The villages of Alvank and Shvanidzor are located in the Meghri region at the border with Iran. The total population of the villages is 692 inhabitants. After the collapse of the Soviet Union and its economic system water problems became acute due to the absence of resources and lack of maintenance. In the former Persian sphere of influence, traditionally in the areas with limited water resources people constructed underground water systems called “chaheriz”. These systems were used for human consumption, cultivation and cattle. In the Soviet period the systems were mostly abandoned and the local capacities for their maintenance and construction were nearly lost. Due to the bad condition of the chaherizes the villages lack proper water supply what limits their opportunities to develop agriculture and animal husbandry. The extreme deterioration of the existing water network in these isolated communities has created an unsafe, unhealthy and unliveable situation. This results in the deterioration of hygienic conditions and contributes to the spread of water-borne diseases.

Rationale: Milk production has traditionally been one of the main occupations for rural communities in Armenia. Although milk production in Armenia has increased by approximately 34% over the last 15 years, the country remains a net importer of milk and relies heavily on imported dairy products. There is a serious demand and market for milk and milk by-products in Armenia, and it is believed that dairy farmers have the potential to become real economic anchors within the country. However, due to a lack of capabilities, the industry continues to function at less than 30% of its potential.