The FINANCIAL — The European Bank for Reconstruction and Development (EBRD) is providing a €8 million loan to Armenia to finance the construction of a solid waste landfill in Yerevan that complies with EU regulations. The loan is co-financed by a €8 million credit line from the European Investment Bank (EIB) and a capital grant of €8 million from the European Union Neighbourhood Investment Facility (NIF).
The new landfill will meet international standards and operate as a commercially sustainable unit with modern solid-waste management systems, covering the collection and disposal of municipal solid waste. The facility, located on the outskirts of Yerevan, will provide major environmental and social benefits for the 1.1 million residents of the Armenian capital, according to EBRD.
The legal agreements were signed today in Yerevan by Armenia’s Minister of Finance, the Yerevan municipality and the EBRD.
It is the second landfill project in Armenia, following the Kotayk landfill signed in 2014. The project confirms the EBRD’s commitment to supporting government plans for the modernisation and upgrading of Armenia’s waste management system to European standards. It is expected to raise public awareness of the importance of solid waste management.
Complementing the EBRD funding, technical cooperation for project preparation is provided by the government of Austria, while post-investment grant funding for procurement and tender support has been pledged by the government of the Czech Republic. Additionally, a stakeholder participation and city support programme will be financed by the EBRD Early Transition Countries (ETC) Fund.
Mark Davis, Head of the EBRD Yerevan Office, said: “We are excited to see another solid waste project in Armenia that will bring substantial benefits to the residents of Yerevan and the country’s environment. Creating better public awareness of the benefits of sustainable solid waste services is an integral part of the project and we will continue working on a better and healthier environment. We have a very active and productive relationship with the authorities in Yerevan and we are working in multiple sectors, with good results for the people and the country.”
Since the start of its operations in Armenia in 1992, the EBRD has invested over €974 million in 143 projects in the country’s financial, corporate, infrastructure and energy sectors, with 86 per cent of the investments being in the private sector.