The European Bank for Reconstruction and Development (EBRD) is financing a street rehabilitation programme in Gyumri, the second largest city in Armenia, with a EUR14.6 million sovereign loan.
 
According to EBRD, the financing will fund the rehabilitation of the city’s major streets, as well as modernization of street lighting, and will be disbursed in three tranches.
 
The loan agreement was signed during the EBRD’s Annual Meeting in London today by the Deputy Prime Minister of Armenia, Vache Gabrielyan, and EBRD Managing Director for Eastern Europe and the Caucasus, Francis Malige.
 
The street rehabilitation programme will include new asphalt pavements, upgraded drainage infrastructure, and improved facilities for pedestrians and overall road safety improvements.
 
The street lighting refurbishment will introduce new energy-efficient LED lighting, a control and monitoring system, pole replacement and renovation as well as power cable replacement.
 
“This will reduce energy consumption and minimize operating and maintenance costs, resulting in better service quality and improved environmental standards. The new LED lighting is expected to cut the cost of energy consumption significantly and will result in annual electricity cost savings for the municipality”, the statement reads.
 
“This important project will significantly improve the quality of security and life for Gyumri residents. This is also an excellent example of improving the quality of infrastructure through private sector involvement”, said Mark Davis, Head of the EBRD’s office in Armenia.
 
The project will be co-financed by investment grants to a total amount of EUR 7.3 million provided by the EBRD Special Shareholder Fund (SSF) and other international donors.