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.