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Harold Doan and Associates, CA
April 26 2005
OPEC Fund extends US$5 million to Armenia for rural economic
development project
Press Release - OPEC Fund for International Development
The OPEC Fund for International Development has signed a US$5 million
loan agreement with the Republic of Armenia in support of an
initiative to increase sustainable incomes among needy rural
communities by stimulating the growth of rural enterprise activity.
Focusing on the seven provinces of Shirak, Lori, Tavush, Gegharkunik,
Vayats Dzor, Syunik and Aragotsotn, the project seeks to enable small
farmers to move away from subsistence agriculture to other, more
sustainable forms of employment.
At present, the majority of cultivable land in Armenia is owned by
peasants, who grow food on small plots for personal consumption.
Government envisages rural enterprise development as playing a
pivotal role in raising income and employment among these people.
Armenia's rural sector exhibits many of the classic constraints to
production and profitability: Farmers' technical knowledge and skills
are limited; and the equipment and machinery used are outdated. This
results in low yields, together with soil and pasture degradation. In
addition, the infrastructure, institutions and instruments necessary
for the efficient operation of a market-oriented rural economy are
lacking.
To stimulate commercial activity and encourage people to diversify
into other areas of work, the project will provide financial services
for small and medium-scale rural enterprises, together with business
intermediation services to assist the less experienced entrepreneurs.
Another component will help alleviate constraints imposed by the poor
condition of essential infrastructure, such as water and energy
supplies, sanitation and rural roads, by supporting public/private
investment in small-scale, commercially derived infrastructure.
An estimated 1.3 million people are expected to benefit from the
project, which represents the OPEC Fund's first development operation
in Armenia.
The agreement was signed in Vienna by H.E. Mr Jivan Tabibian,
Ambassador of the Republic of Armenia to Austria, and by H.E. Mr.
Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC
Fund.
April 26 2005
OPEC Fund extends US$5 million to Armenia for rural economic
development project
Press Release - OPEC Fund for International Development
The OPEC Fund for International Development has signed a US$5 million
loan agreement with the Republic of Armenia in support of an
initiative to increase sustainable incomes among needy rural
communities by stimulating the growth of rural enterprise activity.
Focusing on the seven provinces of Shirak, Lori, Tavush, Gegharkunik,
Vayats Dzor, Syunik and Aragotsotn, the project seeks to enable small
farmers to move away from subsistence agriculture to other, more
sustainable forms of employment.
At present, the majority of cultivable land in Armenia is owned by
peasants, who grow food on small plots for personal consumption.
Government envisages rural enterprise development as playing a
pivotal role in raising income and employment among these people.
Armenia's rural sector exhibits many of the classic constraints to
production and profitability: Farmers' technical knowledge and skills
are limited; and the equipment and machinery used are outdated. This
results in low yields, together with soil and pasture degradation. In
addition, the infrastructure, institutions and instruments necessary
for the efficient operation of a market-oriented rural economy are
lacking.
To stimulate commercial activity and encourage people to diversify
into other areas of work, the project will provide financial services
for small and medium-scale rural enterprises, together with business
intermediation services to assist the less experienced entrepreneurs.
Another component will help alleviate constraints imposed by the poor
condition of essential infrastructure, such as water and energy
supplies, sanitation and rural roads, by supporting public/private
investment in small-scale, commercially derived infrastructure.
An estimated 1.3 million people are expected to benefit from the
project, which represents the OPEC Fund's first development operation
in Armenia.
The agreement was signed in Vienna by H.E. Mr Jivan Tabibian,
Ambassador of the Republic of Armenia to Austria, and by H.E. Mr.
Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC
Fund.