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Preparatory Survey for Yeghvard Irrigation System Improvement Project

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Preparatory Survey for Yeghvard Irrigation System Improvement Project STATE COMMITTEE OF WATER ECONOMY MINISTRY OF ENERGY INFRASTRUCTURES AND NATURAL RESOURCES THE REPUBLIC OF ARMENIA PREPARATORY SURVEY FOR YEGHVARD IRRIGATION SYSTEM IMPROVEMENT PROJECT FINAL REPORT (FR) NOVEMBER 2016 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) SANYU CONSULTANTS INC. (SCI) ORIENTAL CONSULTANTS GLOBAL CO., LTD. (OCG) 3R CR 16-029 Republic of Armenia Yeghvard Irrigation System Improvement Project SUMMARY OUTLINE OF THE PROJECT 1. Objectives 1) To distribute stable irrigation water to the Project area, 2) To improve agricultural productivity in the Project area by the stable irrigation water, 3) To fulfill the national policies such as; a) conservation of Lake Sevan and b) shifting pump-based to gravity-based irrigation system. 2. Project area and beneficially 1) Irrigation area: 12,347 ha of agricultural land 2) 27 communities in Kotayk, Aragatsotn and Armavir Marzes 3) Number of farm households: 13,574 HHs (Approx. 61,000 persons) as of 2014 3. Main construction facilities Reservoir Irrigation System 1 Capacity 94 MCM 1 Feeder canal 1 Approach canal L=1,160m Q=1.11 - 9.0 m3/s Pipeline φ=1.60m, L=1,600m φ=1.72m, L=1,940m 2 Dam height H=25.55m 2 Feeder canal 2 Concrete open canal W=ave 4.0m, L=330m Q=2.20 - 13.0 m3/s 3 Full Water Level EL.1,305m 3 Outlet canal 1 Pipeline φ=1.20m, L=730m Q=0.22 - 2.33 m3/s 4 Low water level EL.1,290m 4 Outlet canal 2 Pipeline φ=1.72m, L=4,700m Q=0.16 - 12.82 m3/s 3 Dissipater L=500m (Maximum 13.7m /s) 5 Reservoir area 8.08 km2 5 Other canals Rehabilitation Approx. 65km - 4. Project cost and schedule (provisional) 1) Project cost: 226.9 million USD (including VAT) 2) EIRR: 7.09% (Based on base case 1) 3) Implementation; Detailed design: 2017 to 2018, Construction: 2019 to 2022 (4 years) 5. Indicators (Year 2027: 5 years after completion of the construction) 1) Irrigable area; 8,391ha 12,347ha, 2) Agricultural production increase (Wheat, Alfalfa, Potato, Grape), 3) Energy saving by “shifting pump-based to gravity-based irrigation system”, and 4) Water conveyance from Lake Sevan; 50MCM 0 MCM. 6. Rationale Government of Armenia places this Project as one of the important projects to fulfill the national policies which are; 1) conservation of Lake Sevan and 2) shifting pump-based to gravity-based irrigation system. While one-third (1/3) of population in Armenia is living in the capital city of Yerevan, taking accessibility and marketing into considerations, agricultural activities in the Yeghvard directly connect not to only farmers’ income generation, also food security for inhabitants of the capital. Since Armenian agricultural development strategy towards promoting; 1) cooperated and competitive market-oriented and 2) export-oriented productions for international trading by shaping favorable conditions, farmers concerned in Yeghvard have much advantage to involve in opportunities obtaining agricultural training/information, extension/machinery services, credit and techniques through research institutes available in Yerevan. While irrigation projects; Kaps and Vedi are under the process of detailed design and tendering stages prior to construction, government will concur in developing infrastructural projects in relation to water resource on agriculture/irrigation sectors. S-1 State Committee of Water Economy Summary, FR 1. INTRODUCTION Background of the Survey After a request for Official Development Assistance (ODA) Loan to the government of Japan was made by the Government of the Republic of Armenia (hereinafter referred to as “Armenia”) in June 2012, JICA had executed to gather information related to the construction of Yeghvard reservoir by sending the contact missions as well as sending questionnaire in order to formulate the Project. In June 2014, JICA dispatched a consultant team for a preliminary feasibility study (Pre-F/S). Since the consultant team conducted a field survey including data/information collection and had a series of discussions with related agencies in Armenia from June through August 2014 and analyzed the collected information prior to prepare a draft final report (DFR) for the Pre-F/S, JICA sent a mission to Armenia in November 2014 for the purpose of explanatory discussion on the DFR. In March 2015, JICA, consequently, sent an official letter decided to dispatch a consultant team for the Full-scaled F/S of Yeghvard Irrigation System Improvement Project (hereinafter referred to as “the Project”). Then, the consultant team (hereinafter referred to as “the Survey Team”) have started a preparatory survey for the Project (hereinafter referred to as “the Survey”). * Since this report was developed based on the situation and the information as of end of September 2016, before the government restructuring, the name and the structure of the government institutions which appear in this