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Reforming Sanitation in Armenia

Towards a National Strategy

image of Reforming Sanitation in Armenia

This report assesses the state of Armenia’s sanitation services, which are in poor shape, and proposes ways forward for reforming the sector by: ensuring equitable access by all and identifying solutions that work for the poorest and most remote communities; generating economies of scale and scope, and reducing both investment and operational costs for the efficient delivery of sanitation services; and moving towards sustainable cost recovery for the sanitation sector, by identifying how much funding can be mobilised from within the sector and how much external transfers are required. The state of Armenia’s sanitation services are inadequate, with 51% of the population in rural areas using unimproved facilities, causing direct damage to the environment and exposing inhabitants to health risks, and better access but degraded sewerage-system infrastructure in urban areas, posing health hazards due to potential cross-contamination between sewage and drinking water. According to preliminary estimates, EUR 2.6 billion of investments will be required to meet Armenia’s sanitation needs, with approximately EUR 1 billion needing to be spent in the next 7 to 10 years. Given the country’s current economic situation, this investment will have to be spread over time and targeted to avoid further deterioration of infrastructure and increase of the financing gap.

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Reforming market structure arrangements for sanitation in Armenia

This chapter describes the need for market reforms and discusses options available to the sanitation sector in Armenia. The chapter presents the fragmentation of the sanitation sector in Armenia and the impact this has on sector efficiency and impact upon public health and environmental performance as a key driver for reform. Five modes of service supply are explored with recommendations made on the implementation of the preferred model including the role of Government and incentives in the reform process.

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