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EFSD main page> Projects> Irrigation System Modernization Project in Armenia

Irrigation System Modernization Project in Armenia


In 6 June 2013, the Fund’s Council approved the preliminary application and Concept Note for the investment project on Irrigation System Modernization and Institutional Capacity Building in Armenia in the amount of US $50 million, with the anticipated contribution of the Fund of US $40 million.

In May 2015, the project preparation was completed. Those efforts were financed with a grant provided by the Europe and Central Asia Capacity Development Trust Fund [1] managed by the World Bank. Such cooperation has helped the Manager ensure high standards of the project preparation.

On 3 July 2015, the EFSD Council approved a decision to provide a loan of US $40 million to the Republic of Armenia to finance the Irrigation System Modernisation project, with US $10 million to be co-financed by the Republic of Armenia.

The project is part of the long-term national programme to restore and restructure the irrigation and drainage network in Armenia. The Project involves construction of canals in different regions of Armenia: the sites selected for the Project include those where the need for investment is most acute.

The Project includes the following components:



1. Replacement of mechanical irrigation with gravity irrigation

8 gravity irrigation systems totalling 70.4 km

2.  Rehabilitation of main and secondary canals

8.1 km of main canals;

54.1 km of secondary canals

3. Modernisation of on-farm distribution networks

277.8 km of on-farm networks

4. Building water user associations’ institutional capacity. Project management.

Activities to improve the responsibility of water users and efficiency of water user associations management

Key expected outcomes of the project implementation:

· Net electricity and operation and maintenance cost savings will make US $1.93 million;

· The area of irrigated land will make 10,433 ha;

· The number of project beneficiaries is estimated at 114,382 people;

· Development of the management capacity and technical re-equipment of water user associations, creation of the WUA Federation;

· Improvement of temporary employment for the period of construction work and permanent employment owing to more efficient and stable irrigation water supply and expanded area of irrigated land.

[1] The Europe and Central Asia Capacity Development Trust Fund (ECAPDEV) was created in 2011 with the funds provided by the Government of the Russian Federation to be managed by the WB. The objective of providing the grants is to improve the quality of investment project preparation and build the institutional capacity of project implementation units.

Concept Note

Evaluation report on the Preliminary Application


Project Documentation




07.12.15. A multilateral mission visits a site of the Irrigation System Modernisation Project in the Republic of Armenia

Yerevan, 7 December 2015. A multilateral mission has visited a site of the Irrigation System Modernisation Project in the Republic of Armenia. The mission consisted of representatives of the Ministry of Finance of the Republic of Armenia, the Ministry of Finance of the Russian Federation, the EFSD Resource Manager, and the World Bank.


21.10.15. The Eurasian Fund for Stabilisation and Development and the Government of Armenia have signed an agreement to finance the Irrigation System Modernisation Project

Yerevan, 16 October 2015. The Eurasian Fund for Stabilisation and Development (EFSD) will provide an investment loan of US $40 million to finance the Irrigation System Modernisation Project. Chairman of the Management Board of Eurasian Development Bank Dmitry Pankin and Minister of Finance of Armenia Gagik Khachatryan signed an agreement on that on October 16, in Yerevan. The execution of the agreement followed a meeting with Prime Minister of Armenia Ovik Abraamyan to discuss the Fund’s activity in Armenia.


03.08.15. Artak Azizyan speaks about EDB’s activity in Armenia in his interview to ARKA News Agency

ARKA News Agency (Armenia). Business and Privatisation

In early July, the Eurasian Fund for Stabilisation and Development, managed by Eurasian Development Bank, signed an agreement with Armenia’s government to provide investment financing for the Irrigation System Modernisation project for the total amount of US $50 million. Artak Azizyan, Head of the Eurasian Fund for Stabilisation and Development Programmes Division, in his interview to ARKA News Agency, speaks about the objectives and prospects of this project, as well as about ways to deepen cooperation in the framework of Eurasian integration, the opportunities opening in the context of the Iranian factor and Armenia’s investment attractiveness and economic growth outlook in general.


