Armenian authorities to provide additional financing to EFSD grant program aimed at preventing the spread of COVID-19

ArmInfo.  The Armenian authorities will additionally finance the grant program of the Eurasian Fund for Stabilization and Development aimed at preventing the spread of COVID-19. The decision on this was made at the meeting of the RA government on June 20.

As noted in the justification of the project, on September 16, 2021, an agreement "On increasing the level of preparedness for the COVID-19 epidemic in the Republic of Armenia" was signed between the Republic of Armenia and the Eurasian Fund for Stabilization and Development of the Republic of Armenia. The grant agreement in the amount of $3 million entered into force on January 17, 2022. The end of the grant program was scheduled for June 30, 2025. In accordance with the obligations assumed, the RA government finances the tax liabilities arising from the implementation of the program.

Within the framework of the program, it is planned to carry out the reconstruction of the Ararat and Armavir regional branches of the National Center for Disease Control and Prevention SNCO, as well as the construction of a new building of the infectious disease center of the Vanadzor Medical Center CJSC in Vanadzor, Lori region. The Republic of Armenia has undertaken to finance the equipping of this center with medical equipment and products. When preparing the grant program, the exchange rate was calculated at the rate of 1 US dollar  = 420 drams, while actual expenses from 2022 to the present have been incurred at a lower exchange rate. In addition, as a result of the tenders for construction contracts, contracts were concluded at higher values than planned, which led to a shortage of funds within the project. For this reason, the provision of equipment and goods envisaged under the program, as well as the financing of the remaining creditor obligations of the construction works will be carried out at the expense of the RA Government. The provision of equipment and goods to the Ararat regional branch of the National  Center and the building of the medical center has already been  carried out at the expense of the RA government, and the provision of financial resources for its Armavir regional branch will be carried out after the completion of construction. In December 2024, the construction of the Ararat regional branch was completed and it was put into operation.

Now it is necessary to increase the amount of grant funds by 30, 702 million 702 thousand drams and increase the amount of co-financing by 72, 962 million drams from the state budget of the Republic of Armenia.