International Education Week 2009 (Nov 16-20) is an occasion to celebrate the benefits of worldwide learning and exchange.  International cooperation prepares citizens in every country to live, work and compete in the global economy. MCC is working with partner  nations to improve their education and training systems so that students learn the skills to get good jobs and boost economic growth in their countries and communities.

Youth development is central to a healthy, skilled and productive workforce. Investing in human capital through education and training is critical for improving productivity and economic growth and for reducing poverty and unemployment. About 36 percent of MCC’s $358 million direct investment in education is focused on youth development through technical and vocational education and training (TVET).

In El Salvador, working through FOMILENIO (which is the government entity accountable for compact implementation), MCC is helping to renovate 20 middle technical schools, revise curricula, train instructors, and  provide scholarships to deserving students, who will get jobs in agronomy, tourism and information technology — all areas crucial to the development of the country’s northern zone.

In Mongolia, MCC’s investment is helping to reform the TVET legal and policy framework so that schools are financially sustainable and can respond effectively to labor market demand. Competency-based curricula are being developed in key sectors like mining and construction. Selected schools are being renovated and equipped with modern technology and teachers trained in its use.

In Namibia, MCC supports community-based resource and study centers to provide basic job skills and information services for unemployed youth and low-skilled adults.  Also, the MCC investment is helping the National Training Authority develop demand-led programs, and a National Training Fund will ensure that the TVET system is financially viable.

In Morocco, TVET focuses on key artisan trades (leather, wood, metal, pottery, and textiles) whose products are in demand in the home, export and tourist markets. About 15 schools will be renovated and equipped with facilities to teach students the skills needed by employers and the market.

International Education Week is a great moment for MCC,  partner countries and agencies to highlight the strategic importance of youth development. The links between education and economic growth, income distribution and poverty reduction are well established.  Income, productivity and growth are closely linked to educational opportunity.  Strengthened TVET programs are particularly valuable for developing countries with large youth populations in need of the skills that lead to decent jobs, which in turn drive growth and reduce poverty.

Last week, more than two dozen communications professionals from around the world gathered at MCC headquarters for this year’s Communications College, a unique hands-on conference among peers to exchange best practices and lessons learned in development communications. These professionals carry out the public outreach, media relations, and overall communications duties at the organizations—often referred to as Millennium Challenge Accounts (MCAs)—responsible for implementing the poverty reduction programs in each of their countries. Their productive exchanges deepened our collective understanding about the issues we face every day as communicators: building the capacity of a press corps, managing media relationships, speech writing, managing strategic—and sometimes crisis—communications planning, expanding press freedom, organizing press conferences and outreach events, leveraging new social media, and coordinating with civil society, NGOs, and donors. Equipped with fresh insights and useful practices, our hope is that our communications colleagues have returned home with new perspectives on how best to tell the important stories of how their countries’ compacts are improving the lives of the poor.

Our colleague Elene Aladashvili from Georgia stated that MCC’s Communications College is “a chance to meet other colleagues from all around the world, exchange ideas and best practices, tackle the problems together and enhance communications skills, but it also serves as a great opportunity to touch the very core of what MCC is all about. Every time I come back from Communications College, my head is full of new ideas and opportunities. That helps me a lot in my everyday work at MCA Georgia.”

Communications College is not just about the local MCA professionals learning from us in Washington; it is also about us learning from them. Passion is the word I would use to sum up what I learned from the MCA communicators. They come face to face with the harsh realities of poverty and have the daunting task of managing the expectations of beneficiaries on a daily basis. Communicating results, especially long-term results, is not an easy task. It requires innovation, creativity, diplomacy, and patience. The MCA communicators each have a passion for communicating the results of their poverty reduction programs because they are personally vested in ensuring the success of their respective compacts.

Transparency and accountability demand the freedom of vibrant, honest, informed communications. The more our communications colleagues worldwide can shine light on what is unfolding during every stage of compact implementation—on the reforms underway and the results unfolding—the better informed citizens will become to hold their governments responsible to deliver fully on the promise of each MCC investment.

What we all know is this: Strategic, effective communications is how we can inspire action and affect change that will create an opportunity for the poor to lift themselves out of poverty. Listening to and learning from one another during this year’s Communications College reaffirmed and reenergized our shared commitment to win the fight against global poverty.

