Using a programmatic approach with a policy-based loan providing budget support ensures leverage for multi-sectoral reforms, whilst at the same time providing sufficient flexibility to adjust the program as the situation demands. In addition, the policy-based loan supports reforms and, in tandem, also helps finance the fiscal deficit and ring-fence specific expenses related to the scope of the proposed reforms. The program will have two subprograms and combined with TA, will support policy reforms and capacity building in the implementing and executing agencies. Subprogram 1 will focus on reviewing the economic regulator to increase independence, transparency and accountability; increasing funding for maintenance expenditure and ensuring financial viability of commercial entities in the water and power sectors; and introducing operational reforms to improve the efficiency of the transport and water government agencies, and encouraging competition in the power sector.
| Project Name | Infrastructure Sustainability Support Program (Phase 2) | ||||||||
| Project Number | 46220-006 | ||||||||
| Country | Armenia |
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| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
|
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships |
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| Sector / Subsector |
Energy / Energy sector development and institutional reform 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 |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||
| Description | Using a programmatic approach with a policy-based loan providing budget support ensures leverage for multi-sectoral reforms, whilst at the same time providing sufficient flexibility to adjust the program as the situation demands. In addition, the policy-based loan supports reforms and, in tandem, also helps finance the fiscal deficit and ring-fence specific expenses related to the scope of the proposed reforms. The program will have two subprograms and combined with TA, will support policy reforms and capacity building in the implementing and executing agencies. Subprogram 1 will focus on reviewing the economic regulator to increase independence, transparency and accountability; increasing funding for maintenance expenditure and ensuring financial viability of commercial entities in the water and power sectors; and introducing operational reforms to improve the efficiency of the transport and water government agencies, and encouraging competition in the power sector. Subprogram 2 will focus on rolling out program budgeting reforms across government, with specific support to MOENR, MOTC and SCWE; implementing the changes recommended for the economic regulator, including increased funding; entrenching increased funding for maintenance activities; and concrete actions to implement operational reforms. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The program will support the government's development agenda on sustainable infrastructure provision as articulated in the Armenia Development Strategy, 2014 2025; the Medium-Term Expenditure Framework, 2016 2019; and the Republic of Armenia Government Program. It is closely aligned with ADB's Strategy 2020; the mid-term review of Strategy 2020, the Water Operational Plan, 2011 2020; the Sustainable Transport Initiative Operational Plan; the Energy Policy; country partnership strategy for 2014-2018, and the Country Operations Business Plan, 2016 2018. | ||||||||
| Impact | Improved service delivery in road, water supply, and power sectors (Armenia Development Strategy) | ||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Improved management and sustainability of road, water supply, and power sectors |
| Progress Toward Outcome | Achievement of 2017 target ongoing. |
| Implementation Progress | |
| Description of Project Outputs | Improved public financial management and utility regulation Increased financing and improved operations in the road sector Increased financing and improved operations in the water sector Increased level of power sector competitiveness and revenue generation |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 2016 targets achieved. Achievement of 2017 targets ongoing. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | The following multi-disciplinary team of consultants have been engaged: (i) national public financial management specialist; (ii) international water supply economist, (iii) international and national water sector engineers, (iv) international and national road transport sector engineers, (v) national water researcher, (vi) national audit specialist, (vii) national PFM advisor, (viii) a national legal expert, (ix) international energy sector economist, and (x) national contingent liability analyst. |
| 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 | 22 Dec 2015 |
| Fact Finding | 20 Jun 2016 to 01 Jul 2016 |
| MRM | 07 Oct 2016 |
| Approval | 10 Nov 2016 |
| Last Review Mission | - |
| Last PDS Update | 21 Sep 2017 |
Loan 3453-ARM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 10 Nov 2016 | 11 Nov 2016 | 27 Dec 2016 | 31 Dec 2017 | - | 31 Dec 2017 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 90.00 | Cumulative Contract Awards | |||
| ADB | 90.00 | 10 Nov 2016 | 90.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 10 Nov 2016 | 90.00 | 0.00 | 100% |
TA 9226-ARM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 10 Nov 2016 | 01 Dec 2016 | 01 Dec 2016 | 31 Dec 2017 | - | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 500,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 500,000.00 | 10 Nov 2016 | 457,841.75 |
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.
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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.
None currently available.
Evaluation Documents See also: Independent Evaluation
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Related Publications
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ADB to Help Improve Infrastructure Operations, Sustainability in Armenia
ADB has approved $90.5 million in a loan and a technical assistance grant to improve infrastructure operation and sustainability in Armenia through reforms in the road, water, and power sectors.
Tenders
No tenders for this project were found.
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.