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Closed Compact Report
Closed Compact Report: Armenia Compact
Read MCC’s Armenia Closed Compact Report for a comprehensive look at MCC’s $235.65 million investment in agriculture irrigation and rural road rehabilitation from 2006-2011.
In 2006, the U.S. Government’s Millennium Challenge Corporation (MCC) and the Government of Armenia signed a compact designed to reduce rural poverty through a sustainable increase in the economic performance of the agricultural sector. The Government of Armenia, in consultation with local civil society groups and MCC, identified improvements in the agricultural sector as critical to increasing food security and economic growth in the country. The compact program includes one of Armenia’s largest ever irrigation infrastructure refurbishments, accompanied by strategic assistance to the nation’s farmers, agribusinesses and water supply institutions, as well as investments in rural road construction and maintenance.
The Armenia Compact was restructured due to escalating global construction costs and currency fluctuations in October 2008. In addition, following the June 2009 meeting of the MCC Board of Directors, MCC did not resume funding for any further road construction and rehabilitation under the compact due to concerns about the status of democratic governance in Armenia. This effectively reduced the original $235 million compact to approximately $177 million. About 25 kilometers of pilot roads were completed prior to this decision. To date, 150 kilometers of MCC-funded road designs are now being funded by the World Bank.