OREANDA-NEWS. November 5, 2008. The Governing Council of Millenium Challenge Account-Armenia SNCO met at the Office of Government, presided at by GC Chairman, RA Prime Minister Tigran Sargsyan.

The Council discussed the revised Infrastructure activity of the Irrigated Agriculture project of the MCA-Armenia program, as well as the preliminary report on institutional strengthening of irrigation management entities presented by the Consultant under of the Water-to-Market activity of the Irrigated Agriculture project of the MCA-Armenia program.

The MCA-Armenia Chief Executive Officer briefed the Council on the changes effectuated in the contracts on design and technical control under the Infrastructure activity of the Irrigated Agriculture project of the MCA-Armenia program, as well as on the course of implementation of the credit component of the Program.

The meeting has also discussed and approved the amendments to the MCA-Armenia program procurements plan.

The Governing Council was reported on the outcome of the vote for the new composition of the MCA-Armenia Beneficiaries Council (2008-2009). The council also discussed the results of the vacancy competition for the post of Assistant to MCA-Armenia SNCO Chief Executive Director. Following discussion and endorsement by the Governing Council, the nominees with highest interview scores and the commission-proposed priority list will be sent to the MCC for final approval.

With reference to the first agenda item, MCA-Armenia SNCO CEO Ara Hovsepyan said that account taken of the depreciation of the US dollar over the past few years and the rise in building material-related and operating costs, it is impossible to complete the activities specified in the Infrastructure component of the Irrigated Agriculture project. As a result, the program needs reconsidering and an effective selection of sub-components, considering the technical, economic, environmental and social factors. The program revision started last March and was completed late in September. In the words of Ara Hovsepyan, revision work was attended by the representatives of local and Washington offices of the MCC, together with the representatives of Jacobs (MB) specialized organization. The team worked in close cooperation with the RA Vice-Prime Minister, Minister of Territorial Administration and the representatives of State Water Management Committee by the Ministry of Territorial Administration. They held consultations with water-user associations and communities and conducted field visits. As a result, the final version of the concept note on revision of the Infrastructure activity was developed and subsequently approved by the Millenium Challenge Corporation.

Under the revised program, by September 2011, 6 main channels will have been repaired, 7 natural flow systems engineered, 18 pumping stations restored, the main collectors of the drainage system in Ararat valley and artesian/deep-water wells rehabilitated, tertiary canals restored with a 15% co-funding on the part of water user associations. The total cost of the revised Infrastructure activity is USD 107.2 MN. As a result of restoration / construction work, there will be 106,161 beneficiaries in 286 communities with a population of 473,360 (of which 244,721 are women).

As result of discussions held between the Irrigation Activity Consultant and the MCC, it has been decided to trust monitoring work under the Infrastructure activity to a single specialized company as this is supposed to provide for better technical control, as well as help engage international experts in the works. This in turn will lead to the transfer of new professional skills and international expertise.

The meeting noted that that the vote for the third generation of the Council of Beneficiaries was held on September 27, 2008. Applications were received from 396 civil society organizations registered and operational in Armenia, including unions, funds and foundations, water-user associations, consumer societies, as well as other non-governmental and non-commercial organizations. A secret ballot resulted in the election of 15 candidates inclusive of 4 women, representative of 7 different marzes of the Republic of Armenia. The closed ballot of October 13, 2008 delegated 5 members of the Council of Beneficiaries to the Governing Council.

The MCA-Armenia SNCO Chief Executive Director also reported that as of September 30, 2008, the program-stipulated loan to the amount of USD 1.5 MN was earmarked in full, with all proceeds administered in Armenian drams. The average size of lending was AMD 3.674.000.