ADB IS VERY PLEASED WITH THE COLLABORATION WITH ARMENIA

ArmInfo
2010-02-10 12:29:00

Armenia became a member of the Asian Development Bank (ADB) in
September 2005. Armenia holds 10,557 shares or 0.30% of the capital.

Arminfo News Agency interview with Areg Barseghyan, the ADB Senior
Country Coordination Officer for Armenia

We would like to know how the ADB Management assesses its collaboration
with the Armenian Government. What is the overall amount of loans
extended and how are ADB programs being implemented?

ADB is very pleased with the collaboration with Armenia. All our
programs are working well and we are impressed by the professionalism
shown at all times by the project agencies and the people working
in them.

Our existing loan portfolio has reached USD $164 million, but we have
approved close to $500 million for future investments, particularly
in the area of transport infrastructure.

What will be ADB’s largest loan program in 2010?

We will work with the Government on the rehabilitation of the
North-South Road Corridor Investment Program. We have already made
available $500 million towards it. This is a very important program.

It improves connectivity between cities and towns in Armenia, but
also with neighboring countries. It is part of a transport corridor
that connects Armenia to Georgia and its two ports of Poti and
Batumi. It gives Armenia access to the Black Sea. Other international
organizations such as JICA, World Bank, EBRD, and the European
Investment Bank have expressed interest in helping with the program.

We are very proud to partner with Armenia on such important investment.

The Government has announced that some sections of this road will be
tolled. Why is this needed, and is this an ADB condition?

The Government wants to engage private investors in as many projects
as possible. ADB supports this approach, although we never made it a
precondition for our finance. There are various options for engaging
private investors, one of which is tolling. . Many countries around
the world follow this approach, several with considerable success.

Can we expect that 2010 will be the peak of ADB’s investment in
Armenia?

ADB is in Armenia for the long-term. This means we will remain engaged
as and when we are needed. In some years we will be called upon to
provide more finance than in others. Our approach is basically to be
responsive and responsible. In general, we expect our portfolio to
grow in years to come.

What are ADB projections of the macroeconomic situation in Armenia
in 2010?

We agree broadly with the Government’s projections. These are also in
line with those shared by other agencies, in particular the IMF. There
is clearly a turnaround and this is good.

ADB has also given a grant to support the preparation of the railway
project. The Armenian authorities are hopeful that ADB will be able to
co-fund it. Has this possibility been considered by ADB headquarters?

We will help prepare a feasibility study for the project and if
this shows the proposed investment to be sound, we will consider
co-financing it with the Government and possibly other agencies. It is
a major investment and we will need to partner with others. In general,
ADB likes railway projects. They complement other transport modes
and can be quite effective in terms of the impact on the environment.