Oct 31, 2008

YEREVAN, October 31. /ARKA/. The World Bank's Board of Directors
approved a US$20 million credit for additional financing for the
Armenia Municipal Water and Wastewater Project (MWWP) on Thursday,
WB Yerevan Office reported on Friday.

"The additional financing will support the government's efforts in
scaling up activities implemented under the ongoing program of water
system rehabilitation and improvements, including an extension of the
ongoing management contract between the Armenia Water and Wastewater
Company (AWSC), the water utility in charge of the project, and an
international water supply utility operator", the press release said.

The WB Yerevan Office says the credit is provided on "hardened"
IDA terms with a maturity of 20 years, and a grace period of 10
years included.

Armenia has been in the process of graduating from IDA since July
1, 2006.

"The Additional Financing will support three main components: (i)
AWSC Management Strengthening by providing funding for continuation
of the management contract for additional two years; (ii) AWSC
Investments by funding institutional and financial capacity building,
procurement of equipment and machinery to improve the operations
of AWSC, rehabilitation and improvement of chemical and biological
laboratories, and assistance to AWSC's training activities; and (iii)
Investments in Branch Systems by providing funding for the replacement
of deteriorated treatment and chlorination equipment; procurement and
installation of pressure loggers, pipes and fittings, and design and
civil works for network rehabilitation", the press office reports.

"SAUR" S.A. French company won the tender for management of Armenian
Water and Sewerage Company in 2004. Armenian Water and Sewerage
Company serves about 33% of the country's population in more than
300 communities, 54% of which are urban.

The company is providing services to 264,000 consumers in 286 villages
and 37 cities of the country.

It has branches with their central offices in all provinces,
including Gegharkunik, Tavush, Kotayk, Aragatsotn, Ararat, Syunik
and Vayots Dzor.

Armenia joined the World Bank in 1992 and International Development
Association in1993. Liabilities on 49 programs total $1,076

From: Emil Lazarian | Ararat NewsPress