Sector Reform Programme PBL Environment I

completed

Armenia is located in one of the 35 most important and at the same time most threatened biodiversity hotspots in the world. However, the environment and natural resources are inadequately protected due to inadequate institutional, regulatory and political frameworks. The project, designed as policy-based lending (PBL), aims to support the Armenian government in improving environmental policy and the institutional framework conditions required for this in the key sectoral areas of forest and biodiversity protection, and to create the necessary conditions for the introduction of international environmental standards, as is the aim of the partnership agreement between the EU and Armenia (EU-Armenia Comprehensive and Enhanced Partnership Agreement, CEPA). Together with the Armenian Ministry of the Environment, KfW has structured a matrix with 3 components and 14 policy measures in the reform areas of forest protection and sustainable forestry, biodiversity protection and protected area management, and environmental standards and environmental regulations, which are based on the ambitious sector reform goals of the new Armenian government. The borrower is the State of Armenia, represented by the Ministry of Finance. The Armenian Ministry of the Environment is responsible for implementing the disbursement conditions agreed within the framework of the program. The project currently comprises a two-year funding program (2019 - 2020). A separate FC funding loan of up to EUR 40 million is to be made available for each phase. The project complements the existing commitment in the development cooperation program by structurally improving important institutional and structural framework conditions. The project makes a complementary contribution to achieving the objectives of the German development cooperation program for nature and climate protection and the sustainable use of natural resources in the South Caucasus.