Armenia | World Bank

Armenia - Second Additional Financing for the Third Social Investment Fund Project : guidelines for environmental procedures

2009-11-23T05:00:00.000Z

The Third Social Investment Fund Project (ASIF III) and its Additional Financing (AF) first and second invest in community infrastructure micro projects as a short-term solution to the crisis by addressing priority social needs generating immediate temporary work opportunities. Negative measures include: air quality, noise pollution, water quality, cultural heritage, and toxic/hazardous waste management. Mitigation measures include: a) demolition debris shall be kept in controlled area and sprayed with water mist to reduce debris dust; b) construction noise will be limited to restricted times agreed to in the permit; c) during operations the engine covers of generators, air compressors and other powered mechanical equipment shall be closed, and equipment placed as far away from residential areas as possible; d) waste collection and disposal pathways and sites will be identified for all major waste types expected from demolition and construction activities; and e) mineral construction and demolition wastes will be separated from general refuse, organic, liquid and chemical wastes by on-site sorting and stored in appropriate containers.

Environmental management plan : rehabilitation of Talin Main Canal

2009-11-20T05:00:00.000Z

The objectives of the Irrigation Rehabilitation Emergency Project in Armenia are: (i) to improve water use efficiency in two selected irrigation schemes; and (ii) to foster immediate rural employment. Negative impacts include: 1) disposal of excavated materials and construction wastes; 2) degradation of landscapes and soil erosion; 3) impacts from temporary access roads and work areas; 4) loss of fertile topsoil; 5) pollution by construction run-offs; 6) impacts on trees; 7) increased salinity of drainage water; and 8) noise and vibration disturbances during construction and temporary air pollution. Mitigation measures include: 1) use, where possible, existing quarries for required additional materials; 2) reuse of suitable excavated and dredged soils limiting the need for old and new quarries; 3) choose and delineate carefully all access roads and work areas. Manage and monitor them closely so that they do not expand unduly during construction; 4) transport and disposal of construction concrete rubbles, debris and spoils in approved paths and landfills/dump sites; 5) scrape and store preciously the top agricultural grade soil layer. Store these soils in piles not exceeding one meter (soils lose their agronomic qualities in thicker layers); 6) compact the top surface of access roads and work areas to facilitate water runoff and avoid flooding the area. This will require to dig drainage ditches and connect them to natural drainage axes; 7) conduct dust-depressing measures aimed at prevention of air pollution through watering of access roads and construction sites; 8) compensate owners for land acquisition and loss of trees using village reserve lands and trees replanting; and 9) select optimal route/design that requires uprooting the least number of trees and causes least disruption to ecosystems and habitats of rare/endangered species.

The project Transaction Advisory Support for PPP for Solid Waste Management for Yerevan City is now in the pipeline.

2009-11-19T05:00:00.000Z

The project Transaction Advisory Support for PPP for Solid Waste Management for Yerevan City is now in the pipeline. To see more information, see the project information in the World Bank project database

Roma education to get crucial boost in funding

2009-11-12T20:18:19.000Z

Roma education to get crucial boost in funding

BRUSSELS, November 12, 2009―At an international donor conference hosted by the Open Society Institute, the World Bank and the European Economic and Social Coimmittee, donors swung their financial support behind education for the Roma, Europe ’s largest minority population. The €25.5 million in funding commitments announced by donors today is targeted for the Roma Education Fund (REF) and will provide the essential ingredients needed for children to succeed in school: scholarships, school meals, teacher training and academic support. The added financial support will also help governments develop stronger national policies for Roma inclusion.

“Roma want to contribute to society. They want to improve the lives of their children and give them a better life than they had. The most important factor that keeps so many Roma trapped in poverty is a lack of education; with increased political will and improved cooperation we can tackle this problem head-on,” said George Soros, chairman of the Open Society Institute and one of the founders of the Roma Education Fund.

The REF is a grant-making and policy analysis foundation established in 2005 that designs and supports programmes and projects to improve Roma education outcomes in Europe . With help from the Fund, last year alone over 30,000 students, from pre-school to university, showed improved test scores while more than 800 Roma students attended and graduated from university.
Roma continue to face discrimination and exclusion from opportunities available to most citizens. They often lack access to good quality education or other social services, holding low quality and low-paying jobs.

“The primary school completion rate among young Roma is similar to that prevailing in some countries in Sub-Saharan Africa. This strikes me as something that does not belong in the Europe of the 21 st century”, said the World Bank Managing Director Ngozi Okonjo-Iweala.

The amount committed today will enable the REF to continue closing the gap in educational outcomes between Roma and non-Roma children by supporting quality education for Roma, desegregation of education systems, and improvement of Roma’s social inclusion. “The REF has identified what works in Roma education. The time has come to move to large scale interventions,” said Costel Bercus, chair of the REF governing board.

www.romaeducationfund.hu
www.refdonorconference.org

Contacts:
Luis Montero
luis.montero@osf-eu.org
Alexander Rowland
arowland@worldbank.org

Rehabilitation of Armavir Main Canal

2009-11-05T05:00:00.000Z

The project Social Investment Fund III Second Additional Financing is now in the pipeline.

2009-11-05T05:00:00.000Z

The project Social Investment Fund III Second Additional Financing is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Technology and Competitiveness Enhancement Project (Armenia E-Society and Innovation for Competitiveness) is now in the pipeline.

2009-11-05T05:00:00.000Z

The project Technology and Competitiveness Enhancement Project (Armenia E-Society and Innovation for Competitiveness) is now in the pipeline. To see more information, see the project information in the World Bank project database

Transition since Fall of Berlin Wall Shapes Today’s Crisis and Recovery

2009-11-03T17:05:11.000Z

Report on eve of 20th anniversary of the Berlin Wall's fall says structural reforms are now necessary to protect hard-won gains

WASHINGTON, November 3, 2009―The economic policy choices made by some countries of Europe and Central Asia (ECA)* during the transition from centrally planned to market economies contained the seeds of vulnerability when facing the global economic crisis, and are also likely to shape the recovery, says a new World Bank report issued on the eve of the 20th anniversary of the fall of the Berlin Wall.

The report, Turmoil at Twenty: Recession, Recovery, and Reform in Central and Eastern Europe and the former Soviet Union, says many countries in ECA are well integrated today into global markets. While this integration brought many benefits and drove the region’s spectacular growth in the decade since the Russia financial crisis of 1998, it also exposed ECA countries to three channels through which the crisis has hit the region hard: financial, market, and labor.

Excessively rapid catch-up towards Western European living standards by countries that had suffered deep or double transition recessions in the late 1990s, enabled by bank lending at a time of unusually high global liquidity, led to rapid growth, but also created serious macroeconomic imbalances when facing the 2008-09 global crisis. Short-term maturing debt reached extremely high values. But not all financially integrated countries in the region were equally vulnerable. Their experience suggests that tighter fiscal policies, without necessarily insulating countries from the crisis, could have played a stabilizing role, even though the imbalances did not generally originate in the public sector.

The report says that international collective action comprising generous official financing and coordination by Western European parent banks to maintain their exposures in Central and Eastern Europe has allowed maturing external debt to be rolled over, at least so far. Those parent banks were crucial in hardening budget constraints and attaining macroeconomic stability during the first decade of transition.

“The outlook for economic growth in emerging Europe and Central Asia is considerably weaker than that in the years before the crisis,” said Pradeep Mitra, one of the authors of the report and former World Bank Chief Economist of the Europe and Central Asia Region. “If parent banks reduce exposures in countries of the region due to recognition of losses in their home market, continuing collective action will be necessary to make this process gradual and less disruptive.”

According to the report, the weak outlook for growth highlights the urgency of proceeding with bank, corporate, and household debt restructuring. Government should set up enabling frameworks for debt restructuring, but resist using public resources since household debt is typically not concentrated among the poorer households.

The poorer countries of the former Soviet Union that are financially less integrated are experiencing the crisis primarily as a result of a downturn in exports and decline in workers’ remittances due to the recession in the Russian Federation. Thus, in Tajikistan, the poorest country of the region, it is estimated that a 30 percent decline in remittances would reduce the consumption of the bottom fifth of households by around 20 percent. While some countries have safety net programs that deliver a substantial proportion of benefits to poorer households, more resources are necessary to scale up these programs where they exist, and introduce targeted programs where they do not. Official financing for a number of years will be necessary to support desirable social spending until a durable recovery is in place.

The report recommends that with capital flows likely to be considerably lower than pre-crisis levels, and financial markets already differentiating across countries, policy makers need to address the most binding constraints to growth in order to improve their business environment and remain competitive.

“It is remarkable that business surveys show infrastructure and labor skills – formerly the main assets of transition countries – not only to be the tightest bottlenecks to the operation and growth of firms, but also more constraining than in non-transition economies at similar income levels. These sectors require urgent reforms,” said Mitra. “However, the surveys also show significant progress after two decades of transition in building institutions of the market economy. For example, tax administration and customs regulation which have traditionally ranked high among constraints to the operation and growth of firms are now seen as less constraining and indeed in line with non-transition economies at similar income levels.”

* The ECA countries include Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, FYR Macedonia, Georgia, Hungary, Kazakhstan, Kosovo, the Kyrgyz Republic, Latvia, Lithuania, Moldova, Montenegro, Poland, Romania, the Russian Federation, Serbia, the Slovak Republic, Slovenia, Tajikistan, Turkey, Turkmenistan, Ukraine, and Uzbekistan.

Contacts:
In Washington:
Elena Karaban 202-473-9277
Ekaraban@worldbank.org
Michael Jones 202-473-2588
Mjones2@worldbank.org

Armenia - Second Public Sector Modernization Project

2009-11-03T05:00:00.000Z

World Bank Disseminates the WDR-2009 Reshaping Economic Geography and Discusses Upcoming Work on Cities Across Eurasia

2009-11-02T21:42:53.000Z

Yerevan, October 28, 2009—The World Bank discussed the World Development Report 2009 Reshaping Economic Geography and the Report’s implications for Armenia and Yerevan with policymakers, local researchers, the private sector, civil society, and the development community over last two days. Using the insight of the World Development Report, the Bank is embarking on a report on cities in Eurasia. The upcoming work aims to analyze how cities could integrate Eurasian economies, and diversify their national economies as well as provide policy guidance for cities to serve market economies to their fullest potential.

Chorching Goh, a co-author of Reshaping Economic Geography and the task team leader of the work on Eurasian cities began with a presentation of the messages and findings of the World Development Report 2009 summarizing lessons and experiences from around the world. She then discussed the implications of the Report’s insights for Armenia.

