Armenia: Water Supply and Sanitation Sector Project - Additional Financing

Sovereign Project | 45299-001

Summary

The additional financing will (i) rehabilitate and upgrade water supply infrastructure, (ii) improve the performance of water services, and (iii) improve the management and operational efficiency of the water utility company.2 Also, the additional financing will ensure further public health and environmental improvements by providing potable and reliable water supply to households in approximately 18 towns and 92 villages in the provinces of Aragatsotn, Ararat, Amavir, Geharqunik, Tavush, Lori, Kotayq, Shirak, Syunik, and Vayotz-Dzor. The Asian Development Bank (ADB) loan will form part of a larger sector capital investment by the government of Armenia and other international financial institutions including the World Bank and the European Bank for Reconstruction and Development.

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Procurement Documents


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Project Name Water Supply and Sanitation Sector Project - Additional Financing
Project Number 45299-001
Country Armenia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2860-ARM: Water Supply and Sanitation Sector Project - Additional Financing
Asian Development Fund US$ 40.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban water supply
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The additional financing will (i) rehabilitate and upgrade water supply infrastructure, (ii) improve the performance of water services, and (iii) improve the management and operational efficiency of the water utility company.2 Also, the additional financing will ensure further public health and environmental improvements by providing potable and reliable water supply to households in approximately 18 towns and 92 villages in the provinces of Aragatsotn, Ararat, Amavir, Geharqunik, Tavush, Lori, Kotayq, Shirak, Syunik, and Vayotz-Dzor. The Asian Development Bank (ADB) loan will form part of a larger sector capital investment by the government of Armenia and other international financial institutions including the World Bank and the European Bank for Reconstruction and Development.
Project Rationale and Linkage to Country/Regional Strategy

The government has been systemically facilitating improvements in the water supply and sanitation (WSS) sector through significant legislative and institutional reforms, notably the

adoption of (i) the Water Code of Armenia in 2002 to promote water allocation based on water resource supply, (ii) the Law on Fundamental Provisions of the National Water Policy in 2005 for the strategic use and protection of water resources and systems, and (iii) the National Water Program in 2006 to address water resource formation and sustainability.

In October 2007, ADB approved funding for the Water Supply and Sanitation Sector Project to upgrade and rehabilitate WSS systems in 18 subprojects in 16 towns and 125 villages. The current project had two components: (i) infrastructure rehabilitation, and (ii) improvements in management and operational efficiency. The current project is expected to be

completed in the first quarter of 2012, which is 12 months ahead of schedule.

Foreseeing the likely success of the current project, the government has requested through the State Committee for Water Economy (SCWE) that ADB further fund the additional

financing and support the government's continued efforts to rehabilitate and extend WSS systems with an additional 10 subprojects and further improve the operational efficiency and

financial management of the Armenia Water and Sewerage Company (AWSC), a government owned commercial company that Soci t d'Am nagement Urbain et Rural (SAUR), an

international water utility, manages and operates through a management contract.

The additional financing is included in the country operational business plan 4 andstrongly supports the government's objective of facilitating human development through better

access to reliable and sustainable supplies of potable water, improving living conditions in approximately 18 towns and 92 villages in Armenia.

Impact Improved public health and environment in about 29 project towns and 160 villages
Project Outcome
Description of Outcome Improved access to safe, reliable, and sustainable WSS in about 29 towns and up to 160 project villages, managed on commercial principles and with environmentally sound practices
Progress Toward Outcome Progress is on track.
Implementation Progress
Description of Project Outputs

Extended program of rehabilitation and replacement of water supply and sewerage systems in more project towns and villages

Further improvements in water services as per updated performance targets and indicators in more project towns and villages

Extended program to further expand the AWSC's operational and institutional capacity

Status of Implementation Progress (Outputs, Activities, and Issues) 23 civil works contracts awarded. Remaining 5 civil works contracts to be awarded in Q2 and Q3 2015. All equipment contracts awarded. Project implementation is ahead of original project implementation schedule.
Geographical Location 18 Towns and 92 Villages across Armenia
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Based on site specific information and a description of the project that is to be undertaken it is seen that the operations proposed at the sites are very small which will have minimal impacts that will be limited to the construction phase, and will be easily mitigated by adequately designed mitigation measures. Based on this the project has been categorized B for Environment. IEEs prepared for awarded civil works contracts. IEEs of other subprojects being prepared.
Involuntary Resettlement Only limited IR impacts on movable assets are envisaged for the project activities as most activities will be conducted on the public lands and within project row. An appropriate RP will be prepared for one of the sample subprojects. Approved LARF of the project phase 1 will be reviewed and updated to guide any IR impacts in the remaining subprojects during phase 2 project implementation.
Indigenous Peoples The population of the project areas is homogenously Armenian with few religious minority groups (the Malakans, Russians religious group). However, the main social and economic activities are fully integrated into the general Armenian society. The ADB SPS (2009) SR 3 on Indigenous Peoples Policy will not be triggered.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder analysis has been conducted during the project preparation through public consultation and participation with key stakeholders. The purpose of the analysis was to identify their needs, interest, capacity and level of influence in the project. Stakeholder consultations and focus group discussions were conducted during November 2011. 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 and health safety concerns and ideas on improving sanitation.
During Project Implementation There should be improved community management skills. Consultant was engaged to do public awareness campaign program.
Business Opportunities
Consulting Services There will be 1 contract to undergo QCBS for detailed design and construction supervision firm (72 international person-months and 474 national person-months) amounting to $2.64 million. Another 1 contact to undergo Least-cost selection will be alloted for financial audit amounting to $0.20 million.
Procurement

