The Action aims at supporting the development of modern irrigation by addressing sectorial constraints related to water storage, irrigation infrastructures, land consolidation and access to extension services and credits, through both technical assistance and investment. It targets Ararat and Armavir marzes which, with a population of around 500 000 and about 65 % of irrigable land, have the potential to bring a significant leverage to the modernization of agricultural production in Armenia.

Component 1: Institutional support to national and local stakeholders involved in the irrigated agriculture sector:
Institutional support to the Ministry of Agriculture;
Support to the State Committee of Water Economy ("SCWE"):
Public policies and reforms on water management and irrigation efficiency;
Technical, institutional and social engineering of water resources and irrigation networks;
Knowledge, information and monitoring system;
Support to the creation and operation of two Mobile Extension Service Platforms ("MESP");
Support to the development of cooperatives.

Component 2: Improvement of irrigated agriculture outputs:
Financing for the creation and operation of two MESP;
Creation of a Fund for Cooperative Support;
Financial mechanisms for modern irrigated pilot operations:
Matching grants for installation and equipment on modern irrigated pilot operations;
Collateral Fund for on-farm investments; and
Fund for land consolidation.

The general objectives of the Action under the activities to be financed through the EU Contribution are the following:

(i) to support the GoA in the current reforms of the irrigation sector through capacity building activities at central and local levels, development of social water management and reduction of subsidies to the water users associations;

(ii) to put in place innovative sustainable mechanisms to address constraints of irrigated agriculture economic development such as water availability/efficiency but also land issues, cropping patterns, lack of efficient agricultural services, targeting as a priority smallholder's involvement in irrigated agriculture;

(iii) to support the expansion of quality agricultural extension services to support farmers in the modernization of their agricultural practices and the development of high-added value crops;

(iv) to develop financing tools to help farmers’, farmers’ groups and cooperatives to invest in agricultural equipment and irrigation technologies;

(v) to support the sustainable development of farmers’ groups in Armavir and Ararat Marzes, so that farmers can benefit from leverage effects.

1. Modernization of around 2 000 ha irrigated pilot areas;
2. Technical and financial support to 20 production cooperatives and farmers’ groups in these pilot areas;
3. Development of around 10 land consolidation operations in these pilot areas;
4. Creation of 2 MESP;
5. Three coordination meetings of the Steering Committee during the implementation of the Action.