YEREVAN, February 26. /ARKA/. The Asian Development Bank (ADB) invested $132 million in Armenia in 2024, of which $96.7 million was invested in the public sector, $30 million in private sector projects, and $5.3 million in technical assistance, Narine Mehrabyan, ADB Public Relations and Communications Officer, told ARKA.
APPROVED PROJECTS FOR 2025
Mehrabyan also reported that ADB has already approved financing for two projects in Armenia, the implementation of which is to start this year.
According to an ADB press release, the first project in the amount of €236 million ($257 million) will finance the construction of a new road section in Syunik province, which will significantly improve regional connectivity, promote economic growth and resilience to climate change.
The Sustainable and Inclusive Road Section Improvement Project will build a 27.1-km section of the northern section of the Sisian-Kajaran road corridor, as well as 16 bridges and 3 tunnels.
The second project is about the approval of targeted loan financing in the amount of €45.31 million ($50 million) to improve health services through the Quality Health Care Improvement Program.
The program’s objectives include modernizing 24 health facilities, strengthening their capacity to provide quality health services, and improving monitoring and reporting. The program will be supported by the Government of Japan through a $2 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR).
ADB KEY ACTIVITIES AND ACHIEVEMENTS IN ARMENIA IN 2024
The Asian Development Bank (ADB) has partnered with Armenia since 2005 and remains one of the country’s largest multilateral development partners. In 2024, ADB continued to support significant programs and projects, including infrastructure development and technical assistance initiatives, encompassing both ongoing and new endeavors. As Asia and the Pacific’s Climate Bank, ADB is giving importance to climate related issues, hence organized climate training for key media and held strategic dialogue on climate issues with the Government of Armenia.
Key achievements in 2024 include the completion of the Talin-Lanjik Tranche 3 section (18.7 km) of the North-South Road Corridor Investment Program. Additionally, ADB approved a €236 million ($257 million equivalent) loan to support the construction of a road section in the Syunik region of Armenia, which will enhance regional connectivity, foster economic growth, and promote climate resilience. The Resilient and Inclusive Road Sector Improvement Project will build a 27.1-kilometer road in the northern section of the road corridor connection Sisian and Kajaran roadas well as 16 bridges and three tunnels, improving safety and reducing travel time by up to 90 minutes along the entire Sisian-Kajaran Road.
The Seismic Safety Improvement Program (SSIP) continued to progress, with the inauguration of two schools designed for approximately 1,000 students. These schools not only meet seismic safety standards but also cater to the needs of individuals with disabilities and incorporate energy-efficient features. The program is on track to complete the targeted 46 schools. To date, 18 schools have been completed and are currently accommodating the beneficiary students
In November 2024, ADB approved an €89.47 million ($100 million equivalent) policy-based loan as Subprogram 2 of Armenia’s Fiscal Sustainability and Financial Markets Development Program. This initiative, supported in partnership with Agence Française de Développement, aims to strengthen Armenia’s fiscal management and deepen its financial markets. These reforms align with Armenia’s national strategy to improve governance, promote economic stability, and accelerate climate action.
ADB is also committed to strengthening human development in Armenia, as demonstrated by a €45.31 million ($50 million) results-based loan to enhance health services and outcomes through the Health Care Quality Improvement Program. The program will upgrade 24 health facilities to be more inclusive, climate-resilient, and gender-responsive. It also aims to build capacity for high-quality care, as well as improve monitoring and accountability. A $2 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific, financed by the Government of Japan, will support implementation. Running from 2024 to 2028, the program aligns with Armenia’s health sector reform priorities.
ADB supported private sector development through various interventions that promote investment opportunities, drive economic growth, and contribute to poverty reduction. This involves influencing policy reforms, providing advisory services, and offering direct private sector financing. Recent projects include a wind power viability assessment in Armenia to identify investment sites and assess technical and financial feasibility; efforts to promote green finance in Armenia by supporting financial institutions in expanding green lending practices; a 2024 market research study on Armenia’s data center industry to understand the sector’s specifics and needs for tailoring further engagement; initiatives to advance energy efficiency in buildings as part of Armenia’s green urbanization efforts; and other advisory services for improving the private sector environment in the country.
As part of downstream efforts ADB has supported Armenia’s private sector, investing $18.5 million in Team Telecom Armenia’s first sustainability-linked bond (SLB), which is part of a $75 million issuance. ADB was the mandated anchor investor for this SLB. This investment will help expand digital infrastructure and advance Armenia’s climate and economic goals, aligning with the country’s commitment to reduce greenhouse gas emissions by 40% by 2030.
In response to the emergency situation following the large-scale displacement of ethnic Armenians in 2023, ADB has extended its support to Armenia through a $1.25 million grant. This assistance aimed to address immediate and longer-term needs by (i) procuring and installing assistive equipment for displaced persons with disabilities, (ii) developing an e-Disability platform to assess functionality and improve service delivery, and (iii) supporting the establishment of a unified administrative registry of displaced population and their property rights.
ADB marked International Women’s Month by holding a Gender-Responsive Urban Development Workshop for government representatives and Women’s Empowerment sessions for staff, emphasizing its commitment as a gender-focused institution.
Throughout the year, high-level visits, meetings, and training sessions took place between delegations from ADB and the Government of Armenia. These engagements aimed to expand cooperation, assess program effectiveness, and support Armenia’s implemented reforms, with a focus on governance, infrastructure development, and ADB’s role as a climate bank.
Throughout 2024, ADB has continued to support and initiate new projects aimed at knowledge-based decision-making and innovation through various technical assistance (TA) engagements. These initiatives include assessments to enhance climate-informed fiscal decision-making, promote sustainable urban planning, and support integrated resilient water management. Investing in a broader adaptation agenda and resilience-building efforts, ADB stayed committed to the agenda of reinforcing Armenia’s capacity to address climate challenges through data-driven and forward-looking policy actions. ADB has further supported the development of a climate responsive health facility masterplan through TA to identify future service delivery and infrastructure in the health sector. TA support also included the development of innovations and technology such as e-disability system and health workforce information system.
As a knowledge-driven institution, ADB conducted numerous workshops, courses, and training sessions for various Armenian ministries, including Finance, Education and Science, Health, Justice, Territorial Administration and Infrastructure, Economy, Yerevan Municipality, and the Cadaster Committee. These capacity-building programs addressed a wide range of topics, including climate change, disaster risk management, road safety, seismic safety, health and safety, disability and social protection, and the evaluation of information and communication technologies.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Armenia. In collaboration with the Government of Armenia, ADB continues to contribute actively to the development of the country’s priorities.
