‘MILLENNIUM CHALLENGE’ DECIDES TO UPHOLD CONCLUSION ON STOPPAGE OF FINANCIAL ASSISTANCE TO ARMENIA

ArmInfo
2009-06-12 12:03:00

ArmInfo. ‘Millennium Challenge’ Corporation has made a decision
to uphold the conclusion on stoppage of financial assistance to
Armenia. The decision was made on June 10 at the meeting of the
U.S. Government?s Millennium Challenge Corporation (MCC) Board of
Directors, chaired by U.S. Secretary of State Hillary Clinton.

According to the Corporation’s press service, as a result of the
meeting, MCC will not resume funding for any further road construction
and rehabilitation. This hold on funding is a result of actions by
the government of Armenia that are inconsistent with MCC principles
promoting democratic governance. MCC?s Board unanimously expressed
regret that this action means that MCC will not be able to fully fund
this project during the compact term.

"MCC regrets that it cannot move forward with funding road construction
in Armenia," Mr. Bent said. "The responsibility for this outcome
remains with the government of Armenia, whose actions have been
inconsistent with the eligibility criteria that are at the heart of
the MCC program. It is particularly disappointing that MCC will not
be able to partner with Armenia on completing the roads that will
benefit Armenia?s rural poor who are our friends and partners in
creating growth for the future," continued Mr. Bent.

"I do not anticipate that the Board will revisit this issue in the
future."

‘Millennium Challenge’ Programme started in Armenia in September,
2006. $235 mln were allocated for implementation of the programme
in Armenia during 5 years. The amount was allocated every quarter
based on the Armenian party’s applications. A state non-commercial
organization "Millennium Challenge Armenia" was created in the
country. It was scheduled that it will cover 750,000 farmers or 75%
of the republic’s rural population. Road construction and repair of
irrigation systems are the main components of the programme.