Irrigation System Modernization Project in Armenia



Signed Investment credit

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;

[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.

Project documentation

Concept Note

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