The total cost of the "Community Infrastructure Program II, Phase 3 - Water Supply and Sanitation Infrastructure in Armenia" (CIP-II, Phase 3)—implemented with support from the Reconstruction Credit Institute (KfW), the European Investment Bank (EIB), and the European Union Neighborhood Investment Facility (EU NIF)—amounts to EUR 70.44 million. Of this amount, external loans and grants total EUR 58.7 million, with co-financing from the Government of the Republic of Armenia accounting for EUR 11.74 million.

Within the project's financing structure, funding from the Reconstruction Credit Institute (KfW) stands at EUR 30 million, loan funds from the European Investment Bank account for EUR 16.7 million, and the grant from the European Union Neighborhood Investment Facility provides EUR 12.0 million. Reconstruction of water supply and sanitation systems is planned across 63 communities and settlements in 7 regions of Armenia: Shirak, Lori, Armavir, Gegharkunik, Vayots Dzor, Kotayk, and Syunik.

The project launched in 2016, with completion scheduled for late 2027. Its objective is to provide around 75,000 residents in the target settlements with 24/7 high-quality water supply, reduce water losses, lower operating costs, and decrease electricity consumption.

LOT-1

Under the LOT-1 component, reconstruction of water supply and sanitation systems is planned in the city of Gyumri and the settlements of Voskehask, Yerazgavoros, Akhurik, Bayandur, Gharibjanyan, Getk, Haykavan, Arapi, Aygabats, Kaps, Vahramaberd, and Hatsik in the Akhuryan community (Shirak Region), at a cost of EUR 11.5 million (excluding VAT).

Construction started in March 2021 and concluded in September 2025. The component is currently in the defects notification period. Works completed under this component include:

  • Construction of water conduit: 0.6 km
  • Reconstruction of distribution network: 221.4 km
  • Construction of house connections: 97.6 km
  • Installation of individual water meter units: 7,272 units
  • Reconstruction of sewerage pipelines: 11.5 km
  • Reconstruction of daily regulating reservoirs (DRRs): 11 units

LOT-2

Under the LOT-2 component, reconstruction of water supply systems is planned in Vanadzor, the settlements of Antaramut, Dzoragyugh, Gugark, Lernapat, and Vahagni in the Pambak community, the settlements of Hobardzi, Kurtan, Vardablur, and Amrakits in the Gyulagarak community (Lori Region), and the settlement of Armavir (Armavir Region), at a cost of EUR 8.45 million (excluding VAT).

Construction started in March 2021 and concluded in November 2024. Works completed under this component include:

  • Construction of water conduit: 16.2 km
  • Reconstruction of distribution network: 173.6 km
  • Construction of house connections: 73.1 km
  • Installation of individual water meter units: 7,346 units
  • Reconstruction of daily regulating reservoirs: 2 units
  • Reconstruction of river intake structures: 3 units

LOT-3

Under the LOT-3 component, reconstruction of water supply and sanitation systems is planned in Gagarin, Tsaghkashen, Tsaghkunk, Semyonovka, Sevan, Vardenis, and Geghhovit (Gegharkunik Region); Jrarrat (Kotayk Region); Yeghegnadzor (Vayots Dzor Region); and Sisian, Darbas, Tolors, Tasik, Hatsavan, Goris, Harjis, Shinuhayr, Karahunj, Hartashen, Karashen, Aravus, Uyts, and Kapan (Syunik Region), at a cost of EUR 9.31 million (excluding VAT).

Construction started in June 2021 and concluded in September 2025. The component is currently in the defects notification period. Works completed under this component include:

  • Construction of water conduit: 46.8 km
  • Reconstruction of distribution network: 115.7 km
  • Construction of house connections: 48.5 km
  • Installation of individual water meter units: 3,757 units
  • Reconstruction of sewerage pipelines: 17.6 km
  • Construction and reconstruction of daily regulating reservoirs: 14 units

LOT-4

Under the LOT-4A/1, LOT-4A/2, and LOT-4B components, reconstruction of water supply and sanitation systems and construction of wastewater treatment plants are planned in Agarak and Uroot (Lori Region), alongside the reconstruction of water supply systems in Arzakan (Kotayk Region) and Khnatsakh (Syunik Region), at a cost of EUR 10.52 million (excluding VAT).

Construction commenced in April 2025, with completion scheduled for December 2027. Planned scope of work includes:

  • Construction of water conduit: 15.1 km
  • Reconstruction of distribution network: 60.6 km
  • Construction of house connections: 16.3 km
  • Installation of individual water meter units: 1,480 units
  • Reconstruction of sewerage pipelines: 29.7 km
  • Construction and reconstruction of daily regulating reservoirs: 9 units
  • Construction of wastewater treatment plants: 2 units

LOT-5

Under the LOT-5 component, reconstruction of water supply systems is planned in Mayisyan (Shirak Region); Gyulagarak and Lori Berd (Lori Region); and Voskehat, Arevashat, Metsamor, Hovtamej, Musaler, and Arshaluys (Armavir Region). The project budget is approximately EUR 5.6 million (excluding VAT). Currently, this component is in the tender phase for contractor selection.

The overall completion of the "CIP-II, Phase 3" project is targeted for late 2027.