US GOVERNMENT’s MILLENNIUM CHALLENGE CORPORATION MAKES SECOND TRANSFER OF USD 507,000 TO ARMENIA

Armenpress
Dec 28 2006

YEREVAN, DECEMBER 28, ARMENPRESS: The Millennium Challenge Corporation
(MCC), on behalf of the United States Government, has made the
second transfer of USD 507,000 to Armenia, Millennium Challenge
Account-Armenia (MCA-Armenia) said.

The first transfer of USD 882,000 was made earlier this month
after Millennium Challenge Account-Armenia successfully completed
the requirements necessary to receive the Initial Disbursement of
approximately USD 1.4 million.

The funds for Armenia’s Millennium Challenge Compact, expected to total
USD 236 million over a five year period, are not disbursed as a lump
sum. 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.

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.