Intergovernmental Transfers for Environmental Infrastructure

Lessons from Armenia, the Russian Federation and Ukraine

image of Intergovernmental Transfers for Environmental Infrastructure

This report draws on three detailed case studies from Armenia, the Russian Federation and Turkey and on the experience of OECD countries to provide guidance on how transfers from central budgets to local authorities could be designed to finance environmental infrastructures in transition economies. The report also investigates mechanisms for transferring financial resources for water services from higher to lower levels of government.



Intergovernmental Transfers for Environmental Expenditure in Armenia

According to the law on Administrative-Territorial Division of the Republic of Armenia (AR), Armenia is divided into ten marzes (regions) and the capital city of Yerevan, which has the status of a marz. Each marz is subdivided into rural and urban communities (930 in total), and Yerevan is subdivided into 12 district communities. The marzes vary widely in terms of size and population. Yerevan is the smallest by far in area, at about 230 sq km, but has the largest population, at over 1 million.


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