Armenia: Institutional Modernization to Improve the Business Environment

Sovereign Project | 42140-012 Status: Closed


The capacity development technical assistance (CDTA) will help Armenia strengthen the State Registry Agency (SRA) in providing better services and increasing access to information on Armenian businesses.

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Project Name Institutional Modernization to Improve the Business Environment
Project Number 42140-012
Country Armenia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7414-ARM: Institutional Modernization to Improve the Business Environment
Technical Assistance Special Fund US$ 75,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Public sector management - Economic affairs management

Gender Equity and Mainstreaming
Description The capacity development technical assistance (CDTA) will help Armenia strengthen the State Registry Agency (SRA) in providing better services and increasing access to information on Armenian businesses.
Project Rationale and Linkage to Country/Regional Strategy In its present state, the Armenian business registration system is totally manual and is characterized by outdated procedures. since local branches are not linked to the central body, a branch cannot deal with a request for information on a legal entity outside its jurisdiction and must refer the request to head office. The system does not contain the register information as prescribed by law and in line with standard Duropean Union practices, and can therefore become the foundation for an effective and efficient online electronic registry. The existing business registration processes suffer from all the weaknesses of a manual paper-based system, including cumbersome procedures for starting a business, and weak reporting. The SRA has a website which gives uselful information on laws and legal requirements. However, it does not provide services such as downloadable and online forms, register searches, etc. The TA will support the introduction of an online business registry and will make the process of business registration efficient by reducing the time taken to register companies as well as improving access to, and transparency of, informaiton about companies. An organization and business redesign study will be conducted to seek the most appropriate technological model for the online business registry in the SRA. This study would examine the need for legislative and other changes to operationalize SRA's new business model. As part of the reforms, the government also plans to introduce an electronic one-stop business support facility. The TA will provide legal assistance to the Ministry of Justice to draft any required changes in laws and rules for implementing these reforms. The TA will also support any reorganization of business processes of the SRA that may be necessary following setting up of an electronic business registry. The TA will also fund procurement of equipment and software required for setting up the electronic business registry. This would include networked computers with fault-tolerant server hardware (including backup servers aimed at ensuring adequate data safeguards and disaster recovery procedures), broadband internet access, and facilities for scanning and converting existing paper records into a computer-readable form. Technical requirements and specifications for the new information technology system will be drawn up by the consultant.The impact of the TA will be an improved business climate. The outcome will be an efficient and transparent online business registry that will in turn meet two goals: (i) reduce the business registration time at the SRA from 7 days to 3 days; and (ii) improve information dissemination with respect to registered legal entities, which will help attract investments.
Impact Improved business climate
Project Outcome
Description of Outcome Efficient electronic business registration system developed and pilot project implemented
Progress Toward Outcome The outcome has been fully achieved. 1. The TA assisted the Government of Armenia to develop an automated online business registry which has made it easier to start a business by establishing a one-stop shop and reforming and shortening procedures for registration of companies (except banking companies). This includes online company or business registration, title reservation, and obtaining a tax identification number. All process are now achieved within 3 to 5 working days. This has had a salutary effect on Armenia's business climate and the IFC and World Bank Doing Business survey 2013 noted that Armenia's ease of doing business' ranking rose to 32 from 50 a year ago. The TA also supported the Ministry of Justice (MOJ) to carry out a regulatory and legislative framework review for automating the business registry system, including support to carry out policy and business process reforms for e-governance. The TA is expected to be closed on 30 June 2013, after completion of two additional activities: (i) training of SRA and MOF staff, and (ii) financing of a multi-media public awareness campaign for the government, showcasing the refoms.
Implementation Progress
Description of Project Outputs

An organization and business redesign study identifies appropriate technological model for

SRA and required improvements in SRA business processes and automated business registry developed and pilot tested

Legal and regulatory frameworks/amendments for implementing action plan drafted and

submitted to the government

IT support unit created in SRA, with suitable equipment and facilities

SRA staff manage the new automated system effectively

Status of Implementation Progress (Outputs, Activities, and Issues)




Completed. IT team in SRA maintains the system.

Extensive training completed.

Extensive training completed.

On the request of the government, the TA was extended to provide support for a public awareness campaign documenting and showcasing the reform process. A video is being produced for use by the government. Parts of this video will also be used by ADB (DER) to document the successful reforms in Armenia.

Geographical Location Armenia
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The TA was designed with complete participation of relevant stakeholders from the government as well as the international partners. The European Union, the US AID, and the World Bank have been involved and consulted in the development of the TA as well as its implementation.
During Project Implementation Regular contact with the officials of the Ministry of Justice, State Registry Agency, Ministry of Finance, TA consultants, and other donor partners to review progress of the TA.
Business Opportunities
Consulting Services All experts under the TA (a) international ICT business registry expert, (b) international IT quality assurance expert, and (c) 2 legal experts (1 international and 1 national expert) were engaged and have completed their services in a satisfactory manner and the government valued their inputs. The consultant team (Harmony Information Technologies and Education Development Fund, Armenia in joint venture with VX Soft Limited Liability Company, Ireland) has also completed its work on 31 January 2012.
Procurement Procurement of equipment and software have been completed through shopping method. All items will be returned to the executing agency after completion of the TA.
Responsible ADB Officer Grigor Gyurjyan
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Justice
Halabyan Street
Yerevan, Armania
Concept Clearance 30 Apr 2008
Fact Finding 06 Oct 2008 to 10 Oct 2008
Approval 08 Dec 2009
Last Review Mission -
PDS Creation Date 24 Oct 2008
Last PDS Update 17 Jun 2013

TA 7414-ARM

Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2009 30 Dec 2009 30 Dec 2009 31 Dec 2011 30 Jun 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
75,000.00 0.00 25,000.00 0.00 0.00 0.00 100,000.00 08 Dec 2009 524,981.43

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