"The Report is rich, thorough, and rigorous. Geography is especially critical for Armenia. But economics should neutralize geography and make it a less decisive factor for development. No?" raised Ashot Markosyan, the Deputy Head of State Property Management Authorities. "If you recall the dimensions of spatial transformation, we have density, which can proxy for human geography; we have distance, which is about physical geography; and we have division, primarily governed by political geography. And the economics—the economic geography—that brings them together," clarified Goh.

The Report’s message—that economic growth is spatially unbalanced, for it to be rapid, but development can still be inclusive, through economic integration—seemed agreeable to some but not others. "I concur with the Report’s recommendations," nodded Vahram Avanesyan, CEO of Avag Solutions. "I agree with the arguments," said Vahe Ghavalyan, Director of Paradigma. Others were apprehensive of market forces like migration and agglomeration.

"What if we stop Yerevan’s growth? The government’s goal since 2003 is to reduce regional disparities and we have to help the regions," enquired Tigran Kostanyan, Head of Macroeconomics in the Ministry of Finance. "We have to limit migration into Yerevan because this is not stable," added Rolan Sharoyan, Head of Research of the Central Bank.

"An insight of the WDR is that we have to distinguish the geography of economic production from the geography of social welfare. Armenia should reduce regional disparities in living standards, but we will kill growth trying to level out economic activity.

Our engine of growth has been Yerevan which generates 90% of total tax revenue; some of that will be invested in basic and social services everywhere– call that portable asset for the population. Some will be invested in Yerevan –call that place-based asset—so that our engine of growth does not sputter. Here we map out the economic density of Eurasia, and we can’t even see Yerevan. Which place has the best preconditions to be a gateway to the world market and to lead Armenian economy to higher income? We can’t starve that place of financial, physical, and human capital," reasoned Goh.

Goh also held a seminar at the American University of Armenia to a packed audience during the examination week. She was greeted with silence after the presentation. Then someone in the audience stood and spoke, "Please understand. We are quiet because we are blown away by the novelty, richness, and beauty of the whole thing – the movie, the presentation . . . and we haven’t even read the Report," and his opening led to an engaging and lively discussion peppered with thoughtful comments and sharp questions from bright young minds of Armenia.

Armenia - Technology and Competitiveness Enhancement Project (Armenia E-Society and Innovation for Competitiveness)

2009-10-30T04:00:00.000Z

Armenia: Social Snapshot & Poverty. Statistical-Analytical Report

2009-10-29T21:09:13.000Z

ARMENIA: SOCIAL SNAPSHOT AND POVERTY
Statistical-Analytical Report
(Main Findings of 2008 Integrated Living Conditions Survey)

Yerevan, October 28, 2009. Armenia: Social Snapshot and Poverty report of the National Statistical Service of Armenia (NSS) is aimed at reflecting changes in the social status and living standards of Armenia. This is the 10th report in the annual series of publication started in 1999. The main objective of the report is to report, document and analyze developments in social and poverty situation in Armenia.

The report is based mainly on the data from the Integrated Living Conditions Survey (ILCS) has been conducted between January 1-December 31, 2008 with the co-financing from the State Budget of Armenia and Millennium Challenge – Armenia State Non-Commercial Organization (MCA-Armenia). A nationally representative sample of 7872 households participated in the survey. During the forthcoming 3 years, among other objectives, the ILCS data will be used for the assessment of the impact of Agreement between the Millennium Challenge Corporation (MCC) and Government of Armenia amounting US $ 235.65 million.

Although the report mainly contains the ILCS data conducted by the NSS, information provided by the Ministry of Labor and Social Issues, Ministry of Health, Ministry of Education and Science was also used in the report.

Preparation, organization and summarization of the 2008 ILCS data and the report were implemented with the direct involvement and participation of MCC and MCA experts. Analytical content of the report was prepared by the analytical and technical support of the World Bank.

In 2008 there was a decrease in poverty level and poverty severity. Nevertheless, poverty still remains a problem in Armenia since 23.5% (more than 760 thousand permanent residents) of the population is poor and about 100 thousand out of them is extremely poor. Poverty remains considerably high in urban areas outside Yerevan. The findings are based on a revised methodology of poverty measurement developed in 2004 with the technical support of the World Bank.

Poverty indicators were calculated based on the use of minimum food basket recorded in 2004 and share of non-food goods evaluated in 2004. The 2005 -2008 poverty lines were adjusted for inflation.

Source: ILCS 2004-2008

Those whose consumption per one adult was lower than the general poverty line were considered as poor and those whose consumption per one adult was lower than the food or extreme poverty line were considered as extremely poor.

In 2008 general poverty line and food line per adult equivalent per month were estimated at AMD 25,188 and 17,232 respectively.

The poverty gap in 2008 was 3.1%. It represents the average amount of drams (expressed as a percent of the general poverty line) that would be needed to bring all Armenian households to the level of consumption equal to the poverty line. In other words, if the country had the opportunity to pool resources equaling to 3.1% of the poverty line per every individual (both poor and non-poor) and if those resources were allocated with perfect targeting to the poor then poverty could theoretically be eliminated. If poverty gap is calculated only for the poor it shows the poverty deficit, i.e. it shows how much the average income (or consumption) of the poor is lower from the poverty line.

On the other hand, the poverty severity (or squared poverty gap) shows the inequality in the level of consumption among the poor. In 2008, poverty severity in Armenia was only 0.8%.

Main Poverty Indicators

Poverty significantly decreased in Armenia over 2004 to 2008. More than 350 thousand people were able to overcome poverty and ratio of the poor population decreased by 32.1% (making 23.5% in 2008 v. 34.6% recorded in 2004). There was more significant decrease in the ratio of extreme poverty (around 51%) reaching to 3.1% in 2008 v. 6.4% recorded in 2004. Thus, more than 100 thousand people (from 350 thousand that were able to overcome poverty in 2004) were able to overcome extreme poverty. Poverty became more superficial and not very severe in 2008, since poverty gap and severity also decreased. In 2008 the measured poverty gap was 3.1% v. 7.4% in 2004 and the measured poverty severity was 0.8% v. 2.4% in 2004. Consumption shortfall of the vulnerable relative to poverty line (expressed in percents) made 13% decreasing from 21% recorded in 2004.

The findings highlight the steady economic growth recorded during the recent years, stabilization of the labor market and increase in wages, pensions and other social transfers as well as robust growth of individual remittances from abroad served as main catalysts for poverty reduction. The most significant factor conditioning poverty reduction in Armenia in 2004 to 2008 was steady and prospective economic growth of 56.6%. Stable economic developments combined with the decrease of unequal incomes of the population and unceasing private remittances contributed to considerable increase in the population consumption. As 2008 ILCS data reveal real monthly consumption of the whole population increased by 35.8% relative to 2004. It is more noteworthy that this growth was observed in all consumption quintiles.

In 2004-2008 poverty reduction was more rapid in urban areas than in rural ones. Other urban areas outside Yerevan benefited from economic growth more than the capital Yerevan (35.5% as compared to 2004 v. 32.5%). When living standards of the population are considered according to city/village distribution majority of the vulnerable (65%) are urban residents.

In the examined period (2004-2008) non-proportionalities by income ratios slightly decreased. Non-proportionality ratios measured by Gini coefficient witness that polarization in Armenia is more profound by income indicators as compared to consumption indicator.

Consumption inequality measured by Gini coefficient increased in 2008 making 0.272 v. 0.260 in 2004, meanwhile by inequality of incomes it decreased reaching to 0.389 in 2008 v. 0.395 in 2004.

Subjective Assessments of Poverty and Living Standards by the Population

During the 2008 survey a number of questions were asked to available household members over the age 16 serving as a basis for evaluations of living standards subjective assessment. Poverty is many-fold and it may be assessed both by objective and subjective approaches. In contrast to objective assessment (23.5%) of living standards calculated on the basis of consumption aggregate per one adult personal assessments (subjective assessment) of their welfare by individuals were lower (17.0% ).

Only 2.3% considered themselves as extremely poor v. 3.1% of those assessed by consumption ratio per one adult relative to extreme poverty line calculated. Similarly, 14.7% assessed themselves as poor (without extremely poor) v 20.4% assessed by consumption ratio per one adult. For this reason in 2008 general poverty level made 17.0% by self-assessment and consumption index per one For this reason in 2008 general poverty level made 17.0% by self-assessment and consumption index per one adult - 23.5%

Satisfaction with the Quality of Provided Paid Services

During the survey attitude of surveyed households towards paid services delivered by different institutions was examined. The Table presents satisfaction of respondents with the delivery of paid services. The Table shows that households are mainly satisfied with the power supply services, since it was indicated by 97.4% of ILCS households. Satisfaction is also high with the public transport services - 80.2%, telephone and post office services - 74%, water removal/sewerage services - 65%. Households are mostly dissatisfied with water supply, garbage removal and health services. Satisfaction with education services is relatively high as compared to health services. In 2008 household satisfaction with the delivery of paid services (except for irrigation) increased in comparison to 2004.

Armenia: Social Snapshot and Poverty report is available in the open library (room 721) of National Statistical Service and at website http://www.armstat.am/arm/Publications.

The project Traffic Management and Safety has changed to Dropped

2009-10-28T04:00:00.000Z

The project Traffic Management and Safety has changed to Dropped. To see more information, see the project information in the World Bank project database

World Bank Managing Director Visits Armenia

2009-10-19T20:16:17.000Z

News Release No. 074/2009/ECA

Contacts: Yerevan: Vigen Sargsyan
Tel: (37410) 52-09-92
Email: vsargsyan@worldbank.org

Yerevan, October 18, 2009. – The World Bank Managing Director Ms. Ngozi Okonjo-Iweala today completed her two-day visit to Armenia, as part of her first trip to the South Caucasus. The aim of the visit was to discuss with the Armenian Government, business leaders, and civil society the impact of the financial crisis and ways to ease the crisis and ensure sustained economic growth.
Ms. Okonjo-Iweala met with the President of the Republic Serzh Sargsyan, the Prime Minister Tigran Sargsyan and the key members of the economic team of the Government. The discussion was centered on the progress in the implementation of the new Country Partnership Strategy (CPS) and the challenges for Armenia to regain sustained growth.

Armenia has responded appropriately to the crisis, which was not of its own making. It also entered the crisis with some strengths, thanks to a well-capitalized and liquid banking system, a low level of public debt, and a small fiscal deficit.

However, Armenia has been severely hit by the crisis, because of strong dependence on a few sectors for its growth, and on remittances for the financing of investment. The crisis is a chance for Armenia to confront some of the deep-seated, interconnected, problems it faces. These include enhancing transparency; dismantling artificial monopolies to genuinely increase competition; taking steps to fight corruption; and radically improving customs and tax administration.

