Armenia: Infrastructure Sustainability Support Program

Sovereign Project | 46220-001 Status: Closed

Summary

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.

Latest Project Documents


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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

 
Project Name Infrastructure Sustainability Support Program
Project Number 46220-001
Country Armenia
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3155-ARM: Infrastructure Sustainability Support Program
Asian Development Fund US$ 49.00 million
TA 8710-ARM: Strengthening Sector Management Capacity in Road and Water Sectors
Technical Assistance Special Fund US$ 900,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
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
Description

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

Project Outcome

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.
Implementation Progress
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.
Geographical Location Armenia

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

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

Business Opportunities

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 Staff

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
Executing Agencies
Ministry of Finance (MOF)
[email protected]
1 Melik Adamyan, Yerevan
Armenia

Timetable

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

Loan 3155-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Aug 2014 45.56 0.00 100%

TA 8710-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Aug 2014 19 Sep 2014 19 Sep 2014 30 Sep 2015 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
900,000.00 0.00 100,000.00 0.00 0.00 0.00 1,000,000.00 28 Aug 2014 863,659.37

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.