World Bank supports further improvement of Armenia’s rural roads network

Additional financing in the amount of EUR 13.4 million (US$ 15 million equivalent) to the Lifeline Road Network Improvement Project (LRNIP) in Armenia will help improve accessibility to markets and social services through the rehabilitation of an additional 61 km of the road network, as well as its climate resilience and safety management. 

Despite visible improvement in the last decade, about 40 percent of the roads in Armenia remain in poor condition, and one-third of the rural population lacks access to an all-weather road. There is still a significant investment backlog for rehabilitation and maintenance in the country. Trade from rural areas is held back due to restricted connectivity to markets and poor road conditions that can result in substantial opportunity losses for some communities. Therefore, facilitating trade and connecting local production to markets remains of paramount importance for reducing rural poverty and promoting economic growth in the country.

“The rehabilitation of additional lifeline roads will facilitate better access to jobs, markets, and other basic social services for over 60,000 people in the provinces,” said Sylvie Bossoutrot, World Bank Country Manager for Armenia. “It is vital that rural infrastructure is improved and maintained to promote agricultural trade, so that farmers and small businesses are able to bring their products to market more easily and at a lower cost, thereby stimulating economic growth and local employment.”

The additional financing will also help Armenia improve road safety and asses the real cost of road crashes to people’s lives and the economy. This will be implemented through connecting all key road safety stakeholders with a consolidated modern crash data collection and management system, as well as capacity building in road safety management.

Total financing for this project is EUR 16.75 million, of which EUR 3.35 million will be Government contribution. The World Bank will provide EUR 13.4 million (US$ 15 million equivalent) through an IBRD loan of variable spread, with a 14.5-year grace period and a total repayment term of 25.5 years.

Original source: World Bank
Published on 08 May 2019