"These challenges need to be addressed to permit Armenia to attract investment, diversify its economy, and capitalize on its future opportunities, its potential, and the entrepreneurship of its people”, said Ms. Onkonjo-Iweala.

Ms. Onkonjo-Iweala also visited Bank-financed projects that Armenia is implementing. Armenia was the first country to use the IDA Fast Track Initiative, as an immediate response to the global economic crisis. Ms. Okonjo-Iweala visited Aragatsotn marz and met with project beneficiaries.

In Yernjatap village she met and talked with the residents who have prioritized the reconstruction and expansion of the Community Center, implemented by the Armenian Social Investment Fund (ASIF). The project will be completed soon and the new Center with hall for ceremonies, library, medical center, and administrative rooms will fully serve the needs of the village.

Ms. Ngozi Okonjo-Iweala also visited Vardenut and Ara villages where a 3.5 km road is being rehabilitated to connect both communities to the highway. The project is about to be completed under the Lifeline Road Improvement Project (LRIP), thus reducing the transportation costs of delivering the agricultural products to markets, improving competitiveness and living conditions of villagers, and generating employment opportunities at the local level.

In Agtsk village Ms. Okonjo-Iweala visited a gasification network, prioritized by the residents and funded by the Rural Enterprise and Small-Scale Commercial Agriculture Development Project (RESCAD). This project, already completed, will provide to the residents, especially to women, better and safer winter heating and cooking conditions, and will generate new business activities. In Voskehat village she visited the recently established “Ashtarak dzu” poultry farm. New technologies at the farm have reduced the cost of production and have generated new employment for men and women from surrounding villages.

“The World Bank is very proud to team up with the Government and local communities for the implementation of these impressive projects, which in one place enable people with economic opportunities, in another area provide better access to social services, while generating employment at the local level at a time of economic contraction.” said Ms. Okonjo-Iweala. “But it is important that these investments are maintained and that the central, regional, and local authorities provide adequate maintenance financing for them”, emphasized Ms. Okonjo-Iweala.

While meeting with the business and civil society representatives, Mrs. Ngozi Okonjo-Iweala underscored that the Bank values these consultations and is committed to engaging actively in ongoing dialogue with the public, be it on individual projects the World Bank is supporting, or more broadly, on the economic and social agenda. The Bank will also continue to encourage the Government to intensify its dialogue with all the stakeholders on issues of vital importance for Armenia’s progress.

Ms. Okonjo-Iweala’s visit is seen by the World Bank as an important step in enhancing and further extending its partnership with Armenia. Together with the Prime Minister Mr. Tigran Sargsyan, Ms. Okonjo-Iweala inaugurated the new office of the World Bank in Yerevan.

The Bank presented its new CPS to the Board in June 2009. It provides for new IDA/IBRD lending of $545 million for 2009-2012 and IFC investments in the range of $120 to $160 million. It is intended to assist Armenia to resume growth and reduce the impacts of the crisis on the poor. It also aims to help Armenia lay the foundation for a more competitive economy—a key requirement for diversified and sustainable growth. The current portfolio consists of 21 active projects with commitments of $506.5 million.

Since 1993 the World Bank has financed 54 projects with total commitments up to $1.3 billion.
For more information about the World Bank's work in Armenia, visit:

http://www.worldbank.org.am/

The project Public Sector Modernization Project II is now in the pipeline.

2009-10-19T04:00:00.000Z

The project Public Sector Modernization Project II is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank Managing Director to Visit Armenia, Georgia and Azerbaijan

2009-10-16T20:30:00.000Z

YEREVAN, October 16, 2009 - The World Bank Managing Director, Ms. Ngozi Okonjo-Iweala, will travel to Armenia, Georgia and Azerbaijan on October 17-21. The aim of her visit is to discuss with the respective governments, development partners and civil society the impact of the financial crisis in the South Caucasus and to find ways to help ease the crisis and enable sustainable economic growth. The World Bank is actively engaged in helping these countries address the challenges facing them.

“One thing that the crisis has taught us all is our interdependence. While this has added to the global nature of the current crises, it is also a source of strength for investment and growth. Working together with the governments, our development partners and civil society, the Bank is helping improve the lives of the people in the South Caucasus and elsewhere. Together, we can help ease the crisis and enable the countries embark upon a new trajectory of growth, development and social progress,” says Ms. Okonjo-Iweala.

In all three countries Ms. Okonjo-Iweala will meet with the country leadership, senior government officials, civil society and private sector representatives, and visit World Bank supported project sites. She will make a field trip to IDA Fast-Track Operation sites and meet with project beneficiaries in Armenia. As part of her program in Georgia, she will visit an IDP settlement, a road construction site and a primary healthcare facility. In Azerbaijan, she will co-chair a high level Economic Policy Forum, visit a cultural heritage site and meet with women leaders.

The World Bank recently launched Country Partnership Strategies (CPS) in Armenia (June, 2009) and Georgia (September, 2009) and is currently preparing one for Azerbaijan. The Strategy for Armenia is intended to assist the country in resuming growth and reducing the impacts of the financial crisis on the poor. It also aims to help Armenia lay the foundation for a more competitive economy for rapid post-crisis growth. The commitments to Armenia total approximately US$1.3 billion for 54 projects. The Georgia CPS prepared against the backdrop of twin crises – the August 2008 conflict followed by the global economic downturn – focuses on pressing post-conflict and vulnerability issues, and strengthening the foundations for competitiveness and growth in the future. The commitments to Georgia total approximately US$1.2 billion for 46 projects. The new CPS for Azerbaijan will build on the results and achievements of the current program that embraces investment operations for a total amount of US$2.2 billion. The new strategy will be prepared in close consultation with the government and civil society and designed to meet the country’s short and longer term priorities.

______________

For information:
Armenia: Vigen Sargsyan vsargsyan@worldbank.org +374 10 52 48 84
Azerbaijan: Saida Bagirli sbagirli@worldbank.org +994 12 92 19 41
Georgia: Inga Paichadze ipaichadze@worldbank.org +995 32 91 30 96

Armenia - First, Second, Third and Fourth Poverty Reduction Support Credits Project

2009-10-16T04:00:00.000Z

Ratings for the First, Second, Third and Fourth Poverty Reduction Support Credits (PRSC) Project for Armenia were as follows: outcomes were satisfactory, the risk to development outcome was moderate, the Bank performance was satisfactory, and the Borrower performance was also satisfactory. Some lessons learned included: the amount of a development project objective (DPO) need not be large relative to the fiscal program of the government in order for it to provide a useful vehicle for the dialogue between the Bank and the government and for facilitating implementation of the government's program. In the case of the Armenian PRSCs, they were very useful for these purposes even though the credit amounts were only about 2 percent of overall government expenditures. Indeed, some Armenian observers of the PRSC process commented that the dialogue related to the PRSC was more 'honest and productive' than the previous Structural Adjustment Credit (SAC) dialogue simply because the government had much less need for the money. Hence, the amounts of DPOs should be based on judgments about the relative efficacy of this form of budget support versus investment lending by the Bank. The Bank should encourage governments to assume full responsibility for monitoring and evaluation (M&E) for DPO outcomes as an integrated part of its overall M&E system. This would enhance the understanding that the DPOs are the government's program, not the Bank's. In the case of the Armenia PRSCs, the Bank did this to some extent but perhaps could have done so more effectively. The timing of DPO appraisals and approvals need to be usefully synchronized with the government's budget cycle. In the case of Armenia, this means appraisal before September, when the government needs to know its likely revenues.

Armenia - Natural Resources Management and Poverty Reduction Project

2009-10-16T04:00:00.000Z

Ratings for the Natural Resources Management and Poverty Reduction Project for Armenia were as follows: outcomes were moderately satisfactory, the risk to development outcome was moderate, the Bank performance was moderately satisfactory, and the Borrower performance was also moderately satisfactory. Some lessons learned included: project design should be based on a shared understanding of objectives and outcomes as well as an accurate assessment of local implementation capacity to achieve them. Project design should take into consideration timing requirements if project objectives rely on policy and legal changes, or objectives should be aligned with the existing policies and legal framework if the timeframe is tight. Sustainable natural resource management requires strong beneficiary commitment. Institutional and legal reforms in a sector such as forestry, characterized by multiple conflicting interests, require time and continual oversight. Parallel grant financing from Swedish International Development Cooperation Agency (Sida) was essential to project achievements; however, its monitoring was complex. Donor coordination and collaboration are essential to tackle complex problems such as illegal logging that benefit from harmonizing experiences and funding potential.

The project Armenia DPO-1 has changed to Closed

2009-10-15T04:00:00.000Z

The project Armenia DPO-1 has changed to Closed. To see more information, see the project information in the World Bank project database

The principal purpose of the First Development Policy Operation (DPO-1) Program (2009-2011) is to provide support to the Government of the Republic of Armenia to address vulnerabilities, particularly in the context of the global economic crisis, while strengthening competitiveness for more rapid growth in the post-crisis period. The bedrock of crisis management must continue to be a macroeconomic framework that supports fiscal and external balance, including appropriate exchange rate management, while preserving debt sustainability over the medium term. In improving competitiveness, the DPO program will assist the Government to alleviate private sector and governance constraints. Thus, the DPO series proposes to focus on high impact reforms aimed at public sector modernization and private sector development. Priority reforms need to span both the public and private sectors and focus on the following to unlock growth potential, alleviate the human capital constraint, and reduce corruption: strengthening the business environment through lower business registration and inspection costs; improving corporate governance; modernizing the regulatory framework in telecommunications, mining, and energy; reducing compliance costs through tax and customs reform; and improving efficiency and accountability in public financial management through system reform and strengthening incentives in the civil service.

Global Crisis Hits Home in Emerging Europe and Central Asia

2009-10-03T07:40:09.000Z

Contacts:

Kristyn Schrader (90) 530-929-45-35

kschrader@worldbank.org

Tunya Celasin (90) 533-285-18-21

tcelasin@worldbank.org

ISTANBUL, October 3, 2009—The global economic crisis has reversed the impressive economic growth of recent years in Emerging Europe and Central Asia, hitting families hard with higher unemployment and lost wages. Financially weaker governments will need to protect poor people while strengthening institutions and infrastructure to attract investors, the World Bank said today at a press briefing at the World Bank/IMF Annual Meetings.

“The global financial and economic crisis has literally hit home in many parts of Emerging Europe and Central Asia,” said Philippe Le Houérou, World Bank Vice-President for Europe and Central Asia. “What started as a financial crisis has become a social and human crisis. The global crisis has come on the heels of the food and fuel crises, which had already weakened people in the region by reducing their purchasing power. Today, rising poverty and joblessness are pushing households into poverty and making things even harder for those already poor.”

