$37.5 million loan allocated for irrigation system

Progress is expected in Armenia’s irrigation system in 2014, the head of the Program Implementation Office of Territorial Administration Ministry’s State Water Industry Committee Adibek Ghazarian said at a meeting with journalists today.

EBRD allocated a 30 million dollar loan to Armenia for a 25-year period, with a 10-year grace period, while the government provided $7.5 million. When the project is completed, Armenia’s 1,915-ha mechanical irrigation system will be replaced with a gravity irrigation one. In addition, irrigated areas will increase by 1,660 ha, with water waste being reduced.

Irrigation systems will be built in Meghri, Geghardalich, Baghramian-Noyakert and Kaghtsrashen.

The operation of these systems will enable to reduce irrigation water and electric power consumption. Improvement of reservoirs is also planned.

The new irrigation systems will allow saving 3.7 million kwh annually or approximately $320 thousand.

The irrigation tariff is 11 drams, while the cost price has increased from 18 to 20 drams after the rise in the electricity price in 2013. The state annually allocates 4 billion drams to water using companies which sell water to farmers for 11 drams.

According to Adibek Ghazarian, the water tariff will not decline. As a result of $37 million program’s implementation, farmers will receive water through a gravity irrigation system instead of the old mechanical one.