"Significant deterioration of water and irrigation infrastructure in the Republic of Armenia, high levels of water loss, as well as increasing risks associated with climate change present serious challenges for the efficient management of water resources and the sustainable development of agriculture. The project proposes a comprehensive and phased solution, addressing existing issues at both national and local levels simultaneously through the project's two pillars," stated Nvard Vardanyan, Deputy Chairman of the Water Committee of the Ministry of Territorial Administration and Infrastructure of the Republic of Armenia, during an extraordinary session of the NA Standing Committee on Financial-Credit and Budgetary Affairs on June 15, while submitting the draft law "On Ratifying the Framework Agreement No. CAM 1029 on Providing an Unconfirmed Credit Line between the Republic of Armenia and the French Development Agency (AFD)" for discussion.

The Framework Agreement was signed on December 18 and 19, 2025.

The Agreement provides for the allocation of credit funds aimed at improving irrigation infrastructure in the Syunik Province of the Republic of Armenia, as well as implementing the "Water and Agriculture Integrated Development in Armenia" (WAIDA) water project (which also includes the "Water and Irrigation Services Improvement" Project / WISE).

Specifically, it is planned to carry out the rehabilitation and modernization of irrigation systems in the Sisian, Goris, and Meghri communities in phases, encompassing gravity systems, pumping stations, water reuse systems, and consultancy services.

The project will be based on four main components.

According to the rapporteur, the AFD financing consists of a multi-tranche credit line up to a maximum of EUR 100 million, to be disbursed in three tranches:

1. First Tranche: Loan for financing in the Syunik Province of Armenia — EUR 30 million.
2. Second Tranche: First portion of the loan for financing the "Water and Irrigation Services Improvement" Project (WISE) — up to EUR 30 million.
3. Third Tranche: Second portion of the loan for financing the "Water and Irrigation Services Improvement" Project (WISE) — up to EUR 40 million.

The co-financier of the WISE project is the World Bank.

To provide technical assistance, the EU also plans to allocate a grant of EUR 12.456 million.

The Standing Committee endorsed the draft law with a positive conclusion. It is scheduled to be discussed during the upcoming regular sessions of the National Assembly.

Source: http://www.parliament.am/