Monday, March 23 2020 10:39

ArmInfo. The World Bank Board of Executive Directors approved the provision of a loan of 17.9 million euros to Armenia for additional financing of the program  "Social Investments and Local Development".

According to the Bank's press service, the program will assist the  Armenian government in improving the quality, accessibility and  applicability of intercommunal infrastructures and services. Thus, in  55 communities of Armenia, infrastructure and services considered  public property will be financed.  The program will allow the  population of the Armenian communities through micro-programs to take  advantage of the restored and modernized social infrastructures in  kindergartens, schools, water supply and drainage systems, small  irrigation systems, community centers, medical facilities and other  local infrastructures. They will be selected based on the degree of  community vulnerability and the assessment of the potential  socio-economic impact of the submitted infrastructure applications.  As noted by the head of the WB Armenian office, Silvi Bosutkho, 55  communities will directly benefit from the new program, 35 - recently  enlarged, mainly in rural areas.

According to her, they will have the opportunity to identify their  investment needs. "I'm especially glad that this program will also  try to promote profitable activities in communities that can open up  economic opportunities," she said. The program has three components.  In the first component, assistance is provided to the socio-economic  development of communities and capacity building. Additional funding  will continue to fund micro-programs that target 20 vulnerable  communities. Under the second component of inter-community social and  economic development initiatives, 35 initiatives that will have a  longer-term impact will be funded and bring together two or more  communities. Through this new approach to engagement, communities  will be provided with additional incentives to make full use of the  connections and development opportunities in line with the concept of  territorial reforms. In the third component, assistance will be  provided for the institutional strengthening of the Territorial  Development Fund of Armenia. In accordance with the territorial  reforms, the Fund is gradually moving from micro-programs related  mainly to social infrastructures to the implementation of sustainable  territorial development programs by enlarged communities.

The loan will be provided through the International Bank for  Reconstruction (IBRD) with a floating spread, repayment term of 25.5  years with a 14.5-year interest-free period. The Government of  Armenia and the beneficiary communities will provide co-financing in  the total amount of EUR 7.52 million.