Republic of Armenia Data Collection Survey on Infrastructure Development in Central Asia and the Caucasus Final Report Armenia MAY 2019 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) NOMURA RESEARCH INSTITUTE, LTD. 3R JR 19-007 Republic of Armenia Data Collection Survey on Infrastructure Development in Central Asia and the Caucasus Final Report Armenia MAY 2019 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) NOMURA RESEARCH INSTITUTE, LTD. Table and Figures ................................................................................................................................................................. iv List of Tables ............................................................................................................................................................................ iv List of Figures ........................................................................................................................................................................... v Abbreviations ....................................................................................................................................................................... vi 1. Introduction ............................................................................................................................................................. 1 Background ........................................................................................................................................................... 1 Purpose ................................................................................................................................................................... 1 2. Methodology ........................................................................................................................................................... 2 Research framework ............................................................................................................................................. 2 Target sectors ....................................................................................................................................... 2 Research items ..................................................................................................................................... 3 Assumed support tools ........................................................................................................................ 3 Literature/desktop survey ..................................................................................................................................... 3 Preliminary interview investigation .................................................................................................................... 3 Field interview investigation ................................................................................................................................ 4 Statistical Data ....................................................................................................................................................... 4 3. Development policy and laws and ordinances .................................................................................................... 5 Development policy ............................................................................................................................................. 5 PPP related organization ....................................................................................................................................... 6 PPP policy ............................................................................................................................................ 6 PPP cases ........................................................................................................................................... 10 Financing procurement potential of the financial sector ................................................................................. 14 Armenia's investment environment ................................................................................................ 14 The state of Armenia's banking sector ............................................................................................ 14 The state of private finance .............................................................................................................. 15 The possibility of long-term funding for infrastructure projects .................................................. 17 Restrictions on International Commercial Borrowing .................................................................................... 18 The state of donor activity .................................................................................................................................. 21 European Bank for Reconstruction and Development: EBRD ................................................... 22 World Bank: WB .............................................................................................................................. 23 Asian Development Bank: ADB .................................................................................................... 26 United Nation Development Programme: UNDP ........................................................................ 28 i German Agency for International Cooperation (GIZ) .................................................................. 30 AFD (Development Agency of France) ......................................................................................... 31 4. The current status of target sectors, and future plan and sector issues ............................................................. 32 Urban development, transportation, traffic ....................................................................................................... 32 The current status of infrastructure development .......................................................................... 32 Infrastructure maintenance organization and personnel system .................................................. 39 Cross-regional issues ........................................................................................................................ 40 Issues in advancing infrastructure development ............................................................................ 44 Infrastructure development matters ................................................................................................ 44 The state of donor activity ............................................................................................................... 46 Energy .................................................................................................................................................................. 48 Present situation concerning the infrastructure .............................................................................. 48 Infrastructure preparation organization and human resource system .......................................... 53 Issues that extend across a region ................................................................................................... 55 Issues concerning the promotion of the construction of an infrastructure .................................. 56 Projects concerning the preparation of an infrastructure .............................................................. 56 Situation concerning donor activities ............................................................................................. 59 Environment ........................................................................................................................................................ 60 Situation concerning the preparation of an infrastructure ............................................................. 60 Infrastructure maintenance organization and personnel system .................................................. 63 Issues that extend across a region ................................................................................................... 63 Issues concerning the construction of an infrastructure ................................................................ 64 Items concerning the preparation of an infrastructure................................................................... 64 Situation concerning donor activities ............................................................................................. 65 Healthcare ............................................................................................................................................................ 66 Situation concerning the preparation of an infrastructure ............................................................. 66 Infrastructure preparation organization and personnel setup ........................................................ 68 Issues that extend across a region ................................................................................................... 69 Issues related to the promotion of an infrastructure ...................................................................... 69 Projects concerning the preparation of an infrastructure .............................................................. 71 Situation concerning donor activities ............................................................................................. 71 5. Situation Concerning Activities by Japanese Corporations in the Regions Concerned