Armvodokanal

active

In August 2004 the government of Armenia granted a four year management contract for the state-owned water and sewerage joint-stock company Armvodokanal (AWSC) to French firm Saur. SAUR created its Armenian branch under the name of SAUR SEVAN SERVICES. AWSC served 300 communities covering about 45 percent of the national population. In 2004 the other major water and wastewater utility company in Armenia was the Yerevan Water and Sanitation Company (YWSC), covering the capital city service area (about 33 percent of the national population). Saur won the management contract through an open international tender. Under the terms of the contract Saur was expected to receive full delegation of powers to manage AWSC, while a newly established company board would act as the top-level managing body, reviewing schedules and investment programs developed by Saur. The contract was signed for a period of 4 years till October 2008. Considering company’s accomplishments, successfully implemented projects and continuous efforts, the government extended the management contract with 2 more years until 2010 October 18. Armvodokanal was expected to implement an investment program worth US$ 29.2 million. US$ 23 million were to be provided by the World Bank (WB) and US$ 6.2 million by the Armenian Government. The WB’s financial support was designed to support recruitment of the management contractor (paying the fixed fee and performance incentive for the four-year management contract) and finance investments in AWSC during the management contract. In 2007, ADB loaned credit of over US$40 million to AWSC to recover the water supply system in the rural district In 2008, IDA made a US$20 million loan to AWSC. In 2010, the contract was extended for another 12 months until October 2011. The government and the sponsor expected to sign a new contract by October 2011 with revised tariffs. In October 2011 the contract was extended until 2013, with the option of a 1-year extension. The GoA was to provide additional funds for the investment program of the company (estimated to cost US$18million). Part of the funds came from a US$15 million loan approved by WB in 2/2012. Contract period is cumulative/includes all contract renewals Multilateral support to GoA (AWSC is just the implementing agency) 2004: IDA 23million loan; 2007 ADB 40 million loan; 2008 IDA 20 million loan; 2012 IDA 15 million loan