Armenian government postpones implementation of `Community-Based  Infrastructure in the Water Sector` program

ArmInfo. On October 2, at its regular meeting, the Armenian government approved the proposal to sign a Letter of Agreement Supplement No. 3 to the Financing Agreement 'Community-Based Infrastructure in the Water Sector'  between the Republic of Armenia and the European Investment Bank."

As stated in the explanatory note to the document, the amendments are  being introduced to extend the deadline for the final disbursement of  loan funds for the activities implemented under the Program.

The program financing agreement was signed on June 24, 2014, and  provided for the provision of a loan of ?25.5 million to Armenia.  However, at the suggestion of the Ministry of Finance and with the  consent of the EIB, approximately ?8.8 million of the loan funds were  subsequently cancelled, amounting to approximately ?16.66 million.  The second amendment to the financing agreement extended the  availability of the loan funds until 31 December 2024. During this  period, EUR 13.6 million was disbursed, leaving a total of EUR 3.06  million undisbursed.

The current amendment extends the final availability of the EIB loan  funds until 30 December 2025 and ends the program by 31 December  2026, as well as amends the deadlines for submitting information and  reports related to the Project's implementation.

In accordance with the decision of the Government of the Republic of  Armenia dated 23 February 2017, the functions for the further  implementation of the Project were transferred to the State  Enterprise "Office for the Implementation of Water Management  Programs," and in accordance with the decision of 28 February 2019,  to the Territorial Development Fund of Armenia.

The EIB loan is partly financing (jointly with a KFW loan, a grant  from the European Union's Neighbourhood Investment Facility and  co-financing from the Government of the Republic of Armenia) the  Community Infrastructure Programme II, Phase 3 - Water Supply and  Sanitation Infrastructure in Armenia, which envisages improvement of  the water supply and sanitation systems of 14 towns and 49  communities in 7 regions of the Republic of Armenia (Shirak, Lori,  Armavir, Gegharkunik, Kotayk, Vayots Dzor and Syunik), including  additional construction works worth approximately EUR 9.2 million  (including taxes) in 13 communities of the regions covered by the  project. A design and technical supervision contract has been signed  for the project, and design and survey work is underway. Large-scale  construction work is currently underway under three existing  construction contracts for a total amount of approximately EUR 35.1  million. The project cost is EUR 35.1 million, and the completion  rate is approximately 93.5%. "Construction work is planned to be  fully completed in 2025," report the authors of the document,  represented by the Ministry of Territorial Administration and  Infrastructure of the Republic of Armenia.