Friday, July 15 2016 18:59
Naira Badalian

WB loan project on tourism development in Armenia promises multiple return on investments within a short period of time

WB loan project on tourism development in Armenia promises multiple  return on investments within a short period of time

ArmInfo. The World Bank'55 mln USD Local Economy and Infrastructure Development Project (LEIDP) for Armenia will ensure a multiple return on investments within a short period of time, Armenian Economy Minister Artsvik Minasyan said at a 
press conference on July 15, when asked by ArmInfo about the expediency to attract such a big loan for tourism development.  

The loan project will be aimed at both rehabilitating the infrastructures and creating new jobs, the minister said. "After the funds are returned to the state budget, they can be spent on satisfying the country's needs in the field of defense," Minasyan 
said.     

The minister said the funds will be spent on infrastructure development near the southern (Meghri) and northern (Dilijan) borders of Armenia, which will ensure full-fledged trans-boundary tourism with Iran and Georgia. The project also implies rehabilitation of tourism infrastructures near Garni. The profitability of the project 
will be quite high, Minasyan sais, adding that if the project is implemented effectively, it will be possible to speak of the recoverability in 5.5 years. He added that the project is based on the concept of development of local entities, which will ensure creation of new jobs and growth in budget revenues from the services sector.       

In case of 5% annual growth, the number of tourists to Armenia is expected to grow to 1.600.000 by 2021.  After 2021, following the effective implementation of the project, the profit is expected to amount to $100 mln, $24 mln of which will be transferred to the state budget. In case of 3 mln visits of travelers, the annual profit will total $3 bln ($720 mln to be transferred to the state budget).

On June 9, the Armenian Government approved the relevant loan agreement dated 23 Feb 2016.  On Dec 22, 2015, the World Bank Board of Executive Directors approved a US$55 million loan for the Local Economy and Infrastructure Development Project (LEIDP) for Armenia to improve infrastructure services and institutional capacity for increased tourism contribution to the local economy in five selected regions of the country. The Project activities are expected to benefit the residents, tourists and enterprises in three marzes in the south - Ararat, Vayots Dzor and Syunik, and two marzes in the north - Kotayk and Lori. 

More specifically, the first component - Heritage Hub Regeneration and Tourism Circuit Development - will finance urban regeneration activities in the old towns of Goris and Meghri, and in the heritage villages Areni, Tatev and Tandzatap. This includes restoration of public infrastructure, building facades and roofs, public spaces, museums, access roads, water and sanitation, drainage and street 
lighting.  This component will also finance an integrated approach to cultural heritage preservation and improved site management plans of the most attractive cultural and natural heritage sites located along the main tourism circuit in Armenia: Garni (Temple and Gorge), Geghard Monastery, Dvin Museum, Khor Virap Monastery, Areni marketplace and cave, Mozrov cave, Zorats Qarer (Karahunge/Stonehendge), Khndzoresk and the two UNESCO Sites of Haghpat and Sanahin. The second - Institutional Development component - will increase the institutional capacity and performance of the Development Foundation of Armenia (DFA), the Ministry of Economy (MoE), responsible for overall coordination and policy support of the 
Project, the Historical and Culture Heritage Protection Agency (HCHPA), and the Armenia Territorial Development Fund (ATDF), as the implementing entity, to carry out tourism related activities at the various levels in a sustainable manner.

The first year investment program will capture numerous activities for improvements at Khor Virap Tourism Facility; Garni Gorge with rehabilitation of 1.6 km road leading from Garni Temple to the Stone Symphony monument, located in Azat River Gorge; Zorats Qarer (Stonehenge) Tourism Facility with improvement of the road leading to 
the monument. Total financing of this project is US$68 million, of which US$13 million will be the Government's contribution. The World Bank will provide a US$55 million IBRD loan of variable spread with a 14.5-year grace period and the total repayment term of 25 years.

