World Bank Approves Three Credits For Armenia

World Bank Approves Three Credits For Armenia
In Yerevan: Vigen Sargsyan, (374 1) 524-884
[email protected]
In Washington Miriam Van Dyck (1-202) 458-2931
[email protected]

WASHINGTON, May 4, 2003-The World Bank’s Board of

Directors today approved three credits for Armenia: a US$10.15
million equivalent credit for the Public Sector Modernization Project,
a US$20 million equivalent credit for the Municipal Water and
Wastewater Project, and a US$1.74 million equivalent for a
supplemental credit for the Agricultural Reform Support Project.

The US$10.15 million equivalent Public Sector Modernization Project
will assist the government in its efforts to improve the transparency,
accountability, effectiveness and efficiency of public sector
management. This is the first World Bank-supported project focused on
public sector reforms. The project will support civil service reforms,
and will make specific innovations in core public institutions, which
should become a catalyst for further modernization efforts.

While the first phase of public sector reforms in Armenia can overall
be considered to be completed, the government is currently entering
into the second, more challenging phase of institutional and
governance reforms. The project will support the government in
implementation of the second phase of public sector reforms, primarily
aimed at strengthening the management systems of state institutions,
and improving policy development and service delivery processes both
at central and local levels.

The US$20 million Municipal Water and Wastewater Project will assist
the Government in its efforts to improve water and wastewater
services, in terms of coverage, quality and efficiency with a focus on
areas outside the capital city. It is the second IDA-financed water
and wastewater project in Armenia, after an initial Municipal
Development Project (MDP) to support Yerevan’s Water and Sanitation
Company. The Municipal Water and Wastewater Project will build on the
accomplishments of the Yerevan MDP and continue sector reforms beyond
the capital city by strengthening the Armenia Water and Sanitation
Company (AWSC) through financial and technical rehabilitation of
Armenia’s water and wastewater systems.

The project will extend improvements recently achieved in Yerevan to
other parts of the country, and will lead to several key technical and
commercial outcomes. It will improve the reliability and quality of
drinking water, increase hours of service, and provide for greater
operating efficiency. In addition, the project will result in improved
relationships with customers, capable management and qualified staff,
and increased water company cash generation through reform of billing
and collection.

The US$1.74 million supplemental credit for the Agricultural Reform
Support Project will finance assistance to smallholder farmers whose
vineyards and orchards were damaged by the frosts of December 2002 as
well as continued operation of critical agricultural support
services. This includes about 1,000,000 grapevine seedlings and
400,000 fruit tree seedlings for the rehabilitation of about 370 ha of
smallholders’ vineyards and 1,130 ha of smallholder’s orchards;
continued operation of the rural extension service and the regional
agricultural service centers; the adaptive and applied agricultural
research program; the integrated pest management (IPM) program; and
the market information service until June 2005.

The orchard and vineyard replanting program will benefit up to 10,000
of the most severely affected small farmers, helping them to recover
from the devastation of their grapevines and fruit trees and to
upgrade the genetic diversity and quality of their grape and fruit
tree stock. The continued funding of essential agricultural support
services will ensure that farmers continue to receive the critical
advisory, information and technical assistance needed to improve their
productivity and incomes. The original IDA Credit for the
Agricultural Reform Support Project, for US$14.5 million, was approved
in 1998.

The credits will be made to Armenia on standard IDA terms, including
40 years maturity and a 10-year grace period. Since joining the World
Bank in 1992 and IDA in 1993, commitments to Armenia total
approximately US$786.9 million for 33 operations.

For more information on the World Bank’s activities in Armenia,
please visit:

From: Emil Lazarian | Ararat NewsPress

Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS