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|Target Board date:||12 July 2011|
|PSD disclosed:||14 Jan 2011|
The EBRD is considering providing a sovereign-guaranteed loan of up to €6.5 million to Armenia, to be on-lent to the Armenian Water and Sewerage CJSC (“AWSC”) to finance:
(i) municipal water supply improvements in Tavush, Lori, Shirak, Gegharkunik, Kotayk, Syunik municipalities and Vayots Dzor province; and
(ii) rehabilitation of the water treatment plants and sewerage collectors in Tavush (Town of Dilijan) and Vayots Dzor (Town of Jermuk) provinces.
The EIB is considering disbursing a co-financing loan of €6.5 million and the European Union Neighbourhood Investment Facility (the “NIF”) has given approval for a capital expenditure grant of €7.0 million.
Transition Impact of the project comes from:
(i) Commercialisation of the Company through improved incentive based contracts that should lead to better cost control and higher realistic and achievable collection rates
(ii) Move to consumption based billing with improved water metering
(iii) Tariff reforms towards cost-reflective water and wastewater tariffs for all consumer groups
The Armenian Water and Sewerage CJSC, a state owned company currently operated by SAUR France SA under a long-term management contract.
€21.2 million, including related technical cooperation.
Categorised B (2008). The project involves a loan to a water utility with multi-site operations for upgrading water and wastewater facilities in a number of (up to 23) municipalities. Typically, the components of the investment programme are likely to be site specific and can be readily identified and addressed through mitigation measures.
A corporate environmental and social audit focusing on management systems and an environmental and social baseline review of the participating municipal utilities' operations and facilities is currently being carried out to assess their current performance against relevant national and EU standards and EBRD PRs. An Environmental and Social Action Plan (ESAP) based on the recommendations of the due diligence will be prepared at corporate level to address required improvements.
This PSD will be updated once the results of the environmental and social due diligence become available to reflect the findings.
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Last updated 14 January 2011