EBRD upgrades Yerevan Metro

PanARMENIAN.Net - Yerevan’s state-owned metro was triumphantly opened in 1981 with the ambition of becoming the backbone of the public transport in Armenia’s capital. However, after 33 years of operation, lack of investment has taken its toll on the metro’s safety and passengers’ experience of travel, the European Bank for Reconstruction and Development (EBRD) said.

Other serious challenges have emerged too, including the introduction of competitive minibus services and growing car ownership in Yerevan. The decline in the use of the metro has in turn caused overcrowding of the city’s roads and increased traffic and road safety problems.

For Yerevan, keeping the metro system, which serves over 1.9 million people a year, at the heart of the city’s life has become one of its highest priorities, EBRD said.

“This is an important project for Yerevan, which will be implemented with the government’s support and will improve significantly the quality of transport services in the city,” commented Valery Harutyunyan, the President of the Board of Directors of Yerevan Metro company.

Since 2010 the EBRD, EIB and EU have contributed a total of €30 million for the improvements carried out in two phases. So far, completed investments include rehabilitation of the track and power supply systems, purchase of a maintenance trolley, upgrade of the depot and replacement of the water pumps removing ingress water from the tunnels.

Yerevan’s metro is not just receiving new investment finance. Through separately funded technical cooperation project supported by donors including Austria, the Czech Republic, the EBRD Early Transition Countries Fund and the EBRD Shareholder Special Fund, the company has benefited from corporate development measures focused on institutional and managerial improvements; been able to address environmental, health and safety concerns; and gained sound project implementation experience in tendering and contract administration. Given this generous support, Yerevan Metro Company is now managed more efficiently on a commercial basis and international standards of financial reporting are being applied, EDBD said.