ArmInfo. Armenia will receive a EUR12 million grant from the French Development Agency (AFD) for the implementation of the "Integrated Development of the Water and Agricultural Sectors" (WAIDA) program.
The Armenian government approved the agreement with AFD at its June 4 meeting.
The project rationale notes that the program aims to improve water resource management, restore and modernize irrigation and drinking water infrastructure, and strengthen the sector's institutional capacity. Armenia's water supply and irrigation infrastructure is significantly deteriorated, water losses and ineffective management limit agricultural productivity, and climate change increases the frequency and risk of droughts. The project offers a comprehensive solution to these problems through two interrelated components. The national-level water infrastructure investment component, which will be co-financed by the World Bank's Water Supply and Irrigation Services Improvement (WISE) project, the local-level territorial component in the Syunik region of the Republic of Armenia, also aimed at improving water resources management and developing sustainable and inclusive agriculture within the framework of the Land and Irrigation for Territorial Development in Syunik (LTDS) project, and envisages the phased rehabilitation and modernization of irrigation systems in the communities of Sisian, Goris and Meghri, the development of gravity systems, the modernization of pumping stations, the introduction of water reuse systems, and the provision of consulting services (research, design, supervision).
The program will be based on four main areas: investments in the restoration and modernization of water infrastructure, investments in agricultural development, promotion of agribusiness, including agritourism, and the development of advanced financial mechanisms for the development of green and smart agriculture with a particular emphasis on digitalization.
Financing for the program will be provided through a multi-stage mechanism with the participation of international partners: the French Development Agency (AGD) will provide up to ?100 million in loan financing, the European Union will provide ?12 million in grant funding (technical assistance and capacity building), and the World Bank will provide ?70.4 million in loan financing.
