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Armenia and ADB

ADB supports Armenia’s economic recovery from the COVID-19 pandemic and builds foundations for inclusive, diversified, and transformative growth.

ADB's Work in Armenia

The Asian Development Bank (ADB) has been supporting Armenia since 2005 and remains one of the country’s largest multilateral development partners.

Current ADB operations in Armenia are implemented under the country partnership strategy (CPS), 2019–2023, which targets inclusive, diversified, and transformative growth. The strategy is structured around three pillars—priority infrastructure investments in transport, energy, and urban development; assistance to reform service delivery in education, health, and financial services; and support for regional cooperation and integration.

To date, ADB has committed 57 public sector loans, grants, and technical assistance totaling $1.2 billion to Armenia. Cumulative loan disbursements to Armenia amount to $1.27 billion. These were financed by regular and concessional ordinary capital resources. ADB’s ongoing sovereign portfolio in Armenia includes 7 loans worth $596.8 million.

Since 2005, ADB has supported Armenia through various programs, mainly in transport, public finance, energy, water supply, and urban development. About 80% of active sovereign lending portfolio are for transport projects, helping to develop an efficient, safe, and sustainable road network as well as improved domestic and cross-border connectivity for Armenia.

In recent years, ADB has emphasized support for Armenia’s private sector. In 2017–2021, ADB was one of the largest financiers for the private sector among international financial institutions in the country, with operations covering utilities and infrastructure, financial institutions, and agribusiness. In 2021, ADB approved a $35 million loan to modernize electricity distribution networks in Armenia that will ensure reliable electricity supply, especially in the provinces. This second phase of funding comprises a $20 million loan from ADB and a $15 million loan from the Leading Asia’s Private Infrastructure Fund, administered by ADB.

The Cafesjian Sculpture Garden is located at the base of the Cascade in Yerevan, Armenia.The Cafesjian Sculpture Garden is located at the base of the Cascade in Yerevan, Armenia. It is design to give a modern setting for large-scale sculptures.

Nonsovereign operations.Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Armenia as of 31 December 2021 was $211.35 million representing 1.5% of ADB’s total private sector portfolio.

Operational challenges. A high level of public debt, medium-term fiscal consolidation, and the high volume of undisbursed balance of loan projects committed by the government from international financial institutions continue to affect the government’s borrowing capacity. For this reason, ADB envisages a flexible and adaptive approach to government needs and considers supporting priority investments in infrastructure and further public finance reforms as fiscal space opens up in 2022–2024. Where appropriate, sovereign lending will be structured to promote private sector participation, nonsovereign financing, public– private partnerships, and other innovative solutions.

COVID-19 Response

The coronavirus disease (COVID-19) pandemic added considerable stress on Armenia. ADB was among the first development partners to help the country mitigate COVID-19 impacts. As an immediate response, in 2020, ADB approved a $2 million grant from the Asia Pacific Disaster Response Fund, financed by the Government of Japan and a $500,000 regional technical assistance to procure equipment and medical supplies. In 2020, ADB also approved a technical assistance of $750,000 to ensure continuous quality education by developing and delivering a distance learning platform. A $20 million nonsovereign loan to Electric Networks of Armenia helped ensure vital supplies of electricity during the pandemic.

Knowledge Work

Knowledge products and services are integral elements of ADB support under each of the three strategic pathways of the CPS. These include technical assistance programs for the development of digital platforms to help improve land management, support distance learning, and health workforce information system.

Knowledge products and services are integral elements of ADB support under each of the three strategic pathways of the CPS. These include technical assistance programs for the development of digital platforms to help improve land management, support distance learning, and health workforce information system.

ADB Membership

Joined 2005

Shareholding and Voting Power

Number of Shares Held
31,671 (0.3% of total shares)

Votes
70,785 (0.53% of total membership, 0.82% of total regional membership)

*Overall capital subscription
$443.26 million

*Paid-in capital subscription
$22.21 million

* United States dollar figures are valued at rate as of 31 December 2021.


ADB Governor: Tigran Khachatryan
ADB Alternate Governor: Vahe Hovhannisyan
ADB Director: Arif Baharudin (Indonesia)
ADB Alternate Director: Karen Murray (New Zealand)

Financing Partnerships

Financing partnerships enable ADB’s partner governments or their agencies, multilateral institutions, and private organizations to participate in ADB projects. The additional funds may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Armenia:

  • Sovereign cofinancing: $293.5 million for 2 investment projects and $5.61 million for 7 technical assistance projects since 2009
  • Nonsovereign cofinancing: $486.67 million for 6 investment projects since 2004

Future Directions

ADB planned projects and technical assistance that support the government’s new development agenda, as outlined in the national development program for 2021–2026, in four areas—the economy, infrastructure development, human capital development, and institutional development.

ADB assistance will focus on public finance and debt management reforms, health system development and transformation, smart regional territorial development, agriculture value chain development, and regional road construction and regional integration.

The nonlending program reflects the government’s requests for knowledge support and capacity development. While preparation and implementation of public finance and debt management reforms continue to progress under ADB support, ADB policy-based lending from 2022 onward will depend on fiscal needs and debt management conditions. Additional financing will be provided in 2022 to ensure completion of retrofitting and reconstruction of 46 schools targeted by the Seismic Safety Improvement Program.

This article was originally published in the ADB and Armenia: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Contacts

Armenia Resident Mission
Established: 2008
Country Director: Paolo Spantigati
2 Vazgen Sargsyan Street, 7th Floor
Kamar Business Center
Yerevan 0010, Republic of Armenia
  Tel: +374 10 512300
 Email
  www.adb.org/armenia
 www.facebook.com/adbarmenia

ADB Headquarters
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
  Tel: +63 2 8632 4444
  Fax: +63 2 8632 2444

Ministry of Finance
1 Melik-Adamyan Street,
Yerevan 0010, Armenia
  Tel: +374 11 800156
  Fax: +374 11 800132
 Email

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