WB To Extend $30mln Worth Loan To Armenia For Educational Reforms

WB TO EXTEND $30MLN WORTH LOAN TO ARMENIA FOR EDUCATIONAL REFORMS

ARKA
Dec 10, 2008

YEREVAN, December 10. /ARKA/. The World Bank is to extend a $30mln
worth loan to Armenia for educational reforms to be implemented
in 2009-2014, Head of WB Education Programs on Armenia Juan-Manuel
Moreno said.

Currently the program is in its preliminary evaluation stage and the
final budget of the program may change, he told journalists.

The loan is allocated for 20 years under IDA (International Development
Agency) favorable terms – at 0% interest rate and with a 10-year
grace period.

It is the third WB loan allocated to Armenia for educational
reforms. Under the first program approved for 1997-2002 the country
received $15mln. The second program was on education quality and
relevance for a total of $19mln; it was approved in 2004 and is to
be completed in the beginning of 2009.

Moreno reported that Armenian Government is to provide $6-7mln
co-financing for the educational reform program for 2009-2014. As a
result, the total budget of the program will go up to $37mln.

The program is expected to be discussed in March; in May the WB
Executive Board will consider and approve it after which the document
will be sent for Armenian Parliament’s approval. Most probably,
implementation will commence in November 2009, Moreno said.

The new loan program is to continue educational reforms in schools,
training of teachers with emphas is placed on math and natural
sciences. Further assistance will be provided in computerizing schools
and implementing financial management reforms.

Among other aspects of the program are assistance to the government in
introducing 12-year educational system, ensuring Internet accessibility
in schools, forming pre-schools institutions, implementing the Bologna
process in the country’s higher education system, Moreno said. Yet,
details and various components of the program still remain to be
clarified, he added.

The lending terms are quite favorable to Armenia, and the WB puts no
pre-conditions for the project, apart from the government’s interest,
Moreno said.

Under the draft program, about $4.5mln is to be allocated for
pre-school education reforms, about $9mln for building the 12-year
educational system and approximately $6.6mln for the higher education
reforms. About $4mln will be provided for computerization and IT
development in the field. The remaining funds are to be used to
continue reforms implemented under the second loan program.