Yerevan Water Supply Improvement Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

29 May 2013



PSD disclosed:

11 Feb 2013

Translated version of this PSD: Armenian

Project Description

The EBRD is considering supporting the Yerevan Water Supply Improvement Project. The EBRD would extend a sovereign loan of up to USD 7.0 million to Armenia, to be on-lent to the Municipality of Yerevan for improvement of water supply services.

The European Investment Bank is considering a sovereign loan of USD 7.0 million to co-finance the project. The EBRD is also seeking an investment grant from the EU Neighbourhood Investment Facility of USD 7.0 million to facilitate implementation of the project which will address urgently needed water supply and wastewater management improvements. The investment grant is still subject to final approval. The overall objectives of this project are rehabilitation and sectorisation (separating zones of different water pressure) of the water supply network in Yerevan as well as the expansion of the sewerage network coverage in the city.

The operator of the water system assets in Yerevan is Yerevan Djur CJSC, a private company wholly owned by Veolia Environment SA of France, which operates under a 10-year lease contract with the city.

Transition Impact

Transition Impact of the project would be:

  • Support private sector involvement in the provision of basic utilities; and
  • Improved framework for markets by enhancing the city’s capacity to monitor the private operator and to increase the transparency of the regulatory function

The Client

Government of the Republic of Armenia, with on-lending to the Municipality of Yerevan.

EBRD Finance

Sovereign loan of up to USD 7.0 million to the Republic of Armenia, on-lent to the Municipality of Yerevan.

Project Cost

The total project cost is USD 21.94 million including technical cooperation. The EIB is considering co-financing the project. The project will further be co-financed by an investment grant from an international donor.

Environmental Impact

Categorised B. The upgrade of water is expected to result in environmental and social improvements for the city of Yerevan. The environmental and social due diligence involves an audit of the client’s existing operations and an analysis of the proposed investment programme. This analysis includes an assessment of the benefit of the projects and its expected compliance with EBRD Performance Requirements, including EU water quality standards.

Technical Cooperation

The following technical co-operation (“TC”) assignments are part of this project:

Pre Loan Signing

TC 1: Feasibility Study. Preparation of a financial, technical, legal and environmental feasibility study, including an economic rate of return analysis of the proposed investment and an Environmental and Social Action Plan. The consultants will also assess the institutional capacity of the Company and the City and determine the need for any capacity development activities. (EUR 210,000, financed by the Government of the Czech Republic).

Post Loan Signing

TC 2: Project Implementation Support. International consultants to assist the project implementation unit with engineering design, procurement, preparation and evaluation of tenders, contract award and administration, financial control, project management and reporting. (EUR 500,000 [~USD 670 000]), proposed to be financed by an international donor or the EBRD ETC Multi Donor or SSF Funds).


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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