As I complete my service on the MCC Board of Directors, many thoughts go through my mind.  I think of the early days when, with personnel numbering in the dozens, MCC was bubbling with the energy and enthusiasm of a start-up enterprise. I think of the initial commitment of Secretary of State Powell and senior administration officials in launching this grand experiment, and the solemn responsibility to which I, and my fellow private sector board member, Christine Todd Whitman, took in ensuring that the voice of civil society and beneficiaries were represented. I think of how MCC matured under the steady leadership of Ambassador John Danilovich  and how the Board really came into its own under Secretary Rice, providing guidance to MCC management and upholding the MCC model through country selection, compact approval, and in the rare but unfortunate cases, suspension.

I think of the camaraderie that I have built with my fellow private sector board members, Mssrs. Craner, Patricof, and Frist, and am especially pleased that our work during the transition to a new administration has paid off with the full support of Secretary Clinton and the incoming Cabinet members. In a few short months, the Obama Administration has developed an appreciation for the value of an independent Board that serves as a model for inter-agency cooperation, drawing upon the experience and perspective of external stakeholders.  I wish CEO nominee Daniel Yohannes all the best in maintaining this model while placing his and the administration’s personal stamp on the agency, should the Senate confirm him.

When I see how far the MCC has come, particularly in beginning to realize its vision as an ambitious initiative emphasizing the principles of country ownership, the host country government’s accountability to its own people through democratic reforms, a commitment to fight corruption, and investments in the social well being of its citizens, I think further back—to the time when I first started in development over thirty years ago.  When I was stationed overseas on the front lines of this work, my colleagues and I used to gather after a day’s work—around a fire in some small village or back at the hotel bar in a bigger town—and talk about what development should look like, imagining beneficiaries deciding what assistance they would need to earn a livelihood and then playing an active role in developing and delivering that assistance. Little did I realize that three decades later, the U.S. Government would embrace these basic development principles: local ownership and community participation. And furthermore, that I would be asked to take an advisory role in the development of this concept.

MCC has come far in its five years.  While it pursued an ambitious path, it also responded to the concerns of many in the development community to incorporate much of the valuable knowledge and best practices already present.   MCC has taken great strides in working with USAID, collaborating through the Threshold program, communicating with the field missions, and heeding the counsel of the USAID Administrator, who plays an active role on the MCC Board.   From my personal visits to MCC programs and the reports I’m hearing from the field, MCC is achieving progress.  Projects are moving forward and the “MCC Effect” is having a continued and sustained impact, not only within MCC’s current partners, but also in countries striving to undertake valuable reforms to obtain eligibility. On the Board, we’ve come to realize that for many countries, demonstrating accountability to one’s people serves as a valuable signal to donors, investors, and the community at large, increasingly viewed as a form of currency that extends beyond simple eligibility for one form of U.S. foreign assistance.

One thing is clear—and this is reflected in the important dynamics of the public-private makeup of MCC’s Board—is that civil society has an indispensible role to play in development. No matter how dedicated governments are to uplifting the poor, their actions will never succeed unless businessmen, church leaders, community organizers and the like are active participants in the planning, design, and implementation of programs.  MCC has succeeded admirably in incorporating the views of civil society through initial consultation and project monitoring.  As the civil society Board member, I was able to draw upon an extensive field network of development practitioners, who combined technical expertise with a strong understanding of community needs and the cultural context so critical to successful development.  I hope that my successor on the Board shares this perspective.   I have great confidence that my colleagues on the Board will uphold MCC’s tradition of ensuring that the needs of the beneficiaries are addressed through the robust participation of civil society.

I am going to miss MCC, but I leave knowing that it is in good hands and headed in the right direction, which is confirmed by the positive results we are already starting to see.

It’s been an exciting few days for MCC. Resident Country Directors (RCDs) and Deputy Resident Country Directors (DRCDs) gathered from around the world for their annual conference last week to share best practices in poverty reduction. This gave us an opportunity to hear firsthand about how the U.S. Government is helping stimulate economic growth through MCC programs.

• Read the transcript from the public forum when RCDs talked about developments underway in Ghana, El Salvador, and Georgia.
• Listen to Vince Ruddy, RCD in El Salvador, explain progress underway during his interview with El Mundo al Dia (in Spanish).
• Listen to RCD Jim McNicholas’ interview on Voice of America Georgia about the status of MCC’s compact (.mp3 download, in Georgian).
• Listen to RCD Alex Russin’s interview about the status of Armenia’s MCC compact (in Armenian).
• Read a news report featuring Morocco’s RCD Muneera Salem-Murdock.
• Read the perspective of Gautam Ramnath about some of the key findings from the meetings.

These voices from the field provide important insights that highlight how America’s investments in development, when they focus on country-owned solutions, are bearing tangible results that matter to the world’s poor.