POST A COMMENT
Input digits     


News
Putin: Russia remains Armenia`s leading trade and economic partnerPutin: Russia remains Armenia`s leading trade and economic partner
Hakob Arshakyan: Despite advanced growth of high technologies,  level  of their use remains at  low levelHakob Arshakyan: Despite advanced growth of high technologies,  level  of their use remains at  low level
Pashinyan announces launch of new financial support mechanism for  industrial cooperation in EAEUPashinyan announces launch of new financial support mechanism for  industrial cooperation in EAEU
EDB Head: This year we have actively developed our portfolio in  ArmeniaEDB Head: This year we have actively developed our portfolio in  Armenia
AFD, ADB to allocate 100mln Euro, 100mln US dollars respectively to  support Armenia`s budgetAFD, ADB to allocate 100mln Euro, 100mln US dollars respectively to  support Armenia`s budget
Share of national debt in Armenia`s GDP to lower next year Share of national debt in Armenia`s GDP to lower next year 
Fitch Ratings reaffirmed Ardshinbank at `B+`, upgrading outlook to StableFitch Ratings reaffirmed Ardshinbank at `B+`, upgrading outlook to Stable
EDB planning more projects in Armenia next year EDB planning more projects in Armenia next year 
EDB implementing $100mln projects in ArmeniaEDB implementing $100mln projects in Armenia
Ministry of Economy expects Armenia`s GDP to grow by 14%Ministry of Economy expects Armenia`s GDP to grow by 14%
Air cargo transportation between Turkey and Armenia will start by the  end of 2022, media reports sayAir cargo transportation between Turkey and Armenia will start by the  end of 2022, media reports say
Minister: AMD 273 billion to be allocated from Armenia`s state budget  to pay interest rates in 2023Minister: AMD 273 billion to be allocated from Armenia`s state budget  to pay interest rates in 2023
Armenian-Iranian trade needs boosting - official Armenian-Iranian trade needs boosting - official 
Ardshinbank has extended the campaign for issuing a digital card for 1 dramArdshinbank has extended the campaign for issuing a digital card for 1 dram
Growth of Armenia`s economic activity to 14.5% in 10 months was  accompanied by increase in exports and importsGrowth of Armenia`s economic activity to 14.5% in 10 months was  accompanied by increase in exports and imports
Unprecedented offer from FLYONE ARMENIA: Beirut, Dubai, Tel Aviv for  only 89 eurosUnprecedented offer from FLYONE ARMENIA: Beirut, Dubai, Tel Aviv for  only 89 euros
Over a half of Armenia`s population live in  communities actively  involved in  CoM East projectOver a half of Armenia`s population live in  communities actively  involved in  CoM East project
Armenia`s transport infrastructure yet unprepared for new geoeconomic  configuration - Vahe Davtyan Armenia`s transport infrastructure yet unprepared for new geoeconomic  configuration - Vahe Davtyan 
AMD 4․653․223 to AMD 4․653․223 to "Aren Mehrabyan" foundation: beneficiary of "The Power of One Dram" for December is the Health Fund for Children of Armenia
Forecast: Without social support, poverty rate in Armenia could rise  to 49%Forecast: Without social support, poverty rate in Armenia could rise  to 49%
PSRC starts process of revising electricity tariffsPSRC starts process of revising electricity tariffs
Poverty rate in Armenia in 2021 increased by 0.1% compared to 2019Poverty rate in Armenia in 2021 increased by 0.1% compared to 2019
Armenia`s government to support IT sector Armenia`s government to support IT sector 
Ardshinbank holds a campaign 10000 AMD for every 300th client making a money transferArdshinbank holds a campaign 10000 AMD for every 300th client making a money transfer
Armenia`s share in UNECE programmes 22%Armenia`s share in UNECE programmes 22%
EU to issue 33mln EUR grant to Armenia EU to issue 33mln EUR grant to Armenia 
Nikol Pashinyan: Introduction of  universal income declaration system  will have significant anti-corruption effectNikol Pashinyan: Introduction of  universal income declaration system  will have significant anti-corruption effect
On December 1, Ameriabank to start initial placement of next tranche  of USD bonds in amount of $10 millionOn December 1, Ameriabank to start initial placement of next tranche  of USD bonds in amount of $10 million
Models of cooperation between public and private sectors are being  developed in ArmeniaModels of cooperation between public and private sectors are being  developed in Armenia
Evocabank launches new contactless cashless payment tool- mPOS for  business entitiesEvocabank launches new contactless cashless payment tool- mPOS for  business entities
