The Rural Areas Economic Development

Programmes implementation unit


RAED PIU of the Staff of the Government of Armenia was established on April 28, 2011, Decree N 461-N, of the RA Government. According to the Governmental decree and as approved by IFAD, the PIU took the responsibility for implementing the RACP as well as to became the successor of RAEDP PAAU and took the responsibility of all the ongoing  projects and programmes of the PAAU.

The goal of the Unit is to engage in policy development in Rural Armenia enabling GoA efforts to realize its development objectives and to work out, develop and implement Rural development projects in Armenia, in line with the Government rural development strategies and concepts, as well as acquire financial resources for projects implementation and develop international partnership.

The objectives of the PIU are: to develop and implement such projects and sub projects that will.

    • improve the local economy, particularly in remote and vulnerable regions of Armenia.
    • provide a more diversified and stable economic base for the development of project area and communities.
    • conserve and improve existing public facilities and provide new facilities as needed for the full and complete development of the Rural Armenia.
    • provide employment opportunities for the residents of the project areas and communities.
    • manage Governmental and international  support and resources effectively and accountably to achieve meaningful, sustainable results

The RAED PIU is the successor of IFAD programmes implementing unit, that started its activities in Armenia in 1996 :



Irrigation Rehabilitation Project  This was the first IFAD-financed operation in Armenia, and it involved the establishment of pilot water management schemes. The objective was to reduce rural poverty, which had increased during the transition from a collective to a marketbased economy, by providing support for essential services to improve agricultural production. Sustainability was a guiding principle in building local institutions that would overcome constraints such as lack of irrigation. The project’s aims were to increase food production and farmers’ incomes through improved water delivery and onfarm water management, and to organize farmers into formal water users’ associations with a proper legal framework and with responsibility and accountability. The project introduced an innovative participatory approach to irrigation water management. By 2000 the IFAD-financed portion of the project was supporting 106 irrigation schemes and had established an equal number of water users’ associations. The project was successful in improving water management and development of users’ associations, and through irrigation it rehabilitated more than twice the amount of land foreseen. Irrigation Rehabilitation Project Loan number(s): I-380-AM Total project cost: US$57.2 million Approved IFAD loan: US$8.0 million Project type: Irrigation Approval date: 12/04/1995




 North-West Agricultural Services Project  The provinces of Sjirak, Lory and Aragatzotn are among the poorest regions in the country, and it was here that IFAD initiated this project with the aim of improving the living conditions and food security of the rural population. The project involved the private sector in developing agriculture in those regions on a sustainable basis. To increase production, the project fostered crop and livestock development and private production and distribution of improved, certified seed. It supported rehabilitation of existing irrigation infrastructure and on-farm water management over an area of about 7,000 ha. It strengthened water users’ associations so they could take responsibility for operating and maintaining local irrigation systems. Through the Agricultural Cooperative Bank of Armenia (ACBA) the project provided short-term credit to about 10,000 men and women farmers who are members of project-promoted village associations. The grass-roots organizations involved in the project had a role in its successful implementation and in the implementation of later projects. North-West Agricultural Services Project Loan number(s): I-455-AM Total project cost: US$15.2 million Approved IFAD loan: US$13.0 million Project type: Agricultural Development Approval date: 04/12/1997

 Armenia: North West agricultural services project (N WASP)



  Agricultural Services Project  In line with IFAD’s poverty reduction strategy and with that of Armenia’s government, the project supported agricultural development, specifically irrigation and seed development. Although its scope was national, it focused on Armenia ’s poorest and most marginalized areas, with the objective of reducing poverty by supporting agricultural growth. Through microfinance programmes for small enterprise development and for groups of women, it provided support for rural poor people who are not in a position to benefit from growth in agriculture. The project fostered improved seed production and certification and distribution through the private sector. It strengthened water users’ associations and assisted them in providing for operation and maintenance of irrigation systems, and it developed irrigation infrastructure so that irrigations areas could be expanded. The people who have benefited from the project had an active role in designing, planning and implementing activities such as rehabilitating and managing irrigation systems and contracting for the services of private entrepreneurs. Microfinance activities to improve agricultural production and to support off-farm activities, particularly for women’s groups, were based on a demand-driven participatory approach through village-based credit associations and the Armenian Cooperative Banking Association (ACBA). One of the aims of the project was to establish financially sound small and medium-size enterprises to provide employment opportunities in poor villages. . Agricultural Services Project Loan number(s): I-561-AM Total project cost: US$20.4 million Approved IFAD loan: US$15.5 million Project type: Irrigation Approval date: 26/04/2001

 Armenia: Agricultural Services Project



  Farmer Market Access Programme  Many of the numerous small businesses in Armenia are held back by lack of access to financial services. The objective of the programme is to make financing available to rural enterprises with good potential for rapid growth. It will help create opportunities for farmers to become more commercially oriented, and it will also increase employment prospects for rural communities. The programme targets existing or new rural businesses run by subsistence and semi-subsistence farmers, landless and unemployed people and poor rural women. Specific aims are to: stimulate the growth of rural enterprises with links to poor primary producers, and to those able to offer employment opportunities in rural areas help provide financial services in rural areas and build the capacity of the Armenian financial sector to respond to the need for small and medium loans provide rural businesses with training in appropriate knowledge and technology The programme will direct technical and financial assistance towards key points in rural market chains to maximize the impact on productivity, employment opportunities and market access. Farmer Market Access Programme Loan number(s): I-730-AM Total project cost: US$32.1 million Approved IFAD loan: US$11.9 million Approved IFAD grant: US$501,000 Project type: Rural Development Approval date: 12/09/2007






Farmer Market Access Programme

Project completion report

Main report and appendices

Agreement /RFF/CS/SSS-2013/001

Impact Assessment

of Rural Finance Component

of Farmer Market Access Programme

Agreement /RFF/CS/SSS-2013/001

Impact Assessment

of Rural Finance Component

of Farmer Market Access Programme


  Productive Infrastructure Rehabilitation Project  OFID was the only foreign investor of the project. PIRP aimed to stimulate private sector development and commercial oppor-tunity by tackling the infrastructure con-straints that prevent rural communities from engaging in productive, profitable ac-tivity. Sub-projects were proposed by vil-lage councils, producers’ associations or farmers’ interest groups, and included irri-gation systems, local roads and bridges, livestock water supply systems, fresh water supplies and the natural gas network. In total 24 communities benefited from net-works, another 14 communities benefited from improved transportation access. Productive Infrastructure Rehabilitation Project Reference: 1104P OFID fifnancing: US$10,000,000 Approval date: 12/19/2006 Co-financiers: BENEFICIARIES, OFID, GOVERNMENT Total Cost: US$15.5 milion















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