Your trusted source

The European Bank for Reconstruction and Development (EBRD) is financing a street rehabilitation program in Gyumri, the second largest city in Armenia, with a €14.6 million sovereign loan, reads the release disseminated by the bank.

According to the statement, the financing will fund the rehabilitation of the city’s major streets, as well as modernization of street lighting, and will be disbursed in three tranches.

The loan agreement was signed during the EBRD’s Annual Meeting in London On May 11 by the Deputy Prime Minister of Armenia, Vache Gabrielyan, and EBRD Managing Director for eastern Europe and the Caucasus, Francis Malige.

The street rehabilitation programme will include new asphalt pavements, upgraded drainage infrastructure, improved facilities for pedestrians and overall road safety improvements. The street lighting refurbishment will introduce new energy-efficient LED lighting, a control and monitoring system, pole replacement and renovation as well as power cable replacement.

According to the statement, the project will be co-financed by investment grants to a total amount of €7.3 million provided by the EBRD Special Shareholder Fund (SSF) and other international donors. A pre-investment feasibility study was implemented with the help of technical cooperation funds provided by the government of Austria.

Mark Davis, Head of the EBRD’s office in Armenia, said: “This important project will bring considerable improvements to the safety and quality of life of the citizens of Gyumri. It is also a great example of increasing the quality of infrastructure through private sector involvement.”

Since the start of its operations in Armenia in 1992, the EBRD has invested over €1 billion in 149 projects in the country’s financial, corporate, infrastructure and energy sectors, with 88 per cent of these investments in the private sector.