Release date: 10 March 2025
Promoter – Financial Intermediary
REPUBLIQUE D'ARMENIELocation
Description
The Framework loan will support priority socio-economic investments in the recovery of the southern regions of Armenia, particularly Syunik, affected by the second Nagorno-Karabakh conflict, including basic infrastructure needs of displaced population.
Additionality and Impact
The operation focuses on public social and environmental infrastructure investment in Syunik province, which is the most affected by the recent Nagorno-Karabakh conflict in the region. This operation will contribute significantly to the socio-economic stabilization and recovery of Armenia's Syunik province, following the severe disruptions caused by recent conflicts and geographic isolation. Market failures are accentuated for investment in isolated and vulnerable border communities in Syunik. By targeting investment to the neglected sectors of health, education, and drinking water supply, the operation aims to close critical service gaps.
Aligned with the objectives of the Resilient Syunik: Team Europe Initiative, this intervention supports the EU's Eastern Partnership goals of recovery, resilience, and reform. It addresses critical EIB mandate objectives by promoting sustainable economic development in a region impacted by geopolitical instability.
The EIB has provided substantial support to the scoping and preparation of the project, in close cooperation with the counterparts and beneficiaries. Substantial Technical Assistance is provided under grant funding, in addition to the EIB loan, to support both project preparation and project implementation under a Team Europe approach.
The EIB will extend to the borrower advantageous pricing and loan maturities. Furthermore, the EIB offers flexibility regarding drawdown, encompassing both timing and interest options.
The operation will support several UN Sustainable Development Goals.
Objectives
Investments in the drinking water, health and education infrastructures and related equipment will improve the access of the Syunik province population to reliable potable water supplies and quality health and education, thus ensuring decent living conditions for the displaced population and the host communities and contributing to Syunik's socio-economic recovery and long-term resilience. The project will also contribute to climate action.
Sector(s)
- Water, sewerage - Water supply; sewerage, waste management and remediation activities
- Urban development - Construction
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
EUR 50 million
Total cost (Approximate amount)
EUR 50 million
Environmental aspects
The project's compliance with national and EIB's environmental and social principles will be respected.
Procurement
Implementation of the project will be done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement rules.
Status
Signed - 16/07/2025