IDA Credit: US$25 million
TERMS: Maturity = 20 years; Grace = 10 years
Project Description: The Lifeline Roads Improvement Project for Armenia aims to upgrade selected sections of the lifeline road network and create temporary employment in road construction. Armenia's economy has already been severely affected by the crisis through slower direct investments, reduced remittances, falling commodity prices, reduced tourism receipts, reduced availability of credit, and other financial contagions that have decreased economic growth and increased local unemployment. The Government of Armenia (GoA) recognized the implications of the emergency and acted swiftly to begin addressing strategic macro, public investment and expenditure choices. As part of the recovery strategy it requested rapid support from the Bank and the LRIP is part of the requested program.