MILLENIUM CHALLENGE-ARMENIA FUND OFFICE TO BE ESTABLISHED BY LATE SEPTEMBER

YEREVAN, AUGUST 17, NOYAN TAPAN. The Millennium Challenge-Armenia (MCA)
Fund Office will be established by late September. RA Deputy Minister
of Finance and Economy, head of the preparation team of the Millennium
Challenge Armenia Program (MCAP) Davit Avetisian stated this at the
August 17 sitting of the program’s beneficiaries. According to him,
in addition to funds envisaged by the MCAP, the Millennium Challenge
Corporation (MCC) allocated up to 500 thousand USD for the office’s
foundation, design and advice activities. The first tranche of this
sum will be transferred by October 1. D. Avetisian introduced Ara
Hovsepian (who won the competition with the participation of 48
candidates and, by the August 5 decision of the MCAP management
board, was appointed the executive director general of the MCA Fun)
to the board members. The deputy minister said that prior to his
appointment, Ara Hovsepain was the head of the Natural Resource
Management and Poverty Reduction Program being implemented in
Tavush and Gegharkunik marzes with the assistance of the British
government. D. Avetisian reminded that the Armenian government and the
MCC signed the major agreement of the MCAP. The government approved
the agreement on distribution of funds and the management agreement
between the sides. Among three other documents are the subagreements
on achievements, on fiscal agent and banking agent, which are almost
ready to be submitted to the US side. In his words, the selection
of the MCAP’s fiscal and banking agents is proceeding in accordance
with the schedule. The speaker noted that in October-December 2006,
design work of 2-2.5 mln USD will be done, based on which the MCA
Fund’s 2007 programs on constrcution and repair of infrastructures and
business assistance will be implemented. Part of the Bid on Writing
Off has already been developed. The 2007 activities will be financed
on the basis of this document.

To recap, the MCC will allocate 235.65 mln USD to Armenia in 5
years. It is envisaged that 75% of the country’s rural population
(about 750 thousand citizens) will be the MCAP’s beneficiaries. A
6% poverty reduction in rural areas is anticipated as a result
of the program’s implementation. Out of the program’s funds,
67.1 mln USD will be allocated for repairs of community roads,
145 mln 670 thousand USD – for development of irrigation systems,
the program’s management and control expenditures will amount to 17
mln 790 thousand USD, while monitoring and assessment expenditures –
to 5 mln 80 thousand USD. Out of funds to be used for the development
of irrigation systems, 32.42 mln USD will be allocated for provision
of credits to farmers, strengthening of water user companies, and
delivery of advisory services.

From: Emil Lazarian | Ararat NewsPress