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Millennium Challenge Corporation sends strong message to Armenia

12 March 2009 08:13 (UTC +04:00)

Given ongoing concerns about governance issues in Armenia and Nicaragua, the Board decided to convene an extraordinary interim review session prior to its June meeting to assess its partnerships with these countries. The new Board will make a final determination regarding MCCâ€™s ongoing engagement in these two countries once it has had time to assess the current status.

As a result of the meeting, the Board reiterated its concerns about the status of democratic governance in Armenia and will not lift the hold on MCC assistance for the rehabilitation of rural roads, while allowing the government of Armenia to fund construction. MCC will continue to provide assistance for irrigation infrastructure, which is well underway and assists Armenian farmers. The Board will review the current hold on funding road activities at a special session prior to the June Board meeting.

â€œThe Boardâ€™s decision today signals to the government that it has failed over several years to address concerns raised not only by MCC and other U.S. Government agencies, but the international community as well. Itâ€™s now incumbent upon the government of Armenia to restore the Boardâ€™s confidence to its commitment to democracy and good governance. MCC has given the government of Armenia every opportunity to make meaningful reforms and will continue its direct communication about its expectations moving forward,â€ said Acting MCC Chief Executive Officer Rodney Bent.

The Millennium Challenge Corporation is a unique government agency, established by former President George Bush, that includes private and public sector members on its Board. The MCC Board of Directors is chaired by Secretary Clinton and also includes Vice-Chair Secretary of the Treasury Timothy Geithner, other government officials and representatives of the private sector.