Infrastructure Sector News of Armenia

March 23, 2026 Armenia's National Assembly Committee Approves €6 Million EBRD Grant for Construction of Customs and Logistics Center

At an extraordinary meeting on Monday, the Armenian Parliamentary Committee on Financial and Budgetary Affairs approved the ratification of a €6 million grant agreement with the European Bank for Reconstruction and Development (EBRD) for the Yerevan Customs and Logistics Center project.

The grant agreement between Armenia and the EBRD was signed on September 19, 2025, for the benefit of the State Revenue Committee of Armenia and for the construction of a customs and logistics center in Armenia. A loan agreement for the project was signed on the same day. The €39 million grant will be provided in two tranches – €30 million and €9 million.

The loan and grant agreement financing does not include co-financing from the Armenian government, which will be used to pay VAT obligations. The Armenian government's co-financing will amount to €9 million, including €7.8 million in loan funds, €6 million in tranche 1, €1.8 million in tranche 2, and €1.2 million in grant funds.

The grant funds will be used for the construction and acquisition of equipment for the Yerevan Foreign Economic Activity Center, while the loan funds will be used for construction work, the procurement of goods and services, and the provision of consulting services.

The Yerevan Customs and Logistics Center will be located in the village of Proshyan, Nairi Community, Kotayk Province, Armenia (bordering Yerevan). It was previously reported that the center's operation will provide Armenia with a modern customs infrastructure with the necessary technical equipment for customs control, as well as accessible and user-friendly information systems for services provided to FEZ participants.

About the EBRD in Armenia

The European Bank for Reconstruction and Development is one of the leading institutional investors in Armenia. By the end of 2025, the EBRD's cumulative number of projects in Armenia reached 242, with total investments amounting to €2.8 billion. Notably, 85% of these investments were in the private sector, underscoring the Bank's commitment to fostering entrepreneurship and sustainable growth.

Source:arka.am

March 20, 2026 Ministry of Territorial Administration discusses possible new areas of cooperation with KfW

Armenian Minister of Territorial Administration and Infrastructure David Khudatyan received a delegation from the German development bank KfW, led by Regional Director (Eastern Europe, Caucasus, and Central Asia) Veronica Garcia Del Arco.

During the meeting, the parties discussed the progress of joint programs in the energy and water sectors, as well as possible new areas of further cooperation.

The Minister noted that significant progress has been made in implementing the "Caucasian Electricity Network" program and emphasized the importance of this project for Armenia.

According to the press service of the Ministry of Territorial Administration and Infrastructure, Katrin Buder-Pelz, Head of Development Cooperation at the German Embassy in Armenia, also attended the meeting. As a reminder, last week the Armenian government approved a proposal to sign a grant agreement with the KfW Bank for Reconstruction and Development for the Caucasus Energy Network Phase II program and a loan agreement for the EU's Caucasus Energy Network Phase IV program. The documents envisage an additional EUR 120 million in loan funds and 15 million in grant resources.

The project aims to connect the Armenian and Georgian power systems via a 500/400/220 kV high-voltage direct current (HVDC) converter station (with a final capacity of 1,050 MW), which will be located near the Georgian border in Ayrum, Armenia. Connection on the Georgian side will be via a 500 kV overhead power line from the Marneuli substation, and on the Armenian side via a 400 kV overhead power line from the 400/220 kV substation in Ddmashen. As a result, it is planned to increase the power exchange capacity between Armenia and Georgia from the current 200 MW to 350 MW in the first stage, and subsequently to 1,050 MW, depending on regional market demand.

KfW Development Bank has been operating in Armenia since 1998 and is currently the largest lender to the Armenian economy. KfW's cumulative investments in the Armenian economy over the past years amount to approximately 1.1 billion. On behalf of the German Federal Government, it supports projects in the following areas: sustainable economic development, training and employment; climate and energy; a just transition; sustainable urban development; and the protection of natural resources.

