RA Government Grants in 2018

09.02.2018 | 12:21 | Armenia’s Foreign Grants

According to the 2018 state budget, this year the Armenian government plans to receive 35.8 billion AMD ($ 74 million) grants from foreign states and international organizations. This figure exceeds that of 2017 by $ 4,8 billion, making up 3% of state budget revenues.

The figure given below shows the dynamics of change of amounts of government grants received over recent years. As can be seen from the figure, in general, the volume of foreign grants has displayed a consistent growth tendency since 2013, the peak of which is the year 2018.


Like in 2016 and 2017, the largest donors in Armenia are still the organizations of the European Union. Moreover, EU organizations are the only ones which provide general official budget assistance grants within the framework of the European Neighborhood Policy reaching 6.5 billion AMD. This financial assistance is in no way related to the implementation of joint programs and is provided for promotion of democracy in Armenia. It should be noted, however, that this figure, compared to 9.2 billion AMD in 2017, has dropped by 2.7 billion AMD, which can be related to the decline in democracy indexes in Armenia.

In 2018, it is envisaged to receive 29.3 billion AMD targeted grants. This group of financial support includes official, so-called linked grants. Here, the European Union is the largest donor, which is going to provide about $ 20 billion AMD within the framework of its grant support programs. This support exceeds the figure of the previous year by $11.3 billion.

Below are the largest grant packages under the joint projects implemented in 2018 (these do not include ministerial project grants, as well as foreign property and other assistance provided to ministries).

Within the framework of the program implemented with the support of the Russian Federation, it is envisaged to receive 6.3 billion AMD for the extension of operation of the Armenian Nuclear Power Plant. Thus, compared to 2017, Russia’s financial assistance to Armenia will increase by 4.7 billion AMD.

Within the framework of the EU Neighborhood Investment Program, it is envisaged to receive 1.58 billion AMD for the implementation of the second Yerevan Metro Reconstruction Grant Project. Within the framework of the same program, it is envisaged to receive 1.43 billion AMD for the implementation of Yerevan Water Supply Improvement Grant Program.

It is envisaged to receive 2,126 billion AMD for the Armenian Territorial Development Grant Program funded by the EU.

It is also planned to receive 683 million AMD for the implementation of the Yerevan Solid Waste Management Grant Program with the support of the European Neighborhood Investment Facility.

For the Kotayk Marz Waste Management Grant Project to be implemented with the support of the European Bank for Reconstruction and Development (EBRD), it is envisaged to receive 1.561 billion AMD.

With the support of Eastern Europe Energy Efficiency and Environmental Partnership, it is envisaged to receive 1,050 billion AMD for the implementation of Yerevan Urban Lighting grant program.

It is planned to receive 1.44 billion AMD within the framework of the Caucasus Reserves Assistance grant program to be implemented with the support of German KfW Development Bank. KFW will allocate another 2.8 billion AMD to Armenia for water supply and drainage infrastructures rehabilitation projects implemented jointly with the EU Neighborhood Investment Facility. Thus, compared to 2017, the German KFW grant assistance to Armenia will increase by 2.24 billion AMD.

It is planned to receive 764 million AMD within the framework of the Social Investment and Local Development Program implemented with the support of the World Bank.

Armenia will receive another 574 million AMD from the United States Agency for International Development (USAID) within the framework of Local Government Reforms grant program.

It is planned to receive 1.64 billion AMD within the framework of the project “Strengthening of the National TB Control in the Republic of Armenia” funded by the Global Fund. Another 800 million AMD will be allocated by the World Bank to implement the National HIV / AIDS Program. Another 800 million AMD will be provided by the World Bank to implement the National HIV / AIDS Program.


It should be noted that many foreign donors (US, UN, Council of Europe, OSCE and others) are not included in this list as they prefer not to transfer funds to Armenian state bodies (probably in order to avoid corruption risks), but provide the necessary property or provide other direct support (e.g. in the field of educational programs).

Davit Stepanyan
“Union of Informed Citizens”


See also