ARMENIA: New and Affordable Lending Mechanism for Renovation and Energy Upgrade of Residential Buildings


On July 14, 2020, Habitat for Humanity Armenia Foundation (Habitat Armenia) and "Agroleasing Leasing Credit Organization" LLC signed a partnership agreement which is aimed at

establishing a mechanism to facilitate the lending process for the renovation and energy efficiency improvement of residential buildings in Armenia.

In particular, the purpose of the partnership is to support the management bodies of residential buildings to renovate and improve energy efficiency in their buildings, including renovation of entrances, installation of energy efficient windows and doors, external thermal insulation of walls, modernization of lighting systems, etc. To facilitate the process of lending to management bodies of residential buildings, Habitat Armenia has set up a $50,000 guarantee fund. At the pilot phase of the project, it is planned to renovate at least 18 apartment buildings in line with the project criteria. The target beneficiaries of the project are the management bodies of residential buildings in Armenia, which will also be provided with technical assistance on renovating buildings and implementing energy efficient and energy saving measures.

The partnership is implemented within “Residential Energy Effciency for Low Income Households” (REELIH) project which is funded by USAID and co-funded and implemented by Habitat Armenia.

 “One of the most important prerequisites of the project implementation is the close cooperation of the residents and their willingness to take part in the project and regularly pay the mandatory fees. According to the results of the survey among homeowner associations that participated in the project, the level of comfort in the buildings has enhanced, energy efficiency has improved and the trust of the residents towards the homeowner associations has increased”,

said Varsenik Khloyan, Manager of REELIH project.

The project aims to improve the investment environment in Armenia related to residential energy efficiency,  develop and implement applicable financial models, develop the national institutional capacity, as well as establish a national platform for knowledge exchange and implementation of pilot projects.


According to Aram Mkhitaryan, Director of “Agroleasing Leasing Credit Organization,

there are a large number of Soviet-era buildings in Armenia that need renovation. The project is a good opportunity to renovate residential buildings in Armenia, while reducing energy costs and providing residents with more comfortable conditions.

Habitat Armenia has implemented projects directed at renovation and energy efficiency of residential buildings in Armenia since 2011. To date, within the scope of the above mentioned projects energy efficient measures have been implemented in 43 residential buildings as a result of which around 2,600 families live in upgraded and energy efficient buildings. According to the project monitoring data, as a result of the measures taken, an estimated reduction in energy consumption of up to 6% was recorded.

About Habitat for Humanity Armenia

Habitat for Humanity Armenia Foundation is the national office of Habitat for Humanity International founded on the conviction that everyone should have a decent place to live. Since 2000, through the work of Habitat Armenia, more than 8,300 low- and middle -income families have found new hope in the form of affordable housing. Habitat Armenia has a key role in affordable housing by helping to institutionalize energy efficiency in the country. By partnering with financial institutions, local municipalities, as well as international organizations, homeowner associations and tenants of residential buildings, Habitat Armenia implements substantial sustainable energy projects in residential sector. Through financial support, volunteering or adding a voice to support affordable housing, everyone can help families achieve the strength, stability and self-reliance they need to build better lives for themselves.

To learn more about REELIH project in Armenia, click here.
To learn more about Habitat Armenia, visit

About “Agroleasing Leasing Credit Company

"Agroleasing Leasing Credit Organization" LLC was established in 1999, and in 2003 it was re-registered in the Central Bank of Armenia, receiving a license for leasing and lending activities. The main directions of Agroleasing Leasing Credit Company’s activities are financing of agriculture, food processing organizations, individuals, entrepreneurs, as well as energy efficient projects. The organization has funded start-up food processing entrepreneurs who currently hold leading positions in Armenia, and the implemented programs have contributed to the creation of about 5,000 new jobs.

To learn more, visit

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