Armenia Project Notice - Seismic Safety Improvement Program – Additional Financing


Project Notice

PNR 56373
Project Name Seismic Safety Improvement Program – Additional Financing
Project Detail the Asian Development Bank (ADB) approved the Seismic Safety Improvement Program (SSIP) for $88.5 million equivalent, as well as an attached technical assistance project. The original loan closing date was 31 May 2021, which was subsequently extended to 31 May 2026. The programs outcome is improved coverage of seismically safe school buildings. The outputs are (i) seismic resilience of school buildings increased, (ii) seismic disaster preparedness and response capacity strengthened, (iii) supportive policies and systems for seismic disaster risk management and reduction improved, and (iv) national capacity in executing and implementing the seismic safety investment program enhanced. Project Name Seismic Safety Improvement Program – Additional Financing Project Number 49078-004 Country / Economy Armenia Project Status Approved Project Type / Modality of Assistance Loan Source of Funding / Amount Loan 4351-ARM: Seismic Safety Improvement Program " Additional Financing Ordinary capital resources US$ 72.30 million Asian Development Bank (ADB) approved the Seismic Safety Improvement Program (SSIP) for $88.5 million equivalent, as well as an attached technical assistance project. The original loan closing date was 31 May 2021, which was subsequently extended to 31 May 2026. The programs outcome is improved coverage of seismically safe school buildings. The outputs are (i) seismic resilience of school buildings increased, (ii) seismic disaster preparedness and response capacity strengthened, (iii) supportive policies and systems for seismic disaster risk management and reduction improved, and (iv) national capacity in executing and implementing the seismic safety investment program enhanced. The RBL program impact will continue to align with the National Strategy for Disaster Risk Reduction. It also aligns with the Sendai Framework for Disaster Risk Reduction, and the State Education Development Program 2030 approved in December 2022. The outcome will be improved coverage of seismically safe school buildings through increasing the proportion of male and female students studying in school buildings that meet seismic safety standards by 5.3 percentage points. Output 1: Seismic resilience of school buildings increased. The program will support the seismic strengthening of at least 46 schools (DLI 2) identified under the governments SSRP, in accordance with the updated building code and the guidelines for school retrofitting (DLI 4). The strengthened school buildings will meet internationally accepted seismic safety standards and also meet government requirements regarding energy efficiency, gender, and inclusive access (e.g., wheelchair accessibility, barrier-free floor plans, and sex-disaggregated toilets). Schools will provide transformative facilities or spaces for community activities after school hours. Output 2: Seismic disaster preparedness and response capacity strengthened. Emergency response action plans will be developed for each SSIP school. Awareness campaigns will be conducted for at least 46 communities neighboring the SSIP schools (DLI 3) with special attention to women. Technical knowledge and skills of 100 construction managers and workers will be strengthened through vocational training. Fifteen seismic observation stations will be upgraded with new equipment and training to enhance the seismic monitoring capacities of at least 45 staff. Output 3: Supportive policies and systems for seismic disaster risk management and reduction improved. This will be tracked by DLI 4, which will support (i) updating the governments SSRP, (ii) developing guidelines for strengthening and retrofitting schools in line with international best practices, (iii) reviewing and updating Armenias building code for school buildings to harmonize with international seismic safety standards, and (iv) updating the national seismic hazard probabilistic map based on seismic risk assessment. A strategy will be developed to guide the financing of investment needs for seismic risk management in public infrastructure. A manual for the application of the updated building code will be developed and approved to guide structural engineers on the revised seismic standards. Output 4: National capacity in executing and implementing the seismic safety investment program enhanced. The program will strengthen the capacity of the ATDF in implementing SSRP and other seismic safety programs. The ATDF will be strengthened by updating the ATDF operations manual; enhancing systems for program implementation and management; and training at least 30 staff in program implementation and management, 40% of whom will be women (DLI 5). Project Rationale and Linkage to Country/Regional Strategy In November 2021, the government requested that ADB process an additional financing loan for the SSIP, indicating that the planned SSIP targets could not be achieved because of cost overruns. The cost overruns are the result of exogenous factors and design requirements. Exogenous factors include (i) increases in the price of school construction; (ii) volatility in the value of the Armenian dram and its appreciation against the United States dollar; (iii) geo-political instability in 2020 and 2022; (iv) macroeconomic instability and accelerating inflation; and (v) government changes that delayed critical decision making and macroeconomic instability that led to significant budget cuts in 2017 and 2018, which affected initial implementation. Price increases in the construction sector have been steep and the average cost per SSIP seismic-resistant school has increased by about 50% (in local currency) since 2021. Design requirements include the high seismic standards that had to be applied to the extremely unsafe schools selected for SSIP by the government to protect childrens lives all the selected schools (except one that was retrofitted) have required reconstruction. ADB has undertaken a due diligence assessment and confirmed that the loan meets the eligibility criteria for additional financing. The benefits of completing the ongoing program are assessed to outweigh the benefits offered by other options because of the ongoing government program and well-established implementation arrangements. Impact Disaster-resilience of schools and individuals improved, and contribution to sustainable development enhanced
Funded By Asian Development Bank (ADB)
Sector Other Industries
Country Armenia , Western Asia
Project Value AMD 72,300,000

Contact Information

Company Name Ministry of Territorial Administration and Infrastructure
Web Site https://www.adb.org/projects/49078-004/main

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