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.