This week, MCC has been hosting all 19 compact country field personnel in Washington, D.C. for our annual Resident/Deputy Resident Country Directors Conference.  As we turn the corner into another fiscal year, preparations are well underway for setting priorities and objectives for the next year and for a 10 year horizon.  This year’s conference is an essential part of this process, as it not only provides our Resident Country Directors (RCDs) and Deputy Resident Country Directors (DRCD) with the opportunity to offer input into the process, but also provides them a chance for face-to-face exchanges with their DC colleagues, the Hill, the donor community, and the traditional and innovative media. (For example, we just completed an interesting “bloggers breakfast.”

Who are these people?

What we have seen underlined, commended and replicated by others is our country-led approach.  It is for this reason that our field presence is small, but efficient—usually just the RCD, DRCD and a couple of locally employed staff. Though limited in size, the duties of the resident country missions are substantial and diverse.  And this is what distinguishes our field staff.  They are, in one, finance and procurement directors, agricultural, education, health and infrastructure managers, PR and communications specialists, policy developers, investment promotion programmers, economists and auditors—all wrapped up in one diplomatic package. This list is not exhaustive, but gives a sense of the myriad issues that our “frontline” faces confront at any given moment of their day.

Learning is not a spectator sport

What I have appreciated, as both a participant in previous years and now as the conference’s organizer, is the emphasis on MCC as a learning and living unit.  Coming back to Washington after three years in the field representing MCC, I appreciate the fact that a majority of the messages being sent from the field are truly acknowledged and implemented so as to make field operations more efficient.  Taking such action to feedback is an integral reason why MCC has successfully met its targets for disbursements, commitments and performance during this past fiscal year.   This is how MCC continues to refine operations to deliver on our mission to reduce poverty through economic growth. But, learning this is not enough.

What is this conference doing about it?

This year’s conference has been 100 percent field driven.  The agenda was prioritized by the field and includes such main programmatic topics, among others, as second compacts, compact closure, compact development, procurement, contract management, the fraud and corruption policy, managing targets and milestones, and improving internal sector efficiencies.  It also includes in-depth discussions into other subjects, such as innovation in investment promotion, impact evaluation, donor coordination, and private sector partnerships.

But there’s room for more.

Interestingly, the agenda also incorporates small group working sessions on how to improve some commonly repeated concerns from the field over the last two to three years and ideas on how we can improve our effectiveness. By assessing what has been proposed before, learning from it and combining that with current realities and a pinch of creativity, each group will propose executable recommendations to MCC’s management for prioritization.

Trendy conference?

In reflecting on the conference, some interesting trends are emerging. Besides providing the traditional outlet for aligning multiple field issues and holding frank exchanges about program realities, this year’s conference has facilitated, via its iterative process, true mentorship among field staff, especially across countries just starting implementation and new employees.  We are also seeing a diversity in those who are taking leadership roles within the conference—more junior and senior staff, new employees and older ones, countries from all over the globe.  We are seeing increased participation by key MCC host country mission staff members as more mature compacts transition toward closeout. And, we are seeing a more anticipatory, collaborative and open-minded approach in combined presentations and problem solving between the field and DC staff members.

These trends are a result of our learning.

I truly hope that this year’s meeting serves as a benchmark for future evolutions of the RCD/DRCD conference as we continue to develop newer ways to learn and better accomplish our mission to reduce poverty through growth.

Gautam Ramnath served as the Deputy Resident Country Director in Mali for three years and is currently Associate Director for Business Development in Compact Development.

Last week, I had the pleasure of witnessing the five-year $304.5 million Namibia compact enter into force.  Reaching ‘entry into force’ (EIF) is a fancy way of saying that the five-year clock to implement the compact has now started ticking.  There was a great sense of excitement on both sides, along with a sense of shared responsibility to deliver on the promise of the compact.  The Namibian Prime Minister gave the keynote address, which he opened in quite a non-conventional way.  After asking the staff of MCA Namibia to stand, he challenged, “How many days are there in five years?  You must achieve something every day.”  He then, in turn, asked each minister or senior official from the ministries involved in the compact program to stand; he read them their budget and defined their principal responsibilities under the compact.  He did the same to me–quite an effective way to instill a sense of urgency and responsibility in us all!

Namibia’s $304 million compact will reduce poverty and stimulate economic growth by:

• improving the skills and productivity of the Namibian workforce,
• growing Namibia’s tourism industry, and
• increasing the total value-added from livestock in the Northern Communal Areas.

The Namibia compact breaks new ground for MCC, as it is the first time MCC funds a project in the tourism sector.  The tourism-related component of Namibia’s compact wil

1. improve management and infrastructure of Etosha National Park,
2. enhance the marketing of Namibia tourism and
3. develop the capacity of communal conservancies to attract investments in ecotourism and capture a greater share of the revenue generated by tourism in Namibia.

