The World Bank Board of Executive Directors today approved a USD 30 million loan for the Social Investment and Local Development (SILD) Project in Armenia.

The World Bank Yerevan Office noted that this project will assist the Government of Armenia to improve the quality, use of and access to community infrastructure for the poor and vulnerable groups.

Communities throughout Armenia will benefit from renovated and rehabilitated social infrastructure (such as schools, kindergartens, health and social service facilities, community centers, water supply and waste management), as well as economic infrastructure (such as irrigation systems, agro-processing and storage facilities, markets, etc.).

“150 communities, mostly rural, will directly benefit from the new project. The project will enable them to identify their own investment needs. We estimate that approximately 300 permanent and 1,100 temporary jobs will be created, with more than USD 8 million in wage income generated in vulnerable communities,” said World Bank Country Manager for Armenia Laura Bailey.

“We are expecting that the project will also strengthen inter-community dialogue across the country, priority-setting and development planning and management. The project will be specifically focused on vulnerable and lagging regions,” said World Bank Task Team Leader of the Project Erkin Mamadaliev.

Total financing of the project is USD 42.85 million, of which the Government of Armenia will finance USD 11 million and USD 1.85 million will be provided by beneficiary communities. The USD 30 million is an IBRD flexible loan with variable spread with a 14.5-year grace period and repayment of 25 years.