Source:finport.am

February 19, 2026 Armenia to receive 100 million euros from AFD for integrated development of water and agriculture sectors

Armenia is planning to receive 100 million euros from the French Development Agency (AFD). At its February 19 meeting, the Armenian government approved the draft law "On Ratification of Framework Agreement No. CAM 1029 on the Provision of an Uncommitted Credit Line between the Republic of Armenia and AFD", signed within the framework of the "Water Agriculture Integrated Development of Armenia" (WAIDA) program on December 18-19, 2025.

As stated in the document's explanatory note, the significant deterioration of water and irrigation infrastructure in the Republic of Armenia, high levels of water losses, and increasing risks associated with climate change pose serious challenges to effective water resource management and sustainable agricultural development.

The program offers a comprehensive, phased solution that simultaneously addresses existing challenges at the national and local levels, focusing on two main areas:

- A national-level water infrastructure investment component, which will be co-financed by the World Bank's Water Irrigation Supply Enhancement (WISE) project.

- A local-level component is being implemented in the Syunik region of the Republic of Armenia, aimed at restoring irrigation systems, improving water resource management, and developing sustainable and inclusive agriculture. The implementation of the component in Syunik is of particular importance, as it will allow for the combination of infrastructure development and the full utilization of local economic and agricultural potential.

Source:finport.am

February 19, 2026 EBRD to provide EUR 6mln grant to Armenia for construction of Yerevan Customs and Logistics Center

At its 19th session, the Government of Armenia approved a draft decree of the President of the Republic of Armenia "On approving the grant agreement between the Republic of Armenia and the European Bank for Reconstruction and Development for the Yerevan Customs and Logistics Center project in the amount of EUR 6 million."

As stated in the explanatory note to the document, a grant agreement (hereinafter referred to as the Agreement) was signed between the Republic of Armenia and the European Bank for Reconstruction and Development on September 19, 2025, for the construction of a customs and logistics center in Yerevan for the needs of the State Revenue Committee of the Republic of Armenia (SRC), providing for the allocation of EUR 6 million to the Republic of Armenia. On the same day, an agreement was signed to allocate EUR 39 million in loan funds for the project (the loan funds are planned to be allocated in two tranches: Tranche 1 - EUR 30 million and Tranche 2 - ?9 million). At the same time, it is planned to allocate a certain amount to the Republic of Armenia in the form of a grant for technical assistance (mobilization) in the implementation of the project.

The financial resources of the loan and grant agreements do not include co-financing from the Government of the Republic of Armenia, which will be used to pay VAT in the Republic of Armenia. The amount of co- financing of the loan and grant funds from the Government of the Republic of Armenia will be 9 million euros, of which 7.8 million euros will be in the form of loan funds (Tranche 1 - 6 million and Tranche 2 - 1.8 million), and 1.2 million euros will be in the form of grant funds.

The grant funds stipulated by the Agreement will be used for the construction of the free economic zone center in Yerevan and the acquisition of equipment, while the loan funds will be used for the construction of the free economic zone center in Yerevan, the acquisition of goods and services, and the provision of consulting services.

The project includes the construction of a foreign economic activity center and an administrative building for the State Revenue Committee of the Republic of Armenia (the construction costs of the administrative building will be covered by the Republic of Armenia's state budget). The center will house 13.5 hectares of land, and its infrastructure, while 5.6 hectares will be allocated for administrative buildings and their infrastructure.

These Free Economic Zone centers will house all import and export processes. These core processes will be based on electronic systems and software solutions. These centers will house all government agencies and private organizations that provide the necessary import and export permits. The creation of the Yerevan Customs and Logistics Center will enable Free Economic Zone participants to provide high-quality services and ensure the necessary efficiency of customs control. The following are planned for construction in the center of the Free Economic Zone:

- a warehouse (with a solar power plant on the roof) and an inspection and unloading building - approximately 9,000 square meters;

- a service hall and administrative section of the Free Economic Zone center - 2 underground (shelters) and 2 above-ground floors - approximately 2,100 square meters;

- a car park - for 408 cars;

- a daily fire-fighting storage facility and pumping station for the entire center - approximately 1,000 square meters;

- a two-story laboratory - with a total area of 700 square meters;

- a platform for radiation screening devices, a building for the orderly and collective inspection of cargo - 2,100 square meters;

- a parking lot for restricted access vehicles - for 28 cars.

