RIA Novosti
October 30, 2004

ARMENIA, WORLD BANK COOPERATING RATHER EFFECTIVELY

YEREVAN, October 30 (RIA Novosti’s Gamlet Matevosyan) – Cooperation
between Armenia and the World Bank is developing rather effectively,
President Robert Kocharyan of Armenia said at a conference involving
Ms. Donna M. Dawsett-Coirolo, World Bank regional director for South
Caucasus, Mr. Hussein Razawi, World Bank director for the
infrastructure and energy sector, and Mr. Roger Robinson, director of
the World Bank’s Yerevan office.

Mr. Kocharyan pointed out the World Bank’s important role in
facilitating the implementation of Armenian reforms, presidential
press-service officials noted.

Robert Kocharyan voiced hope to the effect that this influential
international financial organization will continue to render all-out
assistance to Armenia in the future, as well.

Those taking part in the conference noted the importance of
streamlining Armenia’s tax and customs regulation legislation.

Fuel and energy cooperation prospects were discussed, as well.

The World Bank has implemented 36 programs worth nearly $821 million on
Armenian territory.

Armenia receives 40-year World Bank loans in accordance with IDA
(International Development Association) terms; such loans, which are
allocated to the world’s poorest countries, stipulate 0.75% annual
interest, as well as an easy-term ten-year period.

In June 2004 the World Bank’s board of executive directors endorsed a
new Armenian-aid strategy for the 2005-2008 period. This strategy calls
for setting aside loans to the tune of $220 million.

The new strategy lists the following priorities:
– helping the Armenian Government in its efforts to improve the
business climate and to create more jobs;
-facilitating better and more effective management;
– streamlining the public-health system, the education system, as well
as the basic infrastructure.

The previous Armenian-aid strategy for the 2002-2004 period had
stipulated loans worth about $190 million. Among other things, the
World Bank had financed construction of 120 km of local roads within
the framework of that strategy. The civil service reform was launched
in line with the new law based on an institutional administration
survey. More than 130 community projects were implemented, thus
improving the life of 340,000 rural dwellers. 80 rural hospitals were
constructed and 118 physicians retrained as family doctors. Over 200 km
of irrigation canals were reconstructed, thereby enhancing the
productivity of nearly 80,000 hectares of farmlands. 112 new textbooks
were published and handed out to students all over Armenia; add to this
50 teaching aids.