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