ArmInfo.The Asian Development Bank (ADB) will provide Armenia with a loan of 60 million euros for the development of the capital's infrastructure.
The program with a budget of 60,090,000 euros, aims to develop urban infrastructure through the construction of a new section of the Isakov-Arshakunyats road, which will connect 3 administrative districts of Yerevan and significantly reduce congestion in the city. As a result of the project, it will be possible to reduce the existing road (by approximately 1.8 km), city traffic jams, and create new urban infrastructure (another bridge will be built across the Hrazdan River).
The loan is provided for a period of up to 27 years with a 10-year grace period and a repayment period of 17 years, on the following conditions: the deadline for disbursing loan funds is 03/31/2028; loan interest rate type - floating; annual interest rate on the loan - 6-month EURIBOR + 0.5% margin + 0.3% (repayment premium); commitment fee - annual rate of 0.15%, calculated from the unclaimed loan amount, the beginning of the calculation is the 60th day after the date of signing the agreement, paid semi-annually, simultaneously with the payment of interest on the loan; repayment of the principal amount of the loan refers to the entire loan amount, the repayment method is equal payments.
The Borrower may at any time contact the Bank with a request to make the following changes to the terms of the loan: fully or partially convert the currency of the used and outstanding amount or unclaimed loan amount into another currency acceptable to the Bank; convert the interest rate of the used and outstanding loan amount or part thereof from floating to fixed and vice versa.
The Ministry of Justice, when reviewing the agreement, noted that "although the draft does not contain norms providing for changes in the law of the Republic of Armenia or the adoption of a new law, it does contain a norm that contradicts the law." In particular, as noted, the project provides for "if necessary, the participation of the Asian Development Bank in domestic operational investigative processes." Meanwhile, Article 8 of the Law "On Operational Investigative Activities" clearly lists the bodies that have the right to conduct investigations in cases and in the manner established by law, and the Asian Development Bank is not included in the list of bodies carrying out operational investigative activities at the level of domestic legislation, in Therefore, the Ministry of Justice proposed to revise this provision. At the same time, it is reported that the draft in its current version is subject to ratification.
The Yerevan Urban Development Investment Project aims to enhance the economy, livability, and inclusiveness of Yerevan, the capital city of Armenia, through improved sustainable urban mobility and services (output 1) and strengthened institutional capacity for green and inclusive urban mobility (output 2). It aims to support Yerevan in improving the urban environment, enhancing the road network, and promoting climate-resilient infrastructure. The project will benefit up to 1.2 million people.
ADB has been working with Armenia since 2005. As of 2022, the Bank provided Armenia with 37 loans, grants, and technical assistance worth about $1.6 billion, which were aimed at developing transport, financial, energy, water sectors, infrastructure, etc.
According to the Ministry of Finance, by August 31, 2023, Armenia's public debt amounted to $11 billion 387 million, of which government debt was $10 billion 844.1 million. At the same time, ADB is the second largest creditor of the government - 18.6%.
