Millennium Challenge suspends project in Armenia

US Corporation Millennium Challenge has suspended the financing of a road reconstruction project in Armenia. It says the steps taken by the Armenian administration are not consistent with democratic management standards, and therefore responsibility for the suspension of the project rests completely with the Armenian side.

Millennium Challenge finances many projects in developing countries including Georgia. It has allotted USD 68 million for constructing roads in Armenia and USD 106 million for constructing and rehabilitating irrigation systems. The irrigation system financing has not been suspended.

It should be noted that the Armenian Government has previously been criticized by the US State Department. It has highlighted in a report that the Armenian elections of 2008 created a political crisis whose consequences linger. On March 1 last year the Government used excessive force to disperse protest rallies, wounding 200 people and killing 10. These rallies were a popular protest against Presidential elections the opposition claimed were fraudulent. The media and human rights have also been abused, the US says.