$20 MLN ALLOCATED TO ARMENIA UNDER MILLENNIUM CHALLENGES CORPORATION PROGRAM IN JAN-AUG

ARKA
Aug 26, 2008

YEREVAN, August 26. /ARKA/. $20mln was allocated to Armenia in
January-August under Millennium Challenges Corporation program, General
Executive Director of "Millennium Challenges – Armenia Foundation"
state non-commercial organization Ara Hovsepyan told journalists.

A part of these funds has already been used for implementation
of programs, he said adding that the Armenian side is
submitting applications to the Corporation for allocation every
quarter. Applications are discussed at Millennium Challenges
Corporation sittings. The next application is to be submitted in
September for works to be carried out in September-December, Hovsepyan
said adding that the exact amount of the allocation is not known yet.

As to the road construction component of the Millennium Challenges
program, according to the agreement between the Armenian Government
and the Corporation, construction works under the first package
of the program were to be carried out of the state budget proceeds,
Hovsepyan said. According to him, the Government has already allocated
$16.8mln. The corporation funds are expected to come as from January
2009, Hovsepyan said.

Under the agreement of March 27 2006 the Armenian Government is to
receive a $235.65mln grant from Millennium Challenges Corporation
during five years.

The grant means are to be used for reconstruction of rura l roads and
irrigation systems. $108mln is to be allocated for reconstruction of
irrigation systems alone.

$11mln was allocated to Armenia under the Millennium Challenges
Corporation program in 2007.