Financed ProjectsArmenian Airport

Identification Code:

OP/15/0028

Total Operation Cost:

126.305.475

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

Syndicated secured long term loan of up to USD 160 million. The BSTDB loan proceeds will be used to finance CASA Group's investments in other sectors of the Armenian economy as well as CAPEX of the Company.

Countries of Operation:

Armenia (100,00 %)

Financial Product:

Loans

Sector:

Industrials

Domain:

Private

Borrower/Client:

Armenia International Airports CJSC (AIA).

Co-Financiers/Participants:

Credit Suisse (MLA), EBRD, DEG

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

Bank priority will be supporting the development of labor intensive economic activities such as the service sector: tourism, retail trade distribution, etc. The injection of cash into the economy, in healthy businesses will create the premises for growth, creation of new jobs and increased revenues for the state budget.

Environmental Classification and Impact (summary):

Category B+. The E&SDD concludes that the general E&S performance of AIA is satisfactory and the risks and impacts associated with its activities are not likely to be significant and can be readily mitigated. The airport is operating in line with national environmental, labor and health and safety laws and regulations, and has the necessary permits, licenses and approvals in this respect. AIA also meets the environmental, social and safety standards of ICAO and EASA. The Borrower has developed and implemented HR policies and procedures that meet the national Labor Code and international good practices in terms of observance of occupational health and safety, terms and conditions of employment, and the general human rights in the working environment. In terms of pollution prevention and abatement AIA has developed and implemented efficient prevention and mitigation measures. The resettlement of 566 persons is undertaken according to the RAP developed to meet the international standard (IFC PS5) and is implemented with some delays. Nevertheless, the resulted social impacts are considered positive as the relocated residents are offered housing of higher standards.

Operation Leader:

General Industries, Transport, Tourism 1

E-mail:

gitt1@bstdb.org