Meghri BCP Modernisation

Location:

Armenia

Project number:

50310

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Target board date:

30 Oct 2019

Status:

Concept Reviewed

PSD disclosed:

16 Aug 2019

Project Description

Provision of a sovereign loan to Armenia to co-finance the reconstruction and modernisation of a border crossing point (BCP) near the Armenian town of Meghri (the Project). The current infrastructure at the Meghri BCP is outdated.

The operational, technical, engineering, environmental and safety conditions at the BCP need to be improved in order to meet modern safety and security requirements and adhere to international border management standards.

The Project is the priority for the Republic of Armenia. Project related activities are located on the territory of the Republic of Armenia.

Project Objectives

The Project aims to reconstruct and modernise the road border crossing point facilities at Meghri BCP. The Project involves demolition of the existing outdated buildings, construction of new modern facilities and installation of modern equipment for the performance of border, customs and other controls in line with modern standards, incl. the EU standards. In this way, the Project will improve safety and security of the border crossing and facilitate efficient border crossing process.

Transition Impact

Good

The Project will improve the quality and technical conditions of the border crossing-point infrastructure. It will also contribute to the operational continuity of freight and passenger flows through Meghri BCP and thus to regional cross-border integration. In addition, the Project will support improvements in governance, processes and working practices at the border crossing, including through implementation of the Integrated Border Management (IBM) Action Plan. Client Information

Client Information

ARMENIA SOVEREIGN

The Project Implementing Agency is the State Revenue Committee (SRC) of the Republic of Armenia, which is the tax and customs authority of the Republic of Armenia.

EBRD Finance Summary

EUR 10,520,000.00

Total Project Cost

EUR 26,220,000.00

- EUR 10.52 million to be provided by the EBRD;

- EUR 11.27 million to be provided by the EU Neighbourhood Investment Programme (EU NIP);

- EUR 4.21 million to be provided by the Government of the Republic of Armenia;

- EUR 0.22 million provided by the EU European Neighbourhood and Partnership Instrument (ENPI) via UNDP.

Environmental and Social Summary

The proposed Project has been categorised B in accordance with the 2014 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the Project, which is ongoing, includes an independent third party environmental and social audit to assess the Client's management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client's ability to carry out the Project in compliance with the Bank's Performance Requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the Project, a Stakeholder Engagement Plan will be developed that will include a grievance mechanism as well as a land acquisition and livelihood restoration plan. Information on environmental and social performance and a summary of the agreed Action Plan will be disclosed to stakeholders. This PSD will be updated when the results of due diligence are known.

Technical Cooperation

Post-signing: Project Implementation Unit support (EUR 0.7 million), expected to be funded by the EU NIP.

Company Contact Information

Gohar Mnatsakanyan

gohar_mnacakanyan@taxservice.am

+374 (060) 544 363

https://www.gov.am/en/bodies-under-government/230/

3 M. Khorenatsi, Yerevan Republic of Armenia

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