Thursday, November 23 2023 13:58

ArmInfo.Armenia is amending the EUR 5 million loan agreement Yerevan Metro Rehabilitation Project  Phase II signed with the European Investment Bank (EIB) on May 10, 2013. 

The infrastructure of Yerevan Metro including tracks, rolling stock,  power distribution system, power supply, signaling,  telecommunications, electromechanical installations, depots and  workshops, have been operational since 1981 with almost no major  capital rehabilitation. Only a basic ongoing maintenance program has  been carried out resulting in a significant deterioration of the  assets. However, the most crucial problem also was the existing metro  system is water ingress in the tunnels.

In March 2010, the European Bank for Reconstruction and Development  (the "EBRD" or the "Bank") signed a EUR 5 million loan for the  Yerevan Metro Project with the Armenian Government. The project is  co-financed by a EUR 5 million loan from European Investment Bank  ("EIB") and a EUR 5 million grant from the EU Neighborhood Investment  Fund ("NIF") (Phase I). EBRD has also provided Technical Cooperation  Fund (grant), including funding of the Consultant.

Yerevan Metro Rehabilitation Project, Phase I (completed) and Phase  II led by the EBRD and co-financed by the EIB loan and EU NIF grant  (ongoing) have been and are critical for emergency rehabilitation of  Yerevan Metro.

Agreements for implementation of Phase II have been signed with EBRD  on 03 August, 2012, with EIB 10 May, 2013 (Loan Agreement by the  Government of Armenia) and 10 July 2013 (Project Agreement by Yerevan  Metro) and EU NIF on 22 August, 2014 (The Government of Armenia).

The project will provide an overhaul of the Yerevan metro system. It  will address public health and safety concerns that were identified  in the due-diligence for Phase I including water ingress in the metro  tunnel, fire protection equipment and occupational health and safety  issues in relation to the train washing facility and training of  staff. The Project will improve the daily lives of the citizens of  Yerevan through the provision of better infrastructure, with an  immediate impact on ordinary people's welfare.

It will also achieve compliance with the European Bank of  Reconstruction and Development (EBRD) Environmental and Social Policy  Requirements and European Investment Bank (EIB) Environmental and  Social Principles and Standards. Specifically, the additional safety  measures to be financed under phase II will reduce the current level  of fire risk and improve the protection of workers and passengers who  work and travel on the metro.

The project will lead to improved operational safety and comfort of  the metro line. In addition to the results achieved through physical  investments, the Project will target the following results:

Improved Regulatory Framework and Commercialization: The Project will  support the Yerevan City in the development of a balanced sector  regulatory framework to gradually bring both the urban transport  service organization and provision to a new quality level.