EIB Global lends Armenia €50 million for development in Syunik province

• EIB Global provides loan for socio-economic development in Armenian province to improve critical infrastructure such as water supply, healthcare and education facilities.
• Project is part of the Team Europe Initiative to support the socio-economic resilience of the Syunik Province.

The European Investment Bank’s development arm, EIB Global, is lending €50 million to the Republic of Armenia for key socio-economic projects in the country’s southernmost province. The new financing agreement was signed during the first-ever visit by an Armenian Deputy Prime Minister to the EIB Headquarters.

The Armenian government will use the funds to improve community livelihoods and foster growth, by increasing access to reliable potable water supplies, and improving access to quality education and health services in the region.

The region Syunik, which faces economic and infrastructural challenges, has been the focus of development efforts by both the Armenian government and the European Union. The project is part of the Resilient Syunik Team Europe Initiative.  Launched in 2023, the initiative aims to support the socio-economic resilience of the southern region of Armenia, which has been most affected by the 2020 hostilities and the arrival of around 120,000 Karabakh Armenians following the military escalation in September 2023.

“The financing we have agreed today is a powerful example of the European Union’s collective commitment to Armenia’s long-term development and stability,” said EIB President Nadia Calviño. “It means the provision of drinking water to 30,000 people, improved healthcare and vocational training as well as a focus on the inclusion of women. The Resilient Syunik Team Europe Initiative brings together the EU, ten Member States, and Switzerland, as well as the European Bank for Reconstruction and Development. At a time when we need more than ever to reinforce our partnerships – I welcome this model agreement wholeheartedly.”

“This investment reflects our steadfast commitment to Armenia’s sustainable development,” said EIB Vice-President Teresa Czerwińska, who oversees EIB operations in Armenia. “By enhancing essential services in Syunik, we are helping to build resilience, promote inclusive growth, and support communities across the region in overcoming their challenges.”

“Today’s announcement is another proof of the EU’s commitment to promoting Armenia’s sustainable socio-economic growth in a Team Europe approach. A resilient and inclusive Armenian society is a priority under the Resilience and Growth Plan and investing in rural areas is crucial to empower communities and foster social cohesion. The EIB Global credit will go towards providing access to safe drinking water for over 30,000 people across Syunik and upgrading and expanding healthcare and educational facilities including polyclinics and vocational centres. Resilient Syunik continues to serve as a compelling example of how Team Europe, working in close partnership with local actors, can help foster opportunities, inclusion and long-term resilience,” said European Commissioner for Enlargement Marta Kos.

This framework loan agreement endeavours to support recovery efforts by allocating resources to essential public infrastructure, as well as addressing the basic infrastructure needs of displaced populations in Armenia's southern region. The Government of Armenia, through its relevant ministries and the Syunik Governorate, is working in coordination to advance this agenda, with the aim of strengthening the region's resilience. Today's meetings with the President and Vice-President of the Bank were productive, and we were able to align on clear next steps aimed at expanding our cooperation. We are grateful for the readiness of our partners in Brussels and in the EIB to mobilize financial resources and technical expertise to support the objectives outlined in the Resilience and Growth Plan and the joint priorities defined by the EU-Armenia New Partnership Agenda," said Armenia's Deputy Prime Minister Mher Grigoryan.

EIB Global has worked closely with the Armenian authorities and local stakeholders to develop this project. In addition to the EIB loan, the European Union and Eastern Partnership Technical Assistance Facility (EPTATF) provide essential support to both project preparation and implementation.