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Armenia Revised Irrigated Agriculture Project Program

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  • Armenia Revised Irrigated Agriculture Project Program

    ARMENIA REVISED IRRIGATED AGRICULTURE PROJECT PROGRAM

    RIA OREANDA
    Nov 5 2008
    Russia

    Yerevan. ">OREANDA-NEWS . November 5, 2008. The Governing Council
    of Millenium Challenge Account-Armenia SNCO met at the Office of
    Government, presided at by GC Chairman, RA Prime Minister Tigran
    Sargsyan.

    The Council discussed the revised Infrastructure activity of
    the Irrigated Agriculture project of the MCA-Armenia program, as
    well as the preliminary report on institutional strengthening of
    irrigation management entities presented by the Consultant under of
    the Water-to-Market activity of the Irrigated Agriculture project of
    the MCA-Armenia program.

    The MCA-Armenia Chief Executive Officer briefed the Council on the
    changes effectuated in the contracts on design and technical control
    under the Infrastructure activity of the Irrigated Agriculture project
    of the MCA-Armenia program, as well as on the course of implementation
    of the credit component of the Program.

    The meeting has also discussed and approved the amendments to the
    MCA-Armenia program procurements plan.

    The Governing Council was reported on the outcome of the vote
    for the new composition of the MCA-Armenia Beneficiaries Council
    (2008-2009). The council also discussed the results of the vacancy
    competition for the post of Assistant to MCA-Armenia SNCO Chief
    Executive Director. Following discussion and endorsement by the
    Governing Council, the nominees with highest interview scores and
    the commission-proposed priority list will be sent to the MCC for
    final approval.

    With reference to the first agenda item, MCA-Armenia SNCO CEO Ara
    Hovsepyan said that account taken of the depreciation of the US dollar
    over the past few years and the rise in building material-related
    and operating costs, it is impossible to complete the activities
    specified in the Infrastructure component of the Irrigated Agriculture
    project. As a result, the program needs reconsidering and an effective
    selection of sub-components, considering the technical, economic,
    environmental and social factors. The program revision started
    last March and was completed late in September. In the words of Ara
    Hovsepyan, revision work was attended by the representatives of local
    and Washington offices of the MCC, together with the representatives
    of Jacobs (MB) specialized organization. The team worked in close
    cooperation with the RA Vice-Prime Minister, Minister of Territorial
    Administration and the representatives of State Water Management
    Committee by the Ministry of Territorial Administration. They
    held consultations with water-user associations and communities and
    conducted field visits. As a result, the final version of the concept
    note on revision of the Infrastructure activity was developed and
    subsequently approved by the Millenium Challenge Corporation.

    Under the revised program, by September 2011, 6 main channels will have
    been repaired, 7 natural flow systems engineered, 18 pumping stations
    restored, the main collectors of the drainage system in Ararat valley
    and artesian/deep-water wells rehabilitated, tertiary canals restored
    with a 15% co-funding on the part of water user associations. The
    total cost of the revised Infrastructure activity is USD 107.2 MN. As
    a result of restoration / construction work, there will be 106,161
    beneficiaries in 286 communities with a population of 473,360 (of
    which 244,721 are women).

    As result of discussions held between the Irrigation Activity
    Consultant and the MCC, it has been decided to trust monitoring work
    under the Infrastructure activity to a single specialized company as
    this is supposed to provide for better technical control, as well as
    help engage international experts in the works. This in turn will lead
    to the transfer of new professional skills and international expertise.

    The meeting noted that that the vote for the third generation of the
    Council of Beneficiaries was held on September 27, 2008. Applications
    were received from 396 civil society organizations registered and
    operational in Armenia, including unions, funds and foundations,
    water-user associations, consumer societies, as well as other
    non-governmental and non-commercial organizations. A secret ballot
    resulted in the election of 15 candidates inclusive of 4 women,
    representative of 7 different marzes of the Republic of Armenia. The
    closed ballot of October 13, 2008 delegated 5 members of the Council
    of Beneficiaries to the Governing Council.

    The MCA-Armenia SNCO Chief Executive Director also reported that as
    of September 30, 2008, the program-stipulated loan to the amount of
    USD 1.5 MN was earmarked in full, with all proceeds administered in
    Armenian drams. The average size of lending was AMD 3.674.000.
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