EBRD to provide finance for water supply improvements in Armenian city

The Republic of Armenia is to receive a sovereign loan of €5.4m from the European Bank for Reconstruction and Development (EBRD) to improve water supply for the 1.1 million inhabitants of the nation’s capital Yerevan.

The project will be implemented by the water infrastructure operator in the city, Yerevan Djur CJSC, which is 100% owned by France-based Veolia Environnement.

Yerevan Djur will also reduce water losses by rehabilitating the water distribution network sections that are in bad condition as well as replacing supply pipes.

They will also install new water meters for households in order to support the upgrades to the city’s water network.

The investments will lower operational costs and improve the reliability of tariff collection and 24-hour supply in all targeted districts.

The European Investment Bank (EIB) is also considering a loan equivalent to €5.4m, and the European Union (EU) will provide grant funds of €5.5m through its Neighbourhood Investment Facility (NIF).

A €200,000 pre-investment technical cooperation grant from the government of the Czech Republic will also provide support during the planning stages of the project.

The EBRD Water Fund and the ETC Fund will each provide €200,000 grants for project implementation.

EBRD president Suma Chakrabarti said: "This project is important for the city of Yerevan. Reliable water supply is a fundamental need for households."

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Image: Yerevan will install new water metres for households to support upgrades to the city’s water network. Photo: courtesy of Utilitysupplies.