EBRD is providing a €3.5m loan and the EU Neighbourhood Facility is offering a €3.5m capital grant for the facility.
Planned to be built in the city of Hrazdan in Kotayk Province, the landfill will operate as a commercially sustainable unit featuring new solid waste management systems.
The systems will collect and dispose the municipal solid waste.
The new landfill will be managed by eight participating municipalities that include Hrazdan, Abovian, Charentsavan, Tsakhkadzor, Byureghavan, Yeghvard, Nor Hachn and Sevan.
The project is part of the Armenia government’s plans to modernise and upgrade the country’s waste management system to European standards.
Apart from the EBRD and EU, the Government of Austria is also supporting the project through implementation and the corporate development of the landfill management firm.
The EBRD’s Shareholder Special Fund and the Early Transition Countries Fund are also offering additional grants.
EBRD head of Yerevan office Mark Davis said: "The investment will bring substantial benefits to the residents and the environment in the region, and will help to develop better public awareness of the benefits of recycling."
In a separate press release, the EBRD unveiled that it will further invest €25m in Green for Growth Fund (GGF) to promote investments in renewable energy and energy efficiency projects in south-eastern Europe and the European Neighbourhood region (Armenia, Azerbaijan, Georgia, Moldova and Ukraine).
GGF offers funds to local financial institutions for on-lending to private households, small and medium-sized enterprises as well as direct financing to large firms and municipalities for investments in energy efficiency and renewable energy.
Image: The new landfill will operate as a commercially sustainable unit featuring new solid waste management systems. Photo: Courtesy of European Bank for Reconstruction and Development.
