- A €25 million EIB loan and €11 million in EU grant funding will support energy efficiency improvements in six polyclinics and 32 kindergartens across Yerevan.
- The initiative is one of the priority actions under the European Union’s Economic and Investment Plan for the Eastern Partnership, in line with the flagship project for Armenia, “Investing in a green Yerevan — energy efficiency and green buses.”
- Building on the lessons learnt from the first energy efficiency project, the Municipality of Yerevan plans to refurbish over 100 000 m2 of public buildings.
- This flagship project aims not only to decrease energy consumption and CO2 emissions, but also to elevate the quality of life of patients, healthcare staff, kindergarten children and teachers in the capital.
The European Investment Bank (EIB), the lending arm of the European Union (EU), has signed a loan worth €25 million with Armenia for energy efficiency improvements in polyclinics and kindergartens across Yerevan. In line with the Global Gateway strategy, the loan will be provided by EIB Global, the arm of the EIB that works beyond the European Union, to help finance the project to be carried out by the Municipality of Yerevan, which has also allocated €2 million to the project.
The EIB loan, which is fully guaranteed by the European Union, will go towards a follow-up project that builds on the lessons learnt from the first energy efficiency project with the Municipality of Yerevan focusing on kindergartens. The European Union is also supporting the project through an €11 million investment grant and technical assistance funding from the Neighbourhood Investment Platform (NIP).
The initiative is one of the priority actions under the European Union’s Economic and Investment Plan for the Eastern Partnership, in line with the flagship project for Armenia, “Investing in a green Yerevan — energy efficiency and green buses.” Under this flagship project, the Municipality of Yerevan plans to refurbish more than 100 000 m2 of public buildings through measures such as refurbishing building envelopes, replacing windows, and installing efficient boilers, solar hot water systems and energy-efficient lighting. Six polyclinics and 32 kindergartens have been selected for renovations under the project. These renovations extend beyond immediate solutions, contributing to the longevity of the buildings and enhancing levels of comfort for building users.
EIB Vice-President Teresa Czerwińska, responsible for operations in Armenia, said, “I am very pleased that the EIB is consistently supporting the implementation of the Economic and Investment Plan in Armenia, including this important project that will contribute to the country’s greener and more sustainable development. It will enhance the quality of life of children, teachers, patients and healthcare staff, reducing Yerevan’s energy usage and carbon footprint. With these economic and environmental benefits, the project holds special significance in the partnership in Armenia between the European Union and the EIB as the EU climate bank.”
Head of the EU Delegation to Armenia, Ambassador Vassilis Maragos, said, “The European Union is providing substantial assistance to help governments take action against climate change and move towards a low-emission and climate-resilient economy. We congratulate Armenia for its ambitious climate change agenda, making significant efforts in low-carbon development by increasing the share of renewable energy, promoting energy efficiency and preserving and enhancing forest-covered areas. The European Union is helping Armenia to deliver on its commitments under the Paris Agreement and to become more resilient against climate change as they work to strengthen relations. Stepping up cooperation on energy efficiency will be a key element of this process.”
Republic of Armenia Minister of Finance, Vahe Hovhannisyan said “Today marks a pivotal moment in the collaborative efforts between Armenia and the EU and underscores the commitment to fortify our effective partnership. Aligned with our strategic goals, the focus on modernizing educational and healthcare facilities stands as a cornerstone initiative outlined in the Government's 2021-2026 Program. Yerevan Energy Efficiency Project represents a substantial leap towards enhanced infrastructure for educational and health services in Yerevan. The Government expresses gratitude for the support and looks forward to the successful implementation of the second phase, anticipating an improvement in energy efficiency of public buildings in the city of Yerevan.”
Mayor of Yerevan, Tigran Avinyan said “Yerevan Municipality highly appreciates the projects that are implemented through the financial support of the European Investment Bank and the European Union. In various fields of urban development, cooperation is crucial for the advancement of Yerevan’s infrastructure. The second energy efficiency project will further enhance cooperation and provide an opportunity to refurbish more public buildings.”
Background information
About the EIB and EIB Global
The European Investment Bank (EIB) is the long-term financing institution of the European Union, owned by its Member States. It provides long-term finance for sound investments in pursuit of EU policy goals, supporting projects in four priority areas: infrastructure, innovation, climate and environment, and SMEs.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. We aim to support €100 billion of investment by the end of 2027 — around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society in close cooperation with other multilateral development banks. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.
About the EIB in Armenia
The EIB has worked with Armenia since 2010. It operates in the country in line with the European Neighbourhood Policy, the Eastern Partnership and other EU bilateral agreements. In the last decade, the Bank has provided financing for a wide range of projects, from infrastructure and small businesses to water supply services and wastewater treatment. It also funds cross-border connections to build safer and more sustainable roads.
The first Yerevan energy efficiency project, which benefits from a €15 million investment from the EIB and the multi-donor Eastern Europe Energy Efficiency and Environment Partnership (E5P) fund, is ongoing to improve the energy efficiency, seismic stability and sanitary conditions of 50 kindergartens in Yerevan. The project will improve the quality of life of over 1 million people living in the city.
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