Identifier
Created
Classification
Origin
04YEREVAN1892
2004-08-27 12:01:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Yerevan
Cable title:  

ARMENIA MCA BI-WEEKLY UPDATE -- AUGUST 27, 2004

Tags:  PREL KMCA EAID AM 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 YEREVAN 001892 

SIPDIS

SENSITIVE

DEPT FOR EUR/CACEN, EUR/ACE, EUR/PGI, DRL, EB
DEPT PLEASE PASS USAID AND MCC

E.O. 12958: N/A
TAGS: PREL KMCA EAID AM
SUBJECT: ARMENIA MCA BI-WEEKLY UPDATE -- AUGUST 27, 2004

REF: YEREVAN 1771

Sensitive But Unclassified. Please protect accordingly.

-------
SUMMARY
-------

UNCLAS SECTION 01 OF 02 YEREVAN 001892

SIPDIS

SENSITIVE

DEPT FOR EUR/CACEN, EUR/ACE, EUR/PGI, DRL, EB
DEPT PLEASE PASS USAID AND MCC

E.O. 12958: N/A
TAGS: PREL KMCA EAID AM
SUBJECT: ARMENIA MCA BI-WEEKLY UPDATE -- AUGUST 27, 2004

REF: YEREVAN 1771

Sensitive But Unclassified. Please protect accordingly.

--------------
SUMMARY
--------------


1. (SBU) GOAM Poverty Reduction Strategy Paper (PRSP)
Secretariat Coordinator Hovik Azizyan confirmed to us during

SIPDIS
an informal meeting August 25 that the GOAM had pushed back
its planned proposal submission schedule. Azizyan said the
change was necessary due to the large number of proposed
projects and activities stimulated by the local MCA
consultative process. The MFE expects that the MCA Board of
Trustees will be able to consider the MFE submission and
submit a first draft of the MCA Board's Compact proposal to
the MCC (with at least priority directions/sectors defined)
by the end of September 2004. The GOAM then intends to
invite the MCC representatives to Armenia to discuss the
draft proposal. End Summary.

-------------- --------------
ARMENIANS LOOKING FORWARD TO INFO FROM "LESSONS LEARNED"
-------------- --------------


2. (SBU) We met with Ministry of Finance and Economy (MFE)
PRSP Secretariat Coordinator Hovik Azizyan August 24 to
discuss the MCA consultative process and prospects for the
GOAM's compact proposal. Azizyan's comments indicated that
the GOAM continued to focus on the MCA process even during
the August vacation season and despite the absence of the
MFE Deputy Minister who oversees these issues. Azizyan was
aware of the upcoming meeting between MCC representatives
and Senior Presidential Economic Advisor Vahram Nercissiantz
scheduled for August 27. He said that the GOAM looked
forward to hearing from the MCC about "lessons learned" from
compact proposals already submitted by eligible countries.
He acknowledged that any new information stemming from the
August 27 meeting may affect the expected timing and/or
substance of the GOAM's MCA Compact proposal.

-------------- --
PROPOSALS CONTINUE TO STREAM IN FROM THE PUBLIC
-------------- --


3. (SBU) The MFE continues to sort through numerous activity
proposals generated by the MCA consultative process.
Azizyan clarified that, following an initial cataloging and
vetting by the MFE, the proposals are forwarded to the
appropriate GOAM ministry for review and comment. The line

ministries will then submit a summarized and rank-ordered
version of all proposals to the MCA Board of Trustees no
later than September 20, 2004. To accomplish this, the MFE
had hoped to receive combined sector-specific proposals from
the various ministries and other state agencies by August
20, 2004.


4. (SBU) According to Azizyan, several GOAM ministries and
other state agencies have not yet submitted their combined
proposals to the MFE, due mostly to the unexpectedly large
number of proposals received from the public. According to
the GOAM official, over 300 activity proposals have been
received to date, and the escalating public interest in the
MCA program probably would generate a significant number of
new proposals before the GOAM's September 1, 2004 closing
date for proposal submissions.

-------------- --------------
PROPOSALS FROM HI-TECH, ENVIRONMENTAL SECTORS SURPRISE GOAM
-------------- --------------


5. (SBU) The current proposal review process has revealed a
greater level of interest in activities in the high
technology and environmental sectors than was predicted
earlier. These sectors, in addition to the project areas
identified early on in the consultative process (education,
health and other social sectors, roads, irrigation, dam
construction, etc.) appear to be modifying the GOAM's
approach to the issue. Azizyan told us that the MFE is
contemplating how it might add activities in these sectors
to its eventual MCA compact proposal. He also noted that
the MFE is discussing ways to consider the varying sectoral
needs of each region when consolidating the proposals.
(Comment: The need to be responsive to needs at the
regional level has been a constant theme throughout the
consultative process in Armenia's rural areas. This idea is
clearly filtering up through the GOAM bureaucracy as well as
the sense that a compact proposal that does not enjoy the
support of the regional governments will pose problems for
the GOAM. End Comment.)


6. (SBU) Azizyan also mentioned that the GOAM is concerned
about the problem of potential negative reactions from
groups whose proposals are ultimately not included in the
final MCA Compact proposal. The high number and scope of
proposals received already exceeds any amount that the GOAM
believes Armenia can reasonably expect to receive under the
MCA program. To address this, Azizyan said the GOAM intends
to keep the public informed regarding the current status of
proposals through various channels such as its website. He
also said the GOAM would engage individuals or groups whose
proposals were not included in a future compact with a full
briefing on the GOAM's decision-making criteria.

--------------
TIMETABLE SHIFTS
--------------


7. (SBU) Azizyan said the MFE now expects to receive the
combined sector-level input from various ministries by
August 31. Nonetheless, the MFE's own timetable for its
summarized and combined submission to the MCA the Board of
Trustees remains the same (September 20). The MFE also
expects that the MCA Board of Trustees will be able to
consider the MFE submission and submit a first draft of the
MCA Board's Compact proposal to the MCC (with at least
priority directions/sectors defined) by the end of September

2004. The GOAM then intends to invite the MCC
representatives to Armenia to discuss the draft proposal.
Pending positive feedback from the MCC, the second phase of
the consultative process will be initiated and the final
version incorporating public feedback will be submitted to
the MCC.
EVANS