Austria).
  • Corporate Development and Stakeholder Participation Programme to

    (i) help the Company establish corporate, financial and operational efficiency, which will enable it meet the related covenants included in the EBRD financing documents, as well as ongoing corporate development and

    (ii) implement a Stakeholder Participation Programme covering the Government of Kotayk province and assist the Company in developing, signing and implementing the Public Service Contract. (€400,000 to be funded by an international donor).
  • Environmental and Social supplementary studies to

    (i) complete the additional baseline studies and assessments required under the ESIA prepared as part of the EBRD environmental and social due diligence; and

    (ii) to prepare the national EIA for the national authorities approval. (€70,000 to be funded by an international donor)

Procurement or tendering opportunities

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Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.

Last updated 28 March 2012