The European Investment Bank’s development arm, EIB Global, is providing a €50 million loan to the Republic of Armenia aimed at strengthening socio-economic development in Syunik Province. The financing will support improvements in key infrastructure sectors including water supply, healthcare, and education.
This investment forms part of the Resilient Syunik Team Europe Initiative, a program launched in 2023 to reinforce the socio-economic resilience of Armenia’s southernmost region. The area has faced substantial development challenges, worsened by the impacts of the 2020 conflict and the influx of around 120,000 displaced Karabakh Armenians in 2023.
The loan will be used to upgrade essential public services, including the provision of safe drinking water to approximately 30,000 residents, and the modernization and expansion of educational and healthcare facilities, such as vocational training centers and polyclinics. These efforts aim to foster inclusive growth and improve living standards in the province.
The project is backed by a collective Team Europe approach involving the European Union, ten EU Member States, Switzerland, and the European Bank for Reconstruction and Development. It aligns with the EU’s broader Resilience and Growth Plan for Armenia, emphasizing the importance of inclusive development, particularly in rural and underserved areas.
Through coordination between the Armenian government, relevant ministries, and the Syunik Governorate, the loan is intended to address the basic infrastructure needs of both the local population and the recently displaced. The agreement also strengthens EU-Armenia cooperation under the framework of the New Partnership Agenda, highlighting a commitment to long-term regional stability and capacity-building.
