Thursday, May 2 2019 14:19

ArmInfo.The World Bank will provide Armenia with additional financing in the form of a loan of 13.4 million euros in the framework of the Lifeline Road Network Improvement Project (LRNIP). At the May 2 meeting, the RA government approved the draft agreement with the WB structure - the International Bank for Reconstruction and Development for signing.

 

According to the Minister of Transport, Communication and Information Technologies of the Republic of Armenia Hakob Arshakyan, the program is aimed at ensuring the availability of markets and services for rural settlements. The loan repayment period will be 25 years, of which 14.5 years is a grace period for payments. Funds to be repaid annually on May 15 and November 15 are provided with a 6-month Libor + floating rate.

According to the Minister, in the framework of the first tranche in 2019, 60 km of roads will be repaired and built, which will provide an opportunity to provide high-quality transport links for rural communities with interstate and inter-republican roads. In total, 30 settlements will be involved in the project this year. In determining communities, the priority is economic efficiency - the number of inhabitants, the condition of roads, remoteness from centers, etc.

As part of the second tranche, which will begin to be applied in  2020, according to Hakob Arshakyan, it is planned to repair and build 61 km of rural roads with a total coverage of 30 villages in Ararat, Armavir, Syunik, Lori and Aragatsotn regions. It will be a continuation of the program launched in 2013, under which the republic received $ 85 million in two tranches. In general, it is envisaged to repair 450 km of roads.

 

To recall, on March 28 of this year the World Bank Group (WBG) Board of Executive Directors endorsed Armenia - Country Partnership Framework program for 2019-2023 in the amount of about $ 500 million. 

The Government of Armenia plans to raise $ 512 in 2019, through the Central Bank - $ 21 million.