Armenia is a landlocked country in the Caucuses region, bordered by Azerbaijan and Turkey. Azerbaijan and Armenia have been in a state of frozen conflict since 1994 with things heating up briefly in 2016. Turkey and Armenia have been at odds for around 100 years over the Ottoman Turks treatment of ethnic Armenians throughout the history of the Empire, especially during the First World War. Due to these sour relations, the borders are closed. Armenia is forced to trade through the two other nations that it borders, Georgia and Iran. Many infrastructure projects in Armenia are focused on increasing the ease of the flow of goods between Armenia and Georgian Ports.
Armenia’s most important railroads used to be owned by a Russian company. Now they are in a state of disrepair. These three railroads run to Georgian ports where Armenian trade goods are then shipped to globally. However, further improvements to rail transport have been halted due to expenses. This has been attributed to lower than expected Russian investment in Armenia.
The World Bank
The World Bank has been working with both the government and private sector on infrastructure projects in Armenia. Due to a stagnant economy, much of this is not only aimed at improving the basic living conditions for Armenians but also at increasing job creation. By building and improving infrastructure, the government and the World Banks hopes to create jobs in the construction sector through government and private programs.
For example, in December 2015, the World Bank approved a $55 million local economy and infrastructure project. The project was aimed at both improving municipal infrastructure to increase the standard of living as well as to protect and sustain cultural heritage sites in order to boost tourism. The project end date is in 2021.
The European Bank
Infrastructure projects in Armenia are also funded by The European Bank for Reconstruction and Development. The EBRD has funded 171 projects in Armenia to the tune of 1.24 billion Euros since Armenia joined in 1992. Of the current 309 million Euros the EBRD is funding for projects in Armenia, 21 percent is going towards infrastructure projects. This includes improving municipal and urban transportation infrastructure.
This money is not only going to roads, rails and vehicles but it is also being invested in improving how commuters pay for transportation. This includes modernizing the ticket system. By making it easier and cheaper for people to purchase tickets for buses and trains, more tickets will be bought and fewer people will hop on for a free ride. The EBRD is also financing greener infrastructure projects in Armenia. At least 23 percent of the funding is going towards the energy market.
Paying It Forward
Despite the help with infrastructure projects in Armenia that the country is receiving to boost its economy and infrastructure, the nation is also giving. In 2015, the Armenian government donated 1 million Euros to the Eastern European Energy Efficiency and Environmental Partnership. Although Armenia also receives funding and expertise from this organization, so do many of its lost family of ex-soviet states. Armenia’s 2015 donation possibly went on to light homes in another country facing a similar situation.