Armenia: Water Supply and Sanitation Sector Project

Sovereign Project | 40296-013

Summary

Armenia is a mountainous landlocked country located in the southern Caucasus. It has a land area of approximately 28,700 square kilometers and shares land borders with Azerbaijan, Georgia, Iran, and Turkey. Based on National State Statistics Association estimates, the population was about 3.22 million in 2006 of which about 64% lives in urban areas and the remainder in rural villages. About half the urban population lives in Yerevan, the capital city. The population is forecast to grow at 0.3% per annum through 2015. For administrative purposes, Armenia is divided into 10 marzes (provinces) that are subdivided into districts, and consist of towns and villages. The proportion of the population living in poverty was 29.8% in 2005. Most of the country's poor lives in regional towns where the incidence of poverty is about 38%.

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Project Name Water Supply and Sanitation Sector Project
Project Number 40296-013
Country Armenia
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2363-ARM: Water Supply and Sanitation Sector Project
Asian Development Fund US$ 36.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Water and other urban infrastructure and services - Urban sewerage - Urban water supply
Gender Equity and Mainstreaming
Description Armenia is a mountainous landlocked country located in the southern Caucasus. It has a land area of approximately 28,700 square kilometers and shares land borders with Azerbaijan, Georgia, Iran, and Turkey. Based on National State Statistics Association estimates, the population was about 3.22 million in 2006 of which about 64% lives in urban areas and the remainder in rural villages. About half the urban population lives in Yerevan, the capital city. The population is forecast to grow at 0.3% per annum through 2015. For administrative purposes, Armenia is divided into 10 marzes (provinces) that are subdivided into districts, and consist of towns and villages. The proportion of the population living in poverty was 29.8% in 2005. Most of the country's poor lives in regional towns where the incidence of poverty is about 38%.
Project Rationale and Linkage to Country/Regional Strategy

To improve people's living standards, the environment, public health, and economic opportunities, the Government of Armenia (the Government) is prioritizing improved delivery of

water and sanitation (WSS) services. To address serious difficulties being faced by the majority of the population because of unsafe and unreliable water supply and inadequate sanitation facilities, the Government has mobilized financial resources, strengthened the legislative and regulatory framework, and restructured sector institutions. Since there is a considerable gap between the overall needs and available financial resources, the Government requested assistance from the Asian Development Bank (ADB) to prepare the proposed Project.

Impact Improved public health and environment in project towns and villages.
Project Outcome
Description of Outcome Improved access to safe, reliable and sustainable water supply and sanitation services in about 16 project towns and up to 125 project villages managed on commercial principles and environmentally sound practices.
Progress Toward Outcome

Project is physically completed and financial loan closing date is 20 February 2013. Outcomes have been successfully achieved with the following results:

1. 21 project towns are now benefiting from the project in terms of improved public health and environment. This is well above the original target of 16 project towns.

2. 600,000 people are now benefiting from the project in terms of improved public health and environment. This is also well above the original target of 576,000.

Implementation Progress
Description of Project Outputs

1. Rehabilitated, replaced, and expanded water supply and sewerage systems in project towns and villages.

2. Improved water services in project towns and villages.

3. Strengthened AWSC and institutionalized project villages not covered by AWSC.

4. Improved community management skills.

Status of Implementation Progress (Outputs, Activities, and Issues)

Water and sewerage systems were rehabilitated and upgraded in 21 towns and 97 villages benefitting approximately 600,000 households

Water and sewerage systems were rehabilitated and upgraded in 21 towns and 97 villages benefitting approximately 600,000 households

On track

915 km of water supply pipes installed or upgraded in 2012

11,899 new households connected to water supply in 2012

10,327 new households connected to piped water supply in 2012

40,570 consumers with access to safe water supply of at least 12 hours per day in 2012

