MCC's Jonathan Bloom and Minister of Finance Lucien Marie Noël Bembamba

Today, Burkina Faso took a great step forward.  Its $480.9 million, five-year Compact with the Millennium Challenge Corporation (MCC) to reduce poverty through economic growth has entered into force (EIF), meaning that the five-year clock to implement the grant has officially begun.  For over a year, the Government of Burkina Faso has been tremendously busy preparing for this moment.  The entity in charge of implementing the Compact—Millennium Challenge Account-Burkina Faso (MCA-Burkina Faso)—has already created a strong foundation for achieving Compact success.

The four Compact-funded projects continue to progress at an impressive rate.  For the Rural Land Governance Project, project analysts  are working on baseline data collection on land conflict and land tenure security, to enable monitoring of project performance. The Parliament of Burkina Faso also has passed a new rural land tenure law (“Loi Portant Régime Foncier Rural”), which is a critical step in Burkina’s land tenure reform process.  For the Roads Project, contracts are being signed this week for project management, technical assistance, and environmental and social assessments for the longest road segment funded by the Compact.  For the Agriculture Development Project, the management audit of the Sourou Valley Development Authority is complete, and the Ministry of Agriculture is now developing an action plan to address the findings of the audit.  The action plan will then be implemented by the development authority.  Burkina Faso also has completed Phase One of the BRIGHT 2 Project, a girls’ education program designed as a 3-year continuation of the highly successful Bright Threshold Program.

The “EIF” event culminates a week of activities, including a televised roundtable panel with other MCA CEOs from Mali and Benin, who were visiting Burkina Faso.  These CEOs discussed their experiences and shared best practices and lessons learned in implementing MCC poverty reduction grants in their countries.  It was fascinating to hear examples of the good work MCC partner countries are doing, and the people we are affecting in meaningful ways around the world.  It was also heartening to receive advice from the CEOs of Mali and Benin, who are both several years ahead of Burkina Faso on Compact implementation.

Front Row: Joseph Bissiri Sirima, National Coordinator Burkina Faso; Nene Traore, Director General, Mali; Prime Minister Tertius Zongo; Simon Pierre Adovelande, National Coordinator, Benin; Kateri Clement, RCD. Back row: Samuel Laeuchli, Charge d’Affaires, US Embassy; Alizeta Diallo, Deputy National Coordinator, Burkina; Jonathan Bloom, Deputy Vice President, MCC.

On July 30th, MCA-Burkina Faso also unveiled its new logo—with symbols representing all four Compact projects as well as the important partnership between Burkina Faso and the United States.  This partnership was emphasized by the American Embassy’s Chargé d’Affaires, Mr. Samuel C. Laeuchli, at a dinner at my house on July 30th.  At the dinner, Mr. Laeuchli toasted MCA’s success and highlighted that the staff of MCA are the ones who are truly implementing these important projects to reduce poverty in their country, with America’s support and funding.  On Thursday, MCC and MCA also signed an Implementing Entity Agreement with the Ministry of Environment, one of eight important agreements with Government of Burkina Faso ministries which spells out the terms of collaboration.  On Friday, there was an event at the Ministry of Finance, where the Chargé d’Affaires, MCC Deputy Vice President Jonathan Bloom, and the Ministry of Finance exchanged letters signifying that both countries had met all of the requirements in the Compact and were now ready to “enter into force.”

Finally, a highlight of the week was a televised meeting with the Prime Minister of Burkina Faso on July 31st.  The Prime Minister is very enthusiastic about the Burkina Faso Compact and is confident that it will make a significant difference in the lives of the poor here in Burkina.  I am proud to be working alongside my Burkinabe colleagues and friends, whose commitment to the fight against poverty is an inspiration.  The partnership between MCC and Burkina Faso reflects a shared commitment to winning the fight against poverty and creating sustainable opportunities for economic growth that will improve the lives of Burkinabe.  Now, the clock is ticking as we chart further progress ahead.

