Armenia Lake Sevan Basin Environmental Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

17 Apr 2007



PSD disclosed:

24 Nov 2006

Project description and objectives

To improve wastewater treatment for five municipalities discharging wastewater into the Lake Sevan catchment basin. The operation will: build small wastewater treatment plants and rehabilitate wastewater networks in Gavar, Vardenis and Marduni; and, rehabilitate the wastewater networks in Sevan and Jermuk. The objective is to enable mechanical and enhanced aeration treatment of wastewaters discharged by the participating towns.

Transition impact

The Armenia Water and Sewerage Company is currently operated by the international water services company Saur (France) under a management contract. The EBRD will mobilise advice to the Government of Armenia on how to extend the existing private sector participation when the existing contract expires in 2008.

The client

The Government of Armenia and the Armenian Water and Sewerage Company.

EBRD finance

Up to EUR 7.5 million loan to Armenia to be on-lent to the Armenian Water and Sewerage Company.

Total project cost

EUR 12.5 million.

Environmental impact

The project has been screened B/1 in accordance with EBRD’s 2003 Environmental Policy. One of the main objectives of the operation is to reduce the on-going pollution of the Lake Sevan basin by untreated municipal wastewater. The new WWTPs in Gavar, Vardenis and Martuni and improved wastewater networks in five locations around the lake, including also the towns of Jermuk and Sevan, will improve wastewater collection and treatment and therefore reduce pollutants concentration in the receiving water bodies, from the point of discharge downstream to Lake Sevan.

Although the effluent quality generated by the WWTPs will not comply fully with EU environmental standards, this investment represents the first step in re-establishing primary and secondary wastewater treatment in the area. The project implementation has been severely delayed for various reasons, including seasonal conditions in Lake Sevan area, and new WWTPs in Gavar, Martuni and Vardenis providing mechanical treatment for domestic (municipal) wastewaters became operational since 2013. Reduction in pollution of Lake Sevan and recipient rivers is expected to be substantial due to introduction of sewage treatment, and will be properly assessed via an independent environmental audit before the end of 2016.

EBRD’s representatives carried out a monitoring visit to the WWTP sites in May 2014 and confirmed that overall performance of the Company on E&S matters is satisfactory and generally meets EBRD’s requirements. The water quality monitoring data was discussed with the Company. Since the WWTPs provide only mechanical treatment, the company reported that major reduction in concentration levels following treatment occurs in suspended solids and BOD. No reduction in organic pollutants (P and N) takes place due to absence of the biological/tertiary treatment, however space provisions for that have been made for the future at all three sites, subject to additional funding.

AWSC has also reported diligently on environmental, health and safety matters and implemented the originally agreed EAP for the project. The necessary EHS controls have been introduced at the WWTP sites, and recommendations for further improvements included EHS Management System notice boards for staff, updated OHS manual for the Company, good housekeeping measures at storage facilities, proper storage and warning signs for hazardous materials and oils, and consideration of laboratories certification for water and wastewater monitoring. The Company is required to further improve its incident/accident reporting.

Technical cooperation

Post-Signing: Services to advise the Government of Armenia on how to extend private sector participation in the management of the Armenian Water and Sewerage Company.

Implementation support to assist the Armenian Water and Sewerage Company carry out the project.

EBRD contact

Angela Sax, Operation Leader:

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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Text of the PIP

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