Yerevan/Mediamax/. World Bank (WB) approved allocation of a loan to Armenia at the volume of USD 16mln for financing “Community Agricultural Resource Management and Competitiveness” program for Armenia.

Mediamax reports that the representative of WB Yerevan office Jean-Michel Happi stated today that the goal of the program is to increase efficiency of livestock farms in 55 rural communities of 6 marzes of Armenia (Aragatsotn, Shirak, Lori, Tavush, Gegharkunik, Syunik) by increasing milk production, improving pasture management and enhancing farm sales of livestock products.  

The total cost of the program makes USD 21.3mln, USD 5.3mln of which will be allocated by the Armenian government. The program, meant for 5 years, will be realized by Armenia’s Ministry of Agriculture in cooperation with the communities. WB loan is provided to Armenia for the term of 20 years with 10 years’ period of grace at the annual interest rate of 0.75%.

According to Jean-Michel Happi, in communities, where the program will be realized, 78 thousand people reside and the main source of income is cattle-breeding. Investments within the framework of the program will be directed to infrastructures, community agricultural enterprises and related auxiliary services. One of the main measures on increasing productiveness of villagers’ labor will be formation of livestock-breeding cooperatives.
 
Jean-Michel Happi also stressed importance of ecologic benefit of this program, since according to him, rational use of pastures and improvement of waste management will interrupt degradation of land and will provide for preservation of biodiversity.

If the program proves effective, WB will consider the chance of its expansion in other communities of Armenia.