The World Bank Board of Executive Directors today approved a US$30mln financing for the Education Improvement Project in Armenia.

The project will support the improvement of school readiness for children entering primary education and the physical conditions in upper-secondary schools. It will also promote greater links between higher education institutions and labor market in Armenia.

The new project will support improving the school readiness among those entering first grade by expanding preschool coverage in impoverished rural areas benefiting approximately 2,400 children per year. 17 high schools will be rehabilitated with enhanced construction and safety standards to benefit approximately 10,200 high school students in all regions.

Total financing of the project is US$37.5 million, of whichUS$7.5 million will be the Government’s contribution. The World Bank will provide a US$15mln credit on standard blend IDA terms at a fixed interest rate of 1.25% per annum with a maturity of 25 years and a 5 year grace period, as well as a US$15mln IBRD loan of variable spread, with a 10 year grace period and the total repayment term of 25 years.