EIB approves €30.7m loan to Armenia’s water sector

The European Investment Bank (EIB) has approved two loans, worth approximately €30.7m, to improve water supply services and upgrade wastewater treatment in Armenia.

As part of the first loan, €25.5m will be used for rehabilitation and construction of water and sewage infrastructure in the country’s secondary cities and small communities, which will help around 400,000 people.

The loan will be used over the 2014-18 period for the water infrastructure rehabilitation programme carried out by four regional water supply companies in rural Armenia.

The second loan of €5.2m will be used to develop water supply infrastructure in selected areas of Armenia’s capital Yerevan and several surrounding villages.

This programme will be co-financed by German development bank KfW with €30m and an EU Neighbourhood Investment Facility (NIF) with €15m, which comprises a €12m investment grant and a €3m technical assistance grant.

German Cooperation Ministry (BMZ) will provide an additional grant of €2.5m for the programme.

The €5.2m EIB loan will be used for a project to be implemented over the 2013-15 period, which will focus on improving water supply services in Yerevan.

This project will also be co-financed by the European Bank for Reconstruction and Development (EBRD) with €5.3m and a NIF grant of €5.5m.