STARTING 2008 GRANT ASSISTANCE TO BE PROVIDED TO WATER USER UNIONS OF ARMENIA

Noyan Tapan
Feb 08 2007

YEREVAN, FEBRUARY 8, NOYAN TAPAN. According to the RA Law on 2007
State Budget of the RA, at the February 8 sitting the Armenian
government approved the 2007 program on the state budget-envisaged
maintenance of the state institution Vorotan-Arpa-Sevan Tunnels
Operation Department, and operation, technical state improvement and
repairs of the Vorotan-Arpa-Sevan water system. The government also
approved the directions of reforms on state financial assistance
to water user unions. The main purposes of these directions is to
strengthen support and participatory management of water user unions,
raise their efficiency and increase the effectiveness of predictability
and distribution of state expenditures. It was noted that reforms will
allow to shift from the currently used traditional spending method
of state financial assistance to water user unions to provision of
grant assistance in accordance with results. The assessed quotas
of state financial assistance to water user unions, as well as the
maximum levels of water loss for 2007-2011 were also approved. The
decision was made, taking into accout the proposals submitted by
the program of financial and structural reforms of the RA irrigation
system with the Japanese grant for preparation of the World Bank’s
Third Credit on Poverty Reduction Support. Chairman of the State
Water Industry Committee of the RA Ministry of Territorial Governance
Andranik Andreasian said after the siiting that the method of grant
assistance allows to assess results of water user unions’ activities,
based on which assistance will be provided. In all llikelihood the
new method will be used from 2008. This year the respective legal
documents related to its use will be prepared. A. Andreasian said
that the technical capacities of 51 water user unions of Armenia
enable to ensure sufficient water supply.