Together, these activities are aimed at generating income and creating employment opportunities for communities in the Northern Communal Areas, while conserving the natural resources that serve as the foundation of the tourism industry.

Five years is a relatively short period of time to accomplish these compact goals, so it is very important that a country use the time following compact signing and before EIF to fully prepare for program implementation.  MCA Namibia—the local independent entity in charge of implementing the compact–completed a number of important steps leading up to EIF so that the full implementation of the compact could proceed effectively and expeditiously.  They have already:

• hired a team of 29 professionals to staff MCA Namibia through an open and competitive process;
• drafted a detailed Monitoring and Evaluation Plan that will allow MCC, MCA Namibia, and stakeholders to monitor the implementation of the three projects, assess results, and evaluate their impact;
• contracted a consortium of Namibian firms to design and supervise the rehabilitation and expansion of 47 schools; and
• contracted a firm to work with the Ministry of Education to accurately count textbooks in schools as a first step to purchasing sufficient English, science, and math books.

Namibia is the second country in which I have the privilege of serving as an MCC Resident Country Director.  An obvious improvement in the MCC implementation process that resulted from lessons learned in earlier programs has been to lengthen the period between compact signing and entry into force.  In Namibia, this strategic time proved to be essential to properly staff the MCA Namibia program management unit, prepare bidding documents, train staff, and establish the supplementary legal framework – all vital things that need to be done before implementation begins.  Clearly, Namibia used this time wisely.

During the EIF ceremony, there was no doubt that this is a Namibian-led program.  The Prime Minister ended his speech with the declaration, “Get ready Namibia, because MCA is coming to you.”  This pronouncement seemed to capture both the optimism in the room about the compact’s potential and the shared eagerness to now move forward with implementation.

Upon landing in Tbilisi, Georgia, I had over an hour to prepare for our team’s departure for the opening of a new greenhouse complex, so far the largest grantee of MCC’s  Agribusiness Development Activity (ADA) in Georgia, which provides grants for small- to medium-sized farmers to  access modern farming supplies and increase agricultural productivity.  We drove four hours into west-central Georgia to participate in the opening ceremony with Georgian government representatives, municipal authorities, and staff from Millennium Challenge Georgia Fund (MCG). The event was as welcoming as the project was innovative, and I felt honored to be part of this much-anticipated day.

Mr. Zurab Janelidze, who invested more than $450,000 to match $299,736 in MCG grant funding, developed his vision for Herbia LLC, a comprehensive system for greenhouse production and distribution of fresh herbs and vegetables. Herbia was established on two hectares of land in the rural Georgian town of Tskaltubo and is linked to an existing cold storage facility – one of the few in rural Georgia – that also has the capacity to pack, store, export, and cater to local demand. Mr. Janelidze’s strategy will serve as an example for high-value agricultural production in Georgia, while earning substantial revenues from the export of fresh culinary herbs and greenhouse tomato production, which will be sold domestically. The enterprise will also purchase fresh herbs from small farmers in the area to augment its own production, packing, and exporting.  Upon touring Herbia LLC, its potential to make a positive impact in the Imereti region was evident as I walked through several greenhouses and saw many local workers picking produce.

I also visited multiple phases of the MCC-funded Energy Infrastructure Rehabilitation Project in the Mtskheta Tianeti region.  This project is rehabilitating an essential source of energy for the people of Georgia, which, at over 2,200 meters at times, is one of the world’s top three highest-elevation pipelines, making rehabilitation efforts not only challenging but also absolutely critical due to the remote nature of these repairs.

The Energy Infrastructure Rehabilitation Project is an exemplary case of true country-led development, as all phases of this project have been implemented by a Georgian company. The Georgian Oil and Gas Company currently operates the pipeline on the government’s behalf and has been responsible for the design and supervision of the entire project.  Improved management of the pipeline, together with MCC investments for repairs, have already resulted in a decline in gas leakage, which means increasingly reliable access to natural gas for Georgian citizens and their enterprises.

Distance creates a clearer perspective on experiences.  Now back in Washington, I am able to reflect on my recent trip to the field and can say I feel privileged to have observed these transformative projects in person. It was truly exciting to witness the focused energy and enthusiasm of the Georgians at work on a daily basis. It is clear that MCC’s partnership with the Government of Georgia is  highly valued and will continue generating positive results.

Last week, the United States Government joined African small business leaders, NGOs, civil society stakeholders, and representatives of the Kenyan government for the 8th annual African Growth and Opportunity Act (AGOA) forum in Nairobi, Kenya.

