Armenia and ADB

ADB partners with Armenia in promoting inclusive, sustainable, and private sector-led growth.

ADB's Work in Armenia

The Asian Development Bank (ADB) has been in partnership with Armenia since 2005 and is one of the country’s largest multilateral development partners. ADB has provided support to the country through sovereign and nonsovereign financing, technical assistance, and knowledge solutions. Operations have been focused mainly on transport, public finance, education, energy, water supply, and urban development.

ADB’s draft country partnership strategy (CPS), 2024–2028, for Armenia is fully aligned with the country’s long- and medium-term development strategies and climate agenda. It responds to the country’s evolving priorities, including (i) resilient growth promoted through competitiveness; (ii) a stronger private sector; and (iii) human capital development. ADB’s support focuses on (i) strengthening private sector-led growth; (ii) enhancing governance, institutions, and human capital; and (iii) improving climate and disaster resilience.

As of 31 December 2023, ADB has committed 62 public sector loans, grants, and technical assistance totaling $1.5 billion to Armenia. ADB’s current sovereign portfolio in Armenia includes 8 loans worth $665.1 million.

Cumulative sovereign and nonsovereign loan and grant disbursements to Armenia amount to $1.46 billion. These were financed by regular and concessional ordinary capital resources and other special funds.

In 2023, ADB committed a €66.1-million loan (equivalent to $72.3 million) as additional financing to support the Government of Armenia in building earthquake-resilient schools and strengthening its capacity for seismic disaster risk management. Once completed, the program will benefit about 58,000 students, 3,100 teachers and other school staff, and 87,000 residents living near the schools.

ADB also approved a €60.1-million loan (equivalent to $65.17 million) to enhance the economy, livability, and inclusiveness of Yerevan, the capital city of Armenia. The financing will improve sustainable urban mobility and services and strengthen institutional capacity for green and inclusive urban mobility. Around 1.2 million residents of Yerevan will benefit from reduced traffic congestion.

ADB is also one of the largest financiers for the private sector in Armenia, with operations covering utilities and infrastructure, financial institutions, and agribusiness. As of December 2023, the total commitment for loans and equity investment in Armenia amounted to $377 million.

Photo: Asian Development Bank
Children playing in the newly constructed sports field under Seismic Safety Improvement Program (SSIP) at Yerevan Basic School N116. Photo: Davit Hakobyan

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Armenia as of 31 December 2023 amounted to $154.84 million representing 1.31% of ADB’s total private sector portfolio.

Operational challenges. ADB and the Government of Armenia are working closely to improve the quality-at-entry of projects, accelerate project implementation, and maintain good portfolio performance. ADB also continues to work closely with government counterparts and other stakeholders to enhance the human resource capacity of executing and implementing agencies for safeguards and project management. To mitigate the impacts of climate change and promote gender equality, relevant measures and policy actions are also integrated into the projects and programs.

 

Knowledge Work

Knowledge products and services for Armenia include technical assistance programs for the viability assessment for potential wind power electricity generation projects, development of digital platforms to improve land management, deployment of a health workforce information system, capacity enhancement for teachers in distance education, integrity assessments and the development of integrity frameworks for implementing agencies, promotion of a private sector enabling environment through support for insolvency legal frameworks and alternative dispute resolution, and improvement in judicial capacity to efficiently adjudicate commercial law disputes. In 2023, ADB published an assessment and market mapping of the information and communication technology sector in Armenia, as well as a report on climate-resilient fiscal planning.

In 2023, ADB organized several awareness-raising events and capacity development training sessions for executing and implementing agencies on international arbitration, climate change, digitalization, future thinking and strategic planning, gender equality and women’s knowledge enhancement in disaster risk management, public investment management, and health care quality and safety.

ADB Membership

Joined 2005

Shareholding and Voting Power

Number of Shares Held
31,671 (0.298% of total shares)

Votes
70,785 (0.532% of total membership, 0.817% of total regional membership)

*Overall capital subscription
$424.92 million

*Paid-in capital subscription
$21.29 million

* United States dollar figures are valued at rate as of 31 December 2023.


ADB Governor: Vahe Hovhannisyan
ADB Alternate Governor: Eduard Hakobyan
ADB Director: Made Arya Wijaya (Indonesia)
ADB Alternate Director: Llewellyn Roberts (New Zealand)
ADB Director’s Advisors: Rosemary Abigail Lee Hang (Samoa) and Mohammed Jabid (Fiji)

 

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Armenia:

  • Sovereign cofinancing: $393.5 million for 3 investment projects and $7.04 million for 9 technical assistance projects since 2009
  • Nonsovereign cofinancing: $448.07 million for 6 investment projects since 2004

 

Future Directions

Under the draft CPS 2024-2028, ADB’s support to Armenia will focus on three mutually reinforcing pillars: (i) enhancing private sector-led growth; (ii) strengthening governance, institutions, and human capital; and (iii) improving climate and disaster risk resilience. Climate change, gender equality, regional cooperation and integration, and digitalization are the cross-cutting priorities. Implementation of sovereign and nonsovereign operations under the CPS will follow a One ADB approach, described in ADB’s Strategy 2030 as “bringing together expertise and knowledge in a range of areas across the institution.”

ADB will continue its focus on addressing the infrastructure gap to improve connectivity, access to external markets, productivity, and social standards. To strengthen resilience to external shocks that harm private sector development and operations, ADB will also continue supporting government reforms to boost public sector efficiency, develop financial markets, and improve fiscal management. ADB’s support in education and health will include modernizing infrastructure by upgrading or building disaster and climate-resilient and gender-sensitive facilities. ADB will also focus on strengthening the climate and disaster resilience component of projects involving urban development, public infrastructure, climate-smart agriculture, water reservoir and irrigation system upgrading and modernization, and resilient energy systems.

This article was originally published in the ADB and Armenia: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Contacts

Armenia Resident Mission
2 Vazgen Sargsyan Street, 7th Floor
Kamar Business Center
Yerevan 0010, Republic of Armenia
Tel: +374 10 512300
E-mail
adbarmenia

Ministry of Finance
1 Melik-Adamyan Street
Yerevan 0010, Armenia
Tel: +374 11 800156
Fax: +374 11 800132
E-mail

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