WB APPROVES US$9 MILLION CREDIT FOR ARMENIA
PanARMENIAN.Net
17.03.2010 11:17 GMT+04:00
/PanARMENIAN.Net/ The World Bank’s Board of Executive Directors
today approved a US$9 million credit for the Second Public Sector
Modernization Project (PSMP II) for Armenia. The project will assist
the Government of Armenia in its efforts to improve the quality of
public services by introducing a performance-based pay system and a
code of conduct for civil servants, and by enhancing public access
to all available government information.
"Strengthening governance through improved public service delivery is
among the priorities for Bank support," said Asad Alam, World Bank
Regional Director for the South Caucasus. "While some improvements
have been made in the area of governance and anti-corruption, important
challenges remain, including in the enforcement of conflict of interest
legislation pertaining to public officials."
In the new economic reality brought about by the global economic
crisis, public administration reform has grown even more important,
as getting better value from public expenditures and improving public
services have become a necessity. Ensuring that public service
provisions do not suffer at a time of tighter fiscal constraints
requires focused efforts to strengthen performance management.
"To improve public service delivery, enhancing technology is not
enough by itself. The most crucial and difficult part is changing
behavior and organizational culture," added Kathy Lalazarian, head
of the World Bank team designing the project. "It’s important to have
efficient public services throughout the recovery because – more than
ever – families are counting on the services the government provides."
This demanding agenda will be tackled by the PSMP II, as despite
progress in civil service reform under the ongoing PSMP I,
policy formulation and implementation functions need additional
strengthening. The Project will also help build capacity for
performance management, and will support the Government’s efforts to
bolster the rules regulating conflict of interest in public service
and improve enforcement.
PSMP II has three main components. It supports: (i) the design of
organizational structures in pilot institutions and improvement of
the management of business processes by streamlining and coordinating
functions; (ii) making human resource management more effective,
and enhancing public service ethics and staff performance systems;
and (iii) complementing and enhancing the electronic governance and
automation systems to make them accessible to the general public,
aiming for better service delivery, and more transparency and
efficiency.
The IBRD Flexible loan has a maturity of 25 years and a grace period
of 10 years included.
Since joining the World Bank in 1992 and IDA in 1993, the commitments
to Armenia total approximately US$ 1, 318, 7 million.