YEREVAN, December 19. /ARKA/. The Armenian government and German Development Bank (KfW) signed two agreements on Monday as Karen Karapetyan, Armenian prime minister, meet with German Development Bank (KfW) Regional Director Olaf Zimelka.
Under these agreements, Armenia will receive €5.3 million as grant for supporting insurance schemes for agricultural products and another €18.5 million as loan for implementing the second stage of the program of management of water resources/Akhuryan River I.
The program targeted by the first agreement is unique – the two countries’ governments for the first time will cooperate with Armenia’s agriculture sector, covering weather-caused risks.
Armenia’s co-financing amounts to €5 million.
The financial resources implied by the second agreement will be spent on expansion of the irrigation tunnel Kumairi, construction of a pipeline and acquisition and deployment of irrigation facilities for a more effective irrigation of 740 hectares.
Stressing the importance of the agreements, Karapetyan said that Armenia is interested in development of the cooperation and that the agreements will contribute a great deal to development of agriculture in Armenia.
Zimelka, on his side, said that Armenia is the first country among the countries in the bank’s portfolio to take the road of agricultural insurance and farming support. –0—-
