Armenia : Seismic Safety Improvement Program – Additional Financing

Sovereign Project | 49078-004

Project Name Seismic Safety Improvement Program – Additional Financing
Project Number 49078-004
Country / Economy Armenia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4351-ARM: Seismic Safety Improvement Program " Additional Financing
Ordinary capital resources US$ 72.30 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Education / Education sector development

Water and other urban infrastructure and services / Other urban services - Urban policy, institutional and capacity development

Gender Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy In November 2021, the government requested that ADB process an additional financing loan for the SSIP, indicating that the planned SSIP targets could not be achieved because of cost overruns. The cost overruns are the result of exogenous factors and design requirements. Exogenous factors include (i) increases in the price of school construction; (ii) volatility in the value of the Armenian dram and its appreciation against the United States dollar; (iii) geo-political instability in 2020 and 2022; (iv) macroeconomic instability and accelerating inflation; and (v) government changes that delayed critical decision making and macroeconomic instability that led to significant budget cuts in 2017 and 2018, which affected initial implementation. Price increases in the construction sector have been steep and the average cost per SSIP seismic-resistant school has increased by about 50% (in local currency) since 2021. Design requirements include the high seismic standards that had to be applied to the extremely unsafe schools selected for SSIP by the government to protect children's lives all the selected schools (except one that was retrofitted) have required reconstruction. ADB has undertaken a due diligence assessment and confirmed that the loan meets the eligibility criteria for additional financing. The benefits of completing the ongoing program are assessed to outweigh the benefits offered by other options because of the ongoing government program and well-established implementation arrangements.
Impact

Disaster-resilience of schools and individuals improved, and contribution to sustainable development enhanced

Project Outcome
Description of Outcome

Improved coverage of seismically safe school buildings

Progress Toward Outcome In January the Capacity Building Consultant and the ARRM Environment and H&S Consultant conducted two half-day training for 12 work supervisors and 8 ATDF engineers. The objective of the training was to strengthen the technical capacities of the participants on ensuring proper execution of works in accordance with the design documents, drawings, and construction standards. Another workshop is scheduled for February 2022.
Implementation Progress
Description of Project Outputs

Seismic resilience of school buildings increased

Seismic disaster preparedness and response capacity strengthened

Supportive policies and systems for seismic disaster risk management and reduction improved

National capacity in executing and implementing the seismic safety investment program enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, Yerevan
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Nakamitsu, Kiyoshi
Responsible ADB Department Sectors Group
Responsible ADB Division Human and Social Development Sector Office (SG-HSD)
Executing Agencies
Ministry of Territorial Administration and Infrastructure
Timetable
Concept Clearance 01 Feb 2024
Fact Finding 20 Apr 2022 to 06 May 2022
MRM 29 Jun 2023
Approval 29 Sep 2023
Last Review Mission -
Last PDS Update 29 Sep 2023

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Procurement Plan

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