IRRIGATED AGRICULTURE - WATER-TO-MARKET

Contracts

Contracts were signed with "Ameriabank" CJSC, "Ardshininvestbank" CJSC, "Converse Bank" CJSC, "Armbusinessbank" CJSC, and the following Universal Credit Organizations - "Aniv" UCO LLC, "Farm Credit Armenia" UCO CC, "Nor Horizon" UCO LLC, "GFC General Financial and Credit Company" UCO CJSC, "CARD AgroCredit" UCO CJSC and "SEF International Credit Organization" LLC - to implement the Water-to-Market activity credit component. It will provide loans to MCA-Armenia beneficiaries living in rural areas to enlarge agricultural production and apply effective technologies. Credit component aims to provide technical assistance to farmers by transition of knowledge and new technologies, as well as to provide agricultural loans to beneficiary farmers and technical assistance to financial institutions selected for the implementation of credit component.
The total amount of credit resources being provided to banks and credit organizations is equal to USD 8.5 million for 5 years, with maturity period of up to 7 years, and up to 12 percent of annual interest rate. The first tranche - USD 1.5 million - has already been disbursed to the rural stakeholders by September 30, 2008. It is planned to provide USD 5.5 million by September 2009 and the final tranche of USD 1.5 million in 2010.

Winning Consultant of the Institutional Strengthening component of the Irrigation Management Entities is Euroconsult Mott MacDonald in association with Mott MacDonald, DAI and Vistaa Plus Ltd (sub-consultants). In the scope of the contract the Consultant shall assess the irrigation entities' goals and objectives, organizational and managerial structure, strategic and policy issues that may require a national-level institutional capacity in lieu of the former Central Administration, equipment needs, staff qualification and overall operational constraints. Based on this assessment the Consultant shall develop and implement training and technical support program for strengthening these entities.

The contract value is USD 1,527,000. Duration - from 25 August, 2008 until September 30, 2011. Contract signature date: August 25, 2008.

Closed out contracts

On April 9, 2008 contracts were signed with "Converse Bank" CJSC, "Armbusinessbank" CJSC, "Farm Credit Armenia" UCO TC, "Nor Horizon" UCO LLC, according to which these organizations will implement the Credit component of the Water-to-Market program and provide credits to beneficiaries living in rural areas to enlarge agricultural production and apply effective technologies. The credit component aims to provide technical assistance to farmers by transition of knowledge and new technologies, as well as to provide credits to beneficiaries and technical assistance to financial institutions selected for the implementation of credit component.

The total amount of credit resources to be provided to banks and credit organizations is equal to USD 8.5 million, with duration of up to 7 years and 4% of base rate. First tranche - USD 1.5 million - is already provided to the winner banks and UCOs. Overall it is planned to provide USD 3.5 million till September 2008, USD 3.5 million for years 2008-2009 and USD 1.5 million for years 2009-2010.


List of financial institutions accredited for participation in credit program