Test Project

SUPPORTED BY

PROJECT DESCRIPTION


The "Rural Economic Development-New Economic Opportunities” program will build upon current and
previous projects, initiatives and activities that the government of Armenia, the U.S. government and
USAID, and other donor and non-governmental organizations are implementing to address the
economic challenges in rural Armenia.
RED-NEO activities will promote inclusive, sustainable economic security and economic growth by
supporting at least 100 businesses in at least 60 communities. The program will accelerate the growth of
small- and medium-sized enterprises (including farms and cooperatives) in the regions; facilitate market
linkages between producers and buyers; and establish networks to promote local economic
development. It will foster the development of a competitive agriculture sector by improving the
performance of rural businesses and cooperatives, and their ability to meet quality standards.
RED-NEO is being implemented by CARD Foundation together with AM Partners Consulting and
Armenian Women for Health and Healthy Environment NGO.

 

PROJECT TARGET VALUE CHAINS


The project works in the following value chains:
- Horticultural production
- Fruit production,
- Berry production,
- Fruit and berry processing,
- Viticulture,
- Greenhouse production
- Nursery production
- Agricultural mechanization services,
- Agritourism (F&B, F2T) and apiculture

 

SMALL GRANTS COMPONENT

 

The program envisions small grant (SG) component to support its beneficiaries upgrade their production
capacities and escalate growth.
The conditions and limitations of getting a SG within the frames of RED-NEO program is presented
below.
- The grants will be disbursed in 60 communities of 10 regions of Armenia.
- Overall 100 small grants will be provided, which will be selected out of 3000 project
trained participants.

- The grants will be provided in kind only.
- The own investment of beneficiary will comprise at least 70% of total budget of
proposed SG project.
- The maximum amount of SG cannot exceed USD 15,000.
- The SG does not cover working capital (salaries, inputs, utility expenses), as well as
taxes, construction works, in apiculture – acquisition of beehives.

In the process of SG beneficiary selection, a priority will be given to entities which:

- have substantiate expertise in the field
- report high feasibility rate for the proposed project
- ensure increased incomes at their businesses and for the ones they cooperate with
- ensure increased sources of incomes for their businesses and the ones they cooperate
with
- will create new jobs and/or increase employment rates
- will involve women and youth in their operations
- will enhance market system development, horizontal and vertical integration in a given
value chain.

For example, if you are a fruit processor and you want to apply for SG for acquisition of
equipment, and thus to increase your production and marketing volumes, then your
application will be prioritized if you plan to collect additional fruits from other farmers,
or market their produce creating new income opportunities for the latter.

 

FARM SERVICE CENTERS


Within the frames of RED-NEO Program, it is envisioned to upgrade the capacities of all Farm Service
Centers (FSCs) to enhance horticultural service provision and access to inputs in all regions of Armenia.
To that end, FSCs will be equipped with agricultural machineries and equipment, as well as capacities
will be built to provide quality and on time services. So far the following FSCs have been upgraded:

- Achajur FSC
- Poqr Vedi
- Artashavan
- Aragatsavan
- Yeghegnadzor

Video

 

PROJECT GEOGRAPHY

The following communities are selected for project implementation: