In July 2013 the EBRD signed the Yerevan Water Supply Improvement Project, a sovereign loan of USD 7.0 million to the Republic of Armenia. The Project is co-financed by the European Investment Bank ("EIB") and the EU Neighbourhood Investment Facility ("NIF"), each providing USD 7.0 million. The operator of the water system assets in Yerevan is currently Veolia Djur CJSC, a private company wholly owned by Veolia Environment SA of France, which operates water assets under a 15-year lease contract in the country.
The Project addresses urgently needed water supply management improvements in Yerevan city. The overall objective of this Project is the rehabilitation of the water supply network in Yerevan.
ETI score: 75
Transition Impact of the project is derived from:
- Support private sector involvement in the provision of basic utility services;
- Improved framework for markets by enhancing the city's capacity to monitor the private operator and to increase the transparency of the regulatory functions;
- Successful demonstration of restructuring and efficiency improvements (in particular through reduction of illegal connections and meter manipulation).
The Borrower is the Republic of Armenia represented by the Ministry of Finance. The Project is implemented by the Armenian Territorial Development Fund's ("ATDF") Water Sector Projects Implementation ("WSPI") Branch under the Ministry of territorial Administration and Infrastructure.
EBRD Finance Summary
Total Project Cost
The total Project cost including technical cooperation is USD 21.94 million
The Bank offers financing that is not available in the market from commercial sources on reasonable terms and conditions. Moreover, EBRD expertise in the sector will support application of enhanced standards.
Environmental and Social Summary
Categorised B (2008 ESP). Environmental and social due diligence included an audit of the operations of the operator and an appraisal of the expected impacts and benefits of the Priority Investment Programme ("PIP"). These were carried out as part of the feasibility study and concluded that overall the Project will have significant environmental and social benefits. The reduction in water losses will lead to a consequential reduction in groundwater abstraction and associated energy savings as well as lower usage of chemicals. The improvement in the physical integrity of the system will also reduce the risk of contamination of the water supply. The feasibility study concluded that the Project will meet Armenian drinking water standards, which are based on World Health Organisation guidelines, and is also anticipated to meet applicable EU standards. The main environmental and social impacts of the PIP will occur during the construction phase. An Environmental and Social Action Plan ("ESAP") has been developed that includes measures to minimise dust and noise impacts. A Stakeholder Engagement Plan ("SEP") has also been developed.
Technical Cooperation and Grant Financing
The following technical co-operation ("TC") assignments are part of this Project:
Pre Loan Signing
TC 1: Feasibility Study. Preparation of a financial, technical, legal and environmental feasibility study, including an economic rate of return analysis of the proposed investment and an Environmental and Social Action Plan. Assessment of the institutional capacity of the Company and the City and determining the need for any capacity development activities.
Post Loan Signing
TC 2: Project Implementation Support. International consultants to assist the project implementation unit with engineering design, procurement, preparation and evaluation of tenders, contract award and administration, financial control, project management and reporting.
Company Contact Information
Water Sector Projects Implementation Branch of Armenian Territorial Development Fund
Vardanants Blind Alley 8 Yerevan 0010 Republic of Armenia
The EBRD-financed components were completed in April 2018 contributing to urgently needed water supply improvements. Despite some delays in implementation, all components have been implemented in line with the procurement plan and within allocated budget. Currently on-going works are financed from other sources, including a EUR 7 million capital grant provided by the EU NIF and will ensure completion of the investment programme. Upon the completion of the remaining works, the main objective of the water supply infrastructure rehabilitation in the Municipality of Yerevan will be achieved.
The Transition impact achievements are mainly represented by successful demonstration of private sector contracts and structures. Moreover, improved framework for markets by enhancing the Government's capacity to monitor the private operator and increasing the transparency of the regulatory function though implementation of lease contracts is another source of transition impact.
PSD last updated
14 Dec 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.