The EBRD is lending $20m to Armenia International Airports (ArIA) to finance the completion of a new passenger terminal at Zvartnots Airport in Yerevan, including the acquisition of modern equipment to further upgrade the quality of service, as air traffic through the capital increases.

Sharp improvements in the Armenian economy and expanding tourism have boosted the number of passengers passing through the airport, which is likely to top the 1.15m mark by the end of this year.

“This project will play an important role in the development of external transport links and an efficient transport system for Armenia, a land-locked country heavily dependent on air-transport services”, said Michael Weinstein, head of the EBRD office in Yerevan.

The deal is being undertaken jointly with DEG, part of the German KFW Group, which is providing a further loan of $10m.

ArIA operates the Zvartnots Airport under a management contract signed in 2002 and is owned by a New York-based holding company.