ArmInfo. On September 11, the Government of Armenia approved the ratification of the EUR 50 million financing agreement with the European Investment Bank (EIB) Armenia - Sustainable Syunik Project (CEDF+, Special Investment Window 1), signed on July 16, 2025.
As noted in the explanatory note to the document, the total cost of the Project is EUR 50 million in the form of loan funds. The Government of the Republic of Armenia undertakes to co-finance the costs (taxes, duties, operating costs related to the implementation of the Project) that cannot be covered by the loan funds.
The Project will be implemented by the Ministry of Territorial Administration and Infrastructure, the Territorial Development Fund of Armenia has been appointed as the Project Implementation Office. The executive body(ies) for the drinking water supply component will be the Territorial Development Fund and/or the Water Committee.
The main objective of the project is to provide targeted support to the Syunik region through multi-sectoral investments to address the socio-economic challenges resulting from the recent conflicts.
The project covers those communities in the Syunik region that have been significantly affected by the war, with a particular focus on areas hosting displaced persons or recovering from the effects of the conflict.
The project will provide effective technical assistance, supervise the implementation and monitoring of sub-projects (the final list of sub-projects will be approved by the EIB after due diligence) aimed at improving infrastructure, especially in the water, health and education sectors, to enhance community resilience and economic recovery.
The main investment areas of the project are: - Improving access to quality health services, - Expanding access to quality technical and vocational education,
- Development of water supply systems for communities and households.
The project will improve:
- Access to livelihoods and social services (health, education, water supply) for households and communities,
- Economic activity and employment opportunities.
- Access to quality services for conflict-affected and displaced persons, especially in the areas of health and livelihoods.
The project also includes the rehabilitation of health and education facilities, the modernization of water infrastructure, energy efficiency improvements and professional advice to ensure effective project management.
The EUR 50 million loan (the loan will be disbursed and serviced in euros) will be disbursed over five years in several instalments (maximum 15 instalments, each of at least EUR 1 million, maximum EUR 5 million). The interest rate, fixed or floating, is set separately for each tranche based on the Borrower's application.
The floating interest rate is equal to 6-month EURIBOR plus a fixed margin (the margin amount is set by the EIB in the loan offer).
The fixed interest rate is determined in accordance with EIB procedures and communicated to the Borrower in the loan offer. Repayment period: each tranche will have its own repayment schedule, based on the Borrower's application. The loan repayment period may range from 4 to 20 years, and the grace period may range from 1 month to 5 years.
Considering that the Program is not included in the state budget of the Republic of Armenia for 2025, the Financing Agreement entails additional financial obligations for the state budget of the Republic of Armenia.
