Armenia to receive over €112 million from AFD and the EU for water and agricultural development
15.06.2026,
15:45
Armenia will receive over €112 million from the French Development Agency (AFD) and the EU for the "Integrated Development of the Water and Agricultural Sectors of Armenia" program.
YEREVAN, June 15. /ARKA/. Armenia will receive over €112 million from the French Development Agency (AFD) and the EU for the "Integrated Development of the Water and Agricultural Sectors of Armenia" program. The Parliamentary Committee on Financial, Credit, and Budgetary Affairs approved the ratification of the relevant agreements at an extraordinary meeting on Monday.
According to Nvard Vardanyan, Deputy Chair of the Water Committee of Armenia, AFD funding will amount to up to €100 million under a multi-tranche credit line. Of this amount, €30 million will be allocated to the program in Syunik Province, and €70 million to the WISE program.
Another €12.4 million will be provided in the form of a grant from the EU. According to Vardanyan, these funds are intended for technical refurbishment and capacity development within the program.
"The significant deterioration of water and irrigation infrastructure, high levels of water losses, and the increasing risks associated with climate change pose serious challenges to the effective management of water resources and the sustainable development of agriculture. This program will enable us to begin a large-scale reform process in a phased manner in the near future, while simultaneously addressing issues at the national and local levels," Vardanyan said.
She reported that the Armenian government signed a framework agreement with AFD on December 19, 2025.
The program includes two interrelated components. The first is an investment component aimed at developing water infrastructure at the national level. It will be co-financed by the World Bank's Water Supply and Irrigation Services Improvement (WISE) program.
The second component will be implemented in the Syunik region. Specifically, it includes the phased restoration and modernization of irrigation systems in the communities of Sisian, Goris, and Meghri, the development of gravity irrigation systems, the modernization of pumping stations, and the introduction of water reuse systems.
The French Development Agency (Agence Française de Développement, AFD) has been operating in Armenia since 2013. The agency is involved in projects in the areas of natural resource management, urban infrastructure, energy transition, and public finance management.
According to Nvard Vardanyan, Deputy Chair of the Water Committee of Armenia, AFD funding will amount to up to €100 million under a multi-tranche credit line. Of this amount, €30 million will be allocated to the program in Syunik Province, and €70 million to the WISE program.
Another €12.4 million will be provided in the form of a grant from the EU. According to Vardanyan, these funds are intended for technical refurbishment and capacity development within the program.
"The significant deterioration of water and irrigation infrastructure, high levels of water losses, and the increasing risks associated with climate change pose serious challenges to the effective management of water resources and the sustainable development of agriculture. This program will enable us to begin a large-scale reform process in a phased manner in the near future, while simultaneously addressing issues at the national and local levels," Vardanyan said.
She reported that the Armenian government signed a framework agreement with AFD on December 19, 2025.
The program includes two interrelated components. The first is an investment component aimed at developing water infrastructure at the national level. It will be co-financed by the World Bank's Water Supply and Irrigation Services Improvement (WISE) program.
The second component will be implemented in the Syunik region. Specifically, it includes the phased restoration and modernization of irrigation systems in the communities of Sisian, Goris, and Meghri, the development of gravity irrigation systems, the modernization of pumping stations, and the introduction of water reuse systems.
The French Development Agency (Agence Française de Développement, AFD) has been operating in Armenia since 2013. The agency is involved in projects in the areas of natural resource management, urban infrastructure, energy transition, and public finance management.
