EBRD FINANCES WASTEWATER TREATMENT PROJECT IN ARMENIA

Armenpress
Apr 27 2007

YEREVAN, APRIL 27, ARMENPRESS: Residents of five municipalities
located near Lake Sevan in Central Armenia will benefit from improved
wastewater management services following a ~H7 million loan from
the European Bank for Development and Reconstruction (EBRD) to the
Republic of Armenia.

The funds will be on-lent to the state-owned Armenian Water and
Sewerage Company to finance three wastewater treatment plants and
network rehabilitation in the municipalities of Gavar, Vardenis,
Martuni, Sevan and Jermuk.

This will be EBRD’s first municipal and environmental infrastructure
project in Armenia. The loan provided by the Bank is complemented by a
~H5 million grant from the European Commission and the Early Transition
Countries Initiative Fund will provide technical co-operation grants
of ~H1.2 million for implementation support and advisory services.

Lake Sevan covers fifteen per cent of Armenia and is a place of natural
beauty and historic significance. The project will support efforts
to achieve compliance with Armenian and EU environmental standards
for wastewater treatment.

The agreement was signed in Yerevan on April 26. Alexander Auboeck,
EBRD Business Group Director for Infrastructure said by combining
a loan with a capital grant the project is a good example of how
the Bank can help make municipal investments affordable even when
commercial long term financing is not available.

Armenia is part of the EBRD’s Early Transition Countries Initiative,
which was launched in 2004 to stimulate market activity in the Bank’s
lowest-income countries of operation. To-date, the EBRD has invested
almost ~H120 million in more than 40 projects in Armenia.

The maturity period of the loan is 15 years with a three years of
grace period at LIBOR+1 interest rate.