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The ASIF was established in 1996 in order to provide immediate support in the rehabilitation of infrastructures and to enhance the living conditions of the poorest among the population. The Government of Armenia has seen the ASIF also as a mechanism through which to strengthen local government's capacity to manage, make decisions and support service delivery.

The ASIF is an autonomous public organization that reports to the ASIF Board, headed by the Prime Minister. It has independent procurement and disbursement procedures, a transparent management and financial system, and it operates on the basis of Operational Manual.

The ASIF maintains the demand driven approach and direct community involvement in the definition and identification of the microproject, along with supervision of the works. However, local government is represented in any implementing agency (IA) that carries out the actual microprojects, and will be responsible for maintenance after project completion.

Since 1996 the ASIF rehabilitated about 893 facilities, including small-scale school rehabilitations (49%), potable water projects (19%), community and cultural houses (12%), etc.

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