For the past decade, many countries of Emerging Europe and Central Asia notched up impressive growth, moving them closer to the living standards of Western Europe and other advanced economies. But the crisis has hit them hardest and stopped that convergence. Growth has plummeted from a fast clip of 7.6 percent in 2007 to 4.7 percent in 2008, and is projected at negative 5.6 percent in 2009.

“For years now, Emerging Europe and Central Asia has roared along in high gear,” said Le Houérou. “But the global crisis and the drying up of external private financial flows are stalling the engine of growth, prompting many to downshift and some to even slip into reverse. The job now for the governments in the region is to speed up reforms. The role of the international community is to help countries get back in gear. For us at the World Bank, that means essentially focusing our support to governments in their efforts to clean up the banking sector so that banks can provide a lifeline for firms and businesses to grow and create jobs, improve the business climate to attract private capital flows, make public spending more efficient so that the benefits reach working families, and continue to finance key public investments in infrastructure.”

Unemployment and deficits on the rise

The global crisis has hit some countries worse than others but today there is a danger that the region faces a weak and jobless recovery. Some countries, such as Poland, have fared better than others. Still, the number of jobless in the region has jumped from 8.3 million in 2008 to 11.4 million in 2009. It has doubled in the Baltic countries, grown by 60 percent in Turkey, and by one-third in other countries in the region.

“Instead of the number of poor falling by 15 million in 2009, we now project poverty to increase by about 15 million,” said Indermit Gill, World Bank Chief Economist for the Europe and Central Asia Region. “There are already 145 million poor people in the region – or almost one-third of the total population. For them, the crisis has made an already tough existence even tougher. Much of the world is getting good economic news this autumn. But for workers and their families in Emerging Europe and Central Asia the news is not encouraging. To them, the talk of recovery may seem premature.”

In the face of the unprecedented crisis, governments in Emerging Europe and Central Asia will have many hard choices to make, given that government deficits will increase from 1.5 percent of GDP in 2008 to 5.5 percent in 2009, said Gill. This will put more pressure on governments to make spending more efficient.

“Social spending makes up more than half of government expenditures so governments will need to make education, health care and social security more efficient,” Gill said. “School systems need to be resized to fit shrinking enrollment numbers due to falling fertility. Health care has to be restructured because many countries now have the health problems of high-income countries with the fiscal resources of middle-income economies. And social security has to be restructured to recognize that many countries in the region have aged before they have become wealthy. Reforms will help make governments fiscally healthy, economies robust, and societies more fair. Every responsible policymaker should take a hard look at these reforms.”

Also, governments must continue to improve their business environment to attract investment. During the last decade, countries in Emerging Europe and Central Asia have made progress in improving the climate for doing business. The region has been the top performer in the World Bank’s Doing Business ratings for the last six years—led first by countries in central and southern Europe and more recently by those in the Caucasus and Central Asia. This year, five of the top ten reformers were from the region: Krygyz Republic, FYR Macedonia, Belarus, Tajikistan, and Moldova.

World Bank supporting reforms through lending and advice

While governments are in the lead, the World Bank is helping countries navigate their way through the crisis, Le Houérou said. For its part, the World Bank is providing budget support to countries to support promising reform efforts. During the past year, the World Bank has increased financial support to the region by 60 percent, from $8 billion last year to $12.5 billion this year with the aim of mitigating the impact of the crisis on the poor, stabilizing banks, and positioning countries for post-crisis recovery. In September 2009 alone, the Bank approved $2 billion in budget support to Hungary, Latvia, and Ukraine.

Along with funding, the Bank is offering analytical support and encouraging governments to expand selected social safety net programs. Currently, most countries in the region have good programs that could be expanded during the crisis, such as those in the Kyrgyz Republic, Albania and Georgia where benefits are most likely to reach the neediest people. At the same time, the Bank is advising governments on how to fix less efficient programs to ensure benefits are reaching the right target audiences. Although many countries in the region have excelled on improving the business environment, many countries have not improved social service delivery.

The World Bank’s client countries in Emerging Europe and Central Asia are currently using Bank funds for 53 projects spanning institutional reform, infrastructure and interventions to help the neediest. Also, through the World Bank’s private sector arm, the International Finance Corporation (IFC), the Bank has teamed up with the EBRD and EIB on a $31 billion fund to support the banking sector and to fund lending to businesses hit by the global economic crisis through equity and debt finance, credit lines, and political risk insurance. And the Bank’s political risk insurance arm, MIGA, has made up to $3 billion available for investments in the heavily hit economies of the region. Guarantees worth nearly half of a $1 billion were issued in support of shareholder loans made by parent banks to their subsidiaries in Ukraine and Russia.

For more information, please visit www.worldbank.org/eca

The project Irrigation Dam Safety has changed to Closed

2009-10-01T04:00:00.000Z

The project Irrigation Dam Safety has changed to Closed. To see more information, see the project information in the World Bank project database

Three complete dam failures occurred in Armenia in 1974, 1979, and 1994 respectively. All reported accidents could have been avoided if proper surveillance and operation and Maintenance procedures were in place. Such observations suggest that other failures cannot be rules out if the situation of dam safety in Armenia is allowed to remain out of control. Considering that no dam is reported to have a functioning instrumentation system and that country-wide around 460,000 people are at risk, the situation should be regarded as an emergency. Accordingly, the Dam Safety Project aims to protect the population and the socio-economic infrastructure downstream of the dams facing the highest risk of failure. This project has two main components. The first component supports repair work on primary irrigation dams including design and supervision, field tests, civil works, hydraulic steel structures. Rehabilitation consists of upstream protection works, spillway structural repairs, leakage reduction, and irrigation/bottom outlet repair. The second component prepares, operates, and supervises dam safety plans for operation and maintenance and an emergency preparedness plan; finances dam safety site installations, which include instruments and monitoring devices and early warning systems; strengthens the capacity of the Dam Maintenance Enterprise; and supports safety investigations into all remaining dams in Armenia.

The project AM-Social Protection Add'l Financing is now in the pipeline.

2009-09-24T04:00:00.000Z

The project AM-Social Protection Add'l Financing is now in the pipeline. To see more information, see the project information in the World Bank project database

Armenia - Additional Financing for the Social Protection Project

2009-09-22T04:00:00.000Z

Armenia: Social Investment Fund Lifts Poorest

2009-09-11T19:58:08.000Z

Last Updated: Sept 2009

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In the 1990s, Armenia’s local government structure was weak and unable to fund small-scale projects in remote or high-risk areas. The 1988 earthquake and transition from Communism left behind broken networks and damaged or decrepit infrastructure — hitting Armenia’s poorest populations especially hard.

The IDA-financed Armenian Social Investment Fund (ASIF) was created in 1996 to assist the Government in its effort to improve living standards of lower-income Armenians and strengthen local institutions. It worked directly with local communities to select priority micro-projects, then channeled grant money directly to local governments and community organizations to rehabilitate basic infrastructure. The aim was to institutionalize a quick, cost-effective process, as well as to consolidate the Social Investment Fund as an autonomous agency reporting to the ASIF Board headed by the Prime Minister.

The Armenian Social Investment Fund’s 730 micro-infrastructure projects contributed to a drop in the country’s poverty rate and helped bolster Armenia’s decentralization plans.

Highlights:
- Diverse projects improved communities. More than 730 community infrastructure projects — such as heating schools, building community centers, providing potable water, and improving irrigation — achieved Government objectives to improve services for poor communities.

- Schools equipped. Of the 380 schools rehabilitated or newly constructed, 145 were in the earthquake zone. This project represents the single largest contribution to the Government’s earthquake recovery program. Around 1,400 schools received more than 75,000 pieces of school furniture — desks, chairs, blackboards, bookcases, and teacher tables.

- Water service improved. Water supply services were rehabilitated or constructed in more than 150 villages. This helped increase access to improved water source by rural population from 80 percent in 2002 to 96 percent in 2006.

- Community centers rehabilitated. The project rehabilitated 70 community centers; 15 centers received 4,500 armchairs for assembly halls.

- Training provided. Comprehensive municipal training helped both the Government and the public gain a better understanding of the fundamentals of participation, project management, and accountability. Training was provided to more than 1,800 mayors, 900 village council members, 250 school council members, 200 school accountants, and 70 school principals.

- Beneficiary satisfaction reported. Beneficiaries of project reported a high degree of satisfaction with the quality of completed projected, with construction work by contractors, and with service from ASIF staff. The satisfaction level was derived from results of 7 beneficiary assessments, 3 cost-effectiveness studies, 3 quality of works studies, and 2 institutional assessments.

The Armenian Social Investment Fund has provided prolonged support, starting in 1996 and slated to continue through 2011. In all, IDA has contributed US$65 million thus far: ASIF I (1996-2000) in the amount of US$12 million, ASIF II (2000-2006) in the amount of US$20 million, and ASIF III (2006-2011) in the amount of US$33 million (of which US$8 million is additional financing). Innovative project design included a two-stage poverty-targeting strategy and a regional allocation mechanism to mitigate political pressures in funding.

IDA’s convening power was particularly helpful in building partnerships between the Government of Armenia and the donor community, as well as facilitating community participation. For ASIF I, the Government provided US$1 million; private sponsors, US$2 million; local communities, US$2.5 million; and the Netherlands and United Kingdom, a combined US$2.5 million. For ASIF II, the Government provided US$1.4 million; private sponsors, US$2.7 million; local communities, US$2 million, and the Netherlands and United Kingdom, a combined US$2 million. For ASIF III, the Government and local communities provided US$6.7 million and US$1.5 million, respectively.

The second additional financing for ASIF III in the amount of US$7 million is forthcoming. Basic financial management training will be completed at the municipal level, complementing the work of the World Bank Group’s Public Sector Modernization Project. It also aims to continue building the capacity of local government. Micro projects will target infrastructure gaps in rural and remote communities.

Armenian Social Investment Fund
Project doucments: I 1995-2000 | II 2000-2006 | III 2006-2011 | III Additional Financing

For more information, please visit the Projects website.

The project IRRIGATION REHABILITATION EMERGENCY PROJECT has changed to Active

2009-09-10T04:00:00.000Z

The project IRRIGATION REHABILITATION EMERGENCY PROJECT has changed to Active. To see more information, see the project information in the World Bank project database

The objectives of the Irrigation Rehabilitation Emergency Project (IREP) for Armenia are: (i) to improve water use efficiency in two selected irrigation schemes; and (ii) to foster immediate rural employment. The loan will help finance the costs associated with the rehabilitation of the two main irrigation canals of Armavir and Talin as well as provide a short term stimulus to the labor market in the two Marzes resulting from the rehabilitation works. This project is one of several in Armenia to respond to the Government's request for assistance to mitigating the impact of the global financial crisis. As part of its response the Bank has proposed: (a) to increase funding on several of its operations with additional financing; (b) to accelerate the implementation of existing operations; and (c) to introduce a number of emergency interventions with the aim of creating short term employment while simultaneously tackling some of the country's most serious infrastructure needs. With its objective of rehabilitating critical infrastructure and bolstering short-term rural employment, the IREP is one such emergency intervention.

