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Project ID: 1307
Rural Areas Economic Development Programme The goal and objectives of the Rural Areas Economic Development Programme (RAEDP) in Armenia are to increase sustainable employment and incomes among rural people in the mountain areas of seven disadvantaged marzes (administrative districts) and to stimulate the sustained growth of rural enterprise activity in the defined programme area. The principal outputs will be the provision of medium- and long-term financing to small and medium rural enterprises, effective access to the required business intermediation services and commercially justifiable infrastructure in the programme area. The proposed programme orientation is consistent with IFAD's strategic framework, its regional strategy for Central and Eastern Europe and the Newly Independent States, and the recently approved country strategic opportunities paper. It is also in line with the IFAD draft strategy for private-sector development and partnership. The client group for RAEDP will include unemployed rural men and women, small and medium farmers, rural entrepreneurs, agro-processors and traders. The programme approach puts in place investment response mechanisms, primarily through the commercial financial sector, that can be accessed by the rural population at large in the most disadvantaged parts of the country. Households benefiting from earlier phases of IFAD support, including farmer members of water users' associations, producer groups and village associations, will have the opportunity to improve their circumstances further, either by borrowing for seasonal/capital investment or by taking advantage of jobs created by other, more commercially oriented investors. At the farm enterprise level, investments will increase returns to on-farm household labour. Productivity improvements will result in higher levels of disposable income: and, in most cases, the modernization of farming practices and adjustment of cropping patterns are expected to provide greater income security against external shocks (e.g. droughts and price changes). At the non-farm, rural enterprise level, investments in agriculture-related businesses and infrastructure will further enhance opportunities for employment and will facilitate farmers' access to markets for produce, inputs and services. It is expected that ultimately thousands of small- and medium-scale enterprises in rural areas will be created or enlarged with the support of increasingly proactive financial institutions. The programme's emphasis on rural development, as opposed to a more narrow focus on agricultural enterprise development, will provide opportunities for the large number of temporary subsistence farmers to move back into occupations for which they are better trained and vocationally experienced. Loan Amount SDR 10.45 million (equivalent to approximately USD 15.3 million) on highly concessional terms Total programme cost: USD 28.7 million Cooperating Institution: United Nations Office for Project Services (UNOPS) |
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| Project ID: 1177
Agricultural Services Project The Agricultural Services Project is based on a strategy of: (i) broad poverty alleviation through support for agricultural growth; (ii) targeted assistance for poor rural people who are not in a position to benefit from agricultural growth; and (iii) focus on the countrys poorest and most marginalized areas. It will support improved seed production and certification to provide farmers with higher quality, certified seed. Water users consumer cooperatives (WUCCs) will be assisted to cater for the operation and maintenance (O&M) of tertiary and secondary irrigation infrastructure. Federations and unions of WUCCs will be supported at the district and national levels. Rural financial services will be provided by means of: (i) lending for agricultural production through the Agricultural Cooperative Bank of Armenia (ACBA); and (ii) support for small enterprise development and microfinance for groups of women. Approximately 33 000 farm families will benefit directly from the project. For the irrigation development and seed development components, which are national in scope, the potential target group will include a major portion of the farming population living in rural areas (approximately 230 000 families). The incidence of absolute poverty among the rural population is estimated to be twice the national average. The single most important source of off-farm income is seasonal male labour migration to other Commonwealth of Independent States countries. Loan amount: SDR 12.35 million (equivalent to approximately USD 15.51 million) on highly concessional terms Total project costs are estimated at USD 20.39 million, of which USD 1.05 million will be provided by Armenian Social Investment Fund (ASIF). Cooperating institution: United Nations Office for Project Services (UNOPS) |
| Project ID: 1038
North-West Agricultural Services Project This four-year project will improve living conditions for the target group through: the development of appropriate and sustainable agricultural support services with private-sector involvement; rehab ilitation of existing tertiary irrigation infrastructure and on-farm water management over an area of about 7 000 ha, including the promotion of water users' associations to be responsible for operation and maintenance; and provision of short-term credit to about 10 000 men and women farmers who are members of project-promoted village associations. Project components are: - agricultural development; - irrigation rehabilitation and water management; - rural credit; - community development; and - project coordination. The project will benefit initially some 10 000 families (40 000 people) living in the provinces of Shirak, Lory and Aragatzotn, which are considered among the poorest regions of the country. Loan amount: SDR 9.6 million (approximately USD 13.0 million) on highly concessional terms. Total project costs are estimated at USD 15.9 million, of which USD 750 000 will be provided by the European Union Programme of Technical Assistance to the Commonwealth of Independent States in the form of a grant and USD 2.2 million by the borrower. Cooperating Institution: The project will be directly supervised by IFAD. |
