The World Bank Board of Executive Directors approved a US$ 32.67 million financing for the Second Community Agricultural Resource Management and Competitiveness (CARMAC) Project for Armenia.

This Project is designed to improve productivity and sustainability of pasture and livestock systems in up to 100   communities in the eight regions with significant pasture areas and increase the marketed production from selected livestock and high value agri-food value chains.

“Enhancing productivity and strengthening market access of farmers are key to reducing poverty and boosting shared prosperity in rural areas” says Jean-Michel Happi, the World Bank Country Manager for Armenia. “Project activities are devised in such a way as to mainly benefit pasture users, farmer cooperatives, as well as food business operators. At least 50,000 farmers are expected to participate in this project through their membership in Pasture Users’ Cooperatives (PUC).”  

 “The project will support agricultural producers and processors to improve the ability to meet domestic demand and access international markets, building on the competitive advantages of the Armenian market” says Nicolas Ahouissoussi, World Bank Task Team Leader of the project.

Pasture users cooperatives will be established in about 100 communities, which will be the key players in developing sustainable pasture/livestock management plans and receiving grant resources about US$ 200,000 per PUC for their implementation. Funding may include financing of infrastructure to access and use remote pastures, milk collection points with cooling equipment, machinery to produce and harvest fodder, and other activities of community importance.  

Total financing of the project is US$42.67 million, of which US$10 million will be the Government’s and beneficiaries’ contribution. The World Bank will provide a US$9.67 million equivalent credit, of which US$3.8 million on standard blend IDA terms at a fixed interest rate of 1.25% per annum with a maturity of 25 years and a 5 year grace period; US$5.87 million on hard IDA terms at a fixed interest rate of 1.40% per annum with a maturity of 25 years and a 5 year grace period; and US$23 million IBRD loan of variable spread with a 10 year grace period and the total repayment term of 25 years.

Since joining the World Bank in 1992 and IDA in 1993, the commitments to Armenia total approximately US$ 1,871.73 million.