Closed Compact Report: Armenia Compact | March 2021

Compact Changes

The Infrastructure Activity was re-scoped in April 2008 due to the devaluation of the US dollar against the Armenian dram and construction price escalation. As a result, a decision was made to develop a new program to ensure an optimal mix of components to reduce poverty in rural areas. Consequently, the number of gravity systems dropped from 18 to 5; reservoirs from 7 to 0; and pumping stations from 68 to 17. The number of additional hectares under irrigation was revised from 20,340 to 1,767. Also, because of certain linkages and connections between the Infrastructure Activity and the WtM Activity, after the re-scope, the WtM targets and outcomes were reviewed and modified in order to reach greater impact with smaller outputs. The request for modification came from the WtM implementer and the output targets for on-farm water management and HVA components were eventually revised in 2009 based on the revised ERR analysis. In addition, it became apparent that there were significantly less registered processing enterprises in Armenia than the defined target. Consequently, all WtM targets included in the MCA-A Monitoring & Evaluation Plan were revised to reflect programmatic changes and the ERRs were recalculated. The target for the number of farmers trained in on-farm water management was reduced from 60,000 to 45,000 while the number trained in HVA was increased from 30,000 to 36,000.

Also, in May 2008, MCC placed a hold on the disbursement of additional funding for the RRRP (approximately $58.65 million) due to post-election events in March 2008 that MCC determined to be inconsistent with MCC’s eligibility criteria, particularly with regard to democratic governance. The hold was endorsed by MCC’s Board at its June 2009 meeting, after which the Board announced MCC would not resume any further funding for the roads project for the duration of the compact.

The original number of kilometers of road to be improved under the compact was 943 km. After the re-scoping in April 2008, the target was reduced to 332 km. However, as a result of the hold on funding, only 3 percent of the original target was completed.