WORLD BANK ATTACHES IMPORTANCE TO ITS MANAGING DIRECTOR’S VISIT TO ARMENIA

ARKA
Oct 20, 2009

YEREVAN, October 20. /ARKA/. Okonjo-Iweala’s visit is seen by the
World Bank as an important step in enhancing and further extending
its partnership with Armenia.

On Sunday, the World Bank Managing Director Ms. Ngozi Okonjo-Iweala
completed her two-day visit to Armenia, as part of her first trip to
the South Caucasus.

"The aim of the visit was to discuss with the Armenian Government,
business leaders, and civil society the impact of the financial crisis
and ways to ease the crisis and ensure sustained economic growth",
the WB Yerevan office’s press service reports.

Okonjo-Iweala met with the President of the Republic Serzh Sargsyan,
the Prime Minister Tigran Sargsyan and the key members of the economic
team of the Government.

It was stressed at the meetings that Armenia has been severely hit
by the crisis, because of strong dependence on a few sectors for
its growth, and on remittances for the financing of investment, but
has responded appropriately to the crisis, which was not of its own
making. It also entered the crisis with some strengths, thanks to
a well-capitalized and liquid banking system, a low level of public
debt, and a small fiscal deficit.

"These challenges need to be addressed to permit Armenia to attract
investment, diversify its economy, and capitalize on its future
opportunities, its potential, and the entrepreneurship of its people",
the press office quoted Onkonjo-Iweala.

Onkonjo-Iweala also toured Bank-financed projects that Armenia is
implementing. Armenia was the first country to use the IDA Fast Track
Initiative, as an immediate response to the global economic crisis.

Ms. She traveled to Aragatsotn marz and met with project beneficiaries.

In Yernjatap village she met and talked with the residents who have
prioritized the reconstruction and expansion of the Community Center,
implemented by the Armenian Social Investment Fund (ASIF). The project
will be completed soon and the new Center with hall for ceremonies,
library, medical center, and administrative rooms will fully serve
the needs of the village.

Ngozi Okonjo-Iweala also visited Vardenut and Ara villages where a
3.5 km road is being rehabilitated to connect both communities to
the highway. The project is about to be completed under the Lifeline
Road Improvement Project (LRIP), thus reducing the transportation
costs of delivering the agricultural products to markets, improving
competitiveness and living conditions of villagers, and generating
employment opportunities at the local level.

In Agtsk village Ms. Okonjo-Iweala visited a gas network, prioritized
by the residents and funded by the Rural Enterprise and Small-Scale
Commercial Agriculture Development Project (RESCAD). This project,
already completed, will provide to the residents, especially to women,
better and safer winter heating and cooking conditions, and will
generate new business activities. In Voskehat village she visited the
recently established "Ashtarak dzu" poultry farm. New technologies
at the farm have reduced the cost of production and have generated
new employment for men and women from surrounding villages.

"The World Bank is very proud to team up with the Government and local
communities for the implementation of these impressive projects,
which in one place enable people with economic opportunities, in
another area provide better access to social services, while generating
employment at the local level at a time of economic contraction." said
Ms. Okonjo-Iweala. "But it is important that these investments are
maintained and that the central, regional, and local authorities
provide adequate maintenance financing for them", Okonjo-Iweala said.

While meeting with the business and civil society representatives,
Mrs. Ngozi Okonjo-Iweala underscored that the Bank values these
consultations and is committed to engaging actively in ongoing
dialogue with the public, be it on individual projects the World Bank
is supporting, or more broadly, on the economic and social agenda. The
Bank will also continue to encourage the Government to intensify its
dialogue with all the stakeholders on issues of vital importance for
Armenia’s progress.

The Bank presented its new Country Partnership Strategies (CPS) to
the Board in June 2009. It provides for new IDA/IBRD lending of $545
million for 2009-2012 and IFC investments in the range of $120 to $160
million. It is intended to assist Armenia to resume growth and reduce
the impacts of the crisis on the poor. It also aims to help Armenia
lay the foundation for a more competitive economy-a key requirement
for diversified and sustainable growth. The current portfolio consists
of 21 active projects with commitments of $506.5 million.

Since 1993 the World Bank has financed 54 projects with total
commitments up to $1.3 billion.