Armenia: Second Water Supply and Sanitation Sector Project

Sovereign (Public) Project | 49384-001 Status: Active

The proposed project will focus on Yerevan city, Ararat, Armavir, and the mountainous Aragatsotn region. These regions have a combined population of 1.8 million (50% of the country s population) and cover an area of more than 5,400 square kilometers. The main reasons for focusing on this geographical area, especially Yerevan and the Ararat, are their economic importance, vulnerability to over abstraction of ground water, drought, climate change, and absence of intersectoral river basin management plans.

Project Details

Project Officer
Llorens, Cesar Central and West Asia Department Request for information
Country
  • Armenia
Sector
  • Water and other urban infrastructure and services
 
Project Name Second Water Supply and Sanitation Sector Project
Project Number 49384-001
Country Armenia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9254-ARM: Second Water Supply and Sanitation Sector Project
Technical Assistance Special Fund US$ 400,000.00
Japan Fund for Poverty Reduction US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Water and other urban infrastructure and services - Urban policy, institutional and capacity development

Gender Equity and Mainstreaming Some gender elements
Description The proposed project will focus on Yerevan city, Ararat, Armavir, and the mountainous Aragatsotn region. These regions have a combined population of 1.8 million (50% of the country s population) and cover an area of more than 5,400 square kilometers. The main reasons for focusing on this geographical area, especially Yerevan and the Ararat, are their economic importance, vulnerability to over abstraction of ground water, drought, climate change, and absence of intersectoral river basin management plans.
Project Rationale and Linkage to Country/Regional Strategy

After the collapse of the Soviet Union in 1992, service coverage in water supply and sanitation plummeted in Armenia. By 2002, intermittent water services were as low as 2 hours a day in some areas, 55% of collected wastewater was discharged without any treatment, non-revenue water was as high as 90% in some areas, and the revenue collection rate was around 15%. By 2007, when ADB prepared its first loan for the sector, over 60% of the WSS infrastructure in 50 towns and 300 villages was in very poor condition, and about 50% of the water and sewage networks needed major rehabilitation and/or replacement. This situation was further exacerbated by overdesigned infrastructure, the dwindling economic base in most secondary cities, rising environmental and climate change vulnerabilities, and the global economic crisis.

A management contract was introduced in the capital city, Yerevan, in 1998. This was followed by four additional management contracts that resulted in improvements in service performance, including collection efficiency, quality of water, and efficiency in service delivery. These contracts have enabled the transition to a unified lease contract for the country, expected to be effective in Q1 2017. In parallel, ADB has also supported this transition through a policy-based loan, enabling reforms on broader sector governance issues including the revision of the Water Code, and building capacity of the Public Services Regulatory Commission and the State Committee for Water Economy.

Although many improvements were made over the past 2 decades, five key issues remain in the sector:

(i) High NRW. In earlier projects, when access to water improved, leakages and therefore NRW increased as more water was pumped through the system and pressure increased. A study to understand the causes of high NRW and identify remedial measures was commissioned by ADB in 2013, which among others, concluded that a 50% reduction in NRW could be achieved by changing regulations related to meters and ownership of infrastructure assets located inside condominiums.

(ii) Pollution of water bodies. Sanitation was not addressed in the earlier projects due to the absence of solid waste infrastructure countrywide that would have allowed for the treatment and disposal of sludge generated in the wastewater treatment plants.

(iii) Sustainability of ground water sources. In Ararat and Armavir, ground water abstraction for fish farms and agriculture has been intensive. In the proposed project, this will be partially addressed through the introduction of remote sensing technologies and water reuse.

(iv) Energy efficiency. There are potentials for energy consumption reduction, even to obtain zero energy balance within some subprojects.

(v) Cost recovery and financing. Due to the different private sector arrangements, the government was unable to implement countrywide tariff reforms. The World Bank provided policy support on tariff design for the proposed lease contract.

The proposed Second Water Supply and Sanitation Sector Project (WSSSP2) is in line with ADB s Water Operational Plan. WSS is a key sector in the country partnership strategy, 2014-2018 for Armenia. The proposed project aims to support the government by: (i) increasing capital investments in WSS including wastewater treatment; (ii) reducing water pollution, reusing treated wastewater, managing ground water resources, and assisting associated regulatory reforms; (iii) improving the capacity of the SCWE and State Committee of the Real Property Cadaster in using remote sensing technology, geographic information system (GIS), and supervisory control and data acquisition (SCADA) system to monitor ground round ground water and provide data for river basin management; (iv) piloting new WSS system approaches in geographical areas vulnerable to drought; (v) reducing cost of services through energy efficiency improvement and regulatory reforms for NRW; and (vi) building capacity.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
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

Individual consultants will be recruited for preparation of the project including 12 international, providing a total of 28.5 person-month (p-m) inputs, and 4 national providing 10 p-m inputs. A firm will be recruited for the geographic information system (GIS) pilot (43 p-m of international experts and 36 p-m of national experts) using quality- and cost-based selection. With a quality-cost ratio of 90:10, shortlisted firms will be required to submit full technical proposals. All consultants will be recruited in accordance with the ADB Guidelines on the Use of Consultants (2013, as amended from time to time). All equipment will be procured in accordance with the ADB Procurement Guidelines (2015, as amended from time to time).

A firm will de recruited for piloting actions aiming at: (i) reducing water pollution, reusing treated wastewater, managing ground water resources, and assisting associated regulatory reforms; (ii) improving the capacity of the State Committee for Water Economy (SCWE) and State Committee of the Real Property Cadaster in using remote sensing technology, GIS, and SCADA system to monitor ground water and provide data for river basin management; (iii) piloting new WSS system approaches in geographical areas vulnerable to drought; and (iv) reducing cost of services through energy efficiency improvement and non revenue water reduction.

Responsible ADB Officer Llorens, Cesar
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Ministry of Energy and Natural Resources of the Republic of Armenia
Government Building 2, Republic Square
375010 Yerevan, Republic of Armenia
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 05 Dec 2016
Last Review Mission -
Last PDS Update 07 Dec 2016

TA 9254-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Dec 2016 23 Jan 2017 23 Jan 2017 31 Mar 2018 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 2,000,000.00 0.00 0.00 0.00 0.00 2,400,000.00 05 Dec 2016 346,015.00

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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Evaluation Documents See also: Independent Evaluation

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Related Publications

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