Achieved 100%

63,735 consumers with access to full level of water supply in 2012

Tracking well

128,933 customers in 2012

79% in 2012

35 achieved

Geographical Location 16 towns and 125 villages within the jurisdiction of Armenia Water and Sewerage Company
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project is unlikely to cause any adverse environmental impacts because (i) potential negative impacts associated with the design, construction, and operation of the proposed subproject activities are likely to be temporary and localized in extent, and can be mitigated to acceptable levels using proven technology and management measures; (ii) an environmental management and monitoring plan was prepared to ensure environmentally sustainable implementation of the subprojects.
Involuntary Resettlement An initial resettlement due diligence screening shows that the project will not have any resettlement issues. All possible resettlement needs were assessed in accordance with ADB's Involuntary Resettlement Policy (1995) and were evaluated in terms of the proposed construction to see if any people, land, businesses, crops, or other items of value would be affected by the Project.
Indigenous Peoples An initial social assessment was out during project processing, covering potential subprojects. Detailed socioeconomic evaluation of 125 communities and 16 towns has been conducted and six consultation meetings were held, including site visites with one town and five communities. Extensive research on the remaining project areas has also been conducted. These consultations confirmed that all people living in the project area are ethnic Armenian so there is no indigenous peoples' issue.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder analysis has been conducted during project preparation through public participation and consultation with key stakeholders. Stakeholder consultations and focus group discussions were conducted with 120 people in the subproject town and each subproject community during April-May 2007. Issues discussed included qualitative aspects of poverty in subproject communities; gender issues; benefits of improved water services (especially to the poor and women); and willingness of involvement in design, monitoring, and evaluation activities for the Project. During these consultation exercises, community members also voiced their key environmental concerns and ideas on improving sanitation.
During Project Implementation Based on the public consultations, focus group discussion, and rapid participatory appraisal, a participation strategy has been developed to (i) promote active participation of the beneficiary and affected population in project planning, implementation, and monitoring and evaluation; (ii) promote active participation of the stakeholders in the implementation of the capacity building program on the effective management of water resources and water systems in the project communities; (iii) enhance project benefits to the beneficiary populations; (iv) obtain their support for the Project; and (v) raise their social acceptance of the user fees.
Business Opportunities
Consulting Services Inputs of 1,120 person-months of national consultants are planned for project implementation and management support to the PCU and PMU. The selection and engagement of these consulting services will be in accordance with the quality and cost-based selection method of ADB's Guidelines on the Use of Consultants (2007, as amended from time to time).
Procurement All procurement financed under the Project will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Contracts for civil works estimated to cost more than $1 million equivalent and contracts for goods estimated to cost more than $500,000 equivalent will be procured using international competitive bidding (ICB). Civil works contracts estimated to cost $1 million equivalent or less will be procured through national competitive bidding (NCB). Goods contracts estimated to cost between $100,000 and $500,000 equivalent will be procured through NCB. Goods contracts estimated to cost less than $100,000 equivalent will be carried out through shopping procedures. Goods valued below $10,000 may be pruchased directly from the supplier.
Responsible ADB Officer Cesar Llorens
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
State Comm of Wtr Sys of Min of Territorial AdminGagik KhachatryanSCWS@NETSYS.AM13A, Vardanants Street
0010 Yerevan, Republic of Armenia
Timetable
Concept Clearance 25 Jul 2006
Fact Finding 01 Jun 2007 to 17 Jun 2007
MRM 17 Jul 2007
Approval 31 Oct 2007
Last Review Mission -
PDS Creation Date 18 Jan 2008
Last PDS Update 27 Mar 2013

Loan 2363-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2007 18 Dec 2007 28 May 2008 30 Jun 2013 - 20 Feb 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 45.00 Cumulative Contract Awards
ADB 36.00 31 Oct 2007 36.32 0.00 100%
Counterpart 9.00 Cumulative Disbursements
Cofinancing 0.00 31 Oct 2007 36.32 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Water Supply and Sanitation Sector Project: Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Jun 2012
Water Supply and Sanitation Sector Project - Environmental Monitoring Report Environmental Monitoring Reports Jan 2012
Water Supply and Sanitation Sector Project: Settlements of Megri Region Initial Environmental Examination Jan 2012
Water Supply and Sanitation Sector Project: Town Ijevan - Environmental Management Plan Environmental Management Plans Jan 2012
Water Supply and Sanitation Sector Project: Ijevan Town Initial Environmental Examination Jan 2012
Water Supply and Sanitation Sector Project: Sevan Town Subproject Initial Environmental Examination Jan 2012
Water Supply and Sanitation Sector Project: Villages Odzun, Tsater and Deghdzavan - Environmental Management Plan Environmental Management Plans Jan 2012
Water Supply and Sanitation Sector Project: Town Agrak and Village Karchevan - Environmental Management Plan Environmental Management Plans Jan 2012
Water Supply and Sanitation Sector Project: Odzun, Tsater and Deghdzavan Villages Initial Environmental Examination Jan 2012
Water Supply and Sanitation Project: Stepanavan and Tashir Towns, Metsavan and Sarchapet Villages Initial Environmental Examination Jan 2012
Water Supply and Sanitation Sector Project: Town Tashir and Villages Metsavan and Sarchapet - Environmental Management Plan Environmental Management Plans Jan 2012
Water Supply and Sanitation Sector Project: Artashat-Vedi Region Subproject Initial Environmental Examination Jan 2012
Water Supply and Sanitation Project: Charentsavan Town, Solak and Argel Villages of Kotayk Marz - Environmental Management Plan Environmental Management Plans Jan 2012
Water Supply and Sanitation Sector Project: Town Kapan - Environmental Management Plan Environmental Management Plans Jan 2012
Water Supply and Sanitation Sector Project: Kapan Town Subproject Initial Environmental Examination Jan 2012
Water Supply and Sanitation Sector Project: Yeghegnavan, Noyakert, Aygepat, Mkhchyan Villages - Environmental Management Plan Environmental Management Plans Jan 2012
Water Supply and Sanitation Sector Project: Resettlement Framework Resettlement Frameworks Aug 2007

Evaluation Documents

See also: Independent Evaluation

No documents found.


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