The client:

The EBRD loan will be provided to Yerevan Metropolitan Karen Demirchyan CJSC (Yerevan Metro Company), under a sovereign guarantee. The Company is managed by the Yerevan Municipality and by the Board of Directors. The Company’s ultimate shareholder is the Government of the Republic of Armenia, represented by the Yerevan Municipality.

EBRD finance:

The proposal is for a loan of up to EUR 5.0 million from the EBRD.

Total project cost:

The total project cost is estimated to be up to EUR 16.63 million. On top of the Bank’s loan, the European Investment Bank is also considering a loan of EUR 5 million and the EU’s Neighbourhood Investment Facility has approved a grant in the amount of EUR 5 million.

Environmental impact:

Screened B (2008). Any issues associated with the proposed Project could be identified and mitigated through an environmental and social analysis. An environmental, health and safety audit of existing facilities is required to identify any risks and issues of concern.

A Technical Review report, identifying various options for the rehabilitation of the Yerevan metro, has been reviewed by the Bank to date.
An independent due diligence will assess environmental and social impacts associated with a chosen rehabilitation option when confirmed.

PR1: Environmental and Social Appraisal and Management. The environmental and social due diligence (ESDD) will review the Company’s Environmental, Health, Safety and Human Resources policy, procedures and management systems.

PR2: Labour and Working Conditions: occupational health and safety hazards might include a work in confined space and hazardous conditions as well as a presence of asbestos. Other issues might include enforcement of general safety measures by contractors. The due diligence will address these issues, and also, review the availability of a grievance mechanism.

PR3: Pollution Prevention and Abatement. The construction phase of the Project might entail increased levels of air emissions, noise and dust, and generation and disposal of waste. Contamination and disposal of groundwater will also be addressed by the ESDD.

PR4: Community Health, Safety and Security. Potential hazards include the poor integrity of wires and cables and, a poor state of repair of tunnels.

The availability of an adequate risk assessment and emergency plans will be addressed by the due diligence.

PR5: Land Acquisition, Involuntary Resettlement and Economic Displacement: the Project should not result in any physical resettlement or economic displacement; however, the ESDD will need to confirm this.

PR6: Biodiversity Conservation and Sustainable Management of Living Natural Resources. The Project should not entail any impacts on biodiversity

PR8: Cultural Heritage. The Yerevan underground system is running through an area that has monuments and places for public gathering and events. The Project should be structured in such a way as to avoid any impacts on cultural heritage.

PR10: Information Disclosure and Stakeholder Engagement. stakeholders include commuters; owners/tenants of the properties located above tunnels; employees of the Company and of subcontractors; NGOs and regulatory authorities. A Stakeholder Engagement Plan will need to be developed.

An Environmental and Social Plan will be developed based on the findings of the ESDD, and agreed prior to Final Review of the Project.

Technical
cooperation:

Pre-signing:

Audit of the Yerevan Metro Company, EUR 50,000, funded by the MEI team budget.

Tunnel due diligence, EUR 50,000 funded by the Shareholder’s Special Fund.

Technical, environmental, financial and social due diligence, EUR 180,000 to be funded by the Shareholders’ Special Fund.

Post-signing:

Corporate Development and City Support Programme EUR 200,000 to be funded by an international donor. The objective of this TC is to commercialize the operations of the Company. The TC further foresees development of a Public Service Contract to promote transparency and efficiency.

Project Implementation Unit Support, EUR 650,000 to be funded by an international donor.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

EBRD contact:

Catarina Hansen, Operation Leader: hansenc@ebrd.com

Procurement or tendering
opportunities:

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com

Public Information
Policy (PIP):

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP

Independent Recourse
Mechanism (IRM):

The EBRD has established the IRM to give local groups that may be directly and adversely affected by a Bank project a means of raising complaints or grievances with the Bank, independently from banking operations.
Guidelines for Making a complaint and the Rules of procedures