WB RELEASES MORE FUNDS FOR REHABILITATION OF ARMENIA’S TERTIARY CANALS
ARMENPRESS
Aug 1, 2007
YEREVAN, AUGUST 1, ARMENPRESS: The World Bank’s Board of Directors
approved July 31 a US$5.0 million credit for additional financing for
the Irrigation Development Project (IDP) for Armenia. The additional
financing will support the government’s efforts in scaling up
activities implemented under the on-going IDP through rehabilitation
of tertiary irrigation systems, and through providing training and
technical assistance to Water Users’ Associations (WUAs).
A press release by World Bank said Armenia has achieved substantial
progress in preventing deterioration of its irrigation and drainage
system and in establishing the basis for the sustainable management
of irrigation and drainage infrastructure.
A long-term national program was conceived in the mid-1990s with
the support of the World Bank to support the rehabilitation and
restructuring of the irrigation and drainage system.
The first phase of the program consisted of emergency interventions
to secure the system’s continued operation. Implementation of this
phase was initiated under the Bank-funded Irrigation Rehabilitation
Project, followed by the Dam Safety Project, and subsequently by
the Irrigation Dam Safety Project II, which is expected to conclude
the emergency intervention phase. The second phase of the program is
focused on restructuring and development and building a solid basis
for irrigation system sustainability initiated by the Irrigation
Development Project Stage I (IDP) "Institutional reform is the most
challenging aspect of the Project," said Giuseppe Fantozzi, Head of the
World Bank team designing the project. "The Water Supply Agency has
been restructured and 52 Water Users Associations were established
throughout the country during the period 2003-2004. Continued
support to Water Users Associations is crucial, since they represent
the core of a more effective institutional set-up that has notably
improved, in recent years, the sector’s financial sustainability and
efficiency. That’s why capacity building and training activities for
the staff of Water Users Associations will continue."
The existing IDP project does not have sufficient funds to ensure
continued capacity building and training activities. In this
context, the Bank agreed to provide additional financing to assist
in the rehabilitation of tertiary-level infrastructure with 15%
co-financing from water users. To-date, the grant scheme under the
IDP financed about US$7.2 million for the rehabilitation of tertiary
canals. Eighty-five percent of this amount was financed with the credit
proceeds while 15 percent was financed by the WUAs as counterpart
funding. Proposals worth an additional US$9.0 million could not be
funded due to a lack of resources. The additional financing would
partially cover this surplus demand.
By the time the project is completed, 37 proposals for the
rehabilitation of some 110 km of tertiary level canals for Water
Users Associations in 37 communities in Ararat, Yerevan, Armavir,
Gegharkunik, Aragatsotn and Kotayk marzes will be implemented.
The expansion of irrigated areas will also allow for an increase in
the amount of water that is available per hectare in these areas. The
percentage of irrigated hectares cultivated with high value-added
crops is expected to increase from 71 to 78 percent.
Similarly, cost recovery will be strengthened, and will rise from 42
to 60 percent. The percentage of farmers satisfied by irrigation water
supply services will be measured by an annual sociological survey.
The credit is provided on "hardened’ IDA terms with a maturity of 20
years, and a grace period of 10 years included. Armenia has been in
the process of graduating from IDA since July 1, 2006 joined the World
Bank in 1992 and IDA in 1993. Commitments to date total approximately
US $1.030 billion for 48 operations.