22 May 2013: The World Bank Board of Executive Directors has approved a US$30 million loan for the Irrigation System Enhancement Project (ISEP) in Armenia. The project aims to enhance the efficiency, cost-effectiveness and sustainability of irrigation in the country by reducing energy use and improving the timing of water delivery in four target irrigation schemes.

The centerpiece of the investment will be the conversion of 13 pump-based irrigation schemes to gravity irrigation, thereby eliminating over 20 million cubic meters of water loss along 52 km of outlet canals and potentially bringing 2400 hectares of new farmland into production.

Energy savings from the conversion of high-cost pump-based schemes are expected to total 38 million kw/hr, or roughly 30% of all of the energy used for irrigation in the country. Two Water State Agencies and 44 Water User Associations will benefit from the investment.

Giuseppe Fantozzi, World Bank Senior Rural Development Specialist and the Task Team Leader of the project, explained that “our goal is to help improve governance in the Water User Associations by providing individual water users with better access to information and empowering them to voice their interests and concerns.”

The project further aims to gather information for the Government of Armenia to improve decision-making, particularly in regard to maintenance costs, institutional effectiveness, and the timing of water delivery. In addition to the Bank’s funds, the Government will contribute US$ 7.5 million, for a total investment of US$ 37.5 million. [World Bank Press Release]