Yerevan Metro Rehabilitation project Phase II



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

24 Jul 2012



PSD disclosed:

15 Feb 2012

Translated version of this PSD: Armenian

Project Description

The EBRD is considering a second project to cover priority investments in the Yerevan Metro, with the aim of mitigating water ingress in the metro tunnel. The project builds upon emergency repairs carried out under the Yerevan Metro Project Phase I. The investment is part of measures to improve and reform public transport services in the capital of Armenia. The operation would primarily benefit lower-income groups, who rely on the poorly maintained metro system.

Transition Impact

Transition Impact of the project would be:

  • Demonstration of successful restructuring: Implementation of a comprehensive corporate development programme, which is expected to improve cost control and planning procedures and operational performance.
  • Demonstration of new technology and successful private sector participation: Support for the development and implementation of e-ticketing systems that will fit into the master plan for the urban transport sector in Yerevan, improve transparency in ticket collection and reporting, and provide better information about transport demand.
  • Improved framework: Implementation of the Public Service Contract with agreed procedures, tariff formula, and covenanted performance and reporting targets.

The Client

Government of the Republic of Armenia, with on-lending to Yerevan Metropolitan Karen Demirchyan CJSC (Yerevan Metro Company). The Company is managed by the Yerevan Municipality and by the Board of Directors. The Company’s ultimate shareholder is the Government of the Republic of Armenia, represented by the Yerevan Municipality.

EBRD Finance

The proposal is for a loan of up to €5.0 million to the Republic of Armenia, on-lent to Yerevan Metropolitan Karen Demirchyan CJSC.

Project Cost

The total project cost is estimated at up to €16.75 million. In addition to the Bank’s loan, the European Investment Bank has approved a loan of €5 million and the EU’s Neighbourhood Investment Facility (‘NIF’) is considering a grant of €5 million.

Environmental Impact

Categorised B (2008). Any environmental and social issues associated with the proposed track improvements and remediation of the metro tunnel's water ingress problem are site-specific and can be readily identified and mitigated. The environmental and social due diligence of Phase II of the Project focuses on assessing the environmental and social issues that might be associated with the specific technical solution to the tunnel flooding issues, once such option is finalised and approved upon completion of the geological survey. Currently a detailed technical investigation of the tunnels and drainage channels is underway; a number of boreholes were drilled to establish the geomorphology and survey soil stability; a number of piezometers installed to establish the underground water table and pressure; a number of inspections and surveys conducted to establish damage to the metro facilities, including the degree of corrosion, integrity of grouting, etc. The information obtained during the surveys should, inter alia, allow to estimate the corrosion rate, which will be one of the fundamental parameters for assessing the remaining service life of the tunnels. Possible measures of extending the service life as well as a monitoring concept will have to be elaborated further. Environmental, health and safety impacts of the Project will be evaluated along with identifying the most optimal technical solution to the water ingress problem, and relevant mitigation measures will be embedded therein.

Technical Cooperation


Feasibility Study for Yerevan Metro Rehabilitation Phase II including:

  • Identification of applicable technical options, whether inside or outside the tunnels;
  • Analysing environmental and social impacts of the proposed options including but not limited to impacts on buildings and other structures, impacts on the community and occupational health and safety during both implementation of the works and the future operation;
  • Conceptual design of the technical solution selected; and
  • A full technical specification to be attached to international tender documents for a design-and-build contract.
    (€950,000 with funding provided by the EBRD Shareholders Special Fund).

Post Loan Signing

Project Implementation Unit Support and contract supervision, €600,000 to be funded by an international donor.

Public transport sector institutional support to implementing an e-ticketing system in the City, €200,000 to be funded by an international donor.


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

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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