Armenia

In the 1990s, the majority of funds in the energy sector were used for emergency measures in the sector, but today, KfW Development Bank mainly finances investment measures that secure a long term, sustainable energy supply for the country. This includes the regional transmission network with Georgia and the promotion of renewable energy in the country.

In the 1990s, many micro, small and medium-sized enterprises (MSMEs) emerged, most with fewer than ten employees. Modern equipment and management experience were lacking – along with capital. There was not a single bank specialized in loans for MSMEs. In response, KfW Development Bank, together with the Armenian Central Bank, formed the German-Armenian Fund (GAF) in 1999. Since then, loans have been given to MSMEs and private households via the GAF. Mortgage refinancing was introduced in 2009 and gave the market for housing financing a new momentum. Furthermore, investments in renewable energy and in the rural sector are financed through the GAF.

Project information - Sustainable economic development  (PDF, 135 KB, non-accessible)

Due to insufficient investments in the municipal infrastructure for many years, the drinking water supply and sewage disposal is still inadequate for the Armenian population. With the exception of the capital, Eriwan, drinking water is only available for a few hours to many inhabitants, even in cities. Sewage disposal also does not meet minimum standards: sewage is routed to the surrounding bodies of water or is transported directly to the groundwater by rain. The risks for the environment and health are high. One of KfW Development Bank's primary objectives is to establish a hygienically safe water supply and adequate sewage disposal systems.

The Caucasus is one of 25 global and one of two European biodiversity hot spots. To preserve this unique natural environment for future generations, KfW Development Bank, on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), supports the protected areas of Armenia under what is known as the "3-pillar model". The first pillar focuses on identifying new protected areas and strengthening existing ones. To ensure that the three countries exchange their expertise, KfW Development Bank supports their platform, the "Transboundary Joint Secretariat" (TJS). The TJS forms the second pillar and promotes harmonization of nature conservation programs in Armenia, Azerbaijan and Georgia. The third pillar serves to ensure the financial viability of the protected areas in the long run. The operation of these areas cannot be completely covered by the national budget. This financial gap is partially filled by the regionally oriented "Caucasus Nature Fund" (CNF), which is primarily funded by BMZ via KfW Development Bank.