Armenia is set to launch construction on five new water reservoirs in 2026 as part of a $108 million national infrastructure program aimed at strengthening the country’s water security, expanding irrigation capacity, and modernizing its agricultural network.
The large-scale initiative, approved by the Public Investment Committee chaired by Prime Minister Nikol Pashinyan, underscores the government’s long-term strategy to safeguard Armenia’s vital water resources and support sustainable economic development.
The five reservoir construction projects were presented by Martiros Nalbandyan on October 24, Deputy Chairman of the Water Committee of the Ministry of Territorial Administration and Infrastructure at the 7th session of the Public Investment Committee.
Nalbandyan noted that the investment programs will accumulate a total of 18 million cubic meters of water, with an overall value exceeding 40 billion drams ($108 million). Approximately 40 settlements will benefit from the projects, impacting around 700,000 residents. The reservoirs will expand irrigation to 6,175 hectares of agricultural land, bring 1,696 new hectares into cultivation, and generate 3.8 million kWh in annual energy savings. The projects will be implemented in Armavir, Vayots Dzor, Gegharkunik, Syunik, and Shirak provinces.
Reservoir Details by Region
- Kasakh (Armavir Province): Capacity of 10 million m³, improving the water supply of 4,517 hectares and providing irrigation for an additional 503 hectares. Project cost 15.4 billion drams ($38 million). The reservoir is part of the Sevan–Hrazdan water system, helping mitigate potential risks to Lake Sevan and supply the lower Hrazdan canal.
- Yelpin (Vayots Dzor Province): Capacity of 0.93 million m³, increasing water supply for 132 hectares and adding irrigation for 168 hectares. Expected to save 0.3 million kWh of electricity annually. Project cost 3.3 billion drams ($8 million).
- Astghadzor (Gegharkunik Province): Capacity of 1.55 million m³, enhancing water supply for 210 hectares and irrigating an additional 530 hectares. Annual energy savings 1.6 million kWh. Project cost 7.5 billion drams ($19 million). Located within the Lake Sevan basin, the reservoir will help reduce and, in some areas, neutralize existing environmental risks.
- Artik (Shirak Province): Reconstruction of a 1.479 million m³ reservoir, bringing 300 hectares of new land into agricultural production. The project cost 5.7 billion drams ($14 million).
- Lichk (Syunik Province): Capacity of 4 million m³, improving water supply for 1,315.8 hectares, irrigating 195 additional hectares, and saving 2.1 million kWh of electricity annually.
The project cost 11.4 billion drams ($29 million).
Prime Minister Nikol Pashinyan emphasized the strategic importance of these projects during the session, highlighting the necessity of water storage for Armenia’s future sustainability. “Where it is possible to store water, water should be stored,” Pashinyan said.
“We don’t know what the price and importance of water will be in ten years, although we know for sure it will increase, not decrease. There is no scenario in which the price, value, or importance of water will decrease. Wherever there is water, I am sure that economic activity will develop around it.”
The Prime Minister stressed that investments must target projects with the highest national return and efficiency. “If we build reservoirs like this and our irrigation culture remains the same, we won’t be able to build enough. Our agricultural technologies and water management must evolve. Entrepreneurs are already saying, ‘We don’t want water for 10 drams; we are ready to pay more, but we want it on demand. ’ This shows that people value water as a strategic resource,” Pashinyan added.
Following the session, the Public Investment Committee approved all five projects, which will now enter the practical phase of implementation.
Parliamentary Oversight and 2026 Budget Allocation
During the preliminary discussion of the 2026 state budget in the National Assembly on October 31, Minister of Territorial Administration and Infrastructure Davit Khudatyan reaffirmed the government’s commitment to begin construction in 2026, noting that all technical designs are ready.
In addition to these new projects, the ministry will continue programs already underway, including the Kaps Reservoir, with 7.7 billion drams allocated in next year’s budget. Another 3.7 billion drams will be used to strengthen irrigation system capacity, 7 billion drams for subsidizing water systems, and 1.3 billion drams for co-financing water resources. Despite these extensive programs, 178 billion drams will be allocated from the 2026 budget for the territorial administration and water sectors, 4.4 billion drams less than in 2025.
Finance Minister Vahe Hovhannisyan explained that this reduction was due to improved project efficiency and previous performance outcomes.
The reservoir construction program complements Armenia’s broader water infrastructure modernization efforts. The Kaps Reservoir, currently under construction with France’s support, carries an investment of €95 million, while the Vedi Reservoir, recently completed, was built at a cost of €90 million.
