The World Bank’s Board of Executive Directors today approved the Irrigation Rehabilitation Emergency Project (IREP) for Armenia in the amount of US$30 million, Aristomene Varudakis, head of the WB-Armenia office, told journalists today. The project will be financed through a loan from the International Bank of Reconstruction and Development (IBRD).
The IBRD Flexible Loan has 27 years of maturity with 5 years grace period. Since joining the World Bank in 1992 and IDA in 1993, commitments to Armenia total approximately US$1,277 million.
The Project supports two objectives: improving water use efficiency in two selected irrigation schemes in Armavir and Talin regions; and fostering rural employment. These are to be achieved by civil works to rehabilitate irrigation canals which will reduce water losses, and strengthening the institutions managing the irrigation infrastructure. The IREP strongly build upon previous projects in this sector, through World Bank and other donor financed – projects.
The Project will provide funds for the rehabilitation of almost 84 km of the main canals in Armavir and Talin regions, that will reduce losses by up to 70 thousand cubic meters of water and will help bring irrigation back to about 7,300 ha of land. By the time the Project is completed, around 39,000 water users will directly benefit from the rehabilitation works. The beneficiaries are spread over 73 communities. The Project will contribute to the creation of almost 9,000 person months of employment. While this will be temporary in nature, it will have a considerable impact on mitigating the effects of the economic downturn on underemployed farmers and return migrants in the regions where the construction activities will take place.
