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.
