Yerevan/Mediamax/. The World Bank (WB) will provide Armenia with US$9 million credit for the Second Public Sector Modernization Project (PSMP II).

As Mediamax was informed in the press service of WB Yerevan Office, the project will assist the Government of Armenia in its efforts to improve the quality of public services by introducing a performance-based pay system and a code of conduct for civil servants, etc.

WB press release notes that in the new economic reality brought about by the global economic crisis, public administration reform has grown even more important, as getting better value from public expenditures and improving public services have become a necessity.

PSMP II has three main components. It supports: (i) the design of organizational structures in pilot institutions and improvement of the management of business processes by streamlining and coordinating functions; (ii) making human resource management more effective, and enhancing public service ethics and staff performance systems; and (iii) complementing and enhancing the electronic governance and automation systems to make them accessible to the general public, aiming for better service delivery, and more transparency and efficiency.

The loan is provided on conditions of the International Bank for Reconstruction and Development (WB Group member) with maturity of 25 years and a grace period of 10 years.

Since 1992, World Bank has provided US$ 1, 318, 7 million to Armenia.