This assessment reviews the currentstatus of public procurement in Armenia and makesrecommendations for further improvements. It also providesan update of the Country Procurement Assessment Report(CPAR) carried out in May 2004. The report includes anaction plan to assist the Government of Armenia (GoA) inmoving the procurement reform agenda forward. The assessmentwas carried out jointly with the counterpart team appointedby the Minister of Finance. The major procurementlegislation and other procurement-related laws and decrees,and documents were analyzed and interviews were conductedwith procuring entities, suppliers, contractors, consultingfirms, civil society, and government officials. Thebenchmarking report provides a reference point for the GoAto monitor and measure improvements in the publicprocurement system, and to formulate a capacity developmentplan to move towards a sound procurement system that leadsto economy and efficiency in public expenditure. Donors canuse these results to develop strategies for assisting inprocurement capacity building and to mitigate risks in theirindividual operations. In order to further broaden theperspective on the public procurement functions in Armeniaand also to focus on certain specific areas of concern, casestudies have been carried out on public procurement inhealth and transport sectors. In light of the GoA interestin introducing Electronic Government Procurement (e-GP), theteam has also prepared a special study on the subject, usingthe readiness assessment guide of the multilateraldevelopment banks' e-GP working group. Case studieshave also been prepared on anti-corruption measures, andpublic-private partnership, given the importance of thesetopics to public procurement.