MCA-ARMENIA SIGNS TWO NEW CONTRACTS

armradio.am
19.12.2009 13:06

The Millennium Challenge Account – Armenia (MCA-Armenia) SNCO signed
two contracts: Rehabilitation of Ararat Valley Drainage System (Package
I) and Rehabilitation of Tertiary Irrigation Canals (Package I).

This event holds a special significance for the MCA-Armenia Program
as it marks the completion of contract awards for all ttypes of
irrigation infrastructure to be rehabilitated under its Infrastructure
Activity. The remaining two contracts that are expected to be signed
by spring of 2010 are the second stages of these two assignments. As
of this date, MCA-Armenia has already signed contracts and launched
construction under the Rehabilitation of 6 Main Canals (Packages I
and II), Construction of 5 Gravity Schemes and Rehabilitation of 17
Pumping Stations.

The contract for rehabilitation of the Ararat Valley Drainage System
(Package I) was awarded to Sahakyanshin CJSC (Armenia) with the
contract price of 7,6 million USD. The Contract for Rehabilitation of
Tertiary Irrigation Canals (Package I) was awarded to the Consortium
comprised of Yerevanshin RPU LLC and Kamurjshin CJSC with the contract
price of 2.3 million USD.

The signing ceremony was held at the RA Government press center
with the attendance of Deputy Prime Minister Armen Gevorgyan and
other members of the MCA-Armenia Governing Council, including the
Stakeholders Committee delegates and representatives of the U.S.

Embassy and MCC.

Rehabilitation of Ararat Valley Drianage System and the tertiary
canals are the key components of the Infrastructure Activity
of the MCA-Armenia Program. While the Ararat Valley is the
biggest agricultural zone in Armenia and provides around 30%
of the agricultural GDP of the country, productivity levels have
been decreasing in recent decades as a result of water-logging and
mineralization. The anticipated impacts of the system rehabilitation
include increased crop productivity in the drainage area, better
regulated groundwater levels and mineralization, and reduced
water-logging within settlements. Tertiary canal rehabilitation
directly impacts the reliability of farmers’ water supply and reduces
water losses. During the last year, pilot tertiary canal rehabilitation
was conducted in 4 villages of Ararat and Armavir marzes. The next
beneficiaries of the program are 14 communities in Armavir, Ararat
and Vayots Dzor Marzes.

Following the signing ceremony, the MCA-Armenia CEO answered questions
about the status of the program, progress to date with a specific focus
on the workplan, and targets to be achieved in the next 19 months.

MCC’s total investment into the agricultural and water sector in
Armenia, through the MCA-Armenia Program, should amount to about 180
million USD by the time the program ends in September 2011.