The European Bank for Reconstruction and Development (EBRD) is providing a €3.5 million loan to Armenia to finance the construction of the country’s first European Union (EU) compliant solid waste landfill. The loan is complemented by a €3.5 million capital grant provided by the European Union Neighbourhood Facility.
The new landfill, to be located in the city of Hrazdan in Kotayk Province and managed by eight participating municipalities – Hrazdan, Abovian, Charentsavan, Tsakhkadzor, Byureghavan, Yeghvard, Nor Hachn and Sevan – will be operating as a commercially sustainable unit with modern solid waste management systems, covering the collection and disposal of municipal solid waste. This will provide major environmental and social benefits for some 215,000 people in the area covered by the facility.
The legal agreements were signed today in Yerevan by Armenia’s Minister of Finance, the participating municipalities and the EBRD.
This development represents a significant step forward in the implementation of the government’s plans to modernise and upgrade Armenia’s waste management system to European standards. It will serve as an example, raising public awareness of the importance of solid waste management.
On top of EBRD and EU financing the investment has received grant funding from donors. The government of Austria will support the implementation of the project and the corporate development of the landfill management company. The EBRD’s Shareholder Special Fund and the Early Transition Countries Fund are also providing additional grants.
Mark Davis, Head of the EBRD’s Yerevan Office, said: “The investment will bring substantial benefits to the residents and the environment in the region, and will help to develop better public awareness of the benefits of recycling. We are grateful for the strong support from our donors for whom, as it is for us, modernisation and environmental protection have always been a priority.”
Since the start of its operations in Armenia in 1992, the EBRD has invested over €650 million in 133 projects in the country’s financial, corporate, infrastructure and energy sectors, with 87 per cent of the investments being in the private sector.