Santa Catarina on Santiago Island has always been a municipality with great cultural and economic potential.  Its full potential, however, has gone underdeveloped, given how difficult it is to access it various communities.  This has long been the reality for the seven major communities along the way from  Assomada to Chã de Tanque to Rincão, a way that has seen its share of notable landowners, fishermen, and adventurers who used the Port of Rincão to develop Cape Verde’s economy.

Indeed, Rincão served as one of the most important ports on Santiago Island, from where agricultural products were shipped all over the country. Some speculate that the port was used by militants fighting for Cape Verde’s independence, making  Rincão a place of  historic significance in the fight for Cape Verde’s freedom.

However, as time passed, Rincão was left isolated due to the lack of infrastructure and access to major cities like Assomada.  Fishing became Rincão’s main means to survive.

When Cape Verde and MCC signed the $110 million compact in July 2005, the people of Rincão were excited  at the chance finally to develop their community, with a road that would pave the way to prosperity and connect them to greater commerce and community services.  This past week on July 18, 2009, the road from Assomada to Chã de Tanque to Rincão was inaugurated.  It is  totally asphalted, modern, and functioning,  providing a gateway to the world for the people of Rincão

As one of the  first infrastructure projects completed within the Millennium Challenge Account-Cape Verde (MCA-CV)  program,  I am  proud of this milestone, and proud to see this day come for the people of Rincão. More than just a celebration of a road, or the success of the MCA-CV in partnership with Cape Verdeans, this is a time of reflection on the rich history of the people of Rincão.  Now, what used to be for them a painful one hour and a half journey to Assomada is a pleasant 30 minute drive.

With this completed road, the future of Rincão has the potential to attract tourism-related investments, and the six other localities along the road are already enjoying more dynamic and closer interactions, reclaiming the historic greatness of the municipality of Santa Catarina. Rincão is reborn and has the very real potential to become a reference point  for the  tourism and culture sectors.

With the inauguration of the road in Rincão, we can all say, “Yes, it’s possible!”

Thanks to MCC funds, the dream of bridging the prosperous past with a bright future for this area  of Cape Verde gives us all reason to smile.

“As chair of the Millennium Challenge Corporation, it is wonderful for me to see the results of our work and our investment,” shared Secretary of State Hillary Rodham Clinton last Sunday as she toured MCC projects in El Salvador that are improving the lives of the poor.   I felt honored and proud to show Secretary Clinton just how MCC’s $461 million grant is reducing poverty and stimulating economic growth here in El Salvador, where a new president has just taken office following a remarkable democratic election.  As the Secretary met with Salvadorans benefitting directly from MCC projects–from students to farmers to families assisted as electricity finally comes to their homes in the country’s Northern Zone–we see tangible proof of U.S. commitment to the region, and the effective role MCC’s smart assistance continues to play in changing the lives of the poor of El Salvador.

It was especially gratifying for Secretary Clinton to witness the signing of a public-private partnership (PPP) that will leverage MCC resources with those of the private sector and provide sustainable benefits for the poor.  This contract is a true milestone, as it represents MCC’s first financing of a public-private partnership in infrastructure and serves as a model for similar partnerships in other MCC partner countries. By combining funds from MCC, the Government of El Salvador, and the company AES, this partnership will construct 1,300 kilometers of rural electrification lines, connections, and extensions to existing lines in the Northern Zone.  This innovative PPP transaction will provide access to electricity for over 30,000 poor families in El Salvador’s Northern Zone. 

In these challenging economic times, when every development dollar must count, MCC understands that we can do more by working with partners who share our vision for economic growth and prosperity for the world’s poor.  Today, we all join Secretary Clinton in applauding how the private sector and MCC are setting an example in El Salvador by working together to benefit the poor in sustainable ways.

Holy Week, or Semana Santa, is normally a quiet time for most countries in Latin America.  This week-long celebration of Easter brings families together, while closing most government offices and businesses, as people enjoy much-needed vacations or time to attend religious ceremonies, rest, and reflect.

