WORLD BANK GIVES ADDITIONAL 20 MILLION DOLLAR CREDIT FOR RESTORATION OF ARMENIA'S WATER AND WASTE WATER INFRASTRUCTURES

Noyan Tapan
Oct 31, 2008

YEREVAN, OCTOBER 31, NOYAN TAPAN. The World Bank's Board of
Directors made a decision to provide a 20 million dollar credit for
additional financing of the Armenia Munisipal Water and Waste Water
Project. According to a press release of the WB Yerevan Office,
the credit is provided on "hardened" terms of the International
Development Association (IDA) with a maturity period of 20 years,
including a grace period of 10 years. Armenia has been in the process
of graduating from IDA since July 1, 2006.

Additional financing by the WB for expanding the current project was
expected at the time of the project's assessment, and the management
contract was prepared based on a six-year program. So the additional
financing will be used to extend the management contract and the
additional investments determined previously. It will help meet the
huge invetsment needs for improving the water supply network.

The head of the WB team designing the project Jonathan Kamkwalala
said that the the investment program is being implemented according
to the shedule, and the repair and rehabilitation program for the
Armenia Water and Wastewater Company's water supply systems has
resulted in improved water quality and increased the availability of
clean and safe water: the weighted average daily hours of drinking
water availability have grown from 6 hours in 2004 to 12.2 hours in
2008. The structural and financial activity of the Armenia Water and
Wastewater Company has improved thanks to the projects.

However, according to him, there is still a significant need for
investments in the sector, and for that reason the World Bank will
continue to assist the Armenian government in improving the water
and waste water services.