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States News Service
June 20, 2014 Friday
THE WORLD BANK HELPS BOOSTING THE COMPETITIVENESS OF ARMENIAN AGRICULTURE
WASHINGTON
The following information was released by the World Bank:
The World Bank Board of Executive Directors today 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 eight
regions of Armenia with significant pasture areas and increase the
marketed production from selected livestock and high value agri-food
value chains.
For the women and men living in Armenia's rural communities,
agriculture remains the main source of employment and livelihoods.
Thus, developing farmers' productivity, including through cooperatives
and associations, and strengthening the links between agricultural
producers and the food processing industry are critical. The project
will help address key constraints by improving market access,
supporting the commercialization process, and enhancing employment
opportunities while protecting the natural environment. The second
CARMAC expands the scope of the first project, notably its successful
pasture-based livestock activities, to include a new value chain
component linking livestock and other agriculture production with
markets.
"Enhancing productivity and strengthening market access of farmers are
key to reducing poverty and boosting shared prosperity in rural areas"
says Jean-Michel Happi, 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 proposed project will further implement an efficient and
sustainable community managed pasture based livestock production and
include new communities exhibiting a strong interest, adding to the
already existing 86 communities covered by the on-going CARMAC
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 of
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.
"I would highlight the long-term benefits of value chain development
for the efficiency of agricultural output," says Nicolas Ahouissoussi,
World Bank Task Team Leader of the project . "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."
Support programs for women and youth are planned to enhance their
participation in the PUCs along with their communal decision-making
process around pasture management. Along with other activities, the
project pays special attention and will contribute to increasing the
capacity of public sector institutions, such as regional-level
Veterinary Service Centers and State Service for Food Safety, to
facilitate business development and enable market access in the
selected value chains.
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.
Media Contacts
In Yerevan
Vigen Sargsyan
Tel : (374 10) 52 09 92
[email protected]
In Washington
Elena Karaban
Tel : (202) 473-9277
[email protected]
For Broadcast Requests
Mehreen Sheikh
Tel : (202) 458-7336
[email protected]
From: A. Papazian
June 20, 2014 Friday
THE WORLD BANK HELPS BOOSTING THE COMPETITIVENESS OF ARMENIAN AGRICULTURE
WASHINGTON
The following information was released by the World Bank:
The World Bank Board of Executive Directors today 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 eight
regions of Armenia with significant pasture areas and increase the
marketed production from selected livestock and high value agri-food
value chains.
For the women and men living in Armenia's rural communities,
agriculture remains the main source of employment and livelihoods.
Thus, developing farmers' productivity, including through cooperatives
and associations, and strengthening the links between agricultural
producers and the food processing industry are critical. The project
will help address key constraints by improving market access,
supporting the commercialization process, and enhancing employment
opportunities while protecting the natural environment. The second
CARMAC expands the scope of the first project, notably its successful
pasture-based livestock activities, to include a new value chain
component linking livestock and other agriculture production with
markets.
"Enhancing productivity and strengthening market access of farmers are
key to reducing poverty and boosting shared prosperity in rural areas"
says Jean-Michel Happi, 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 proposed project will further implement an efficient and
sustainable community managed pasture based livestock production and
include new communities exhibiting a strong interest, adding to the
already existing 86 communities covered by the on-going CARMAC
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 of
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.
"I would highlight the long-term benefits of value chain development
for the efficiency of agricultural output," says Nicolas Ahouissoussi,
World Bank Task Team Leader of the project . "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."
Support programs for women and youth are planned to enhance their
participation in the PUCs along with their communal decision-making
process around pasture management. Along with other activities, the
project pays special attention and will contribute to increasing the
capacity of public sector institutions, such as regional-level
Veterinary Service Centers and State Service for Food Safety, to
facilitate business development and enable market access in the
selected value chains.
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.
Media Contacts
In Yerevan
Vigen Sargsyan
Tel : (374 10) 52 09 92
[email protected]
In Washington
Elena Karaban
Tel : (202) 473-9277
[email protected]
For Broadcast Requests
Mehreen Sheikh
Tel : (202) 458-7336
[email protected]
From: A. Papazian