YEREVAN, FEBRUARY 8, NOYAN TAPAN. According to the RA Law on 2007 State Budget of the RA, at the February 8 sitting the Armenian government approved the 2007 program on the state budget-envisaged maintenance of the state institution Vorotan-Arpa-Sevan Tunnels Operation Department, and operation, technical state improvement and repairs of the Vorotan-Arpa-Sevan water system. The government also approved the directions of reforms on state financial assistance to water user unions. The main purposes of these directions is to strengthen support and participatory management of water user unions, raise their efficiency and increase the effectiveness of predictability and distribution of state expenditures. It was noted that reforms will allow to shift from the currently used traditional spending method of state financial assistance to water user unions to provision of grant assistance in accordance with results. The assessed quotas of state financial assistance to water user unions, as well as the maximum levels of water loss for 2007-2011 were also approved. The decision was made, taking into accout the proposals submitted by the program of financial and structural reforms of the RA irrigation system with the Japanese grant for preparation of the World Bank's Third Credit on Poverty Reduction Support. Chairman of the State Water Industry Committee of the RA Ministry of Territorial Governance Andranik Andreasian said after the siiting that the method of grant assistance allows to assess results of water user unions' activities, based on which assistance will be provided. In all llikelihood the new method will be used from 2008. This year the respective legal documents related to its use will be prepared. A. Andreasian said that the technical capacities of 51 water user unions of Armenia enable to ensure sufficient water supply.

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