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Johan Fredholm, Operations Leader

Armenian Small Municipalities Water Project

Project number:40718
Business sector:
Environmental category:B
Target Board date:12 July 2011
PSD disclosed:14 Jan 2011

Project Description

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

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 Client

The Armenian Water and Sewerage CJSC, a state owned company currently operated by SAUR France SA under a long-term management contract.

EBRD Finance

€6.5 million.

Project Cost

€21.2 million, including related technical cooperation.

Environmental Impact

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.

Technical Cooperation


  • Technical review - Including technical, financial, environmental and social due diligence to assist the Bank with assessment of the proposed project (€0.2 million, funded by the Government of Canada). 


  • Engineering Services, Implementation and Procurement Support for the Project Implementer - Support to the Armenian Water and Sewerage Company for engineering design, tender evaluation, contract award and administration, financial control, project management, and reporting services (€1.0 million to be funded by a NIF TC grant and an international donor).

Procurement or tendering opportunities

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP

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 14 January 2011