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Improving the sustainability of water resources and irrigated agriculture in the Ararat Plain
Project
This project is carried out with the support of the European Union
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Project start date
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Status
Ongoing
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Project end date
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Project duration
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20 years
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AFD financing amount
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€ 85 000 000
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Country and region
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Location
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Ararat Region / Vedi
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Type of financing
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Partners
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European Union
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Beneficiaries
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Republic of Armenia
This project is carried out with the support of the European Union
The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.
For its first sovereign operation with the Republic of Armenia, AFD is financing the construction of the Vedi reservoir and associated infrastructure in the Ararat Plain. The project will improve irrigation and make water supplies more reliable, improving working conditions and increasing productivity for farmers in the region.
Context
Agriculture is a strategic sector for Armenia, contributing 22% of GDP, employing 40% of the workforce, and supporting food security. However, the sector suffers from insufficient financing, while producers and value chains remain poorly organized. Irrigated agriculture accounts for 80% of total agricultural production, making efficient irrigation systems essential to improving agricultural productivity. The irrigation infrastructure inherited from the Soviet era is now deteriorating and consumes large amounts of energy.
Declining rainfall in recent years and the rapid growth of aquaculture have also increased water withdrawals from Lake Sevan and groundwater reserves. These withdrawals have harmed ecosystems while still failing to meet overall irrigation demand. Against this backdrop, the Armenian authorities asked AFD to help secure the country’s water reserves and improve its irrigation systems by financing the construction of the Vedi reservoir.
Description
The project aims to secure water resources and strengthen the capacity of stakeholders in the sector. It has two components:
- Construction of the Vedi reservoir, with a storage capacity of 29 million cubic meters, to provide gravity-fed irrigation in the plain and reduce energy consumption by 12.2 million kWh per year.
- Rehabilitation, modernization, and expansion of the irrigation network across an area of 3,200 hectares.
Alongside the loan, the European Union has entrusted AFD with a €10 million grant to finance a project supporting the development of irrigated agriculture in the Ararat and Armavir regions. The aim is to ensure that more efficient use of water resources translates into tangible productivity gains for farmers. Activities will include:
- Providing institutional support at the local and national levels to the State Water Committee and the Ministry of Agriculture.
- Improving advisory services for farmers.
- Introducing innovative financial instruments to promote land consolidation, improve farmers’ access to financing, support investment in irrigation systems, and help establish cooperatives.
Impacts
This irrigation project is strategically important to agricultural and economic development in the Ararat region. The reservoir and associated infrastructure will improve working conditions and productivity on 4,500 farms. By addressing water shortages, the poor condition of the irrigation network, and its high operating costs linked to energy consumption, the project is expected to reverse the decline in farming in the Ararat Plain.
It will also bring abandoned farmland back into production, increase productivity, and raise farmers’ incomes. Lastly, the project will strengthen irrigation governance by promoting practices that use energy and natural resources more efficiently.