Agreement signed between MCA-Armenia and the Water Sector Development
and Institutional Improvement PIU State Institution

armradio.am
24.02.2007 11:16

Millennium Challenge Account ` Armenia (MCA-Armenia) and the Water
Sector Development and Institutional Improvement PIU (WSD PIU) State
Institution signed an implementing entity agreement, according to which
MCA-Armenia will implement the infrastructure activity related to the
Irrigated Agriculture project and the institutional strengthening
sub-activity of the Water-to-market activity through WSD PIU. The
signing ceremony took place at the Government of the Republic of
Armenia with participation of the Minister of Territorial
Administration Hovik Abrahamyan, US Chargé d’Affaires Anthony F.
Godfrey. The agreement was signed by MCA-Armenia CEO Ara Hovsepyan and
WSD PIU Director Adibek Ghazaryan.

According to the agreement WSD PIU will implement all activities
necessary for the timely and effective implementation of infrastructure
activity and institutional strengthening sub-activity.

The MCA-Armenia Program (USD 236 million) aims to reduce rural poverty
through a sustainable increase in the economic performance of the
agricultural sector. The amount being spent on the implementation of
the program’s infrastructure activity is USD 108,590.000, and the
amount being spent on the institutional strengthening sub-activity
totals USD 4,156.000.

The Compact, signed on March 27, 2006 between the United States of
America, acting through the Millennium Challenge Corporation and the
Government of the Republic of Armenia, 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.