The World Bank Board of Executive Directors approved today a USD55 million loan for the Local Economy and Infrastructure Development Project (LEIDP) for Armenia to improve infrastructure services and institutional capacity for increased tourism contribution to the local economy in five selected regions of the country.

According to World Bank Yerevan Office, the program aims at improving the share of tourism in economy in 5 Armenian marzes by improving the institutional capacity and infrastructure services.

“I would like to highlight that one of the major strengths of the proposed project is that it motivates the communities to preserve their unique Armenian cultural heritage and helps benefit from integrating tourism in wider local economic development”, said Laura E. Bailey, World Bank Country Manager for Armenia.

“In addition to the expected growth in the tourism sector and of under-developed areas, this project will enable public infrastructure to attract private investments. It will attract private entities in Project areas that demonstrate interest and capacity to invest in tourism or agribusiness through participating in rehabilitation of complementary public infrastructure to ensure the viability of their investments”, said Ahmed Eiweida, World Bank Task Team Leader of the Project.

The first year investment program will capture numerous activities for improvements at Khor Virap Tourism Facility; Garni Gorge with rehabilitation of 1.6 km road leading from Garni Temple to the Stone Symphony monument, located in Azat River Gorge; Zorats Qarer (Stonehenge) Tourism Facility with improvement of the road leading to the monument.

Total financing of this project is USD68 million, of which USD13 million will be the Government’s contribution.