Friday, December 16 2016 12:28
Alexandr Avanesov

World Bank to provide US$55 million loan to Armenia for developing local economy and infrastructures

World Bank to provide US$55 million loan to Armenia for developing  local economy and infrastructures

ArmInfo. The World Bank  will provide US$55 million loan to Armenia developing local economy  and infrastructures. The relevant agreement was ratified by the  Armenian National Assembly on December 16.   

When presenting the document, Deputy Minister of Economic Development  and Investments Tigran Khachatryan stressed that the document was  signed on 23 Feb 2016. 

To recall, on December 22, 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.  Laura E.  Bailey, World Bank Country Manager for  Armenia, told a news conference today that total financing of the  project is US$68 million, of which US$13 million will be the Armenian  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. She said LEIDP is a five  year project that will help Armenia develop infrastructure in popular  tourism destinations and reduce the difference in economic  development of regions and Yerevan. Laura E.  Bailey said the project  will increase the number of rooms at not-large hotels by 3,000 places  and the incomes from tourism in the regions will grow by 15%. Ms.  Bailey anticipates an increase in the number of small and  medium-sized enterprises engaged in the field of tourism and  hospitability from 1,800 to 9,000.  WB specialists say it will be a  complex project including partial recovery and conservation of  historical monuments listed as UNESCO World Heritage Sites, as well  as construction of roads, parking sites, and other infrastructures,  which will make up US$48 million.  The project demonstrates an  integrated approach to development of tourism corridors and circuits  for diversifying and improving Armenia's tourism products, which  could increase spending and deliver a more robust tourism-led local  economic development.

The Project activities are expected to benefit the residents,  tourists and enterprises.  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. Ms. Bailey brought the example of the tourism  development project recently implemented in Kakheti, Georgia. "I  would like to highlight that one of the major strengths of the  proposed project is that it motivates the communities to preserve  their unique Armenian cultural heritage and helps benefit from  integrating tourism in wider local economic development," she said. 


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Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000