States News Service
October 30, 2008 Thursday

WORLD BANK FINANCES REHABILITATION OF ARMENIA’S WATER AND WASTEWATER
INFRASTRUCTURE

WASHINGTON

The following information was released by the World Bank:

The World Bank’s Board of Directors today approved a US$20 million
credit for additional financing for the Armenia Municipal Water and
Wastewater Project (MWWP). The additional financing will support the
government’s efforts in scaling up activities implemented under the
ongoing program of water system rehabilitation and improvements,
including an extension of the ongoing management contract between the
Armenia Water and Wastewater Company (AWSC), the water utility in
charge of the project, and an international water supply utility
operator.

Armenia has achieved considerable progress in efficiently delivering
safe and continuous water to its citizens. Reforms in water management
supported under the Bank-funded Municipal Development, Municipal Water
and Wastewater, and Yerevan Water and Wastewater Projects have led to
improved supply, quality, and financial viability of the water
utilities. The need for additional funding from the Bank to scale up
the on-going project was anticipated at appraisal of the project and
the management contract was prepared on the basis of a six year
program. The additional financing will therefore fund extension of the
management contract and the remaining investments identified
earlier. It will contribute towards meeting the huge investment needs
of the Armenian water supply sector.

"Citizens across Armenia have long awaited improvements in their water
supply," said Jonathan Kamkwalala, Leader of the World Bank team
designing the project. "The investment program under the on-going
project has largely proceeded on track, and the repair and
rehabilitation program for AWSC water supply systems has already
resulted in improved water quality and increased availability of clean
and safe water supply in areas participating in the project."

He continued "As an example, the weighted average daily hours of
drinking water availability has increased from 6 hours in 2004, to
12.2 hours in 2008, while the water safety and quality also improved
in the same period in the areas where the project has been
implemented. The institutional and financial performance of AWSC has
notably improved as a result of the project, however, there remain
significant investment needs in the sector. That’s why the Bank will
continue supporting the government in reforming the water and
wastewater services."

The Additional Financing will support three main components: (i) AWSC
Management Strengthening by providing funding for continuation of the
management contract for additional two years; (ii) AWSC Investments by
funding institutional and financial capacity building, procurement of
equipment and machinery to improve the operations of AWSC,
rehabilitation and improvement of chemical and biological
laboratories, and assistance to AWSC’s training activities ; and (iii)
Investments in Branch Systems by providing funding for the replacement
of deteriorated treatment and chlorination equipment; procurement and
installation of pressure loggers, pipes and fittings, and design and
civil works for network rehabilitation .

Armenia joined the World Bank in 1992 and IDA in 1993. Commitments to
date total approximately US $1.076 billion for 49 operations.

The credit is provided on "hardened’ IDA terms with a maturity of 20
years, and a grace period of 10 years included. Armenia has been in
the process of graduating from IDA since July 1, 2006.

For more information on the World Bank’s activities in Armenia, please
visit:

From: Emil Lazarian | Ararat NewsPress