ADB is supporting an integrated approach to road and water management in Armenia. The program will assist the government in improving management systems for the road and water sectors. It will develop strategies and processes to allocate investments more efficiently, improve regulatory frameworks, and monitoring systems.
|Project Name||Infrastructure Sustainability Support Program|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Public sector management - Public expenditure and fiscal management
Transport - 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
|Gender Equity and Mainstreaming||No gender elements|
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.
|Impact||Improved service delivery in the road transport and water supply sectors|
|Description of Outcome||Results-based management systems implemented in the road transport and water supply sectors|
|Progress Toward Outcome||The program has finished. The government has implemented new results-based management systems through the introduction of program-based budgeting. The implementation will continue over the coming few years.|
|Description of Project Outputs||
1. Sector management systems improved
2. Strategies and processes to allocate investments more efficiently developed
3. Regulatory frameworks improved
4. Monitoring systems strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)||The program has finished and the outputs have been met.|
Summary of Environmental and Social Aspects
|Environmental Aspects||This program loan supports better financial management and administration of road and water sectors in Armenia. It has no direct investment or project component which may trigger any of the safeguards.|
|Involuntary Resettlement||This program loan supports better financial management and administration of road and water sectors in Armenia. It has no direct investment or project component which may result in involuntary resettlement.|
|Indigenous Peoples||This program loan supports better financial management and administration of road and water sectors in Armenia. It has no direct investment or project component with an impact on indigenous people.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The primary stakeholders for the program are beneficiaries of road and water services, the Ministry of Finance, Ministry of Economy, Ministry of Transport and Communication, Ministry of Territorial Administration, the State Committee on Water Economy, private sector providers of water and road transport services and infrastructure. These stakeholders have been consulted extensively on the policy conditions and timetable for implementation during workshops, focus group discussions, working group sessions held intermittently from March to August 2013.|
|During Project Implementation|
|Consulting Services||The TA required a total of 520 person-months of international consulting services and 976 person-months for national consultants, with the following expertise: (i) international public financial management (PFM) specialist, (ii) international roads engineer, (iii) international water economist, (iv) international public utilities regulatory affairs specialist, (v) international project director, (vi) international water sector engineer, (vii) international road transport economist, (viii) international water sector expert, (ix) national PFM specialist, (x) national water engineer, (xii) national transport engineer, (xiii) national legal expert, (xiv) national data and systems management specialist, and (xv) national audit specialists.|
|Responsible ADB Officer||Hodge, Matthew W.|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, CWRD|
Ministry of Finance (MOF)
1 Melik Adamyan, Yerevan
|Concept Clearance||11 Nov 2013|
|Fact Finding||04 Nov 2013 to 15 Nov 2013|
|MRM||25 Apr 2014|
|Approval||28 Aug 2014|
|Last Review Mission||-|
|Last PDS Update||30 Mar 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|28 Aug 2014||03 Oct 2014||19 Dec 2014||30 Sep 2015||31 Dec 2015||11 Nov 2015|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||49.00||Cumulative Contract Awards|
|ADB||49.00||28 Aug 2014||45.56||0.00||100%|
|Cofinancing||0.00||28 Aug 2014||45.56||0.00||100%|
|Approval||Signing Date||Effectivity Date||Closing|
|28 Aug 2014||19 Sep 2014||19 Sep 2014||30 Sep 2015||31 Dec 2015||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|900,000.00||0.00||100,000.00||0.00||0.00||0.00||1,000,000.00||28 Aug 2014||863,659.37|
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ADB Supports Road and Water Sector Sustainability in ArmeniaThe Asian Development Bank approved a $49 million loan and a technical assistance grant of $900,000 to support the sustainability of Armenia’s road and water sectors.