Armenia: Better Data Leads to Better Policy Making

2009-09-04T21:39:08.000Z

Last Updated: Sept 2009

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Armenia’s economic growth during the past decade has significantly reduced the incidence of poverty, which fell from around 56 percent in 1999 to about 35 percent in 2004 and 25 percent in 2007. However, Armenia continues to face challenges in maintaining broad-based growth, in resolving regional disparities, and in developing its human capital to meet the opportunities of a global knowledge economy. Although recent growth fostered noticeable improvements, significant pockets of poverty remained. Then in 2008, the country suddenly became vulnerable to the backwash of the global economic crisis—which brought a precipitous drop in revenue for some key exports; an unprecedented dive in remittances from Armenians working abroad, particularly in Russia; and a sharp decline in private capital flows. The government’s capacity to measure and monitor poverty has increased over the years, but further improvements would strengthen its ability to craft informed policy and respond more confidently in times of trouble.

The approach of the World Bank Group in Armenia since 1998 has been to build national capacity in poverty measurement and analysis for evidence-based policy making. The continuity and persistency of that effort over time have steadily deepened the dialogue and made it productive. In 2004 the focus shifted toward implementation of policy and the project was recast as a Programmatic Poverty Assessment. During its decade of operation, it has facilitated discussions about poverty at the central government level, improved resource allocation mechanisms at various administrative levels, collaborated on formation of the national poverty strategy, and provided timely analytical and advisory support. More recently, the World Bank Group has supported the government’s effort to mitigate damage from the global economic crisis and monitor its social impact.

With IDA support since 1998, Armenia has developed the capacity to generate highly detailed annual poverty profiles with only limited technical support from the World Bank Group.

Highlights:
- Stronger capacity. The Programmatic Poverty Assessment (PPA) provided technical assistance to improve collection of accurate and reliable data on households, build local capacity, and provide high-quality poverty analysis and proposals to inform policy making. The National Statistical Service produced regular poverty profiles and played a crucial role in disseminating the results to partners.

- High-quality data for the first time. The Integrated Living Conditions Survey of Armenia is conducted annually with the technical and financial support of IDA and other interested donors.

- Data-informed policy. A high-quality annual household survey is conducted by the National Statistical Service of Armenia. Its data on poverty and other aspects of Armenian life underpin evidence-based government decision-making in social policy, including the design and budgeting of targeted social assistance and free access to health care.

- Mitigation of damage from the global economic crisis. The PPA conducted one of the first and most-detailed poverty impact analyses of how the region was affected by the global economic crisis. Findings were shared with the highest government levels and with representatives of the development and diplomatic communities. This provided timely and important information for World Bank Group activities in Armenia, including IDA fast-track operations.

- Open books for an informed public. Since 2005, a Social Snapshot and Poverty Report has been published annually in Armenian and English and widely disseminated. The data is currently available for analysis.

IDA has provided some US$650,000 over the past 10 years, about two-thirds of it since 2004. The main contribution has been to build capacity for preparing informed poverty surveys and providing sound professional analysis, using technical assistance and training. IDA also attracted additional donor interest in poverty analysis and data collection. The Millennium Challenge Corporation supported the Integrated Living Conditions Survey in collaboration with the World Bank Group.

The World Bank Group continues to support Armenia’s poverty monitoring through improved data collection and measurement. A current priority is undertaking a rapid-response survey to evaluate the social impact of the global economic crisis. The team is also refining the country’s annual Integrated Living Conditions Survey by adding survey modules. For this work to achieve the greatest impact, it needs to continue to gauge the effectiveness of policy responses to identified targets of concern.

Better Data — Better Policy–Making

Armenia: Warmer Winters for Students and Poor Families

2009-09-01T20:06:08.000Z

Last Updated: Sept 2009

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After the devastating effects of the 1988 earthquake, newly independent Armenia abruptly fell into a severe energy crisis. Heating in residential and public buildings was cut. This was devastating, because the average lows from December through March are far below zero degrees Celsius—even the average high in January is -2 degrees Celsius. Severe winters—and much suffering—ensued. People installed old-style chimney ovens in homes, which defied safety rules; and anything, from household waste to wood from illegal logging, was being burned. The result was massive deforestation, indoor and outdoor air pollution, and serious health consequences. Since the mid-1990s, following some energy reforms, households switched to electric or natural gas heat. However, this was not easily affordable for the poor, nor was it installed in most schools.

The IDA-financed Armenia Urban Heating Project was launched in 2005 to provide efficient, safe, and affordable heating technologies in urban schools and multi-apartment buildings. It mobilized communities and the private sector to develop a better enabling environment for heating services. It increased financing options, including loans to homeowner associations and municipalities, as well as grants for the poorest households. Furthermore, the project installed gas-based heating systems and basic thermal rehabilitation in urban schools.

The project reached 56,000 students in 97 schools in 47 towns as well as 5,000 households in multi-apartment buildings with new, safe heating.

Highlights:
- Safe sources increased. Use of safe, clean, and affordable gas-based heating solutions substantially increased among households in urban multi-apartment buildings—from 11 percent in 2004 to more than 45 percent in 2009.

- Missed schooldays decreased. Urban schools with rehabilitated heating systems restored comfortable indoor temperatures. As a result, there were no idle classroom-days during the 2008-09 heating season.

- Private sector galvanized. The number of private entities engaged in the heating business more than tripled—from 20 in 2004 to 73 in 2008.- Access expanded for the poor. 4,600 of the poorest households living in urban multi-apartment buildings received grants to gain access to improved gas and heating services. This led to tangible improvements in their living standards.

- Loans improved access. The availability of heating loans enabled middle-income households to obtain gas-based heat which they could not have otherwise afforded. Increasing use of safe and clean heating technologies brings significant benefits to the society at large by reducing negative externalities (fires, explosions of buildings, deterioration of building stock due to inadequate and uneven heating, deforestation and outdoor pollution).

- A new system established. Heating loans have become a standard financial product for financial institutions—even those that did not participate in the project.

IDA contributed US$15 million. (The project’s total cost is US$21.95 million.)

The project attracted US$2.9 million from the UN Development Program’s Global Ecological Fund. The Global Partnership for Output-Based Aid, a multi-donor trust fund administered by the World Bank Group, was instrumental in contributing US$3.1 million to provide capital grants to 4,600 of the poorest households.

The project is expected to reach completion by mid-2010. To ensure sustained progress, the government will need to involve schools in maintaining and operating their new heating systems. This will ensure ownership for the long term.

Urban Heating Project (2005-2010)
Project Documents | Press Release | Feature Story and Video | Feature story

Armenia: Building a More Sophisticated Market Economy

2009-09-01T19:10:25.000Z

Last Updated: Sept 2009

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Since the last two decades, Armenia has steadfastly pursued economic and social reforms to build a sophisticated market economy and address poverty. Two key challenges were to direct the fruits of steady growth towards fighting poverty and improving the quality of governance and public services. Also essential was sharpening economic competitiveness by deepening second-generation reforms—such as utility regulation, expanding financial intermediation, and improving the investment climate. The most recent challenge has been to alleviate the impact of the international recession and minimize its effects on poverty.

To address these challenges IDA has financed a series of five structural adjustment credits, four poverty reduction support credits, and a recent development policy credit since the mid-1990s. IDA’s focus was on: (i) improving governance in the financial sector; (ii) enhancing business competitiveness; (iii) stimulating farm incomes, and (iv) decentralizing education and health services to improve their quality and focus on the most vulnerable. Key policy reforms were complemented by investment projects directed at building schools and clinics, rural roads and irrigation canals, highways, and small-scale infrastructure in communities.

Most recently, IDA has helped design and finance a strong counter-cyclical response to the global economic crisis.

During the past decade, Armenia has grown spectacularly—by an annual average of more than 10 percent—and poverty rates have plunged. More than half the population was below the poverty line a decade ago. Today less than a quarter of the population is poor.

Highlights:
- Macroeconomy improved. Growth was supported by low fiscal deficits (ranging around 2 percent of GDP) and plunging external debt and inflation remained low. This created the fiscal and debt space for a pronounced counter-cyclical boost when the need arose in 2009.

- Fiscal-management capacity improved. Budget management improved with strict adherence to a medium-term expenditure and tax framework. A four-year poverty reduction strategy supported a shift in priorities for social spending.

- Tax base expanded. The tax base was broadened and the tax-to-GDP ratio rose. Similarly, financial intermediation grew rapidly, banks were well capitalized and little exposed to external funding risks, and supervision and capital markets developed impressively. The revenue-to-GDP ratio rose by 3 percent since 2004 to reach 17 percent in 2009?.

- Business landscape improved. With sharply lower telecommunication costs, improved utilities regulation and privatization, removal of all arrears in payments and cost-recovery tariffs for services, businesses were better served. Three mobile phone companies compete now in place of a monopolistic company three years ago.

- Property rights improved. Property rights were improved through establishing a framework for secured transactions and reforms in corporate governance. Progress was made in improvements in the business environment, although critical governance problems remain in revenue collecting agencies and competition in importing and distribution for key products.

- Real spending in education, health, and social spending rose sharply. This increase of more than 15 percent annually especially benefited the poor. The quality and usefulness of health and education services rose markedly. The targeted social benefit package was recognized for its effectiveness.

- Effect of crisis mitigated. When the global economic crisis and retraction in international trade and capital flows imposed a severe cost on Armenia’s economy—with plummeting GNP, a collapse in fiscal revenues, and a rise in poverty, IDA designed and financed a strong counter-cyclical response, which featured emergency job creation, credits for rural roads and irrigation, and expanded credit for small and medium businesses. Current policies aim at mitigating social vulnerability amidst the global downturn and sharpening Armenia’s competitiveness to bolster the foundations for renewed growth.

IDA provided US$88.5 million in a series of four poverty reduction credits. It also attracted parallel financing from the Dutch Government of about US$10 million.

IDA mobilized technical assistance from Japan of about US$4 million and spent US$2.3 million of its own to provide project preparation and technical assistance. Furthermore, IDA transferred know-how and expertise to the country in economic and social management.

With these credits, the government and IDA initiated a process of donor collaboration to bring focus and coherence to donor assistance in Armenia. These collaborators included the UK’s Department for International Development, the US Agency for International Development, the Dutch Government, agencies of the German Government, and the UN.

