PRESS RELEASE
July 13, 2004
Embassy of the Republic of Armenia
2225 R Street, NW, Washington, DC, 20008
Tel: 202-319-1976, x. 348; Fax: 202-319-2982
Email: armecon@speakeasy.net; Web:

Armenian Official Meets with MCC, Details Work on MCA Compacts

On July 13, 2004, Chief Economic Adviser to the President of Armenia,
Vahram Nercissiantz, who serves as Deputy Chairperson of the Board of
Trustees of the Armenian Program of the Millennium Challenge Account, and
Armenian Ambassador to the U.S., Dr. Arman Kirakossian held a meeting with
Paul V. Applegarth, CEO of the Millennium Challenge Corporation
(MCC). Mr. Nercissiantz briefed the MCC official on Armenia’s progress
since June, when the MCC delegation visited Armenia.

In particular, Mr. Nercissiantz presented the activities of the Board of
Trustees of the Armenian Program of the Millennium Challenge Account, an
ad-hoc working group established by the Government of Armenia to coordinate
the preparation of the MCA compacts. The Government has held extensive
consultations with Armenian NGO’s, groups of experts and other concerned
parties, both at national and local levels, to solicit advice and develop a
public awareness on the strategic directions for developmental assistance
under the terms of MCA, Mr. Nercissiantz explained. He added that the Board
of Trustees is preliminarily planning to complete the preparation of draft
compacts by the end of August, with an aim to approve the compact and
formally submit it to the MCC for consideration in September.

Noting with satisfaction the activities of the Board of Trustees in Armenia,
Mr. Applegarth stressed the need for the compacts to also address the issues
relating to further strengthening the democracy in Armenia. Asked to present
the results of the consultations between the Government of Armenia and the
concerned parties, Mr. Nercissiantz noted that the consensus among the
government agencies, NGO’s, and expert groups was that the priority needed
to be given to the task of alleviating poverty among the rural population of
Armenia by promoting economic growth in rural regions. In particular,
greater integration of the rural communities in Armenia’s economy and
increased economic opportunities will help to reduce chronic poverty in
rural and small farming communities; an important by-product of such
economic empowerment will be the strengthening of local self-government and
civil society in Armenia. With the above strategic direction in mind,
elements of the program-compacts to be submitted to the MCC will likely
include, but not be limited to, rehabilitation of rural roads and transport
infrastructure; soil amelioration (drainage and desalination); improving
irrigation system; and investing in social infrastructure.

Mr. Nercissiantz reiterated the commitment of the Armenian Government to
continue to adhere to the goals of the Millennium Challenge Account
developmental assistance, such as governing justly, promoting economic
freedom, and investing in human capital of Armenia.

For more information on the MCC and Armenia, please visit: