20 Year Collaboration between the International Fund for Agriculture Development (IFAD) and the Republic of Armenia Continues

 

Recently the National Assembly of Armenia ratified the loan agreement for the new Infrastructure and Rural Finance Support Program in Armenia (IRFSP). The Program will be implemented by the Rural Areas Economic Development Programs Implementation Unit SA of Government Staff of Armenia. 

The Program is aimed at enhancement of social and economic status of population by creating stable opportunities for income growth and occupation.

 

The Program Components are:

 

• Rural Financing
• Rural Infrastructure
• Farmer Awareness and Support, and
• Program Management.

 

The Rural Finance Component is financed completely by IFAD. The following will be achieved by implementing Support of Refinancing of RFF Operations and Support to Investment Operations of FREDA sub-components:

 
Funds will be provided to the Participating Financial Institutions through RFF refinancing operations, which will extend credits to rural smallholders and SMEs to increase the level of their operations and revenues.

 
Through investments and allocation of funds, as well as providing various managerial and technical support, FREDA will uphold small and medium private companies having strong links with poor rural producers within the agriculture value chain.

 

The Rural Infrastructure Component is implemented with financing of OFID and Government of Armenia.

 

The goal is to enhance the water supply and irrigation systems of rural communities in 7 marzes of Armenia, namely Shirak, Lori, Tavush, Gegharkunik, Vayots Dzor, Syunik and Aragatsotn, focusing on areas of high incidence of poverty. The sub-components are:

 
  

        1. Community Water Supply

The objective is to ensure that sufficient water is provided for safe drinking, watering of animals and growing staple food on backyards. 
  

        2. Small and Medium Scale Irrigation Distribution

Construction and/or rehabilitation of tertiary systems for increased efficiency of water distribution will be undertaken. The objective is to enhance the productivity of smallholder irrigable plots.

 

 

The Farmer Awareness and Support Component is financed solely with IFAD funds.

Within this component training will be extended to the farmers on business and finance planning, application of agricultural high-end technologies and best practice. In addition, small scale grants will be provided to women for undertaking demo projects targeted at family diverse food production. 

 

 

Program Management Component ensures efficient program management and coordination.

 

The Program duration is 6 years. It is due to start in 2016.