Nikolai Podguzov, Chairman of the EDB Management Board, presents to Mher Grigoryan, Deputy Prime Minister of Armenia, the results of the first six months of implementation of the EDB Country Strategy
Yerevan, 5 August 2022. Nikolai Podguzov, Chairman of the Eurasian Development Bank’s (EDB) Management Board, met with Mher Grigoryan, Deputy Prime Minister of Armenia, and spoke about the implementation of the Bank’s 2022–2026 Country Strategy for Armenia. The parties also discussed projects that are already underway and potential projects.
Since 2009, when Armenia became a member country of the EDB, the Bank has implemented 20 projects in the country for a total of US $420 million. Armenia ranks first among the EDB’s member countries with smaller economies in terms of its share of the current investment portfolio, 5.1% or US $211 million. This indicator tends to grow steadily.
In pursuance of its 2022–2026 Strategy, the Bank has developed a five-year strategy for Armenia that takes into account the country’s economic developments and needs. As part of this strategy, in the first half of 2022, the EDB approved several projects with a total investment of about US $180 million in the following sectors:
- small-scale generation from renewable energy sources;
- electrical manufacturing; and
- agricultural production and processing.
The projects include the construction by New Energy of eleven solar power plants with a total capacity of 55 MW in Gegharkunik and Aragatsotn Regions, modernisation of Kaskad Energo’s innovative metering equipment plant, construction of a dairy farm and a pig farm, expansion of agricultural areas, and upgrade of Yeremyan Projects Group’s assets.
“Our main objective for the next five years in Armenia is to promote the national development agenda. Together with private sector leaders in their respective areas of operations, we will implement projects in infrastructure, export-oriented manufacturing, food security, financial services, and digitalisation. Our target will be to more than triple the Bank’s total investments in Armenia, to US $287 million over 2022–2026.
To date, we have launched three new large-scale projects to construct renewable energy facilities, improve the efficiency of Armenia’s power grids, and boost food security. All the projects are fully in line with the EDB’s mission and strategy in Armenia and have the potential to create over a thousand new, high-paying jobs and develop the manufacturing sector and exports,” said Nikolai Podguzov, Chairman of the EDB Management Board.
“We can state that with the approval of the EDB 2022–2026 Country Strategy we have started to actively implement it. The document includes all strategic directions prioritised by Armenia’s Government. The EDB has been and will continue to be an important partner with whom we implement significant projects. On behalf of the Government of Armenia, I would like to take this opportunity to thank the Eurasian Development Bank for its productive work in our country,” said Mher Grigoryan, Deputy Prime Minister of Armenia.
The EDB Country Strategy for Armenia identifies five key objectives and several priorities until 2026.
First, the EDB promotes sustainable infrastructure development. The Bank aims to support projects to construct and upgrade basic infrastructure, which ensures the country’s energy and transport security and sustainable economic development. This includes the development and modernisation of energy infrastructure, including the diversification of electricity generation facilities and the implementation of renewable energy projects.
Second, the Bank aims to help diversify Armenia’s industry and exports. The economic sectors with export potential include mining and agriculture. Another of the Bank’s priorities is to support job creation in the service sectors such as tourism and retail.
Third, the EDB is concerned about food security, which is a prerequisite for sustainable economic development in Armenia in the strategic period until 2026. The EDB’s main objective is to help reduce dependence on imports of key agro-industrial commodities and develop a food supply chain.
Fourth, the Bank intends to promote financial inclusion in Armenia. The EDB continues to work with banks to support targeted lending programmes.
Fifth, the EDB, using the competencies of its Fund for Digital Initiatives, supports the digital transformation of the economy and public governance in Armenia.
In 2022, a new five-year EDB Strategy came into force, according to which the Bank will strengthen its unique integration role in the EAEU+. The Bank plans to implement at least three key integration mega-projects – the Eurasian Transport Framework, the Eurasian Commodity Distribution Network, and the Central Asian Water and Energy Complex – which include transport infrastructure, logistics, food security, water management and energy projects.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For 15 years, the Bank has worked to strengthen and broaden economic ties and foster comprehensive development in its member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan. The EDB's charter capital totals US $7 billion. Its portfolio mainly consists of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.