Procurement financed under the additional financing will accord with ADB Procurement Guidelines.

There will be 18 contracts for civil works which will undergo ICB; 20 contracts for civil works which will undergo NCB; 2 contracts for goods to undergo ICB; and 4 contracts for shopping. The total value of the contracts is $42.10 million (including taxes and duties) for civil works; $2.18 million for goods; and $0.12 million for shopping.

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 Committee for Water EconomySCWE@NETSYS.AM13a Vardanants Street
375010 Yerevan, Armenia
Timetable
Concept Clearance -
Fact Finding 23 Sep 2011 to 28 Sep 2011
MRM 20 Jan 2012
Approval 12 Apr 2012
Last Review Mission -
Last PDS Update 09 Mar 2015

Loan 2860-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Apr 2012 03 May 2012 14 Sep 2012 31 Oct 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 40.00 12 Apr 2012 32.20 0.00 84%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 12 Apr 2012 28.61 0.00 75%
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 – Additional Financing: Environmental Management Plan for Improvement of Water Supply Systems in Noyemberyan Town and Berdavan Environmental Management Plans Jul 2015
Water Supply and Sanitation Sector Project – Additional Financing: Environmental Management Plan for Improvement of Water Supply Systems in Dilijan Town and Bagratashen, Ptghavan, Zorakan Villages Environmental Management Plans Jul 2015
Water Supply and Sanitation Sector Project - Additional Financing: Subproject 4 - Kotayk Marz Involuntary Resettlement Due Diligence Report Safeguards Due Diligence Reports Jul 2015
Water Supply and Sanitation Sector Project - Additional Financing: Subproject 5 - Tavush Marz Involuntary Resettlement Due Diligence Report Safeguards Due Diligence Reports Jul 2015
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply Systems in Oshakan, Voskevaz, Voskehat and Ferik Villages - Environmental Management Plan Environmental Management Plans Jul 2015
Water Supply and Sanitation Sector Project – Additional Financing: Involuntary Resettlement Due Diligence Report (April 2015) Safeguards Due Diligence Reports May 2015
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply Systems in Dilijan Town and Bagratashen, Ptghavan, Zorakan, Berdavan Villages Environmental Management Plan Environmental Management Plans Apr 2015
Water Supply and Sanitation Sector Project - Additional Financing: Social Monitoring Report (October 2014-March 2015) Social Monitoring Reports Apr 2015
Water Supply and Sanitation Sector Project – Additional Financing: Environmental Management Plan for Improvement of Water Supply Systems in Dilijan Town and Bagratashen, Ptghavan, Zorakan, Berdavan Villages Environmental Management Plans Apr 2015
Water Supply and Sanitation Sector Project - Additional Financing: Biannual Environmental Monitoring Report (October 2014-March 2015) Environmental Monitoring Reports Apr 2015
Water Supply and Sanitation Sector Project - Additional Financing: Updated Initial Environmental Examination for Improvement of Aragatsotn Region Settlements Water Supply Systems Initial Environmental Examination Mar 2015
Water Supply and Sanitation Sector Project - Additional Financing: Environmental Management Plan for Improvement of Tavush Region Water Supply Systems (Dilijan Town and Bagratashen, Ptghavan, Zorakan, and Berdavan Villages) Environmental Management Plans Mar 2015
Water Supply and Sanitation Sector Project - Additional Financing: Environmental Management Plan for Improvement of Kotayk Region Water Supply Systems (Abovyan and Charentsavan Towns and Solak Village) Environmental Management Plans Mar 2015
Water Supply and Sanitation Sector Project - Additional Financing: Environmental Management Plan for Improvement of Shirak Region Water Supply Systems (Artik Town, Nor Kyank, Vardakar, Hovtashen, Geghanist, and Mets Mantash Villages) Environmental Management Plans Mar 2015
Water Supply and Sanitation Sector Project - Additional Financing: Environmental Management Plan for Improvement of Shirak Region Water Supply Systems (Meghrashen, Panik, and Spandaryan Villages) Environmental Management Plans Mar 2015
Water Supply and Sanitation Sector Project - Additional Financing: Subproject 10 - Aragatsotn Marz Involuntary Resettlement Due Diligence Report Safeguards Due Diligence Reports Feb 2015
Water Supply and Sanitation Sector Project (Additional Financing) - Improvement of the Water Supply Systems of the Settlements of Shirak Region: Environmental Management Plan Environmental Management Plans Jan 2015
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of the Water Supply Systems of the Settlements of Shirak Region Initial Environmental Examination Initial Environmental Examination Dec 2014
Water Supply and Sanitation Sector Project - Additional Financing: Due Diligence Report (December 2014) Safeguards Due Diligence Reports Dec 2014
Water Supply and Sanitation Sector Project - Additional Financing: Environmental Monitoring Report (April-September 2014) Environmental Monitoring Reports Nov 2014
