Asian Development Bank to lend USD 90 mln loan for the implementation of Infrastructures Sustainability Support Project

ArmInfo. Asian Development  Bank will lend to Armenia USD 90 mln loan for the implementation of   Infrastructures Sustainability Support Project. The corresponding  Agrement with ADB was  approved by the  National Assembly  of Armenia  on  December 23 session. 

Presenting the Draft Agreement, Armen Hayrapetyan, the Deputy Finance  Minister of Armenias, mentioned that the document was signed on  November 2016.

The loan will be rendered   as a budget support in two transfers -  USD 60 mln in 2016 and USD 30 mln in 2017. In 2016 the Government   covered the budget deficit at the cost of bonds emission and reserve  assets involvement. Now the USD 60 mln from ADB will be involved in a  back draw manner. The assets are aimed at the improvement of the  management and sustainability of the roads network, water supply and  power supply frameworks. The assets  will be rendered for 15 years  term with 3-year grace period with flexible rates of six months Libor  + 0,5% margin, which forms about 1,7% due to current rates. 

To note, under ADB's country partnership strategy, 2014-2018, Armenia   will receive about $500 million financial assistance to develop   infrastructures, energy and social services that will ensure  flexible, comprehensive and sustainable development of the country.    In the transport sector, ADB will continue to support improving the   north-south road corridor, and promoting transport links between and   within secondary towns, especially those with the highest poverty   rates.  To promote regional cooperation and integration, ADB will   coordinate with Georgia to help improve roads linking Armenia and   Georgia.  ADB will support urban development in towns with the   highest poverty rates by helping local governments prepare integrated   urban development plans, and financing modernization of   infrastructures, including in water supply, urban roads, and solid   waste management.  Armenia's aging electricity infrastructure and   heavy dependence on imported fuels affect its energy security. ADB   will help addressing this issue by supporting the development of  renewable energy resources and helping to rehabilitate and upgrade   energy infrastructure. Armenia joined ADB in 2005. ADB, based in   Manila, is dedicated to reducing poverty in Asia and the Pacific  through inclusive economic growth, environmentally sustainable   growth, and regional integration.  Armenia joined ADB in 2005. ADB,  based in Manila, is dedicated to reducing poverty in Asia and the  Pacific through inclusive economic growth, environmentally  sustainable growth, and regional integration.