Armenia: Validation of the Final Review of Country Operations, 2006–2011

Evaluation Document | 22 November 2012

This report evaluates the interim operational strategy final review from an independent perspective and assesses the quality of the self-evaluation. It identifies lessons and recommendations to improve the design and implementation of the upcoming country partnership strategy (CPS), as well as the quality and accountability of future self-evaluations.

This IED validation report assesses the interim operational strategy and its results less than successful and offers the following recommendations for future ADB action and for the Central and West Asia Department's consideration during preparation of the CPS:

  • Public sector lending reduction. ADB's public sector lending may need to be restrained to ensure the country's overall fiscal sustainability. Given that the government expects to borrow only $200 million-$300 million per annum during 2012-2013 from all international financial institutions, ADB's current lending targets may need to be scaled back. This can be done by adjusting the phasing of already agreed multitranche financing facilities and adopting a more modest lending pipeline. ADB should help the government set priorities for infrastructure investment, particularly in transport, urban development, and rural water supply.
  • Supplementing infrastructure investments. ADB should also add value to its ongoing infrastructure investments by financing a program of complementary activities through small grants from ADB-managed technical assistance trust funds. These grants could be used to enlarge the impact of these investments in reducing poverty, promoting climate change adaptation, building good governance capacity, and achieving gender reform goals.
  • Expanding private sector operations. Private sector operations will need to play a more prominent role in the new CPS. Synergies between ADB's public and private sector operations should be encouraged, and public sector advisory, capacity development, and policy dialogue support should complement catalytic private sector investment operations. ADB private sector operations should target the financial sector and emphasize support for developing the institutional savings and capital market, including pension funds. Scope may also exist for ADB private sector operations to foster energy efficiency and develop clean sources of power.
  • Knowledge and capacity development. ADB should develop a robust knowledge products and services and capacity building program in Armenia. The new CPS should define a program to cover both the core sectors of ADB support and areas where demand exists in economic management. In partnership with other development agencies, ADB should draw on this new knowledge to assist in policy and institutional reform.


  • Executive Summary
  • Background Information
  • Validation of the Interim Operational Strategy Final Review
  • Conclusion and Assessment of the Quality of the Final Review
  • Appendixes