The Project will aim to address the urgent need of liquidity support to Armenian Air Navigation in the period of unprecedented economic impacts of COVID-19 crisis. The proposed transaction is in line with the Vital Infrastructure Support Programme (VISP) under the COVID-19 Solidarity Package Phase 2.
The goal of the Project is to support Armenian Air Navigation (the "Company") to overcome a temporary shock and focus on its key function, i.e. provision of the safe air traffic management services in Armenia.
ETI score: 65
The Project will have the following Transition Impact:
Resilient- The Project entails addressing current liquidity shortages of the Company resulting from a sudden, significant change in economic activity due to a crisis event.
Inclusive - The Company will develop and implement a new internship initiative that will increase the share of youth in the Company's talent pipeline and improve the awareness of wider job opportunities.
ARMENIAN AIR TRAFFIC SERVICES CJSC
Armenian Air Traffic Services CJSC ("ARMATS")
Armenian Air Navigation is fully owned by the Government of Armenia and is the national provider of air traffic control and management services in the country.
EBRD Finance Summary
Total Project Cost
COVID-19 crisis response: EBRD financing effectively bridges a liquidity gap due to adverse market conditions, e.g. the COVID-19 crisis.
Environmental and Social Summary
Categorised B (2019 ESP) and Low-Medium risk. Financing the liquidity needs under the VISP for an air traffic navigation and monitoring services provider is associated with site-specific Environmental and Social ("E&S") risks that can be readily assessed and mitigated via good management practices. Environmental and Social Due Diligence ("ESDD") will be undertaken in line with the ESD ESDD response to COVID-19 and will be conducted in-house. It will comprise the review of a completed E&S questionnaire, available E&S documentation and follow up on line discussions with the Company. Key E&S risks and impacts to consider include occupational health and safety, supply chain and contractor management, ground fleet and traffic management. Specific attention will be paid COVID-related response plans including labour and the potential for retrenchment, worker and community health and safety issues and stakeholder engagement.
Technical Cooperation and Grant Financing
The following technical co-operation ("TC") assignments are envisaged as part of this Project:
- TC 1: Capacity and Green Assessment. The estimated cost of the assignment is up to EUR 200,000, proposed to be financed by an international donor or the EBRD Shareholder Special Fund (the "SSF").
- TC 2: Addressing Skills Gaps in the Air Navigation Sector. The estimated cost of the assignment is up to EUR 65,000, proposed to be financed by an international donor or SSF.
Company Contact Information
+37410 292929 (ext. 393 356)
33, I. Gasparyan street, Yerevan 0042, Republic of Armenia
PSD last updated
11 Jun 2021
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