Joint Initative of HSBC Bank in Armenia and Jinishian Memorial Foundation (JMF) promotes innovative and sustainable agriculture among the small holder farmers.Joint Initative of HSBC Bank in Armenia and Jinishian Memorial Foundation (JMF) promotes innovative and sustainable agriculture among the small holder farmers.
Civil Contract nominates Armen Nurbekyan for post of CBA Deputy  Chairman Civil Contract nominates Armen Nurbekyan for post of CBA Deputy  Chairman 
Economy Ministry to provide Economy Ministry to provide "oxygen" for IT companies working with  international market 
Party: Draft state budget of Artsakh for 2023 does not reflect  internal and external realities Party: Draft state budget of Artsakh for 2023 does not reflect  internal and external realities
Mher Grigoryan noted key importance of programs implemented jointly  with EBRD Mher Grigoryan noted key importance of programs implemented jointly  with EBRD 
Vahan Kerobyan: Our goal is to bring the volume of investments to 25%  of GDPVahan Kerobyan: Our goal is to bring the volume of investments to 25%  of GDP
Ameria PhonePOS.  New application for receiving non-cash payments with a smartphoneAmeria PhonePOS.  New application for receiving non-cash payments with a smartphone
EDB developed concept for establishing platform on which  multicurrency digital transactions may be carried out - Tigran  SargsyanEDB developed concept for establishing platform on which  multicurrency digital transactions may be carried out - Tigran  Sargsyan
EDB announces 2nd contest of digital technologiesEDB announces 2nd contest of digital technologies
Economy Ministry to support IT companies affected by dram  appreciationEconomy Ministry to support IT companies affected by dram  appreciation
Expert: There are a lot of random people in the tourism sector of  Armenia todayExpert: There are a lot of random people in the tourism sector of  Armenia today
Incomplete fulfillment of capital expenditures indicates a lack of  professionalism - EconomistIncomplete fulfillment of capital expenditures indicates a lack of  professionalism - Economist
EDB forecasts 4.2% GDP growth in Armenia in 2023 and gradual  devaluation of AMDEDB forecasts 4.2% GDP growth in Armenia in 2023 and gradual  devaluation of AMD
Sporadic construction of solar power plants could undermine Armenia`s  food security - expertSporadic construction of solar power plants could undermine Armenia`s  food security - expert
ADB to help Armenia develop wind energyADB to help Armenia develop wind energy
US considers granting Armenia market economy statusUS considers granting Armenia market economy status
Another dollar tranche of bonds from IDBankAnother dollar tranche of bonds from IDBank
Tourists arriving in Armenia faced difficulties due to cashless  payment requirements - MPTourists arriving in Armenia faced difficulties due to cashless  payment requirements - MP
Armenia`s tax authorities on peculiarities of taxation when renting  apartmentArmenia`s tax authorities on peculiarities of taxation when renting  apartment
AraratBank acts as an underwriter of National Mortgage Company RCO bonds   AraratBank acts as an underwriter of National Mortgage Company RCO bonds  
Converse Bank customer wins Visa campaignConverse Bank customer wins Visa campaign
Armenia`s economy recovered quickly after `September shock` - Vahan  KerobyanArmenia`s economy recovered quickly after `September shock` - Vahan  Kerobyan
AraratBank launches Google Pay for its card usersAraratBank launches Google Pay for its card users
Goods imported to Armenia to be liable to excise taxGoods imported to Armenia to be liable to excise tax
Armenia`s national debt in terms of figures not essential - Armenia`s  premier Armenia`s national debt in terms of figures not essential - Armenia`s  premier 
French Development Agency to open permanent office in YerevanFrench Development Agency to open permanent office in Yerevan
Proposed reform to introduce system of mandatory universal income  declaration system for all resident citizens in Armenia cannot ensure  achievement of the declared goals: Tigran JrbashyanProposed reform to introduce system of mandatory universal income  declaration system for all resident citizens in Armenia cannot ensure  achievement of the declared goals: Tigran Jrbashyan
IDBank  “MalatiaIDBank  “Malatia" branch now more comfortable and modern
Largest mining company in Armenia presents its first ESG reportLargest mining company in Armenia presents its first ESG report
It is already possible to make payments with IDBank cards via Apple PayIt is already possible to make payments with IDBank cards via Apple Pay
Read more


Exchange rates
09.12.2022
RUB6.330.01
USD395.300.15
EUR417.562.18
GBP484.723.70
CAD290.190.77
JPY29.060.19
CNY56.810.04
CHF424.014.22