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Armenian Proposals For Extra U.S. To Be Ready

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  • Armenian Proposals For Extra U.S. To Be Ready

    Armenian Proposals For Extra U.S. To Be Ready 'Next Month'
    By Gevorg Stamboltsian 17/06/2004 03:45

    Radio Free Press, Czech Republic
    June 17 2004

    Prime Minister Andranik Markarian said on Wednesday the Armenian
    government will finalize by the end of next month its proposals for
    the use of additional U.S. government assistance which it will likely
    receive under Washington's Millennium Challenge Account (MCA)
    program.

    Markarian spoke after chairing the first meeting of an ad hoc
    commission of senior government officials which is tasked with
    assessing the country's urgent needs, discussing possible ways of
    meeting them with the promised extra U.S. aid and submitting a
    relevant plan to the American side.


    Under the terms of the MCA, Armenia and 15 other developing nations
    selected by the U.S. government last spring must themselves specify
    how much money they need and how they would use it. Top executives
    from the Millennium Challenge Corporation (MCC) which runs the scheme
    visited Yerevan late last month for the first discussions on the
    subject with Armenian officials.

    They made it clear that the aid allocation to Armenia is not a
    forgone conclusion and will depend on the quality of the proposals.
    According to senior U.S. diplomats, it will also be contingent on the
    improvement of Yerevan's "poor" human rights record.

    Speaking to journalists, Markarian said that the government would
    like to primarily spend the MCA funds on the reconstruction of the
    battered infrastructure of the country's impoverished rural regions
    that have hardly benefited from recent years' economic growth. He
    said that would mean rebuilding schools, countryside roads and
    irrigation networks. "All of these programs must be in line with our
    [12-year] poverty reduction strategy," he said.

    Asked how much the Armenian side expects to get from the MCC, he
    said: "It is too early to talk about sums [of money]. But according
    to our preliminary estimates, [the government will ask for] between
    $500 million and $600 million in the next five years."

    Finance and Economy Minister Vartan Khachatrian came up last week
    with an even more ambitious aid target: $700 million, of which $100
    million should be made available as early as this year. But he was
    more cautious and vague in his comments on Wednesday. "Even [the MCC]
    don't know what will happen," he said.

    Khachatrian reiterated that the government commission in charge of
    the MCA is open to proposals from Armenian non-governmental
    organizations. He complained that it has received only two aid
    projects so far.

    Armenia has already received over $1.5 billion in regular U.S.
    assistance since independence. It will get at least $78.4 million
    worth of further assistance in the course of this year.
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