ArmInfo. Armenia will attract another $293 million from the Asian Development Bank for the implementation of the third program for the construction of seismic-resistant schools. The RA government approved the draft law "On ratification of the loan agreement for the 3rd program for improving seismic safety" between the Republic of Armenia and the ADB at its meeting on September 3.
As RA Minister of Education, Science, Culture and Sports Zhanna Andreasyan noted in her speech, the total amount of the program is $366 million, of which co-financing from the RA government will amount to $73.0 million (19.9%), and financing from the Asian Development Bank will be $293.0 million (80.1%). It is planned to build 50 new seismically safe schools with these funds. The program was launched in 2016 and will run until September 30, 2027. It is results-oriented, meaning it will provide adequate financial resources to the Republic of Armenia while achieving the results stipulated in the loan agreement. The program's primary and key indicator is the construction or reinforcement of at least 46 schools and the provision of safe learning conditions for approximately 20,000 students. Other planned activities include reviewing seismic construction standards, developing seismic construction guidelines, disaster risk management and school evacuation plans, training specialists working in the construction industry, and other functions. To date, 29 schools have been completed under the program. Construction is currently underway at 17 other schools. The newly commissioned schools have created safe learning conditions for over 15,000 students.
The program has allocated loan funds twice under two programs. In the context of the program's performance-based nature, for
each loan has a specific outcome, upon which financial resources are allocated to achieve that outcome: $81.5 million for the first loan and €54.2 million for the second loan.
The loan has a term of 27 years, 10 of which will be preferential. The resources will be serviced at a floating annual interest rate of SOFR + a margin of 0.5% + 0.3% (repayment premium). The repayment premium depends on the average loan term; a rate of 0.3% applies to loans with an average repayment term of 16-19 years. It should be noted that the calculation of the annual interest rate on the loan also includes a discount/surcharge calculated based on the results of ADB operations, which is set by the Bank twice a year - on January 1 and July 1, and currently amounts to 0.37% for loans in US dollars. Taking into account that the SOFR interest rate formed on July 20, 2026 is 3.57%, the floating interest rate on the loan will be 4.74%.
In this regard, RA Prime Minister Nikol Pashinyan noted that, in general, the situation with the construction and modernization of schools is good. He promised to visit all schools in the country, especially those under construction. He noted that the country's government should add another 300 schools in addition to the 300 that are to be built and renovated by the end of 2026 in the coming five-year period.