It is also planned to build the main building of the Committee with an area of 34,000 square meters, a staff canteen with an area of 700 square meters, a warehouse, a boiler room, a transformer substation with an area of 1,000 square meters, a parking lot for citizens with an area of 3,000 square meters, a parking lot for employees with an area of 4,000 square meters, roads and other auxiliary buildings on the territory of the administration.

In terms of trade turnover, 80,354 (maximum 714 per day) and 70,901 (maximum 573 per day) TT IM (transport from the customs office of entry to the inland customs office) transit declarations were filed from border crossing points to temporary customs warehouses (terminals) of the customs service located in Yerevan in 2023 and 2024, respectively. At the same time, the Yerevan Customs and Logistics Center- Department carried out the control, servicing, and customs clearance of goods transported from border crossing points to temporary customs warehouses in Yerevan, with approximately 71,715 trucks in 2023 and approximately 70,017 trucks in 2024. The Yerevan Customs and Logistics Center will be located at 5 Gevorg Chaush Highway, Proshyan Village, Nairi Community, Kotayk Province of the Republic of Armenia.

The terms of the loan agreement are as follows: loan amount: ?39 million; loan currency: euro; a grant of EUR 6 million will be provided for the implementation of the project from the EU Neighborhood Investment Platform (EU NIP); the loan will be disbursed in two tranches: Tranche 1: EUR 30 million, Tranche 2: EUR 9 million; loan interest rate: floating; annual interest rate: 6-month Euribor + 1% margin; loan servicing payment frequency: semi-annually; a one-time fee of 1% of the loan amount, payable separately for each tranche on the effective date or disbursement date of the loan or within 7 days thereafter; Loan origination fee: 0.5% per annum, calculated on the outstanding loan amount, starting 60 days after signing the Agreement for Tranche 1 and 60 days after disbursement for Tranche 2.

Loan term: Term of Tranche 1: 15 years from the date of signing the Agreement, with a grace period of 4 years. Term of Tranche 2: 15 years from the date of disbursement, with a grace period of 4 years. The interest rate on the entire drawn and outstanding loan amount or a portion thereof may be changed from floating to fixed in accordance with EBRD procedures (minimum EUR 5 million). Loan term: 5 years from the date of signing the Agreement or any later date specified and communicated to the EBRD..

Source:finport.am

February 4, 2026 Finance Ministry, EIB discuss details of co-financing Caucasus Power Transmission Grid projects

Deputy Minister of Finance of the Republic of Armenia Edgar Mkrtchyan received a delegation from the European Investment Bank (EIB), the press service of the Armenian Ministry of Finance reported.

During the meeting, the parties emphasized the importance of their effective partnership and discussed the progress of ongoing projects in Armenia in transport, energy, water, and other infrastructure sectors with the support of the European Investment Bank. Regarding the opportunities for further development of cooperation, they particularly discussed the current details of co-financing the Caucasus Power Transmission Grid project, as well as a framework loan agreement aimed at enhancing road infrastructure. In conclusion, the Deputy Minister expressed gratitude to the EIB for its continued commitment to expanding cooperation with Armenia within the framework of the Government of the Republic of Armenia's priority programs and for its ongoing support. Both sides agreed to continue their joint efforts to expand and intensify cooperation.

Recall, the Caucasus Transmission Network is a strategic project to connect the regional power systems, specifically the North-South Corridor (Iran-Armenia-Georgia-Russia). The program aims to improve the reliability of power supply, ensure power flows, and strengthen regional integration. New high-voltage transmission lines and substations are being built as part of the program, including the Iran-Armenia transmission line. Armenia plays a key role in this corridor, strengthening its capacity to export and import electricity through network modernization. The project is funded by international organizations, including the EIB.

Source:finport.am