Iranian Company to Build Sanitary Landfill in Hrazdan

The government has authorized the Iranian company 'Tunel Sad Ariana' to carry out construction activities in the field of urban planning as part of the 'Solid Waste Management Program of Kotayk and Gegharkunik Regions' in accordance with Article 43, Part 2, Point 3 of the Licensing Law.

According to the justification of the adopted decision, the approval of the project is due to the need to grant a construction permit to 'Tunel Sad Ariana' for the implementation of the solid waste management program in these regions.

This program, which is currently in the implementation phase, was established under a bilateral agreement signed on April 5, 2016, between Armenia and the European Bank for Reconstruction and Development (EBRD) and ratified by the National Assembly of Armenia on June 30, 2016. It aims to build a sanitary landfill that meets EU standards and develop an efficient waste collection system.

The total budget for the project is €11 million, of which €5.5 million is a loan and €5.5 million is a grant. Of this grant, €3.5 million is provided by the European Neighborhood Investment Facility (NIF) and €2 million by the Eastern Europe Energy Efficiency and Environmental Partnership (E5P). The loan repayment term is 15 years and will be serviced by local municipalities.

The program includes improving the quality of waste collection services for the population within the framework of tariffs set by Armenian legislation.

To ensure adequate services for collecting and disposing of solid household waste across all communities in the two regions, as well as for the construction and operation of the new sanitary landfill, plans include:

• Construction of a new landfill in Hrazdan compliant with EU standards (including infrastructure, buildings, and structures),
• Construction of two transfer stations (in Akunk and Martuni),
• Acquisition of waste collection trucks and containers/boxes for waste,
• Procurement of specialized equipment for the operation of the landfill,
• Installation of new waste collection points.

International competitive bids for the selection of a construction company for the construction of the sanitary landfill and two transfer stations were opened on January 24 of this year. Based on the evaluation results, 'Tunel Sad Ariana' was recognized as the winner since its bid substantially met the competitive documentation requirements and was the lowest evaluated price offered.

The report on the evaluation of the bids and the proposal for awarding contracts were sent to the EBRD, after which on July 7, 2020, the EBRD issued a confirmation letter for the 'award of contracts,' and a notification ('Letter of Acceptance') for the award of contracts was sent to 'Tunel Sad Ariana' on July 15.

The next phase of this process entails signing construction work contracts, but before that, it is necessary to resolve the issue of the construction permit for 'Tunel Sad Ariana.'

The acceptance of the draft government decision on granting permission to 'Tunel Sad Ariana' for activities subject to licensing will enable the winning participant to implement the works stipulated in the international agreement between Armenia and the EBRD, which includes the construction of the region's first sanitary landfill and corresponding infrastructure, as well as transfer stations in Akunk and Martuni communities.