The World Bank and the Eurasian Development Bank to Start Cooperation on Armenia
EDB and WB signed a cooperation agreement to support preparation and implementation of the “Irrigation Modernization and Institutional Capacity Building Project” in Armenia
Moscow, December 4, 2013. — The Eurasian Development Bank (EDB) serving as the Trustee for the Anti-Crisis Fund of the Eurasian Economic Community (ACF) and the World Bank today signed a cooperation agreement to support the preparation and implementation of the “Irrigation Modernization and Institutional Capacity Building Project” in Armenia for the amount of US$40 million to be provided by the ACF.
The agreement was signed by Laura Tuck, Europe and Central Asia (ECA) Vice-President of the World Bank, and Igor Finogenov, Chairman of the EDB Board.
Pursuant to the agreement, the EDB has committed to apply the operational policies of the World Bank in the preparation and implementation of the project. These policies include environmental and social safeguards, and procurement and financial management guidelines for WB-financed projects.
In addition, the agreement stipulates that WB experts will monitor compliance with the above WB provisions and guidelines in the course of the project implementation.
The agreement also outlines in detail the possibilities for the EDB to tap into the ECA Capacity Development Trust Fund approved in April 2013. The Trust Fund is administered by the World Bank and was established by the Government of the Russian Federation to support preparation of projects in low-income and lower-middle income countries in the Europe and Central Asia region. One of these projects is the “Irrigation Modernization and Institutional Capacity Building Project” in Armenia, which has received a grant in the amount of US$495,000. This is the first ACF-supported project to be prepared with a grant from the above mentioned Trust Fund.
The agreement was triggered by the desire of the World Bank and the EDB to further support the introduction of state-of-the-art standards and the effective implementation of Armenia’s long-term national strategy for the reconstruction and rehabilitation of the country’s irrigation and drainage systems. Initial projects under the national program implemented with WB financial support have yielded good outcomes and have been highly praised by the country’s leadership. The new ACF project is a part of Stage Three of the program and essentially enables the continuation and expansion of the program.
“The partnership between the World Bank and the EDB aims to bring knowledge and financing to support the adaptation of international best practices to the needs of countries in the Eurasia region,” said Laura Tuck, ECA Vice-President of the World Bank.
“Both partners — the World Bank and the Eurasian Development Bank — have much potential to contribute to this objective,” said Igor Finogenov, Chairman of the EDB Board. “We expect that the cooperation will help to use resources intended for the support of economic development and modernization of countries-members of the two institutions more effectively.”
About The World Bank Group
The World Bank Group is one of the world’s largest sources of knowledge and funding for its 188 member-countries. The organizations that make up the World Bank Group are owned by the governments of member nations, which have the ultimate decision-making power within the organizations on all matters, including policy, financial or membership issues. The World Bank Group comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the World Bank Group’s mission to end extreme poverty by decreasing the percentage of people living on less than $1.25 a day to no more than 3 percent, and promote shared prosperity by fostering the income growth of the bottom 40 percent for every country. For additional information please visit: http://www.worldbank.org, http://www.ifc.org, http://www.miga.org
About the Eurasian Development Bank
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at http://www.eabr.org