Provision of a sovereign loan of up to EUR 25 million to the Republic of Armenia for the benefit of the city of Yerevan ("city") and the municipal transport company (the "company") to be established to operate the bus network in Yerevan. The project will finance the purchase of new modern 12-metre low-floor compressed natural gas ("CNG") buses.
The project is part of a broader programme aiming to assist the city to reform its public transport system by financing the renewal of its bus fleet in anticipation of the restructuring of the bus network.
The project will improve the reliability, safety and efficiency of public transport, while CNG technology will reduce air pollution in line with the Bank's Green Cities Framework and the Green City Action Plan as approved by the city of Yerevan in 2017.
ETI score: 70
The project is part of Green Cities 2 ("GrCF2") and a follow-on investment to the Yerevan Green City Action Plan ("GCAP").
The GrCF2's primary goal is to achieve significant environmental improvements and promote the green transition quality within the relevant cities. The GrCF2 also aims to build necessary capacity and facilitate better coordination and buy-in among various stakeholders within the relevant cities to improve the targeted investments' and initiatives' governancequality, operational efficiency and financial sustainability. These objectives are supported by the development and implementation of a Yerevan GCAP, identifying and prioritising environmental challenges and ways to address them through targeted investments, services and policy instruments. The Bank will also seek to introduce more robust policy advice on the back of lessons learned, targeted studies and technical assistance. The Project will help to promote the Green transition quality by reducing the impacts of the City's transport sector by encouraging a shift to public transport systems.
The overall transition impact will stem from the Green and the Well-Governed qualities, which will be achieved through the tariff increases and signing of a public service contract.
Armenia represented by the Ministry of Finance. The project will be implemented by the city and the company.
EBRD Finance Summary
€25 million sovereign loan to the Republic of Armenia.
Total Project Cost
The total project cost is €25 million.
The project will also benefit from the technical cooperation assignments to support project preparation and implementation.
The EBRD offers financing that is not available on the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period than the market average, restricted foreign currency financing etc. Such financing is necessary to structure the project.
The Client seeks the EBRD's expertise on introduction of higher environmental standards, mitigation of carbon emission risks and client taking climate action, as well as the best international procurement standards.
Environmental and Social Summary
Categorised B under the 2019 Environmental and Social Policy. Replacement of the existing municipal transport fleet with new CNG buses will have beneficial Environmental and Social impacts. Key E&S impacts/risks to consider include overall EHS management and performance; labour, health and safety; and road safety practice and standards. Environmental and Social (E&S) due diligence will be undertaken by an independent consultant and will include a site visit to review the Client's existing management systems, facilities and operations. Specific attention will be given to the existing maintenance depots and workshops, fillings stations, labour practices, road safety and driver training. PSD will be updated after the completion of the Environmental and Social Due Diligence.
Technical Cooperation and Grant Financing
Pre-signing Technical Cooperation ("TC") support for the Project will include Technical, Financial, Environmental and Social Due Diligence, while post-signing TC support will include City Support and Corporate Development Programs. The total estimated cost of TC assignments is up to EUR 1.1 million.
Company Contact Information
Yerevan Municipality 1 Argishti str., Yerevan, 0015, Armenia
PSD last updated
17 Feb 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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.