Asian Development Bank’s support to Armenia reaches $1.8 Billion, says ADB Mission Director

YEREVAN, August 5. /ARKA/. The cumulative financial support provided by the Asian Development Bank (ADB) to Armenia has reached $1.8 billion, according to Don Lambert, Director of the ADB’s resident mission in Armenia, in an exclusive interview with the “ARKA” news agency.

Lambert detailed that approximately 25% of this amount has been invested in the private sector, while the remaining 75% has been directed towards the public sector.

Three Key Areas for High Added Value:

1. Private Sector: Lambert emphasized the potential for the ADB to assist private sector companies in developing projects that include environmental components and to help secure funding for their implementation. Options such as green bonds or other financing methods were mentioned.
2. Water Resource Management: There is a critical need in Armenia for the construction of additional reservoirs, modernization, and re-equipping of the irrigation system, and the implementation of advanced irrigation practices.
3. Electromobility: Armenia is uniquely positioned to benefit from the adoption of electric vehicles. With multiple sources of electricity generation, including nuclear and gas, the use of electricity for charging electric vehicles is more environmentally friendly than burning fossil fuels. Given the country’s small size, it is feasible to travel from the northern border to the border with Iran with only one or two stops for charging.

Cooperation Vectors: Lambert outlined three main vectors in ADB’s cooperation strategy with Armenia:

1. Private Sector Development: This involves direct financing of companies and the creation of a conducive environment by strengthening and modernizing transport and other infrastructure to support the private sector.
2. Human Capital and Government Management: With no access to the sea, Armenia must maximize its human resources to become a high-income country. This includes projects aimed at healthcare, education, and the improvement and reform of public administration.
3. Climate Change and Rising Global Temperatures: Lambert noted that Armenia’s temperature is rising faster than the global average. While rainfall is expected to decrease, the impact of temperature stress on people will be higher. As a climate bank, the ADB aims to help countries in the Asia-Pacific region, including Armenia, to overcome these challenges.

These strategic directions are integral to ADB’s efforts to ensure sustainable development and economic growth in Armenia, addressing both immediate needs and long-term objectives.