IDA has embarked on a series of three further development policy credits, the first of which was approved by the World Bank’s Board of Executive Directors in July 2009. These credits support deepened reforms in the areas identified by the poverty reduction credits, such as governance and competitiveness, identify new areas such as reforms in the mining fiscal and environment regimes, and provide funds for budgetary spending. These reforms should help the country to engage competitively in a recovering world economy.

Strong Policies Sustain Growth, Reduce Poverty

Armenia: Reliable Water Supply Services

2009-09-01T18:44:35.000Z

Last Updated: Sept 2009

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In the mid-1990s, following a devastating earthquake, newly independent Armenia was struggling. Despite an abundance of water, water provision was low, and maintenance and performance were very poor. For almost all Armenians, water was available for only a few hours a day, with poor pressure and quality, and high leakage and waste. Two public enterprises were responsible for the provision of water in Armenia—one for the capital Yerevan, and the other for other municipalities and part of surrounding rural communities. Neither seemed capable of addressing the problems.

The IDA-financed Municipal Development Project was launched in 1998 to support the introduction of a private international operator to manage Yerevan’s water utility. Based on this positive experience, IDA financed a second operation, the Municipal Water and Wastewater Project (2004-2009), which introduced a similar arrangement with a private operator for areas outside of the capital, covering about 33 percent of the population. For the current IDA-financed Yerevan Water and Wastewater Project (2005-2011), the aim has been to involve a private operator on a lease arrangement. The project builds upon earlier reforms and continues to strengthen Yerevan’s water supply while reducing environmental pollution.

The quality, reliability, and efficiency of water supply services improved dramatically for the Yerevan service area of around 1.3 million people. Water services have also begun to improve outside the capital.

Highlights:
- Access improved in the capital city. In Yerevan, reliable water provision increased from about 7 hours in the 1990s to about 18.5 hours a day today. About 75 percent of Yerevan now has 24-hour service.

- Service for outlying areas expanded. Outside Yerevan, 50 percent of the population achieved access to continuous water supply.

- Sector revenue picked up. Collections are increasing and the water utilities show steady improvement in financial performance.

- Efficiency and customer service improved. Utilities are achieving greater operating efficiency and are improving relationships with their customers.

- Quality monitoring improved. Water quality is better monitored, with modern chlorination equipment and improved security at all water sources.

- Energy consumption–and costs–decreased. Energy consumption decreased drastically as a result of new gravity-powered systems and reduction in booster pumps for high-rise apartments, and

- Standard water meters installed. Metering is now near universal in Yerevan, resulting in a significant reduction in water wastage and savings on monthly bills for households. The same strategy of metering is currently being implemented outside Yerevan, where about 65 percent now have installed meters.

IDA financing was US$75.6 million for the three projects. (Total project costs were US$93 million.)
IDA leveraged its extensive experience in water supply across countries to help craft an effective public-private partnership. World Bank Group financial and advisory support helped attract private operators by reducing perceived investment risks. Furthermore, IDA applied lessons from the first project in Yerevan to expand operations for an even larger population outside of the capital city.

IDA attracted other donor interest in the water sector in Armenia: Germany’s KfW is financing water supply investments in three cities and surrounding villages. The Asian Development Bank is also implementing a project in ASWC service area and some rural communities in the south of the country. The European Bank for Reconstruction and Development is investing in wastewater treatment in the Sevan region.

Armenia appears to be on target to achieve the Millennium Development Goals in water and sanitation by 2015. However, significant investment is still needed to rehabilitate poor water and wastewater infrastructure, as well as to continue institutional and financial capacity building. There is also potential to expand services outside the service areas of existing operators. In addition, investments are needed in sewage collection and treatment.

Reliable Water Supply Services

Armenia: Dam Safety Improves Security and Development

2009-09-01T18:17:34.000Z

Last Updated: Sept 2009

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Armenia is a small, landlocked country with a population of 3 million people whose per-capita income is about US$2,600, below the average of its regional neighbors in Europe and Central Asia. Agriculture contributes 18 percent of Armenia’s gross domestic product and employs about 46 percent of its labor force. Much of the country’s land is irrigated, but prior to 1999, approximately 90 percent of all irrigated land was not getting reliable irrigation. That is because proper surveillance and maintenance procedures were lacking for 87 dams. As a result, there was a high possibility of dam failure, which would have resulted in devastation downstream. For this reason, 360,000 people and 680 km2 of land were considered at risk.

The IDA-financed Dam Safety Project was launched in 1999 to tackle this challenge head-on by immediately rehabilitating the 20 dams considered to be at highest risk. It established dam-safety measures, such as setting up instrumentation and monitoring devices, early warning systems, and telecommunications systems. This first project approved led to a second Dam Safety Project in 2004, which extended the program to the entire country and included all other dams at risk, and improved dam safety measures.

More than 500,000 people—more than 15 percent of the country—living downstream of the rehabilitated dams are now safe. Likewise, Armenia’s infrastructure located downstream is no longer considered at risk.

Highlights:
- Widespread coverage achieved. Rehabilitated 73 dams out of 87 in the entire country. Secured the at-risk locations downstream, including varied infrastructure,

- Emergency preparedness capacity expanded. Developed Emergency Preparedness Plans for all sites. Installed Emergency Warning Systems in 175 villages.

- Management capacity strengthened. Strengthened the capacity of the Emergency Management Agency (currently Rescue Services Department under the recently established Ministry of Emergency Situations), which now conducts effective outreach campaigns.

- Irrigation restored. Secured a reliable source of irrigation water supply for the farmers.

IDA support extended from 1999 to 2009. It contributed US$26.6 million under the Irrigation Dam Safety Project and US$6.75 million under the Irrigation Dam Safety II Project, which began in 2004. IDA’s involvement not only rehabilitated infrastructure and secured people’s lives, but also improved governance and public services. In particular, it assisted in the development of Emergency Preparedness Plans and provided training of dam personnel.

Institutional reform in the irrigation sub-sector is ongoing in Armenia, which could have implications for the country’s system of dams. It remains important for the government to continue to dedicate the necessary resources to managing and maintaining its dam system. The management of smaller dams should gradually be transferred to community federations and associations as soon as they are geared up in terms of financial and technical capacities.

Irrigation Dam Safety Improves Security and Development

The project Lifeline Road Improvement Project - Additional Financing has changed to Active

2009-08-28T04:00:00.000Z

The project Lifeline Road Improvement Project - Additional Financing has changed to Active. To see more information, see the project information in the World Bank project database

This project paper concerns to provide an additional loan to the Republic of Armenia for the Lifeline Roads Improvement Project (LRIP). The additional loan will finance the scaling up of the project's activities through rehabilitating an additional 140 kilometers of the lifeline road network. This additional loan will also help mitigate the impact of the financial crisis by creating temporary jobs in road construction. This additional financing (AF) will also finance the design of project roads, supervision of works, capacity development in pavement design and road safety, project operating costs, and financial and technical audits. The project development objective (PDO) will remain the same as in the original project. The results framework and the monitoring indicators have been revised to reflect the increased scope of the project. The implementation arrangements remain the same as in the original project. There will be no co-financing from other donors. The closing date is being extended by one year, from December 31, 2010 to December 31, 2011. While the implementation of the original LRIP project has advanced significantly since the project's effectiveness, the LRIP-AF does not meet one eligibility criteria for additional financing under the OPBP 13.20 which requires one year of satisfactory implementation of the original project. Thus, a partial waiver of OP 13.20 on additional financing is sought from the board by means of this project paper.

World Bank Supports Further Improvement of Rural Road Network in Armenia

2009-08-27T21:09:32.000Z

Contacts:

In Yerevan: Tatevik Mnatsakanyan

(3741) 524-884

tmnatsakanyan@worldbank.org

In Washington: Michael Jones

(202) 473-2588

Mjones2@worldbank.org

WASHINGTON, August 27, 2009 – The World Bank’s Board of Executive Directors today approved a credit of US$ 36.6 million equivalent of additional financing for the Lifeline Road Improvement Project (LRIP-AF) for Armenia. This project will assist the Government of Armenia in its on-going efforts to drastically improve accessibility of the country’s main road network for the rural population and to create employment. It will also help Armenia mitigate the impacts of the global economic crisis on the country’s economy and the well-being of its population.

The additional financing will further scale-up activities under the on-going original project to improve the condition of 140 km of roads. Over the years, insufficient investment in the rehabilitation and maintenance of lifeline roads has made the overall road quality poor, and left some roads difficult to use and others completely impassable. The poor conditions and inadequacy of the lifeline roads connecting rural communities to the main highways affects many aspects of rural life and means that business opportunities are lost, it’s harder for kids to get to school, and more difficult for people to get urgent medical attention when they need it.

For example, the inability to bring crops to market in time has resulted in losses of 40 percent or more, and in some communities up to 80 percent. The rehabilitation of the road network will therefore help farmers and small businesses in rural areas bring their products to market more easily and at a lower cost, reducing the external shock of the crisis.

“Rehabilitation of additional lifeline roads would also create temporary jobs in rural areas which have been hard hit by the crisis, and improve access to basic social services,” said Asad Alam, World Bank Regional Director for South Caucasus Countries. “While this immediate impact is critical, the project will also improve market connectivity for rural areas and build upon ongoing efforts to strengthen the basis for growth and competitiveness.”

“The direct and indirect job creation impact of the project is estimated at about 10,000 person months of employment,” added Satoshi Ishihara, Head of the World Bank team designing the project. “The implementation of the civil works will commence in late September and be completed by the end of the next construction season. This will provide an economic stimulus to rural communities, and ensure benefits from improved roads.”

The LRIP-AF has two main components. First, it will support rehabilitation of approximately 140 km of the lifeline roads, located in seven regions. In addition, a technical assistance component will help the Armenian Government to modernize and increase the efficiency of how they design their roads, and to support a road safety audit manual as well as a “safe village” pilot that could be scaled up to improve safety standards in other areas.

This project is part of the overall World Bank Group Country Partnership Strategy (CPS) for 2009-2012 which was approved in early June. The IBRD Flexible Loan has 25 years of maturity with 10 years grace period. Since joining the World Bank in 1992 and IDA in 1993, commitments to Armenia total approximately US$1, 313, 6 million.

For more information on the World Bank’s activities in Armenia, please visit:
http://www.worldbank.org.am

- ### -

For more information, please visit the Projects website.

Armenia: Lifeline Roads Improvement Project

2009-08-27T20:54:54.000Z

WASHINGTON, August 27, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

Armenia: Lifeline Roads Improvement Project

IBRD Loan: US$36.6 million

Terms: Maturity = 25 years; Grace Period = 10 years

Project ID: P116760

Project Description: This loan to the Republic of Armenia for the Lifeline Roads Improvement Project (LRIP) will finance the scaling up of the project's activities through rehabilitating an additional 140 kilometers of the lifeline road network and connect rural communities to main roads and highways. This additional loan will also help mitigate the impact of the financial crisis by creating temporary jobs in road construction, such as the design of project roads, supervision of works, capacity development in pavement design and road safety.

