YEREVAN. – The Government of Armenia on Thursday approved the signing of a €75-million loan agreement with the French Development Agency (AFD).

The loan will be used for the construction of a large irrigation water reservoir in Vedi town, in the Ararat Province.

This project will enable to alleviate the irrigation water problem in the Ararat plain and make a transition to an automatic self-flowing water irrigation system, which, in turn, will help cut down on electricity use.

The AFD loan will be provided for twenty years, whose six years will be on preferential terms.