SURGE Umbrella Program

Armenia: Enabling Climate-Smart Regional and Local Infrastructure Development

Surge ECA Armenia
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At a glance:

Grant amount:US$385,000

Grant implementation period: March 21, 2023 – December 31, 2026

Disbursements: US$182,977 (as of December 31, 2025)

World Bank lending operation: Armenia Tourism and Regional Infrastructure Project (P504282)

Loan amount: US$100.2 million

Board approval date: April 17, 2025

Grant objective

The grant aims to strengthen the climate resilience of the infrastructure development and rehabilitation works to be carried out under the Armenia Tourism and Regional Infrastructure Project (TRIP). The grant consists of three components. Component 1 supports the identification and prioritization of green and climate-smart investments in selected tourism-affiliated regions covered under the project. Component 2 supports the development of Climate-smart Action Plans (C-SAPs). Component 3 focuses on capacity building for climate-smart regional and urban development.

Implementation progress

Overall implementation progress is good. The initially slower pace of implementation has picked up, after the Government of Armenia identified the seven priority regional clusters to be included in the TRIP lending operation in September 2024. The investment operation is pending in-country ratification of the loan agreement, with effectiveness expected by mid-spring 2026.

Under Component 1, the development of C-SAPs for the first three regions – Areni, Dilijan, and Goris – was completed. Related activities included the delivery of status quo analyses as well as diagnostics for potential climate actions for the three municipalities. Climate hazards, risks, and barriers were identified and summarized in the final report Armenia: Enabling Climate-Smart Regional and Local Infrastructure Development in Selected Communities. The report identified challenges and recommended measures to enhance the climate resilience of selected Armenian cities and enable them to contribute to Armenia’s broader decarbonization goals, as well as to create a replicable model for sustainable urban and regional development across the country.

Under Component 2, six capacity-building workshops validated and disseminated the findings of the status quo analysis, diagnostics, and C-SAPs. Attended by municipal and national representatives, these workshops initiated a dialogue on integrating climate-friendly investments into regional planning and explored opportunities to scale up C-SAP results.

Next Steps

Next steps under Component 1 include the development of three additional C-SAPs. To ensure the development of all six C-SAPs, the grant closing date was extended to December 2026. The procurement of development of 3 more C-SAPs is underway, and this assignment will also ensure a unified approach of C-SAPs methodology and have a combined final report that reflects already developed and to be developed C-SAPs. Under Component 2, a training and knowledge-sharing event on climate-smart and low carbon development will be held for selected municipalities. Once all C-SAPs are finalized and the respective validation and final workshops are completed, a higher-level workshop will be organized with multi- and bilateral agencies and partners. It will inform stakeholders and ensure streamlined, aligned efforts for systematically integrating climate-friendly investments into regional development and planning at the national level.

 

Last Updated: May 15, 2026

 

 

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Axel Baeumler
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Anita Ellmauer-Klambauer
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Tafadzwa Irvine Dube
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