Armenia Compact - Rural Road Rehabilitation

Summary: MCC’s $177.7 million Armenia Compact (2006-2011) funded the $8.4 million Rural Road Rehabilitation Project to improve the quality of 24 kilometers of rural roads. The project was designed on the theory that improved rural roads would reduce transportation costs, enhance residents’ access to markets and social infrastructure, and increase vehicular activity, thereby increasing employment opportunities (both short- and long-term) and agricultural investment and production, eventually resulting in increased household income. In addition, about a quarter of the project cost went to fund the design of 430 kilometers of rural roads that were subsequently rehabilitated by the World Bank and the Government of Armenia.