WB FINANCES REHABILITATION OF ARMENIAN WATER INFRASTRUCTURE

RIA OREANDA
Economic News
November 11, 2008 Tuesday
Russia

Washington. OREANDA-NEWS . November 10, 2008. The World Banks Board
of Directors today approved a US20 million credit for additional
financing for the Armenia Municipal Water and Wastewater Project
(MWWP), reported the press-centre of WB.

The additional financing will support the governments 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. Thats 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 AWSCs 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.