Armenia Compact


MCC partnered with Armenia to implement a $235.65 million compact focused on agriculture irrigation and rural road rehabilitation.

Country Context

A small, landlocked country, Armenia struggled to recover from severe economic setbacks caused by the collapse of the Soviet Union in the early 1990s. A period of growth followed that unevenly benefited residents of the capital city over those in rural areas.

Compact Development Process

The Government of Armenia based its program proposal on a comprehensive consultative process that was initiated in 2003 for the development of its Poverty Reduction Strategy Paper.

Compact Summary

The compact sought to advance its goal through strategic investments in rural roads, irrigation infrastructure, technical assistance, and financial support to water supply entities, farmers, and commercial agribusinesses.

Irrigated Agriculture Project

The project aimed to increase the productivity of the agricultural sector by extending and improving the quality of the irrigation infrastructure, strengthening the entities that managed the system and enabling farmers to commercialize their products.

The Rural Roads Rehabilitation Project

The project aimed to expand communities’ access to agricultural markets, non-farm income opportunities, and social infrastructure by improving the condition of rural roads.

Compact Changes

Learn how MCC and the Government of Armenia agreed to adjust compact targets due to changes in costs. Post-election events inconsistent with MCC eligibility criteria also resulted in reduced funding as determined by the MCC Board of Directors.

Coordination and Partnerships

Discover MCC and MCA Armenia’s efforts to coordinate resources and expertise with other donors and international institutions as part of the Armenia Compact.

Conditions Precedent

Learn the conditions that Armenia needed to meet under the terms of the compact prior to disbursing project funds.

  • Signed: March 27, 2006
  • Entry into Force: September 29, 2006
  • Compact End Date: September 29, 2011