APA, Azerbaijan
March 12 2009

Millennium Challenge Corporation sends strong message to Armenia

[ 12 Mar 2009 11:13 ]

Washington. Zaur Hasanov `APA. The Millennium Challenge Corporation
(MCC) Board of Directors held its quarterly meeting, the first chaired
by U.S. Secretary of State Hillary Rodham Clinton and attended by new
Board member Secretary of the Treasury Timothy Geithner, to discuss
MCC programs generally and review in detail MCC’s current partnerships
with Armenia and Nicaragua .

Given ongoing concerns about governance issues in Armenia and
Nicaragua, the Board decided to convene an extraordinary interim
review session prior to its June meeting to assess its partnerships
with these countries. The new Board will make a final determination
regarding MCC’s ongoing engagement in these two countries once it has
had time to assess the current status.

As a result of the meeting, the Board reiterated its concerns about
the status of democratic governance in Armenia and will not lift the
hold on MCC assistance for the rehabilitation of rural roads, while
allowing the government of Armenia to fund construction. MCC will
continue to provide assistance for irrigation infrastructure, which is
well underway and assists Armenian farmers. The Board will review the
current hold on funding road activities at a special session prior to
the June Board meeting.

`The Board’s decision today signals to the government that it has
failed over several years to address concerns raised not only by MCC
and other U.S. Government agencies, but the international community as
well. It’s now incumbent upon the government of Armenia to restore the
Board’s confidence to its commitment to democracy and good governance.
MCC has given the government of Armenia every opportunity to make
meaningful reforms and will continue its direct communication about
its expectations moving forward,’ said Acting MCC Chief Executive
Officer Rodney Bent.

The Millennium Challenge Corporation is a unique government agency,
established by former President George Bush, that includes private and
public sector members on its Board. The MCC Board of Directors is
chaired by Secretary Clinton and also includes Vice-Chair Secretary of
the Treasury Timothy Geithner, other government officials and
representatives of the private sector.