ADB's Work in Armenia

ADB has been in partnership with Armenia since 2005 and is one of the country’s largest multilateral development partners. ADB supports Armenia through sovereign operations that finance governmental projects, investments in the private sector, technical assistance, and knowledge solutions focusing on transport, public finance, education, health, energy, water supply, and urban development.

Sovereign operations. As of 31 December 2024, ADB has committed 73 public sector loans, grants, and technical assistance totaling 1ドル.6 billion to Armenia. ADB’s current sovereign portfolio in Armenia includes 7 loans worth 628ドル.47 million.

ADB’s work in Armenia focuses on (i) strengthening private sector-led growth; (ii) enhancing governance and human capital; and (iii) introducing climate adaptation and mitigation measures and disaster resilience. This support is fully aligned with the country’s medium and long-term development strategies and climate agenda and responds to the country’s evolving priorities including (i) resilient growth promoted through competitiveness, (ii) a stronger private sector, and (iii) human capital development.

ADB commenced several sovereign projects in 2024 involving agriculture, finance and public sector management, health, transport, and urban infrastructure.

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ADB approved a 236ドル million loan (257ドル.1 million equivalent) for the construction of a climate-resilient, high-quality 27.1-kilometer road link in southern Armenia that will help promote more balanced regional development and benefit the country’s population of over 3 million, particularly the 140,000 residents of the Syunik region.

ADB committed a 50ドル million results-based loan to support the Government of Armenia’s health care reform agenda. This will fund the construction or rehabilitation of 24 health care facilities with climate-resilient and gender-inclusive features. It will provide better access to quality health services for about 100,000 people, and advance the use of digital technology for managing health data, monitoring care delivery, and expanding telemedicine services to remote areas.

ADB also committed a 96ドル.7 million policy-based loan for the Fiscal Sustainability and Financial Markets Development Program (Subprogram 2) to encourage fiscal governance reforms and corporate transparency, reduce fiscal vulnerabilities, and boost investor confidence in financial and capital markets through the establishment of liquid money markets. Key program reforms prioritizing adaptation and mitigation measures will also advance Armenia’s climate action and progress toward its climate change commitments.

A 3ドル million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) for the Climate-Adaptive Food Security Enhancement Project will boost resilience and food security for 230 rural agricultural households in 10 communities across 2 provinces of Armenia by supporting renewable energy, climate-adaptive agriculture, and income-generating activities.

The Seismic Safety Enhancement Project grant of 3ドル million, also from JFPR, will fund the reconstruction of a secondary school exploring cost-effective seismic safety technologies. This will help raise awareness of climate change, environmental resilience, and seismic risks among the targeted school population.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Armenia as of 31 December 2024 amounted to 122ドル.91 million, representing 0.95% of ADB’s total private sector portfolio.

ADB is one of the largest financiers for the private sector in Armenia, with operations covering utilities, infrastructure, financial institutions, and agribusiness. In 2024, ADB committed an anchor investment of 18ドル.5 million in Armenia’s first sustainability-linked bond, which was issued by Team Telecom. ADB’s investment in the up to 75ドル million issuance will help expand the company’s digital infrastructure and advance its climate, economic, and information and communication technology goals. The bond issuance will fund infrastructure upgrades to increase internet speed, coverage, and reliability, particularly in underserved urban and rural areas.

Cumulative disbursements. Cumulative sovereign and nonsovereign loan and grant disbursements to Armenia amount to 1ドル.64 billion. These were financed by regular and concessional ordinary capital resources and other special funds.

Operational challenges. ADB and the government are working closely to improve the quality-at-entry of projects, accelerate project implementation, and maintain good portfolio performance in Armenia. The bank, through periodic workshops, also continues to help enhance the human resource capacity of executing and implementing agencies for work involving project management, procurement, safeguards, climate change, and gender. To mitigate the impacts of climate change and empower women and girls, relevant measures and policy actions are also integrated into the projects and programs.

Knowledge Work

ADB’s knowledge products and services for Armenia include technical assistance programs for fostering green banking practices, improving health care quality, increasing transparency in the tax system and exchange of information practice, enhancing sustainable water use for productivity enhancement, and assessing the needs of Lake Yerevan to ensure its sustainability.

In 2024, ADB published policy briefs including The Emerging Data Center Market in Armenia and Opportunities for Sustainable Growth, as well as several blog articles on various emerging topics. ADB also organized awareness-raising events and capacity development training sessions for government officials on climate change, digitalization, seismic safety, empowering women and girls, and women’s knowledge enhancement in urban development, health care, and public investment management.

ADB Projects in Armenia Project data sheets for loans, grants, TAs

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Armenia:

• Sovereign cofinancing: 482ドル.15 million for 6 investment projects and 10ドル.54 million for 12 technical assistance projects since 2009
• Nonsovereign cofinancing: 509ドル.16 million for 7 investment projects since 2004

In 2024, Armenia received 3ドル million in grant cofinancing for the Climate-Adaptive Food Security Enhancement and another 3ドル million in grant cofinancing for the Seismic Safety Enhancement Project, both from the Japan Fund for Prosperous and Resilient Asia and the Pacific; and 82ドル.65 million in loan cofinancing from the Agence Française de Développement for the Fiscal Sustainability and Financial Markets Development Program—Subprogram 2.

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Future Directions

ADB will continue to address the infrastructure gap in Armenia to improve connectivity, access external markets, and strengthen productivity. To build resilience to external shocks, ADB will also support government reforms that boost public sector efficiency, develop financial markets, and improve fiscal management. ADB’s assistance in education and health will include modernizing infrastructure by upgrading or building disaster and climate-resilient and gender-sensitive facilities. ADB will also focus on strengthening the climate and disaster resilience components of projects involving urban development, public infrastructure, climate-smart agriculture, water reservoirs and irrigation, and energy.

Last updated: 3 May 2025

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