- EIB Global provides loan for socio-economic development in Armenian province to improve critical infrastructure such as water supply, healthcare and education facilities.
- Project is part of the Team Europe Initiative to support the socio-economic resilience of the Syunik Province.
The European Investment Bank’s development arm, EIB Global, is lending €50 million to the Republic of Armenia for key socio-economic projects in the country’s southernmost province. The new financing agreement was signed during the first-ever visit by an Armenian Deputy Prime Minister to the EIB Headquarters.
The Armenian government will use the funds to improve community livelihoods and foster growth, by increasing access to reliable potable water supplies, and improving access to quality education and health services in the region.
The region Syunik, which faces economic and infrastructural challenges, has been the focus of development efforts by both the Armenian government and the European Union. The project is part of the Resilient Syunik Team Europe Initiative. Launched in 2023, the initiative aims to support the socio-economic resilience of the southern region of Armenia, which has been most affected by the 2020 hostilities and the arrival of around 120,000 Karabakh Armenians following the military escalation in September 2023.
“The financing we have agreed today is a powerful example of the European Union’s collective commitment to Armenia’s long-term development and stability,” said EIB President Nadia Calviño. “It means the provision of drinking water to 30,000 people, improved healthcare and vocational training as well as a focus on the inclusion of women. The Resilient Syunik Team Europe Initiative brings together the EU, ten Member States, and Switzerland, as well as the European Bank for Reconstruction and Development. At a time when we need more than ever to reinforce our partnerships – I welcome this model agreement wholeheartedly.”
“This investment reflects our steadfast commitment to Armenia’s sustainable development,” said EIB Vice-President Teresa Czerwińska, who oversees EIB operations in Armenia. “By enhancing essential services in Syunik, we are helping to build resilience, promote inclusive growth, and support communities across the region in overcoming their challenges.”
“Today’s announcement is another proof of the EU’s commitment to promoting Armenia’s sustainable socio-economic growth in a Team Europe approach. A resilient and inclusive Armenian society is a priority under the Resilience and Growth Plan and investing in rural areas is crucial to empower communities and foster social cohesion. The EIB Global credit will go towards providing access to safe drinking water for over 30,000 people across Syunik and upgrading and expanding healthcare and educational facilities including polyclinics and vocational centres. Resilient Syunik continues to serve as a compelling example of how Team Europe, working in close partnership with local actors, can help foster opportunities, inclusion and long-term resilience,” said European Commissioner for Enlargement Marta Kos.
This framework loan agreement endeavours to support recovery efforts by allocating resources to essential public infrastructure, as well as addressing the basic infrastructure needs of displaced populations in Armenia's southern region. The Government of Armenia, through its relevant ministries and the Syunik Governorate, is working in coordination to advance this agenda, with the aim of strengthening the region's resilience. Today's meetings with the President and Vice-President of the Bank were productive, and we were able to align on clear next steps aimed at expanding our cooperation. We are grateful for the readiness of our partners in Brussels and in the EIB to mobilize financial resources and technical expertise to support the objectives outlined in the Resilience and Growth Plan and the joint priorities defined by the EU-Armenia New Partnership Agenda," said Armenia's Deputy Prime Minister Mher Grigoryan.
EIB Global has worked closely with the Armenian authorities and local stakeholders to develop this project. In addition to the EIB loan, the European Union and Eastern Partnership Technical Assistance Facility (EPTATF) provide essential support to both project preparation and implementation.
Background information
About EIB Global
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.
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. It aims 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. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.
Photos of EIB headquarters for media use are available here.
About the Resilient Syunik Team Europe initiative
The Resilient Syunik Team Europe Initiative, formally launched in January 2023, is the joint undertaking of the European Union, the European Investment Bank, the European Bank for Reconstruction and Development and ten EU Member States Austria, Czechia, Estonia, Finland, France, Germany, Lithuania, the Netherlands, Poland and Sweden, with Switzerland also joining as an external partner. With a combined financial envelope of €150 million, the initiative brings together over 40 ongoing projects focusing on social and economic development, municipal services, local infrastructure and environmental and energy resilience.