The World Bank’s Board of Executive Directors approved a US$11 million credit, the Third Additional Financing for the Social Investment Fund III (ASIF III) Project for Armenia.

The Additional Financing will further assist the Government of Armenia in its efforts to improve the living standards of the poor and vulnerable groups by expanding labor-intensive infrastructure projects in response to critical needs of the local communities.

The Project focuses on “infrastructure gaps” through renovation and rehabilitation of secondary and special schools, kindergartens, gymnasiums and playgrounds, primary health clinics, potable water pipelines and sanitation systems, community-cultural and social service centers, minor irrigation schemes throughout Armenia. In this regard, the situation in Armenia’s rural areas, especially in remote and isolated communities, and the earthquake zone, is particularly severe. The Project targets those populations most affected by the economic crisis, and the Additional Financing will help to meet these and other needs over the medium-term.

The Additional Financing will support implementation of about 50 micro-projects aimed at infrastructure rehabilitation and improvement, and will create short-term employment of up to 140,000 days of labor. About 20 schools and kindergartens and 5 community centers will benefit from improved furniture under the proposed project.

Total financing of the Additional Financing is US$ 14.6 million, of which the Government of Armenia will finance US$2.9 million and US$0.7 million will be provided by beneficiary communities. The IDA credit in the amount of US11 million carries a maturity of 25 years including a grace period of 5 years.

Since joining the World Bank in 1992 and IDA in 1993, the total IDA and IBRD commitments to Armenia amount to US$1, 517 million.