The Finance, Credit and Budgetary Affairs Committee of the Armenian Parliament has approved the involvement of more than 112 million euros by the French Development Agency (AFD) and the European Union for the comprehensive modernization of the country’s water economy and agriculture.

As explained by the Deputy Chairman of the Water Committee Nvard Vardanyan, the main part of the financing is the multi-tranche credit line of 100 million euros provided by the French side. From this budget, 70 million euros will be directed to the WISE program implemented at the national level, and 30 million euros will be purposefully allocated to the programs planned in Syunik marz. In addition, the European Union will provide a grant of 12.4 million euros, which will serve for technical re-equipment and capacity building.

The need for such large-scale investments is dictated by the severe wear and tear of existing irrigation systems, large-scale water losses, and the growing risks posed by climate change. The framework agreement signed by the government in December 2025 paves the way for the launch of complex and phased reforms covering water resources management at both local and national levels.

The project is structurally divided into two main directions. The first is nationwide infrastructure investments, which will be co-financed by the World Bank. The second component is focused on Syunik. In the communities of Sisian, Goris and Meghri, it is planned to modernize pumping stations, develop gravity irrigation networks and introduce modern water reuse systems. It should be noted that the French Development Agency has been supporting infrastructure and environmental projects in Armenia since 2013.

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