|Sector / Subsector
Public sector management
- Public expenditure and fiscal management
- Road transport (non-urban)
- Transport policies and institutional development
- Urban roads and traffic management
Water and other urban infrastructure and services
- Urban policy, institutional and capacity development
- Urban water supply
The Asian Development Bank (ADB) partners with the Government of Armenia (government) to improve road and water service provision under the Infrastructure Sustainability Support Program (program).
The program supports the government''s development agenda on sustainable infrastructure provision as articulated in the Draft Armenia Development Strategy, 2013- 2025; Medium-Term Expenditure Framework, 201-3 2015; and the Republic of Armenia Government Program. It is closely aligned with ADB's Strategy 2020; the Water Operational Plan, 2011- 2020; the Sustainable Transport Initiative Operational Plan; and the development priorities identified in the country operations business plan, 2012 -2013 update. ADB has partnered with the government in road transport and water supply sectors, and for policy-based loans.
|Project Rationale and Linkage to Country/Regional Strategy
Economic growth facilitated by improved infrastructure is a government development priority. Infrastructure assets are aging fast in Armenia, and resources for their rehabilitation or replacement are increasingly limited. The road and water sectors are of particular importance, given their impact on the economy and quality of life. Both sectors are acutely underfunded, with the government's long-term planning and sector management capacity limited. In the road sector, distortions between operating budgets and predominantly development agency-funded capital expenditures are increasing. Aging water sector assets cannot be maintained with limited public funding and tariffs. Under-provision or poor provision of roads limits people's access to markets, health, and education facilities. Better maintained road networks around economic hubs can improve access and create opportunities for economic integration of those in peri-urban and rural areas. Reliable and clean water supply would have direct health benefits. During the design background work, the following were identified as prerequisites for better sector management and service delivery: (i) integrated sector management informed by sound asset management; (ii) effective financial management and additional financing options; (iii) aligned responsibilities, functions, and accountabilities of all departments and agencies in each sector to help achieve sector targets.
The government has partnered with development agencies and the private sector to improve road infrastructure and water supply, but the current need far exceeds the resources available. The program helps strengthen results-based management systems to address these constraints and to achieve road and water sector development priorities. The program also introduces a cross-sectoral approach for sector and finance ministries, scaled up to all four levels of results-based management planning, budgeting, implementation, and monitoring within and between sectors. The program partners with the Ministry of Economy (MOE) to align sector development plans with country development targets, with the Ministry of Finance (MOF) for adequate resource mobilization and optimal allocation, with the Ministry of Territorial Administration (MTA) for water and regional roads, and with the Ministry of Transport and Communication (MOTC) for the road network.