World Bank Approves $40 Million Loan to Armenia

YEREVAN (Armenpress)–The World Bank has evaluated a $40 million worth loan program for the rehabilitation and development of Armenian transportation.

According to Gevorg Sarkisian–a senior official of the World Bank Yerevan office–$15 million of this money will be directed to the restoration of Armenia’s railways–including laying of new rails–purchase of spare parts–re-equipment of communication means.

The rest of the money will be used for conducting studies in Yerevan’s transport facilities–and the repair of around 300 km long roads. A special importance will be attached to safety of roads–new road signs will be installed.

The Yerevan Underground Station and Zvartnots Airport were left out of the program–as the funds expected from the government of Japan did not come. The loan program is to be concluded in 4 years. The loan is allocated with a ten years grace period with 0.75% annual interest for a period of 40 years.

In related news–last year the World Bank released a $21 million worth loan to Armenia under USAID soft terms. The loan is to be used this year and will chiefly go for repair of high voltage networks substations.

Currently the office–charged with implementation of the program called EnergyInvest is preparing tender documen’s. According to Rouben Hovanisian–the head of the office–the loan program is to be over by December 31–2003 and will result in 9 re-equipped substations.

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