17.07.15. The Eurasian Fund for Stabilization and Development and the Government of Armenia negotiate an investment credit for Armenia

Yerevan, 16 July 2015. The delegation of Eurasian Development Bank (EDB), as the Resources Manager of the Eurasian Fund for Stabilization and Development(EFSD), headed by Artak Azizyan, Head of EFSD Programmes, negotiated with the Government of Armenia the provision of investment by the EFSD for the Modernisation of Irrigation Systems project. The Armenian side was headed by Armen Gevorgyan, Deputy Finance Minister.


07.07.15. Council of the Eurasian Fund for Stabilisation and Development approves investment loans to Armenia and Kyrgyzstan

Moscow, 3 June 2015. The Council of the Eurasian Fund for Stabilisation and Development has approved two investment loans — to Armenia and Kyrgyzstan.

The investment loans will be provided to finance t he projects of Irrigation System Modernisation in Armenia in the amount of US $40 million and Toktogul HPP Rehabilitation (Phase 2) in Kyrgyzstan in the amount of US $100 million.

At the meeting Council of the Fund also approved the Annual Report of Eurasian Development Bank on its activity as the EFSD Resources Manager for 2014.


03.04.15. Eurasian Development Bank discusses with Armenia the progress in preparation of the Irrigation System Modernization Project of the Anti-Crisis Fund

Moscow, 1 April 2015. In the framework of the preparation for implementation of the Irrigation System Modernization Project in Armenia, a delegation of EDB led by Head of the Programme Division, Anti-Crisis Fund (ACF) Project Group, Artak Azizyan held working meetings at the end of March 2015 with the authorities of Armenia, as well as a range of technical experts involved in the project.


04.12.13. The World Bank and the Eurasian Development Bank to Start Cooperation on Armenia

EDB and WB signed a cooperation agreement to support preparation and implementation of the “Irrigation Modernization and Institutional Capacity Building Project” in Armenia

Moscow, December 4, 2013. — The Eurasian Development Bank (EDB) serving as the Trustee for the Anti-Crisis Fund of the Eurasian Economic Community (ACF) and the World Bank today signed a cooperation agreement to support the preparation and implementation of the “Irrigation Modernization and Institutional Capacity Building Project” in Armenia for the amount of US$40 million to be provided by the ACF.

The agreement was signed by Laura Tuck, Europe and Central Asia (ECA) Vice-President of the World Bank, and Igor Finogenov, Chairman of the EDB Board.

Pursuant to the agreement, the EDB has committed to apply the operational policies of the World Bank in the preparation and implementation of the project. These policies include environmental and social safeguards, and procurement and financial management guidelines for WB-financed projects.


04.09.13. EDB delegation in Yerevan discussed projects of the EurAsEC Anti-Crisis Fund in Armenia

Almaty, 4 September 2013. Eurasian Development Bank (EDB) delegation headed by Sergei Shatalov, Deputy Chairman of the Management Board , visited Yerevan on September 3, 2013. Key issues under consideration were related to activities of the EurAsEC Anti-Crisis Fund (ACF) in Armenia. EDB manages the resources of ACF.


30.08.13. Call for Proposals for the Fourth Round of Project Preparation Grants under the Europe and Central Asia Region Capacity Development (ECAPDEV)Trust Fund

The World Bank (WB) announced the Call for Proposals for the Forth Round of Project Preparation Grants under the ECAPDEV TF.


11.07.13. EDB and World Bank strengthen cooperation on preparation of investment projects

Moscow, 11 July , 2013 — The Eurasian Development Bank (EDB), Resources Manager of the EurAsEC Anti-Crisis Fund (ACF), held a working meeting with a delegation of the World Bank to discuss trust fund operational mechanisms.


Member States

  • The Republic of Armenia

    of Armenia

  • The Republic of Belarus

    of Belarus

  • The Republic of Kazakhstan

    of Kazakhstan

  • Kyrgyz Republic


  • Russian Federation


  • The Republic of Tajikistan

    of Tajikistan