World Bank to Provide Armenia with €70.4 Million Loan

The World Bank will provide Armenia with a loan of €70.4 million aimed at improving water supply and irrigation services. This announcement was made on February 26 during a meeting of the Financial and Budgetary Affairs Committee of the National Assembly by the Chairman of the Water Committee, Aramazd Ghalamkaryan.

The statement came during the discussion of the draft agreement for the loan under the project "Improvement of Armenia's Water Supply and Irrigation: Phase 1." The agreement has been signed between the Republic of Armenia and the International Bank for Reconstruction and Development.

According to the justification of the document, on September 11 and 18, 2025, the parties signed the respective agreement, under which the Bank committed to provide Armenia with €70.4 million for the funding of the project. In turn, the Government of Armenia will provide co-financing to cover the taxes, fees, operational, and other expenses related to the implementation of the project that are not financed by loan funds.

Ghalamkaryan clarified that the deadline for the loan agreement to come into effect is 180 days from the date of signing, while the duration of the program is five years from the date it comes into effect. The entry into force date for the co-financing agreement is set for March 31, 2026.

The program includes several key components, including:

• Water sector reforms and institutional strengthening,
• Improvement of water supply and sewage systems in rural areas,
• Modernization of irrigation infrastructure and management improvement,
• Project management.

The program is also expected to receive co-financing from the French Development Agency. As a result of the program's implementation, climate-resilient irrigation and water supply systems are anticipated to be installed, which will contribute to economic growth, enhance food security, and foster balanced territorial development.

After extensive discussions, the initiative received a positive conclusion from the permanent committee of the National Assembly, with the issue being addressed through an expedited procedure.