RURAL ROAD CONSTRUCTION PROGRAM TO BE CONTINUED IN ARMENIA

ARKA
June 17, 2009

YEREVAN, June 17. /ARKA/. The financing of rural road construction,
one of the components of the Millennium Challenges Corporation’s
program in Armenia, will be continued, RA Prime Minister TigranSargsyan
told reporters.

"We are currently negotiating with the World Bank and with the Asian
Development Bank and have reached an agreement on a large credit,
with some of the funds to be directed to rural road construction in
Armenia," the Premier said.

The US Millennium Challenges Corporation launched its program in
Armenia on September 29, 2006. Under the program Armenia is to receive
US $235.65mln for rural infrastructure development.

The US Millennium Challenges Corporation had discontinued the
funding of the rural road construction program. The reason advanced
by the corporation was that the Armenian authorities did not meet
the democratic government standards. However, the decision did not
apply to other programs.

A total of US $64mln were intended for rural road construction. The
Government allocated US $16.8mln for the first stage of the program.