US GOVERNMENT’S MILLENNIUM CHALLENGE CORPORATION APPROVES INITIAL DISBURSEMENT OF USD 1.4 MILLION TO MCA-ARMENIA PROGRAM
Yerevan, December 12. ArmInfo. Millennium Challenge Account-Armenia
(MCA-Armenia) has successfully completed the requirements necessary
to receive the Initial Disbursement of approximately USD 1.4 million.
The Millennium Challenge Corporation (MCC), on behalf of the United
States Government, has transferred USD 882,000 to Armenia.
The second transfer of USD 507,000 is scheduled for later this month.
The funds for Armenia’s Millennium Challenge Compact (the Compact),
expected to total USD 236 million over a five year period, are not
disbursed as a lump sum to Armenia. They are approved quarterly by
the MCC and disbursed monthly into MCA-Armenia’s bank account at
Cascade Bank in accordance with Armenia’s demonstrated progress in
the Millennium Challenge Account program.
At the event announcing the Initial Disbursement, U.S. Charge
d’Affaires Anthony F. Godfrey said, "I congratulate the people
of Armenia on developing a program that will help to reduce rural
poverty and increase annual incomes. The Compact represents a terrific
opportunity for the people of Armenia. However, in order for Armenia
to continue to receive this funding, the Armenian government must
maintain a high level of performance in ruling justly, investing in
people and promoting economic freedom. Only by continuing to institute
democratic reforms, including ensuring a free and fair process in
the run-up to the 2007 and 2008 elections, can Armenia make sure that
its people can continue to benefit from this $236 million program."
The Compact, signed on March 27, 2006 with Entry into Force
on September 29, 2006, aims to reduce rural poverty through a
sustainable increase in the economic performance of the agricultural
sector. Armenia plans to achieve this goal through a five-year program
of strategic investments in rural roads, irrigation infrastructure
and technical and financial assistance to improve the supply of water
and to support farmers and agribusinesses. The program will directly
impact approximately 750,000 people, or an estimated 75 percent of
the rural population, and is expected to reduce the rural poverty
rate and boost annual incomes.
The Compact includes a USD 67 million project to rehabilitate up to
943 kilometers of rural roads, more than a third of Armenia’s proposed
"Lifeline Road Network." When complete, the road network will ensure
that every rural community has road access to markets, services, and
the main road network. Under the Compact, the Government of Armenia
will be required to commit additional resources for maintenance of the
road network. The Compact also includes a USD 146 million project to
increase the productivity of approximately 250,000 farm households (34%
of which are headed by women) through improved water supply, higher
yields, higher-value crops, and a more competitive agricultural sector.
Millennium Challenge Corporation (MCC), a U.S. government corporation
designed to work with some of the poorest countries in the world, is
based on the principle that aid is most effective when it reinforces
good governance, economic freedom, and investments in people that
promote economic growth and elimination of extreme poverty.
Millennium Challenge Account-Armenia (MCA-Armenia), a State Non
Commercial Organization established by the Government of Armenia,
is responsible for overseeing the transparent implementation of the
Compact signed between the Millennium Challenge Corporation and the
Government of Armenia.
From: Baghdasarian