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World Bank Supports Rural Employment Through Infrastructure Rehabili

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  • World Bank Supports Rural Employment Through Infrastructure Rehabili

    WORLD BANK SUPPORTS RURAL EMPLOYMENT THROUGH INFRASTRUCTURE REHABILITATION

    armradio.am
    26.10.2011 12:16

    The World Bank's Board of Executive Directors approved a US$18 million
    loan for the Additional Financing of the Irrigation Rehabilitation
    Emergency Project (IREP) for Armenia. The scale up and restructuring
    of this project will improve water use efficiency in the selected
    irrigation schemes, as well as foster immediate rural employment in
    seven regions of Armenia.

    Rehabilitation works will include 50 km of main and secondary canals
    serving around 52,000 hectares (ha) in Aragastotn, Kotayk, Shirak,
    Lori, Ararat, and Armavir regions, which will allow reducing water
    losses by an estimated 34.4 million cubic meters and will potentially
    restore irrigation on about 4,700 ha. In addition, rehabilitation of
    another 63 km of tertiary networks in 19 communities of Lori, Shirak,
    Gegharkunik, and Armavir regions will reduce water losses by 9.9
    million cubic meters, will improve existing irrigation water services
    on over 2,500 ha, and potentially restore irrigation on 1,760 ha.

    Annual water savings (44.2 million cubic meters) equivalent to US$1.4
    million of the financial price of water will enable some 6,500 ha of
    previously irrigated lands to be restored.

    "This Project will directly benefit over 88,000 farmers who will
    see their farm profitability and incomes rise," said Mr. Asad Alam,
    World Bank Regional Director for the South Caucasus. "This Project
    supports the government's efforts to improve agricultural productivity
    and boost long-term growth".

    "The irrigation rehabilitation will also generate about 7,000
    person-months of temporary employment, and potentially may add about
    2,100 permanent jobs in agriculture" said Mr. Jean-Michel Happi, the
    World Bank Country Manager for Armenia. "Job creation is an important
    dimension of this project."

    Under the original IREP, some 89.4 km were rehabilitated, including
    57.7 km in Talin and 31.7 km in Armavir main canals. Water losses
    declined by about 96.9 million cubic meters from around 114. Temporary
    jobs created during construction equaled to about 11,379 person/months
    (of the targeted 9,000 person/months), of which 67 percent was
    unskilled labor, primarily benefitting poorer households. Longer
    term development impacts include an estimated 8,000 ha returned to
    irrigation to the benefit of small-scale farmers in surrounding areas.

    Over time this is expected to provide incentives for cultivation of
    higher value crops, which should result in additional long-term job
    creation and improved livelihoods for poorer households.

    "This Project will also strengthen the sustainability of progress made
    in the irrigation sector by improving water service delivery and water
    management," added Mr. Giuseppe Fantozzi, Task Team Leader for the
    Project. "It will strengthen the institutions that are particularly
    relevant for the ongoing reforms, especially through training the
    Water User Associations."

    The Project was prepared in close cooperation with the Millennium
    Challenge Corporation (MCC) Program, which prepared the preliminary
    designs for construction works.

    Total financing of the Project is US$ 21.6 million, of which the
    Government of Armenia will finance US$3.4 million and US$0.2 million
    will be provided by beneficiaries (already collected under the MCC
    Program funds). The IBRD loan carries a maturity of 25 years including
    a grace period of 10 years.

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