ADB is assisting Armenia in improving water use, hygiene, and sanitation in rural areas. The project will rehabilitate and upgrade water supply networks, improve water services, and increase the operational efficiency of the water utility in 18 towns and 92 villages in the provinces of Aragatsotn, Ararat, Amavir, Geharqunik, Kotayq, Lori, Shirak, Syunik, Tavush, and Vayotz-Dzor.
|Project Name||Water Supply and Sanitation Sector Project - Additional Financing|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|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|
|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.|
|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)||All 29 civil works contracts awarded, 26 contracts completed. Remaining 3 contracts are in progress and scheduled for completion before 30 April 2017. All equipment contracts awarded and completed. Project implementation is on track and is expected to be completed before the original project completion date, i.e. April 2017.|
|Geographical Location||18 Towns and 92 Villages across Armenia|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Based on site specific information and a description of the project it was seen that the operations proposed at the sites were very small which have minimal impacts limited to the construction phase, to 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.|
|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||Consultant has been engaged to do public awareness campaign program.|
|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 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 $0.12 million for shopping.
|Responsible ADB Officer||Llorens, Cesar|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Armenia Resident Mission|
State Committee for Water Economy
13a Vardanants Street
375010 Yerevan, Armenia
|Fact Finding||23 Sep 2011 to 28 Sep 2011|
|MRM||20 Jan 2012|
|Approval||12 Apr 2012|
|Last Review Mission||-|
|Last PDS Update||31 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|12 Apr 2012||03 May 2012||14 Sep 2012||31 Oct 2017||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||50.00||Cumulative Contract Awards|
|ADB||40.00||12 Apr 2012||37.24||0.00||98%|
|Cofinancing||0.00||12 Apr 2012||38.05||0.00||100%|
|Status of Covenants|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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