Armenia and ADB

ADB helps Armenia to diversify its economic growth and widen inclusiveness with investments and reform engagements in infrastructure, human capital development, and regional cooperation and integration.

ADB's Work in Armenia

The Asian Development Bank (ADB) has been in partnership with Armenia since 2005 and remains one of the country’s largest multilateral development partners.

Current ADB operations in Armenia are implemented under the country partnership strategy (CPS), 2019–2023, and target inclusive, diversified, and transformative growth. The strategy is consistent with the country’s development priorities and is structured around three pillars: priority infrastructure investments in transport, energy, and urban development; assistance to reform service delivery in education, health, and financial services; and support for regional cooperation and integration. This CPS for Armenia is in its last year of implementation. The formulation of the new CPS covering 2024–2028 has started and is expected to be implemented by early 2024.

To date, ADB has committed 59 public sector loans, grants, and technical assistance totaling $1.3 billion to Armenia. Cumulative loan disbursements to Armenia amount to $1.42 billion. These were financed by regular and concessional ordinary capital resources. ADB’s ongoing sovereign portfolio in Armenia includes 7 loans worth $647.5 million.

ADB has supported Armenia through various programs mainly in transport, public finance, school safety, energy, water supply, and urban development since 2005. About 70% of the active sovereign lending portfolio is for transport, helping to develop an efficient, safe, and sustainable road network while improving domestic and cross-border connectivity for Armenia.

Three years of the government’s fiscal consolidation enabled ADB to gradually build up investments in Armenia. In 2022, ADB committed $100 million for Subprogram 1 of the Fiscal Sustainability and Financial Markets Development Program. It builds on ADB’s previous reform engagement in Armenia and will help the government further strengthen its fiscal management policies and practices, improve the infrastructure of money markets and the government securities market, and promote capital markets. Agence Française de Développement cofinanced the program for €100 million.

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 2022, the total commitment for loans and equity investment in Armenia amounted to $377 million.

Photo: Asian Development Bank
Class at the Tumo Center for Creative Technologies in Yerevan, Armenia. The Tumo Center for Creative Technologies is a digital media learning center funded by the Simonian Foundation. Photo: Eric Sales/ADB

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Armenia as of 31 December 2022 was $187.51 million representing 1.47% of ADB’s total private sector portfolio.

Operational challenges. The high level of public debt and the high volume of undisbursed balance of loan projects committed by the government from international financial institutions constrained the government’s borrowing capacity during 2019–2021. As the fiscal space is gradually widening, ADB envisages expanding priority investments in transport, regional cooperation and integration, urban infrastructure, health, and agriculture in 2023 and over the medium term. Where possible, sovereign lending will also be structured to promote private sector participation and nonsovereign financing.

ADB and the government are working closely to 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.


Knowledge Work

Knowledge products and services for Armenia include technical assistance programs for the development of a transport sector strategy, development of digital platforms to improve land management, viability assessment for potential wind power electricity generation projects, development of a health workforce information system, development and implementation of a pilot postgraduate educational program on seismic resilient construction, deployment of a distance education platform, supporting the improvement of hazardous waste management, assessments of regional exports potential and value chains, and promoting a private sector enabling environment through supporting insolvency legal framework and alternative dispute resolution and judicial capacity to efficiently adjudicate commercial law disputes. In 2022, a series of capacity development trainings and awarenessraising events on climate change context and priorities, future thinking and strategic planning, institutional knowledge planning and knowledge management, public investment management, health, and safety were organized for executing and implementing agencies.

ADB Membership

Joined 2005

Shareholding and Voting Power

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

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

*Overall capital subscription
$421.49 million

*Paid-in capital subscription
$21.12 million

* United States dollar figures are valued at rate as of 31 December 2022.

ADB Governor: Vahe Hovhannisyan
ADB Alternate Governor: Eduard Hakobyan
ADB Director: Arif Baharudin (Indonesia)
ADB Alternate Director: Karen Murray (New Zealand)


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 $6.61 million for 8 technical assistance projects since 2009
  • Nonsovereign cofinancing: $491.67 million for 6 investment projects since 2004

In 2022, Armenia received $100 million cofinancing from the Agence Française de Développement for the Fiscal Sustainability and Financial Markets Development Program – Subprogram 1.


Future Directions

ADB planned projects and technical assistance are consistent with Armenia’s development priorities and support five areas—the economy, infrastructure development, human capital development, justice, and institutional development. ADB envisages a flexible and adaptive approach to government needs which supports all three strategic pillars of the CPS.

ADB’s planned operational support includes additional financing for reconstruction and retrofitting of selected schools, extension of the road network and transport infrastructure in Yerevan city, the government’s reform agenda in health, urban environment improvements in selected secondary towns, development of high-value crop chain, construction of a southern road section for regional connectivity, and a framework program to protect Lake Sevan from climate change. ADB will also support Armenia’s reform efforts through programmatic engagement. To ensure Paris Agreement alignment, new projects and programs will incorporate climate change adaptation and mitigation measures.

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.

Last updated: 3 May 2023


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

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

Latest on Armenia

Five Actions to Address Climate Change in the CAREC Region

| Blog Entry

Five Actions to Address Climate Change in the CAREC Region

No country can fight climate change alone. The countries of the Central Asia Regional Economic Cooperation (CAREC) program should take coordinated action to combat the increasing impacts of climate change and find sustainable solutions.

Climate Resilient Fiscal Planning in Armenia

| Publication

Climate Resilient Fiscal Planning in Armenia

This working paper highlights Armenia’s progress and needs in scaling up finance for comprehensive adaptation investments and fiscal planning to deepen resilience to climate change.

How Central Asia and the Caucasus Can Cut Debt and Foster Inclusive Growth

| Blog Entry

How Central Asia and the Caucasus Can Cut Debt and Foster Inclusive Growth

As countries in Central Asia and the Caucasus navigate post-pandemic recovery and geopolitical challenges, managing increasing public debt becomes crucial for sustainable growth.

 A Tool for Assessing the Distributional Impact of VAT Tax Expenditures

| Blog Entry

A Tool for Assessing the Distributional Impact of VAT Tax Expenditures

The widespread adoption of value-added tax (VAT) represents the most significant change in the international tax system over the past sixty years, particularly affecting the tax systems of developing countries in the last two decades.