Armenia To Receive $11.3mln From US Millennium Challenges Corporatio

ARMENIA TO RECEIVE $11.3MLN FROM US MILLENNIUM CHALLENGES CORPORATION

ARKA
March 13, 2008

YEREVAN, March 13. /ARKA/. Armenia plans to receive $11.3mln from
the US Millennium Challenges Corporation in April-June 2008.

The press service of the RA Government reports that, at its sitting
on March 12 chaired by RA Premier Serge Sargsyan, the Management
Board of the Millennium Challenges Armenia Foundation approved the
7th application for the allocation of funds. The funds are expected
to be directed to the programs of rural road renovation, agricultural
irrigation, monitoring and assessment, as well as program supervision.

By December 1, 2007, the Millennium Challenges Corporation had
allocated a total of $11.26mln.

According to a report presented to the meeting, the program was a
success in the 4th quarter of 2007. Specifically, the restoration of
a 24.5-km-long section of the Armavir-Isahakyan-Gyumri highway got
under way.

Two principal agreements on the design of six gravity irrigation
systems and feasibility studies of restoring and enhancing the
efficiency of 68 pumping stations were signed. The preparatory work
for the restoration of secondary water conduits in four villages near
Yerevan was completed as well.

Training courses as part of the Water to Market component of the
program were conducted in different Yerevan communities.

By December 30, 2007, 5,284 farmers (1,085 of them women) had attended
the training courses in water use and efficient agriculture.

The meeting also discussed and approved the results of tenders for
financial institutions that participated in a credit allocation
auction, as well as draft contracts for consulting services.

The Management Board approved the amendments to the agreement on
the design of renovation of six main conduits and supervision of
construction. The amendments prolong the construction terms and
envisage the completion of repair of the damaged sections of the six
main conduits, 165 hydraulic structures and 177 drainage structures.

The Board members also reported that the packages of tenders under
rural road renovation program were opened. The companies that
participated in the tender offered the renovation of 272km of roads.

The Millennium Challenges program was launched in Armenia on September
29, 2006. A compact on the allocation of a $236mln grant to Armenia
for five years was signed on March 27, 2006.

The state-run Millennium Challenges Armenia Foundation was established
under the RA Government’s resolution on April 13, 2006. The foundation
carries out the work envisaged by the international agreements signed
by Armenia and planned by the RA Government.