Media Contact

Michael Jones

(202) 473-2588

mjones2@worldbank.org

For more project information, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P116760

For more information, please visit the Projects website.

The project Lifeline Road Improvement Project - Additional Financing is now in the pipeline.

2009-08-07T04:00:00.000Z

The project Lifeline Road Improvement Project - Additional Financing is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank Supports Rural Employment through Irrigation Infrastructure Rehabilitation in Armenia

2009-07-31T10:29:00.000Z

Contacts:

In Yerevan: Tatevik Mnatsakanyan,

(+374 10) 520-992; tmnatsakanyan@worldbank.org

In Washington: Michael Jones

(202) 473-2588; Mjones2@worldbank.org

WASHINGTON, July 28, 2009 - The World Bank’s Board of Executive Directors today approved the Irrigation Rehabilitation Emergency Project (IREP) for Armenia in the amount of US$30 million. The project will be financed through a loan from the International Bank of Reconstruction and Development (IBRD). The Bank prepared this emergency operation very quickly to help support the Government’s economic stimulus program and offset the negative impact of the global economic crisis.

The Project supports two objectives: (i) improving water use efficiency in two selected irrigation schemes in Armavir and Talin subregions; and (ii) fostering immediate rural employment. These are to be achieved by civil works to rehabilitate irrigation canals which will reduce water losses, and strengthening the institutions managing the irrigation infrastructure. The IREP strongly build upon previous projects in this sector, through World Bank and other donor financed - projects.

“Creating jobs and boosting incomes, particularly in rural areas where most of the poor live, is critical in the current crisis environment,” said Mr. Asad Alam, World Bank Regional Director for the South Caucasus. “What is important about this Project is that this is done in a way that will also help improve long-term growth and productivity in agriculture.”

“This Project will also strengthen the sustainability of progress made in the irrigation sector,” added Mr. Giuseppe Fantozzi, Task Team Leader for the Project. “It will strengthen the institutions that are particularly relevant for the ongoing reforms, especially through training Water User Associations and piloting a Water Users Federation.”

The Project will provide funds for the rehabilitation of almost 84 km of the main canals in Armavir and Talin subregions, that will reduce losses by up to 70 thousand cubic meters of water and will help bring irrigation back to about 7,300 ha of land. By the time the Project is completed, around 39,000 water users will directly benefit from the rehabilitation works. The beneficiaries are spread over 73 communities. The Project will contribute to the creation of almost 9,000 person months of employment. While this will be temporary in nature, it will have a significant impact on mitigating the effects of the economic downturn on underemployed farmers and return migrants in the regions where the construction activities will take place.

The IBRD Flexible Loan has 27 years of maturity with 5 years grace period. Since joining the World Bank in 1992 and IDA in 1993, commitments to Armenia total approximately US$1,277 million.

To learn more, visit the Multimedia page on the past Irrigation projects>

Armenia - Additional Financing for the Lifeline Road Improvement Project

2009-07-29T04:00:00.000Z

Armenia: Irrigation Rehabilitation Emergency Project

2009-07-28T20:53:25.000Z

WASHINGTON, July 28, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IBRD Loan: US$30 million

Terms: Maturity = 27 years; Grace Period = 5 years

Project ID: P116681

Project Description: The Irrigation Rehabilitation Emergency Project (IREP) for Armenia aims to: (i) to improve water use efficiency in two selected irrigation schemes; and (ii) to foster immediate rural employment. The loan will help finance the costs associated with the rehabilitation of the two main irrigation canals of Armavir and Talin as well as provide a short term stimulus to the labor market in the two Marzes resulting from the rehabilitation works. This project is one of several in Armenia to respond to the Government's request for assistance to mitigating the impact of the global financial crisis. As part of its response the Bank has proposed: (a) to increase funding on several of its operations with additional financing; (b) to accelerate the implementation of existing operations; and (c) to introduce a number of emergency interventions with the aim of creating short term employment while simultaneously tackling some of the country's most serious infrastructure needs.

Media Contact

Michael Jones

(202) 473-2588

mjones2@worldbank.org

For more project information, please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P116681

For more information, please visit the Projects website.

World Bank Supports Rural Employment through Irrigation Infrastructure Rehabilitation in Armenia

2009-07-28T14:45:00.000Z

Contacts:

In Yerevan: Tatevik Mnatsakanyan,

(+374 10) 520-992

tmnatsakanyna@worldbank.org

In Washington: Michael Jones, (202) 473-2588

Mjones2@worldbank.org

The Project will provide funds for the rehabilitation of almost 84 km of the main canals in Armavir and Talin subregions, that will reduce losses up to 70 thousand cubic meters of water and will help bring irrigation back to about 7,300 ha of land. By the time the Project is completed, around 39,000 water users will directly benefit from the rehabilitation works. The beneficiaries are spread over 73 communities. The Project will contribute to the creation of almost 9,000 person months of employment. While this will be temporary in nature, it will have a significant impact on mitigating the effects of the economic downturn on underemployed farmers and return migrants in the regions where the construction activities will take place.

The IBRD Flexible Loan has 27 years of maturity with 5 years grace period. Since joining the World Bank in 1992 and IDA in 1993, commitments to Armenia total approximately US$1,277 million.

For more information on World Bank-sponsored projects in Armenia,

please visit: www.worldbank.org.am

Environmental Impact Assessment of the Concept Paper

2009-07-10T04:00:00.000Z

The project Armenia DPO-1 is now in the pipeline.

2009-07-07T04:00:00.000Z

The project Armenia DPO-1 is now in the pipeline. To see more information, see the project information in the World Bank project database

Armenia: World Bank Supports Reforms to Mitigate the Economic Crisis and Promote Medium-Term Growth

2009-07-06T10:31:44.000Z

Contacts:

In Yerevan: Tatevik Mnatsakanyan,

(+374 10) 520-992

tmnatsakanyan@worldbank.org

In Washington: Michael Jones

(202) 473-2588

Mjones2@worldbank.org

WASHINGTON, July 2, 2009 - The World Bank’s Board of Executive Directors today approved the First Development Policy Operation (DPO-1) for Armenia in the amount of US$60 million.

In the context of the global economic crisis, the proposed series of three annual Operations supports Armenia’s two strategic objectives of (i) addressing vulnerability to the current shocks by protecting the poor and supporting greater human capital development; and (ii) improving competitiveness by removing constraints to better governance and a more favorable investment climate—a key requirement for post-crisis recovery and growth over the medium term.

“This Operation supports the implementation of the Government's program to help mitigate the social impact of the externally-driven crisis and attract private investment for strong post-crisis growth,” said Mr. Asad Alam, World Bank Regional Director for the South Caucasus. “It provides for maintaining essential social services, particularly for the poor and the vulnerable, who are hurting from the loss in jobs and incomes.” "

“The proposed program supports a prioritized and coherent package of reforms needed to diversify the economy, make Armenia more competitive, continue modernization of the public sector, and promote growth and poverty reduction over the medium term,” added Mr. Robert Taliercio, Task Team Leader for the program. “This is particularly important since the restoration of high growth rates has to be the engine for increases in jobs and incomes for the people of Armenia.”

The DPO aims to help Armenia mitigate vulnerability by supporting measures such as increased funding for social safety net programs, including Family Benefits (FB), pensions, and unemployment insurance; undertaking a review of the FB program to improve targeting efficiency; restoring funding for selected priority programs for the poor and vulnerable in health with service delivery reforms; improving tertiary and preschool education, as well as by strengthening sustainable use of energy and natural resources with more robust environmental impact assessment.

For strengthening competitiveness for recovery and growth, the Operation supports intensified banking sector surveillance and liquidity provision; reduced costs of business registration; adoption of a timebound action plan and key performance indicators for priority reforms of the State Revenue Committee; preparation and publishing of a Public Expenditure and Financial Accountability (PEFA) assessment to serve as a baseline for future reforms; presentation to the National Assembly of the Law on the Public Service, including provisions for addressing conflict of interest issues.

The IDA Credit will be made to Armenia on terms including a 20 year maturity and 10year grace period.

Since joining the World Bank in 1992 and IDA in 1993, commitments to Armenia total approximately US$1,247 million.

The project IRRIGATION REHABILITATION EMERGENCY PROJECT is now in the pipeline.

2009-07-03T04:00:00.000Z

The project IRRIGATION REHABILITATION EMERGENCY PROJECT is now in the pipeline. To see more information, see the project information in the World Bank project database

Armenia: World Bank Supports Reforms to Mitigate the Economic Crisis and Promote Medium-Term Growth

2009-07-02T21:39:08.000Z

Contacts:

In Yerevan: Tatevik Mnatsakanyan, (+374 10) 520-992

tmnatsakanyna@worldbank.org

In Washington: Michael Jones, (202) 473-2588

Mjones2@worldbank.org

WASHINGTON, July 2, 2009 - The World Bank’s Board of Executive Directors today approved the First Development Policy Operation (DPO-1) for Armenia in the amount of US$60 million.

In the context of the global economic crisis, the proposed series of three annual Operations supports Armenia’s strategic objectives of addressing vulnerability to the current shocks by protecting the poor and supporting greater human capital development and improving competitiveness by encouraging better governance and fostering a more favorable investment climate. The latter is a key requirement for post-crisis recovery and growth over the medium term.

“This Operation supports the implementation of the Government's program to help mitigate the social impact of the externally-driven crisis and attract private investment for strong post-crisis growth,” saidAsad Alam, World Bank Regional Director for the South Caucasus. “It provides for maintaining essential social services, particularly for the poor and the vulnerable, who are hurting from the loss in jobs and incomes.”

“The proposed program supports a prioritized and coherent package of reforms needed to diversify the economy, make Armenia more competitive, continue modernization of the public sector, and promote growth and poverty reduction over the medium term,” added Robert Taliercio, Task Team Leader for the program. “This is particularly important since the restoration of high growth rates has to be the engine for increases in jobs and incomes for the people of Armenia.”

The DPO aims to help Armenia mitigate vulnerability by supporting measures such as increased funding for social safety net programs, including Family Benefits (FB), pensions, and unemployment insurance, and by making sure that the programs are reaching those who need them the most. The DPO will also help by restoring funding for selected priority health programs for the poor and vulnerable in with service delivery reforms. Finally it will mitigate vulnerability by supporting improvements to tertiary and preschool education, as well as by strengthening sustainable use of energy and natural resources with more robust environmental impact assessment.

