The World Bank Board of Executive Directors approved a $30 million loan for the Irrigation System Enhancement Project (ISEP) in Armenia.

This project will assist the Government of Armenia in its continuous efforts to ensure efficient, cost effective and sustainable irrigation through reduced amount of energy used and improved timing of water supply in four targeted irrigation schemes. In addition, it will help improve the availability and reliability of important sector data and information for decision-makers and other stakeholders, WB Yerevan office informs.

The major investment will be aimed at lowering the operating cost of water by converting pump-based irrigation to gravity irrigation in four systems. The proposed ISEP will finance the construction of gravity irrigation systems in the Meghri, Gegardalich, Baghramyan-Norakert and Kaghtsrashen. About 52 km of outlet canals in 13 selected pump-based schemes will be rehabilitated to minimize losses of high-cost pumped water. The investment in these canals will allow for savings of more than 20 million cubic meters of high-cost pumped water. It will be achieved mainly through the improvement in conveyance efficiency of the outlet canals of selected schemes by reducing water losses. It is calculated that for 100,000 liters of water the introduced change will save 1.2 liters of water per second.

In addition to the energy saving effect of slightly more than 38 million kw/h, equivalent to about 30 percent of the total needs of the irrigation system in Armenia, the project will also allow improving water availability for currently serviced areas. This will potentially bring about 2,400 ha of formerly irrigated agricultural fields back to irrigation, leading to increased agricultural production.

The total financing of the project is US$37.5 million, of which US$7.5 million is contributed by the Government of Armenia. The International Bank for Reconstruction and Development (IBRD) Specific Investment Loan (SIL) has a maturity of 30 years and a 5 year grace period.