Armenia: Cofinancing

Cofinancing operations enable ADB’s financing partners, governments or their agencies, multilateral financing institutions, and commercial organizations, to participate in financing ADB projects. The additional funds are provided in the form of official loans and grants, other concessional financing, and commercial financing such as B loans, risk transfer arrangements, parallel loans and equity, guarantee cofinancing, and cofinancing for transactions under ADB’s Trade Finance Program.

By the end of 2014, cumulative direct value-added (DVA) official cofinancing for Armenia amounted to $117.1 million for two investment projects and $1.2 million for three technical assistance projects. Cumulative DVA commercial cofinancing for Armenia amounted to $131.98 million for three investment projects.

In 2014, the European Bank for Reconstruction and Development (EBRD) provided loan cofinancing of $19.1 million and grant cofinancing of $10.9 million to the Power Transmission Rehabilitation.

Armenia: Projects Cofinanced, 1 January 2010–31 December 2014

Cofinancing No. of Projects Amount ($ million)
Projectsa 5 249.08
 Grants 2 18.79
 Official loans 2 98.31
 Commercial cofinancing 3 131.98
Technical Assistance Grants 2 0.71

aA project with more than one source of cofinancing is counted once.

Investment Projects Cofinanced for Armenia, 1 January 2010–31 December 2014

Project ADB Amounta ($ million) Cofinancing Amount ($ million) Type of Cofinancingb
North-South Road Corridor Investment Program - Tranche 3 100.00 87.10 G/O
Power Transmission Rehabilitation 37.00 30.00 G/O
Armenia International Airports (ArIA) 40.00 80.00 C
Trade Finance Programc 11.20 26.98 C
Sevan-Hrazdan Cascade Hydropower System Rehabilitation 25.00 25.00 C

a Loan, grant or blend
b C = commercial cofinancing, G = grant cofinancing, O = official cofinancing
The $1 billion limit for ADB’s Regional Trade Finance Program (TFP), approved by the Board of Directors in 2009, is the maximum exposure the TFP can assume at any one point in time. This limit has never been breached. Although greater than $1 billion in 2010–2014, the TFP exposure was not breached because TFP maturities tend to be short—less than 180 days on average—and TFP exposure can revolve (be reused) within a year. The TFP also distributes risk exposures to various partners that leverage its capital resources.