In order to promote tourism as one of the most affected sectors by the pandemic and create an environment conducive to its development, the RA Ministry of Economy, in cooperation with the Tourism Committee and the Armenian Territorial Development Fund, continues to implement the Public-private investment (PPI) component of the “Local Economy and Infrastructure Development (LEID) Project” supported by the World bank and co-financed by the Government of the Republic of Armenia.
By improving the quality of public infrastructure, supporting the development of tourism, as well as agricultural business, the Project aims to create a favorable environment for attracting private sector investments, thus stimulating the economic growth and employment in nine provinces of Armenia: Aragatsotn, Ararat, Gegharkunik, Kotayk, Lori, Shirak, Syunik, and Vayots Dzor.

Within the PPI component of the LEID Project assistance will be rendered to selected private businesses in the project area by providing public infrastructure to encourage the viability of investments (for example, public buildings, roads/sidewalks, water supply/drainage system, communications, and other facilities adjacent to the investment sub-projects).

Investments can be made only in the spheres of tourism and agricultural business.

The PPI model excludes opportunities for direct financing of businesses or capital investment. It envisages provision of financing for construction of public infrastructure (roads, water supply, sewerage, electricity, and others) only outside the area of ​​activity of the investor.

The ratio of private investments and LEID Project financing should be at least 4:1, whereby the minimum threshold of private investments should be 200 million AMD. All proposed investments shall contribute to improvement of the socio-economic situation of the residents of the adjacent areas.

It is noteworthy that the Project prohibits investments in specially protected environmental areas, protection areas of cultural heritage sites, in the vicinity of obviously green areas - forests, alpine/subalpine meadows - to exclude adverse effects on the environment.

The terms of enrollment into the Project and the application are available on the website of the RA Ministry of Economy at the following link.