El Salvador is usually no exception.  However, last Monday, FOMILENIO was abuzz with activity as the very first road construction contract was signed for the Northern Transnational Highway.  High-level officials, including the Technical Secretary of the Presidency, the Minister of Public Works and Transportation, and FOMILENIO’s Executive Director, interrupted their vacations to meet with representatives of MECO S.A., a Costa Rica-based construction firm, to celebrate the long-awaited initiation of this historic project.  The conference room was full of television, radio, and newspaper reporters.

At the press conference, the participants provided the media and the public at large the details of this important project.  Spanning about 290 kilometers (180 miles), the Northern Transnational Highway is slated to extend from the Guatemalan border in the northwest corner of El Salvador, all the way across the northern part of the country to the Honduran border in the east.  For more than 50 years, Salvadorans have dreamed of having this strategic transport corridor, necessary to link small towns and cities throughout the Northern Zone, and also to link them with the rest of the country.  These goals seem all the more important when one considers how the Northern Zone suffered disproportionately during El Salvador’s civil war, not only in terms of physical infrastructure development but also in terms of human and social development.  In many ways, the Northern Transnational Highway is a symbol of peace, and a concrete example of how MCC funds can be used to stimulate economic growth and poverty reduction.

This is why news of the first road construction contract made local headlines and nightly news programs.  The first 23 kilometer road segment covered by this contract includes two important bridges, including one of approximately 150 meters, or 460 feet, over the Río Lempa, the largest river in the country.  This segment stretches from the bustling border town of Metapán to Santa Rosa de Guachipelín, a small municipality on the shores of Río Lempa.  The ability to cross this river quickly and safely from Santa Rosa Guachipelín to Metapán year-round, instead of having to travel a far longer and circuitous route (see photo), is a major benefit.

Several reporters directed their questions to the topic of job creation-a high priority given the challenges confronted by El Salvador and others in the region experiencing the aftershocks of the global financial crisis.  In addition to estimates of over 300 jobs on this first segment, Mr. Denis Monge, a representative from MECO, talked about opportunities for women.  He indicated that MECO would make hiring women a priority.  He pointed out that this goal is particularly important in the Northern Zone, since women are heads of households and principal income earners in a disproportionately high number of families, a result of decades of emigration, where many people, especially young men, have left the country in search of greater economic opportunities.

Stay tuned for news about the groundbreaking on this first road segment, scheduled for later this month.

Namibia is celebrating its 18th year of independence and, as coincidence would have it, MCC today signed its 18th compact with Namibia, a $304.5 million partnership for education, ecotourism, and agriculture.

This morning, I met with Namibian President Hifikepunye Pohamba to congratulate him and his government on the compact.  The government is intent upon development of its poorest areas, as Namibia has the second highest disparity of household income in the world.  The compact has three main projects.

The education project will focus on school textbooks, primary and secondary school infrastructure improvements, vocational training, and a sustainable system of scholarships for post-secondary school students. We estimate that about a million students will benefit over the years from this project.

The ecotourism project, largely in the poor northern part of the country, will focus on communal conservancies, protecting Namibia’s astonishingly beautiful natural resources, including wildlife for future generations.  In addition, this project will attract more tourists to Namibia and improve the jewel of the country’s tourism industry, Etosha National Park.

The agriculture project is focused on livestock, as a substantial number of households graze cattle on communal lands in northern Namibia.  The project will provide veterinary centers and training for farmers in rangeland management, improved livestock productivity, and land access.  A small part of the project is focused on helping poor families harvest high-value indigenous natural products like devil’s claw, marula oil, Kalahari melon seed, hoodia, and ximenia.

The signing ceremony was held at the office of the Prime Minister, with the Right Honorable Prime Minister Nahas Angula presiding over the event.  A number of ministers, including the Director General of the National Planning Commission (NPC), board members of the NPC, and a U.S. trade mission organized by the Corporate Council on Africa were among the dignitaries who attended the event.  Tonight, our Namibian counterparts will host us at a celebration to mark the compact’s signing at the base of the Auas Mountains, featuring a local choir and traditional dancers.