Yerevan Metro Rehabilitation Project Phase III



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:




PSD disclosed:

06 Oct 2015

Translated version of this PSD: Armenian

Project Description

The EBRD is considering supporting the Yerevan Metro Company with a third metro rehabilitation project. The project will comprise modernisation of rolling stock, renovation of the rolling stock maintenance depot, rehabilitation of the electrical sub-stations and power cables, ventilation systems, track maintenance as well as new escalators at the metro stations. The EBRD would provide a loan of up to EUR 7 million to the Republic of Armenia for the benefit of Yerevan Metro Company.

Yerevan City would sign a Project Support Agreement with the Bank. The European Investment Bank (EIB) is considering a parallel loan of EUR 7 million and the EBRD and EIB will seek an investment co-financing grant from an international donor of EUR 7 million to facilitate implementation of the project which will address urgently needed metro rehabilitation needs.

Project Objectives

The proceeds of the loans and grant will finance the critical rehabilitation needs to ensure safe operations of the Yerevan metro system. The project will be complemented by a TC package comprising implementation as well as corporate development support to the Company. The Company will also be supported to implement an Environmental and Social Action Plan.

Transition Impact

Transition Impact of the project would be:

  • Frameworks for markets through the development of a well-defined Public Service Contract (PSC) suitable for multiple modes of transport.
  • Framework for markets through institutional support to the City Transport department.
  • Demonstration effect: reduced energy consumption in KWh/km.

Implementation of a Stakeholder Participation Programme for enhanced awareness of sustainable urban transport among Yerevan citizens.

Client Information

Yerevan Metropoliten, the Yerevan Metro Company.

EBRD Finance Summary

EUR 7,000,000.00

EBRD is considering a sovereing loan of EUR 7.0 million. The EIB is considering a parallel loan of EUR 7 million and the EBRD and EIB will seek an investment co-financing grant from an international donor of EUR 7 million to facilitate implementation of the project.

Total Project Cost

EUR 22,500,000.00

The total project cost is EUR 22.5 million including technical cooperation. The EBRD will seek to cofinance the project with EIB and an investment grant from an international donor.

Environmental and Social Summary

Categorised B (ESP 2008). The independent environmental and social due diligence is currently ongoing. The ESDD is focused on the review of the implementation of previously agreed Environmental and Social Action Plan (ESAP), and analysis of potential benefits and adverse impacts of the specific investment components as identified by the technical due diligence. While there might be minor, short-term and site-specific impacts in terms of noise and dust levels during the construction and rehabilitation activities, the Project is likely to result in significant employee and community health and safety benefits and increased energy efficiency of the depot and metro transportation and stations facilities and services. In the absence, at this stage, of precise technical specifications of the new equipment to be procured through a tender process, the preliminary estimates, based on planned reduction of consumption of the grid electricity, show that the modernisation of the depot will reduce CO2 emissions by 1320.08 tonnes during the heating season only. Additional energy savings will also be achieved outside the heating season as energy efficient sealing will enable optimisation of air conditioning and result in decreased energy consumption. This investment component will also result in health and safety benefits for the depot employees.

The upgrade of the escalator system will allow reducing the consumption of CO2 emissions by 1242.06 tonnes annually. It will also enable handling an increased number of passengers entering and exiting the metro stations, and improve the quality of service.

The upgrade of the metro ventilation system will enable the Metro Company to reduce the CO2 emissions by 1468.52 tonnes annually. The upgrade of the ventilation system will also significantly increase the safety of operations for both the metro employees and the commuters.

The prosed investment programme will also enhance the implementation of previously agreed ESAPs.

Technical Cooperation

The following technical co-operation (TC) assignments are included in the project:


  • Pre-Feasibility Study: Pre-feasibility study to assess the demand forecast, transit alignment, network integration planning, operating plan, rolling stock needs, depot needs, the project cost and financial and economic analyses. EUR 200,000, financed by the EBRD Shareholder Special Fund (SSF)
  • Technical Due Diligence to assess the additional rehabilitation needs for the existing metro system, including rolling stock and power car modernisation, rolling stock and trailing car refurbishment, station & tunnel ventilation system replacement/refurbishment, station escalators replacement/ refurbishment, and rolling stock maintenance depot refurbishment. EUR 74,000, financed by the Government of Sweden.
  • 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. EUR 1 million, to be funded by the project's co-financier.
  • Stakeholder Participation Programme: implementation of a Stakeholder Participation Programme of increased public awareness. EUR 250,000, proposed to be financed by an international donor.

Company Contact Information

Armine Parsyan


78 Baghramyan Street 347033, Yerevan, Republic of Armenia
Business opportunities

Business opportunities

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