Prior to 1998, despite an abundance of water in the country, water provision was low, and maintenance and performance were very poor. For almost all Armenians, water was available for only a few hours a day, with poor pressure and quality and high leakage and waste. Two public enterprises were responsible for the provision of water in urban Armenia – one for Yerevan, the other for other municipalities.
- Under a Municipal Development Project (1998-2006), IDA supported the introduction of a private international operator to manage Yerevan’s water utility.
- Based on this positive experience, the Municipal Water and Wastewater Project (2004-2009) introduced a similar private operator for urban areas outside Yerevan, covering about 33 percent of the population.
- The Yerevan Water and Wastewater Project (2005-2011) builds upon earlier reforms and continues to strengthen Yerevan’s water supply while reducing environmental pollution.
The quality, reliability, and efficiency of water supply services improved dramatically for the Yerevan service area of around 1.3 million people. Water services have also begun to improve outside the capital.
Highlights:
- In Yerevan, water supply has increased from about 7 hours to about 18.5 hours a day. More than 70 percent of Yerevan now has 24-hour service.
- Outside Yerevan, 16.5 percent of the population in the service area of the second urban water utility now have access to 24-hour water.
- Payment collections have increased from 20 percent to 79 percent over the past 10 years.
- Water quality is better monitored, with modern chlorination equipment and improved security at all water sources
- Energy consumption decreased by about 48 percent as a result of using gravity powered water sources, increased efficiency and reduction in the number of booster pumps for high rise apartments.
- A project component supported by Japan Social Development Fund (JSDF) renovated internal plumbing in 1,808 residences in Yerevan, resulting in a reduction in water losses of some 35 percent.
- Metering is now near universal in Yerevan, resulting in a significant reduction in water wastage and savings on monthly bills for households.
- Financed most of the three projects’ total cost of US$83.6 million. (Counterpart contributions amounted to US$10.5 million)
- Leveraged its extensive experience in water supply across countries and helped design an effective public-private partnership. Bank financial and advisory support helped attract private operators by reducing perceived investment risks.
- Used lessons from strengthening the Yerevan water service to replicate and scale up operations for a larger population outside of Yerevan.
- Attracted other donor interest in the water sector: KfW, the German development bank, is financing water supply investments in the municipal water utility in northern Armenia.
- Further support for smaller communities provided by the IDA-financed Social Investment Fund.
- Improved the regulation of water supply through its policy loans. Armenia’s regulatory commission now covers both energy and water regulation.
Armenia appears to be on target to achieve the MDGs of water and sanitation by 2015. However, significant investment is still needed to rehabilitate poor water and wastewater infrastructure, as well as to continue institutional and financial capacity building. There is also potential to expand central services outside the areas serviced by the two main operators.
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