report may not coincide with the current ones. Project Area Project area is located in the surrounding area of Yerevan within 20km from the capital city, with 22,754 ha of land area of which 12,200 ha or 53.6 % of the land area is registered as a farmland in cadaster. The Project area expands to 27 communities in three (3) Marzes (regions), i.e. Kotayk, Aragatsotn and Armavir. While the whole territory of 22 communities belongs to the Project area, a part of the territory belongs to the area in other 5 communities. Consequently, 91.2 % of total land area in the 27 communities is included in the Project area. In terms of WUA category, the Project area is divided into 4 (four) WUA command areas, namely; Yeghvard, Ashtarak, Vagarshapat and Khoy. Potential farmland area for irrigation in the Project area is estimated at 12,347 ha by the Survey Team. The area is larger than the registered farmland area in cadaster as actual cultivated area has extended to non-registered farmland area in many communities in Vagarshapat and Khoy command areas. 2. BACKGROUND OF THE PROJECT Background of the Project Water volume stored in Lake Sevan measured 58,000 MCM in late 1940s was reduced to 33,000 MCM in early 1970s due to the heavy water use by domestic/industrial sectors as well as irrigation, as a result water level in the Lake dropped by as much as 19 m. As the conservation measures for Lake Sevan suffering from heavy drawdown of water level, the Government of Armenia constructed a water tunnel for diverting water from other watershed areas during the period 1960s to 1980s and it also implemented the policy of limiting annual water use for irrigation. However, during the period of energy crisis in 1990s, the lake water was again overused, lowering water level. Yeghvard reservoir project was planned during 1970s as one of the conservation measures for Lake Sevan. Later in 1980s, the work with a scale of 228 MCM had been started, but it was later interrupted due to difficulty in fund supply. Later in 1990s, coping with second recession of water JICA S-2 Republic of Armenia Yeghvard Irrigation System Improvement Project level, reservoir construction plans were studied at 16 sites throughout the country from water conservation point of view. Yeghvard reservoir project was included as one of these countermeasure-plans. The scale of this reservoir was reviewed by the country and reduced to around 90 MCM. Policy on Water Resources The Water Code is the principal document adopted by the National Assembly. The main purpose of this Code is the conservation of the national water reserve, the satisfaction of water needs of citizens and economy through effective management of useable water resources, securing ecological sustainability of the environment. And the National Water Policy pursues aim to provide accessibility for sufficient quantity, regime and quality of water resources to maintain basic human well-being for present and future generations, socio-economic system development, and to meet economic and ecological needs. Agricultural water usage priority is higher than the energy and industrial production uses. Furthermore, in 2001, Armenia launched an environmental improvement strategy for Lake Sevan with the target of elevating its water level by 6m (up to 1,903.5m) by 2030 as shown in Figure 2-1. Additionally, the country has not only determined the upper limit of annual releasing (intake) water volume from Lake Sevan to an irrigation network at 170MCM, but it also decided to operate hydropower stations located along the Hrazdan River only during Source) World Bank (2014),Towards Integrated Water the period of distributing irrigation water. Resources Management : Revisited Figure 2-1 Change in Water Level in Lake Sevan Policy on Agricultural Development The Armenian people focused their economic activity back to the agricultural sector in order to make utmost efforts to accommodate themselves to the economic crisis after the independence. As a result, the sector was headed for recovery and GDP ratio of the sector grew to 46.3% in 1993. Currently, however, GDP ratio is reduced to lower than half of that of 1993. The current state of agriculture in the country shows that the sector has surpassed the stage of self-subsistence and has entered the next stage of commercialized agriculture that includes vegetables, fruits, industrial crops and livestock, as seen in the USSR era. It is reported that approx. 80% of domestic agricultural production was from irrigated land. Irrigation is a significant infrastructure supporting the country’s agriculture. The government launched its SADS covering the period 2010-2020 as the national policy in order to respond to the commercial-oriented agriculture. SADS aims to enhance productivity and value of agricultural products; to improve food security for the population by distributing products appropriately both to domestic and international markets, and to promote its export (targeting 3.5 times increase in the current export volume).
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