ArmInfo. The Armenian government plans to receive a ?100 million credit line from the French Development Agency (FDA) for the development of the water and agriculture sectors. An additional ?12.4 million will be received as a grant from the EU. The Cabinet of Ministers approved the proposal to sign Framework Agreement No. CAM 1029 for an unconfirmed credit line between the RA and the FDA at its regular meeting on December 4. It should be noted that today the government amended another loan agreement with the FDA for ?150 million to receive funds in the current fiscal year.
As stated in the explanatory note to the document, the signing of this Framework Agreement is planned within the framework of the Water and Agriculture Integrated Development of Armenia (WAIDA) program. It is noted that Armenia's water and irrigation infrastructure is significantly deteriorating, water losses and ineffective management are reducing sector productivity, and climate change is increasing the risk of drought years. WAIDA is proposing a comprehensive solution that includes two main project components: a national-level water infrastructure investment component, which will be co-financed by the World Bank's Water Supply and Irrigation Services Improvement (WISE) project; and a local-level component in the Syunik region of the Republic of Armenia, aimed at restoring irrigation systems, improving water resource management, and developing sustainable and inclusive agriculture.
The implementation of the Syunik region component is of particular importance, as it will combine infrastructure development with the full utilization of local economic and agricultural potential.
The project includes:
- phased rehabilitation and modernization of irrigation systems in the communities of Sisian, Goris, and Meghri: gravity systems, pumping stations, water reuse systems;
- consulting services (research, detailed design, supervision). The program will be based on four main components, logically and interrelated in the following sequence:
- Investments in the modernization, rehabilitation, and improvement of water infrastructure;
- Investments in more developed agriculture;
- Investments in agribusiness, including agritourism, aimed at increasing the value of products, which is a prerequisite for sustainable agricultural development;
- Development of advanced financial mechanisms for the development of green and smart agricultural growth with a focus on digitalization.
The FDA financing consists of a multi-tranche credit line of up to ?100 million, divided into three tranches: - a loan for the Syunik region of the Republic of Armenia in the amount of ?30 million; - the first tranche of the Water Supply and Irrigation Services Improvement Project (WISE) in the amount of up to EUR 30 million; - the second tranche of the Water Supply and Irrigation Services Improvement Project (WISE) in the amount of up to EUR 40 million;
The World Bank is a cofinancier of the Water Supply and Irrigation Services Improvement Project (WISE).
The approval of the first two tranches (EUR 30 million each) of the credit line is scheduled for December 20, 2025. A grant of EUR 12.456 million is also planned from the European Union for technical assistance.
