Armenia’s capital Yerevan will become a greener and more energy-efficient place thanks to the funding and commitment provided by the European Investment Bank (EIB). An EIB loan worth EUR 7m will help the Municipality of Yerevan to finance energy efficiency improvements in public buildings. In parallel, a combination of financing and grants by the EIB and international donors will improve solid waste management in the Armenian capital.
Yerevan Energy Efficiency
EIB funding will contribute to improving energy efficiency in public buildings such as kindergartens in Yerevan, lowering energy and maintenance costs and allowing for the reduction of CO2 and other greenhouse gas emissions. The project will help bring local building standards up to the levels stipulated in EU legislation. In particular, public buildings included in the project will adopt renewable energy solutions where viable, become more resilient to seismic risk and offer better access to disabled people.
Yerevan Solid Waste Management
This project involves the replacement of the current, unhealthy local landfill with a brand new site meeting superior health standards, as well as the implementation of waste diversion measures in Yerevan and surrounding regions, benefiting an overall population of 1.9 million. This ambitious project has been made possible thanks to a grant agreement signed today with the Eastern Europe Energy Efficiency Environment Partnership (E5P). The E5P will release a EUR 2m grant to support appropriate closure measures at the existing landfill.
The EIB is supporting this project with a EUR 8m loan signed in 2015. The project is co-financed by the EBRD with funding of EUR 8m and a EUR 1.9m technical assistance grant. In addition, a EUR 8m grant is being provided by the EU Neighbourhood Investment Facility (NIF) and a EUR 0.5m grant has been made available from the Municipal Project Support Facility (MPSF).
“With this first direct loan to Yerevan Municipality, the EIB is showing that it can spearhead energy efficiency projects in Armenia, closely supporting to the institutions that will implement them,” said Vazil Hudák, EIB Vice-President responsible for operations in Armenia. He continued: “as a result of this mutual endeavour with our partners, for the first time we can also provide support for wider projects in the solid waste management sector that will help increase the quality of life of the population of Armenia’s capital city.”
Mayor of Yerevan Taron Margarjan stated: “We attach particular importance to cooperation with the EIB in various spheres of the urban economy that are effective and of great significance for Yerevan, and I am very glad that we have already had successfully fulfilled projects. We are currently realising programmes involving solid waste management, the metro, etc. I am sure that successful implementation of these programmes and their efficiency will act as the basis for further expansion of our areas of cooperation. I would like to note that Yerevan Energy Efficiency is a unique project not only because of its positive impact on lowering the energy consumption of public buildings and CO emissions but also because this is the first time that Yerevan Municipality has signed a non-sovereign loan, and this is going to be the first and hopefully one of the best examples of donor-community collaboration”, said Taron Margaryan, adding that “the Municipality of Yerevan is ready to discuss all programmes aimed at the well-being of the capital’s residents.”
EIB lending commitment in Armenia amounts to some EUR 322m. It is well balanced and supports the major segments of the Armenian economy, targeting projects in the transport infrastructure (e.g. Yerevan Metro, North-South Corridor, M6 road), energy (Caucasus transmission network), water and waste sectors, together with border crossing infrastructure and, indirectly, the projects of SMEs, providing them with affordable long-term financing through partner financing institutions.