Water Supply and Sanitation Sector Project (Additional Financing) - Improvement of Water Supply System of the Settlements of Aragatsotn Region: Environmental Management Plan Environmental Management Plans Nov 2014
Water Supply and Sanitation Sector Project - Additional Financing: Social Monitoring Report (April-September 2014) Social Monitoring Reports Sep 2014
Water Supply and Sanitation Sector Project - Additional Financing: Environmental Monitoring Report (October 2013-March 2014) Environmental Monitoring Reports Sep 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply Systems in Talin Town in Аragatsotn Region Environmental Management Plan Environmental Management Plans Sep 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Syunik Region Water Supply Systems Initial Environmental Examination Jul 2014
Water Supply and Sanitation Sector Project - Additional Financing: Talin Town Environmental Management Plan Environmental Management Plans Jul 2014
Water Supply and Sanitation Sector Project - Additional Financing: Gegharkunik Region Settlements Water Supply Systems Initial Environmental Examination Jul 2014
Water Supply and Sanitation Sector Project - Additional Financing: Lchashen, Norashen, and Chkalovka Villages Environmental Management Plan Environmental Management Plans Jun 2014
Water Supply and Sanitation Sector Project - Additional Financing: Meghri Town Environmental Management Plan Environmental Management Plans Jun 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply System Vedi and Ararat Towns, Banavan Gmf, Ararat and Vosketap Villages Environmental Management Plans Apr 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply System in Masis, Burastan, Azatavan, Baghramyan, Berkanush, Dalar, Mrgavan, Shahumyan and Dimitrov Villages Environmental Management Plans Apr 2014
Water Supply and Sanitation Sector Project - Additional Financing: Kotayk Region Settlements (Updated) Initial Environmental Examination Apr 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply Systems in Kapan Town and Syunik, Achanan Villages Environmental Management Plans Mar 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply System in Tsaghkadzor Town and Akunq Village Environmental Management Plans Mar 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply System of Ddmashen and Gandzak Villages Environmental Management Plans Mar 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply System of Aygezard, Verin Artashat, Mrganush, Byuravan, Nshavan, Hovtashen, Mrgavet and Reconstruction of Abovyan Village External Water Main Environmental Management Plans Mar 2014
Water Supply and Sanitation Sector Project - Additional Financing: Vayots Dzor Water Supply System Initial Environmental Examination Mar 2014
Water Supply and Sanitation Sector Project - Additional Financing: Water Supply Systems in Vayk, Jermuk Towns, and Zaritap Village Environmental Management Plans Mar 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply System of Goris Town and Brnakot Village Environmental Management Plans Feb 2014
Water Supply and Sanitation Sector Project - Additional Financing: Noyemberyan and Berd Towns of Tavush Region Initial Environmental Examination Feb 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply System of Gavar Town and Karmirgyugh Village Environmental Management Plans Jan 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply System of Sevan Town Environmental Management Plans Jan 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply Systems in Noyemberyan Town Environmental Management Plans Jan 2014
Water Supply and Sanitation Sector Project - Additional Financing: Environmental Management Plan for Berd Town Environmental Management Plans Jan 2014
Water Supply and Sanitation Sector Project - Additional Financing: Improvement of Water Supply Systems in Noratus and Sarukhan Villages: Environmental Management Plan Environmental Management Plans Nov 2013
Water Supply and Sanitation Sector Project - Additional Financing: Environmental Monitoring Report (March-September 2013) Environmental Monitoring Reports Oct 2013
Water Supply and Sanitation Sector Project - Additional Financing: Subproject 3 Initial Environmental Examination Oct 2013
Water Supply and Sanitation Sector Project - Additional Financing: Kotayk Region Settlements Initial Environmental Examination May 2013
Water Supply and Sanitation Sector Project - Additional Financing: Subproject 2 Initial Environmental Examination Mar 2013
Water Supply and Sanitation Sector Project - Additional Financing: Subproject 1 Initial Environmental Examination Jan 2013
Water Supply and Sanitation Improvement in the Settlements of Republic of Armenia - Phase 2 Initial Environmental Examination Jan 2012
Water Supply and Sanitation Sector Project - Phase 2 Resettlement Frameworks Dec 2011
Water Supply and Sanitation Sector Project - Phase 2: Armavir Subproject Resettlement Plans Dec 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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