OREANDA-NEWS. November 10, 2008. The World Bank’s 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 government’s 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. That’s 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 AWSC’s 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.