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Agreement Signed Between MCA-Armenia
[06:31 pm] 23 February, 2007
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, U.S. 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 agreement stipulates the following key responsibilities for WSD
PIU:
 Procurement activities as a procurement agent of the
Infrastructure activity and Institutional Strengthening sub-activity
 Responsibilities related to monitoring and evaluation
activities
 In compliance with the agreements signed between MCA-Armenia
and contractors, civil works, consulting services and procurement of
goods
 Fulfillment of responsibilities related to environmental and
social activities.
The agreement with WSD PIU will last five years and totals USD
2,860.000.
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.