PRESS RELEASE
July 13, 2004

Armenian Official Meets with MCC, Details Work on MCA Compacts

On July 13, 2004, Chief Economic Adviser to the President of Armenia Vahram Nercissiantz, who serves as Deputy Chairperson of the Board of Trustees of the Armenian Program of the Millennium Challenge Account, and Armenian Ambassador to the U.S., Dr. Arman Kirakossian held a meeting with Paul V. Applegarth, CEO of the Millennium Challenge Corporation (MCC). Mr. Nercissiantz briefed the MCC official on Armenia’s progress since June, when the MCC delegation visited Armenia.

In particular, Mr. Nercissiantz presented the activities of the Board of Trustees of the Armenian Program of the Millennium Challenge Account, an ad-hoc working group established by the Government of Armenia to coordinate the preparation of the MCA compacts. The Government has held extensive consultations with Armenian NGO’s, groups of experts and other concerned parties, both at national and local levels, to solicit advice and develop a public awareness on the strategic directions for developmental assistance under the terms of MCA, Mr. Nercissiantz explained. He added that the Board of Trustees is preliminarily planning to complete the preparation of draft compacts by the end of August, with an aim to approve the compact and formally submit it to the MCC for consideration in September.

Noting with satisfaction the activities of the Board of Trustees in Armenia, Mr. Applegarth stressed the need for the compacts to also address the issues relating to further strengthening the democracy in Armenia. Asked to present the results of the consultations between the Government of Armenia and the concerned parties, Mr. Nercissiantz noted that the consensus among the government agencies, NGO’s, and expert groups was that the priority needed to be given to the task of alleviating poverty among the rural population of Armenia by promoting economic growth in rural regions. In particular, greater integration of the rural communities in Armenia’s economy and increased economic opportunities will help to reduce chronic poverty in rural and small farming communities; an important by-product of such economic empowerment will be the strengthening of local self-government and civil society in Armenia. With the above strategic direction in mind, elements of the program-compacts to be submitted to the MCC will likely include, but not be limited to, rehabilitation of rural roads and transport infrastructure; soil amelioration (drainage and desalination); improving irrigation system; and investing in social infrastructure.

Mr. Nercissiantz reiterated the commitment of the Armenian Government to continue to adhere to the goals of the Millennium Challenge Account developmental assistance, such as governing justly, promoting economic freedom, and investing in human capital of Armenia.

For more information on the MCC and Armenia, please visit:

http://www.armeniaemb.org/News/EmbassyPressReleases/Index.htm

http://www.mcc.gov