The Government of the Republic of Armenia

There have been discussed the principles and versions for revising the MCA-Armenia Irrigated Agriculture Project Infrastructure Activity, the Financial Accountability Plan as added to the December 25, 2007 contract on fiscal agent between MCA-Armenia SNCO and GFA Consulting Group, as well as the consulting service-related tender's technical bid assessment results under the Monitoring and Evaluation Activity for the upcoming stages of survey of farming activities. It has been noted that according to the compact, signed on March 27, 2006 between the Government of the Republic of Armenia and the United States in the person of the Millenium Challenge Corporation, USD 108, 590, 000 were due to be spent on the rehabilitation of 7 reservoirs, 6 main canals, 18 gravity systems, 68 pumping-stations, the Ararat Valley drainage system and several tertiary canals, as well as environmental and social impact evaluation and preliminary and final design under the MCA-Armenia Irrigated Agriculture Project Infrastructure Activity. Meanwhile, account taken of the past two years' US dollar depreciation record and the rise in the fees and prices for building materials and construction services, the aforementioned sum proved insufficient for the completion of all the activities under the program. In view of the above and after consultations held with Jacobs Ltd, a specialized expert company, MCA-Armenia SNCO and the Millenium Challenge Corporation have concluded that the Program should be revised to reduce its cost to the amount currently available.