For strengthening competitiveness for recovery and growth, the Operation supports intensified banking sector surveillance and liquidity provision; reduced costs of business registration; priority reforms of the State Revenue Committee and preparation and publishing of a Public Expenditure and Financial Accountability (PEFA) assessment to serve as a baseline for future reforms.

The IDA Credit will be made to Armenia on terms including a 20 year maturity and 10 year grace period.

Since joining the World Bank in 1992 and IDA in 1993, commitments to Armenia total approximately US$1,247 million.

For more information on World Bank-sponsored projects in Armenia,

please visit: www.worldbank.org.am

The project Statistical Master Plan Development and technical assistance in strengthening of statistical capacity has changed to Closed

2009-07-02T04:00:00.000Z

The project Statistical Master Plan Development and technical assistance in strengthening of statistical capacity has changed to Closed. To see more information, see the project information in the World Bank project database

The project Second Education Quality and Relevance Project (APL#2) has changed to Active

2009-05-21T04:00:00.000Z

The project Second Education Quality and Relevance Project (APL#2) has changed to Active. To see more information, see the project information in the World Bank project database

The development objectives of the Second Adaptable Program Lending (APL2) for the Education Quality and Relevance Project for Armenia are enhance school learning in general education and improve the school readiness of children entering primary education; and support the integration of Armenian tertiary education system into the European higher education area. There are three components to the project. The first component of the project is enhancing the quality of general education. There are four sub-components to this first component of the project: a) promoting school readiness and equal opportunities at the start of general education. The main objective of this sub-component is to increase the level of school readiness among Armenian children, with a focus on the poorest and most vulnerable communities; b) supporting further improvements in the quality of education through improved teacher in service training and professional development. The objective is to improve quality of teaching; c) continuing supports to the integration of Information and Communication Technologies (ICT) in teaching and learning process. The objective of this sub-component is ensure that all schools in Armenia are equipped with up-to-date technologies, connected interactively through the internet, and ready to use all these technologies effectively to deliver the curriculum and to enhance and facilitate student learning; and d) supporting the implementation of high-school reform. The objective of this sub- component is to support teachers and schools in the implementation of the 12-year general education system and the high-school reform, including the curriculum and assessment reforms. The second component of the project is supporting tertiary education reforms in the context of Bologna agenda. There are four sub-components to this second component of this project: a) establishment and strengthening of the national quality assurance system; b) developing a tertiary education management information system; c) strengthening the capacity to implement a sustainable financing system; and d) reforming pre-service teacher education. The third component of the project is project management, monitoring, and evaluation. The objectives of this component will be to: (i) provide continued support of mainstreamed arrangements for the management and administration and monitoring of project activities; and (ii) institutionalize key management functions in the Ministry of Education and Science (MoES) covering policy planning, monitoring and evaluation.

The project Irrigation Development Additional Financing has changed to Closed

2009-04-01T04:00:00.000Z

The project Irrigation Development Additional Financing has changed to Closed. To see more information, see the project information in the World Bank project database

The project Irrigation Development Project has changed to Closed

2009-04-01T04:00:00.000Z

The project Irrigation Development Project has changed to Closed. To see more information, see the project information in the World Bank project database

The Irrigation Development Project aims at enhancing the profitability, and sustainability of irrigated agriculture, providing the basis for stabilizing irrigated agriculture as a predominant source of productive employment. The project components will: 1) support the rehabilitation of critical irrigation structures, by upgrading primary canal structures, and sections in deficient state, but critical for the effective operation of major irrigation water conveyance infrastructure systems. Aqueducts, and often siphon structures will undergo rehabilitation works, while specifically, the Armavir irrigation scheme will be improved, by expanding river intake schemes, the main conveyance canal, and secondary canal, and will include construction of sediment control facilities; 2) support the conversion from pump, to gravity irrigation, to reduce the reliance on high-cost energy-intensive irrigation, for those cases where clear technical, and economic viability can de demonstrated; and, 3) create conditions for effective operations, and maintenance (O&M) of the irrigation infrastructure through institutional strengthening, by supporting appropriate institutional reforms. In particular, the Water Supply Agency will be responsible for the O&M of facilities supplying water from major sources, and drainage and irrigation management agencies will be constituted as autonomous regional, or scheme-level O&M enterprises. Additionally, independent consultative, assessment, and liaison contributions to system management will be provided by the Technical Consultative Commission on O&M of the irrigation, and drainage system, and the Irrigation Water Group, this last one to serve as the forum to assist stakeholders with information, conflict resolution, or performance issues.

The project GEOFUND 2: ARMENIA GEOTHERMAL PROJECT has changed to Active

2009-03-06T05:00:00.000Z

The project GEOFUND 2: ARMENIA GEOTHERMAL PROJECT has changed to Active. To see more information, see the project information in the World Bank project database

The objective of the Second GeoFund Geothermal Project in Armenia is to assess the feasibility of exploratory drilling of the geothermal site with the estimated highest geothermal potential. The project will support: (i) technical assistance to conduct comprehensive technical investigation works at Karkar and Gridzor geothermal sites, in two phases, and (ii) operating costs of the implementing agency for this project. The scope of this project will be limited to technical assistance for comprehensive field investigation works. Conditional upon the outcome of the field investigation works, further GeoFund support may be considered for Armenia, within the framework of the above mentioned GeoFund adaptable program loan (APL). More specifically, this possible second project could be supported through the GeoFund's direct investment funding window or geological risk insurance window to help financing of investments enabling utilization of geothermal energy resources. Eligible investment costs could include the drilling costs of exploratory wells. The GeoFund may consider supporting part of the eligible drilling costs of one or two wells with the estimated depth of 3 km.

Armenia - Second Education Quality and Relevance Project

2009-02-12T05:00:00.000Z

The project Rural Enterprise & Small-Scale Commercial Agriculture Development Additional Financing is now in the pipeline.

2009-02-06T05:00:00.000Z

The project Rural Enterprise & Small-Scale Commercial Agriculture Development Additional Financing is now in the pipeline. To see more information, see the project information in the World Bank project database

The objective of the Rural Enterprise and Small-Scale Commercial Agriculture Development Project is to support the development of Armenia's small and medium scale rural businesses by improving the ability of farmers and rural entrepreneurs to access markets and by stimulating market-oriented private and public investments in rural areas. The additional financing will enhance the project's impact and development effectiveness by increasing the total number of communities benefiting from project activities under the community-focused economic development (CED) component. It will generate additional employment, improve incomes, and access to services for a wider segment of Armenia's rural population than under the original project.

Armenia - Additional Financing for the Third Social Investment Fund Project

2009-02-04T05:00:00.000Z

Armenia - Rural Enterprise and Small-Scale Commercial Agriculture Development Project : environmental impact assessment

2009-02-03T05:00:00.000Z

The objectives of the Rural Business and Small-Scale Commercial Agriculture Development Project (RESCAD) is to improve the ability of Armenia's farmers and rural entrepreneurs to access markets and increase employment opportunities by stimulating market-oriented private and public investments in rural areas. Negative measures include: groundwater pollution, surface water pollution, biodiversity losses, soil salinization and alkalination, soil fertility losses, and land contamination. Mitigation measures include: a) adherence to water and air quality standards that are calculated for each enterprise, will be monitored by local environmental agencies to ensure that water and air quality are protected; b) ensure awareness by workers, adopt appropriate soil protection techniques, ensure exposed soil surfaces are kept to a minimum and for short periods of time, conserve topsoil, recover and replant when construction is completed; c) effective disposal of materials and garbage in designated waste disposal sites; and d) environmental awareness, training in handling and storage of fuels, lubricants and chemicals, and provision of proper on-site storage facilities.

Armenia - Lifeline Roads Improvement Project : environmental assessment

2009-02-03T05:00:00.000Z

The objective of the Lifeline Roads Improvement Project for Armenia is to upgrade selected sections of the lifeline road network and create temporary employment in road construction. Negative measures include: degradation of landscapes and soil erosion, pollution by construction run-offs, impact on the biodiversity, and noise and vibration disturbances during construction and temporary air pollution. Mitigation measures include: a) some of the areas are sensitive to soil erosion; therefore, when ditches and slopes along a road are restored anti-erosive measures shall be implemented during the re-cultivation period; b) as a result of oil leakage from machinery and stock piled asphalt, oil products, and chemicals can penetrate to the ground water or run off to water recipients; and c) demolition debris will be generated during the rehabilitation/construction works on roads. These effects will be localized, and will be minimized by means of appropriate removal and disposal procedures, which may include but not be limited to careful selection of waste temporary accumulation sites, clear delineation of these sites to exclude their expansion, prevention of washout of such sites, obtaining written agreement on permanent disposal site with local authorities, and timely transportation of waste to the permanent dump site.

Armenia - Rural Enterprise and Small-Scale Commercial Agriculture Development Additional Financing Project

2009-02-03T05:00:00.000Z

Armenia - Lifeline Roads Improvement Project

2009-02-03T05:00:00.000Z

The project Social Investment Fund III Additional Financing is now in the pipeline.

2009-02-03T05:00:00.000Z

The project Social Investment Fund III Additional Financing is now in the pipeline. To see more information, see the project information in the World Bank project database

The objective of the Third Social Investment Fund Project for Armenia is to support the Government's policy to raise the living standards of the poor and vulnerable groups through improving the quality and access and increasing the coverage of community infrastructure and services in poor communities, and for the most vulnerable groups in response to critical needs. The additional financing will scale-up activities under the community investments component of the project in support of labor-intensive infrastructure sub-projects. Notwithstanding infrastructure investments in recent years, major infrastructure gaps remain in Armenia, with adverse consequences on the living conditions of the population. Infrastructure gaps are most acute in rural areas, especially in remote and isolated communities where the Armenia Social Investment Fund (ASIF) program has been active over the past eleven years. The aim is to provide immediate employment, additional incomes, and increase the coverage of infrastructure and services in poor communities and for the most vulnerable groups.

Environmental safeguard review framework

2009-02-02T05:00:00.000Z

The objective of the Access to Finance for Small and Medium Enterprises is to increase Armenian small and medium enterprises access to medium-term finance. The environmental impact assessment process is carried out to determine the possible positive or negative impacts of proposed subprojects; to evaluate the precautions to be taken in order to prevent or minimize negative impacts which may damage the environment by generating water effluents, air pollution, noise pollution and utilization of hazardous materials.

Armenia - Access to Finance for Small and Medium Enterprises Project

2009-01-26T05:00:00.000Z

Armenia - Access to Finance for Small and Medium Enterprises Project

2009-01-22T05:00:00.000Z

Armenia - Second GeoFund Geothermal Project

2008-12-30T05:00:00.000Z