ARMENIAN TRANSPORT MINISTER: 6.5BLN-7BLN AMD MAY BE NEEDED FOR CONTINUATION OF RURAL ROAD RESTORATION SUB-PROGRAM OF THE MILLENNIUM CHALLENGE ARMENIAN PROGRAM IN 2009

ArmInfo
2009-08-14 18:42:00

ArmInfo. Some 6.5bln-7bln AMD may be needed for continuation of rural
roads restoration projects of the Millennium Challenge- Armenian
program in 2009, says Minister of Transport and Communication of
Armenia Gurgen Sargsyan.

On Aug 6 the Government of Armenia decided to suspend contracts
on 6 lots with 13 contractors in the framework of the Rural Roads
Restoration sub- program and to transfer the assets and the obligations
of the sub-program to the Ministry of Transport and Communication.

The Ministry, the Millennium Challenge Account-Armenia and the
contractors have agreed on the schedule for repayment of the
obligations under the contracts. "Now we are looking for sources of
financing. We must do it quickly so as to ensure the continuation
of the suspended projects otherwise the whole work will turn out
to be ineffective. We are negotiating with a number of financial
organizations. The money may be provided both as loans and grants
and even by internal sources," says Sargsyan.

Millennium Challenge program was launched in Armenia in 2006. The
program is financed by Millennium Challenge Corporation and executed
by Millennium Challenge Account-Armenia. $235mln was supposed to be
allocated for the program within 5 years, particularly, for restoration
of rural roads, repair of irrigation canals, development of business
skills and lending of farmers.

In June 2009 Millennium Challenge Corporation stopped financing the
rural roads restoration sub-program.