World Bank Approves €26.5M Loan for Armenia

• 03.04.2022, 13:17
•  World,  Armenia

The World Bank Board of Executive Directors approved Thursday a EUR 26.5 million loan for the Forth Public Sector Modernization Project (PSMP IV) for Armenia. The project is the fourth in a series of public sector modernization projects in Armenia and will assist the Government in improving the efficiency of, and access to, selected government services for businesses and citizens, the World Bank office informed NEWS.am.  

Accessing many public services in Armenia still requires the physical presence of citizens. This is most apparent in rural areas. Challenges also exist for citizens to access already existing digital services. A World Bank ICT survey found that only five percent of Armenian citizens and businesses currently use online government services. 

The second component supports digital public service delivery, with a focus on modernizing tax and customs administration systems to improve the efficiency of revenue mobilization and strengthening of government service delivery. Support of local governments, through the piloting of activities related to re-engineering databases, data infrastructure and computing systems, will align them with the business processes of central government agencies.  

And the third component supports the underlying technological foundations needed for the successful implementation of the project, by improving and strengthening data governance/management, cloud computing, cybersecurity, and artificial intelligence.   

The proposed project builds on the gains of the previous three Bank-supported operations focused on modernization of public sector functions and services in Armenia, with the application of technology for more efficient and accessible services.  The World Bank will provide a EUR 26.5 million ($29.9 million equivalent) IBRD loan of variable-spread, with a 14.5-year grace period and a total repayment term of 25 years. The Government contribution is EUR 5.3 million ($6 million equivalent). Since joining the World Bank in 1992, and IDA in 1993, commitments to Armenia have totaled approximately $2,477,870 million.