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World Bank approves US$ 40 million loan for second additional
financing for lifeline road improvement project for Armenia
YEREVAN, July 16, /ARKA/. The World Bank Board of Executive Directors
on July 15 approved a US$ 40 million loan for the second Additional
Financing for the Lifeline Road Improvement Project for Armenia.
Ani Balabanian, head of a World Bank Yerevan Office unit in charge of
infrastructure issues, said to a news conference today this project
will assist the Armenian government in its on-going efforts to
improve accessibility of the country's main road network for the rural
population and to create employment.
She said it will also help Armenia to further mitigate the impacts of
the global economic crisis on the country's economy and the well-being
of its population.
According to a World Bank press release, the second additional
financing will further scale-up activities under the on-going project
to improve the condition of 190 km of roads. Over the years,
insufficient investment in the rehabilitation and maintenance of
lifeline roads has made the road quality poor, and left some roads
difficult to use and others completely impassable. The poor conditions
and inadequacy of the lifeline roads connecting rural communities to
the main highways affect many aspects of rural life: it means that
business opportunities are lost, children find it hard to get to
school, and it is difficult for people to get urgent medical attention
when they need it.
For example, the inability to bring crops to market in time has
resulted in 40 percent or more of harvest loss; in some communities -
up to 80 percent of loss. The rehabilitation of the roads network will
therefore help farmers and small businesses in rural areas to bring
their products to market more easily and at a lower cost.
About 153 km of rural roads, including 35 km under the ongoing
program, were rehabilitated, allowing the Government to swiftly
mitigate the negative impact of the financial crisis. The original
project outperformed the target by rehabilitating additional 18 km of
roads thanks to the significant cost savings generated from the
reduction in the cost of construction and the adoption of more cost
effective design standards during the implementation. About 12,000
person-months of jobs have been created so far. By hiring region-based
contractors local construction industries remain on business.
Basic accesses to social services have been improved by connecting the
rural poor to the main road network. Travel time was reduced on
average by about 40 percent.
The program has two main components. First, it will support
rehabilitation of approximately 190 km of the lifeline roads, located
in nine regions. In addition, a technical assistance component will
help the Armenian Government to modernize and increase the efficiency
of designing the roads. The project will also continue supporting the
`safe village program' through small road safety civil works combined
with awareness campaigns at the community level. The IBRD Flexible
loan has a maturity of 25 years and a grace period of 10 years
included. Since joining the World Bank in 1992 and IDA in 1993, the
commitments to Armenia total approximately US$ 1, 358, 7 million. -0-
From: A. Papazian
financing for lifeline road improvement project for Armenia
YEREVAN, July 16, /ARKA/. The World Bank Board of Executive Directors
on July 15 approved a US$ 40 million loan for the second Additional
Financing for the Lifeline Road Improvement Project for Armenia.
Ani Balabanian, head of a World Bank Yerevan Office unit in charge of
infrastructure issues, said to a news conference today this project
will assist the Armenian government in its on-going efforts to
improve accessibility of the country's main road network for the rural
population and to create employment.
She said it will also help Armenia to further mitigate the impacts of
the global economic crisis on the country's economy and the well-being
of its population.
According to a World Bank press release, the second additional
financing will further scale-up activities under the on-going project
to improve the condition of 190 km of roads. Over the years,
insufficient investment in the rehabilitation and maintenance of
lifeline roads has made the road quality poor, and left some roads
difficult to use and others completely impassable. The poor conditions
and inadequacy of the lifeline roads connecting rural communities to
the main highways affect many aspects of rural life: it means that
business opportunities are lost, children find it hard to get to
school, and it is difficult for people to get urgent medical attention
when they need it.
For example, the inability to bring crops to market in time has
resulted in 40 percent or more of harvest loss; in some communities -
up to 80 percent of loss. The rehabilitation of the roads network will
therefore help farmers and small businesses in rural areas to bring
their products to market more easily and at a lower cost.
About 153 km of rural roads, including 35 km under the ongoing
program, were rehabilitated, allowing the Government to swiftly
mitigate the negative impact of the financial crisis. The original
project outperformed the target by rehabilitating additional 18 km of
roads thanks to the significant cost savings generated from the
reduction in the cost of construction and the adoption of more cost
effective design standards during the implementation. About 12,000
person-months of jobs have been created so far. By hiring region-based
contractors local construction industries remain on business.
Basic accesses to social services have been improved by connecting the
rural poor to the main road network. Travel time was reduced on
average by about 40 percent.
The program has two main components. First, it will support
rehabilitation of approximately 190 km of the lifeline roads, located
in nine regions. In addition, a technical assistance component will
help the Armenian Government to modernize and increase the efficiency
of designing the roads. The project will also continue supporting the
`safe village program' through small road safety civil works combined
with awareness campaigns at the community level. The IBRD Flexible
loan has a maturity of 25 years and a grace period of 10 years
included. Since joining the World Bank in 1992 and IDA in 1993, the
commitments to Armenia total approximately US$ 1, 358, 7 million. -0-
From: A. Papazian