The World Bank (WB) Board of Executive Directors approved a US$ 24 million loan for the E-Society and Innovation for Competitiveness (EIC) Project for Armenia. This highly innovative project will assist the Government of Armenia in its on-going efforts to address constraints to competitive e-Society and enterprise innovation in Armenia by strengthening the underlying infrastructure and enabling environment. The Project is well aligned with the Government’s vision towards an inclusive e-society, outlined in the IT Sector Development Concept Paper.

The Project is specifically designed to address the numerous challenges in the Information and Communication Technology (ICT) sector in Armenia and promote enterprise innovation. It supports measures aimed at increasing access to affordable broadband services for citizens, businesses and public institutions (through development of Nationwide Broadband Backbone and Government Network); equipping citizens and businesses with a tool for authentication of electronic transactions (Digital Citizen Program); and increasing access to affordable computers as well as e-services for citizens (Computer for All Program).

The EIC Project will also promote the creation, growth and competitiveness of knowledge and technology-driven enterprises while at the same time encouraging traditional sectors to adopt new technologies. This will stimulate the rate of technology absorption, innovation and commercialization in the private sector, foster collaboration between research and industry, promote the development of new knowledge- and technology-driven companies across Armenia. Establishment of Gyumri Technology Center will provide firms and entrepreneurs access to know-how, services and facilities which are currently unavailable in this region.

“This innovative project seeks to unleash ICT as a new driver for growth and job creation in Armenia,” says Asad Alam, WB Regional Director for the South Caucasus Countries. “Improved access to computers and high speed internet connectivity will help boost economic productivity, spur innovation, raise incomes of families and small businesses, and help create jobs.”

Total financing of the Project is US$ 30 million, of which the Government of Armenia will finance US$ 6 million from its own resources. The IBRD Specific Investment Loan of US$ 24 million has a maturity of 25 years and a grace period of 10 years included, the WB said in a press release.