The three-day forum, including parallel private sector and civil society meetings, featured participation by two MCC Board members, Secretary of State Hilary Rodham Clinton and United States Trade Representative Ambassador Ron Kirk.  Accompanying the Secretary on the trip were Members of Congress – Jim McDermott, Donald Payne, Nita Lowey – as well as Agriculture Secretary Tom Vilsack. AGOA, for those less familiar with the trade policy world, represents bipartisan legislation enacted in the late 1990s and signed by President Clinton to help address the fact that the recently-enacted Uruguay Round of multilateral trade negotiations did little to benefit developing countries.  The idea behind the act was to stimulate trade with Africa by giving most African countries duty-free treatment, with the ultimate purpose of stimulating U.S. investment in Africa and helping include Africa in the global economy.

MCC partners with countries that identify the greatest constraints to their development and establish their priorities to create sustainable economic growth. While each country’s grant is unique, most MCC partners place a high priority on increasing competiveness and facilitating regional and international trade. In fact, trade capacity building is a critical part of the U.S. Government’s AGOA contribution.  This promotes economic growth through trade and improves the linkage between trade and development by assisting countries to develop physical, human, and institutional capacity necessary to take full advantage of trade opportunities and, most important, to increase growth and reduce poverty. In 2008, MCC was the largest U.S. Government source of trade-related funding for sub-Saharan Africa, obligating nearly $1 billion.

MCC – with 70 percent of its portfolio in Africa, almost half dedicated to infrastructure   – is already undertaking a number of projects that support AGOA’s objectives in various ways.

• MCC is now working with 19 countries in Africa, developing or implementing compacts or threshold programs;
• MCC partner countries are a natural focus to take advantage of AGOA because they are already undertaking  reforms  to attract investment;
• MCC could be “the other half of the equation” to go hand-and-glove with AGOA preferences because MCC resources are already dedicated in that direction, with  $2 billion in roads  or ports to connect producers to markets; a half a billion in credit facilities to stimulate business enterprises; energy investments to facilitate greater production and exporting opportunities; an investment in hydroelectricity to support textile production in Lesotho;
• Sixty-four percent of MCC’s portfolio is related in some way to agriculture productivity, and agriculture is the area where AGOA’s trade preferences have the greatest potential;
• MCC is one of the few donors that invests in both agriculture and infrastructure in a major way
• MCC is placing greater focus on demand-driven strategies that connect beneficiaries to global markets, in product areas that could potentially also benefit from AGOA.

Ultimately, MCC is realizing the full potential of AGOA by not only expanding trade and investment opportunities but also promoting sustainable development and good governance.

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.

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.

Vice President Joe Biden visited Tbilisi, Georgia this week, meeting with Georgian President Mikhael Saahkashvili, members of Parliament, leaders of the opposition parties, and business leaders.  One of the highlights of the visit for the Georgian media was the Vice President’s visit with children at a center for families displaced by the August war.   At each stop on his visit, the Vice President spoke of a U.S.-Georgia partnership based on the ideals of democracy and re-affirmed the U.S. commitment to support the Georgian people as they continue to build the institutions and economy of their country.  “I especially today call upon the young people of Georgia,” Mr. Biden said on the floor of the Parliament, “the next generation of Georgian leaders, to continue to contribute their ideas, their voices, and their energy to help create a peaceful, stable, democratic, and economically prosperous Georgia.”

As part of the U.S.–Georgia partnership, the Millennium Challenge Georgia Compact, a five year program totaling $395 million in grant funds, has been providing necessary resources for Georgians to invest in their economy and reduce poverty.  Georgia is committed to the core MCC philosophy of country ownership and accountability.  It has created a strong management team and government oversight board to ensure that U.S. funds are spent efficiently and achieve results for the Georgian people.

Now in its fourth year of implementation, Georgia is beginning to see tangible results.  Under MCC funding, the municipal water supply network for Poti, Georgia’s largest port, has been rehabilitated, improving the water supply for the city’s population of 50,000.  Georgia’s energy security has been strengthened by the completion of two rounds of priority repairs on the main natural gas pipeline.  The pipeline, operated by the Georgian Oil and Gas Corporation, transports gas from Azerbaijan to Georgia for residential heating and to operate Georgia’s only electricity power plant.

Additional infrastructure improvements are on the way.  Another four municipalities are undergoing water system rehabilitations.  Construction on the Samstkhe-Javakheti road, connecting Tbilisi with Armenia and Turkey, is currently underway.  Georgia also chose to invest in agriculture and to assist the growing number of small and medium size enterprises in Georgia.  The Enterprise Development Project has already invested over $25 million in the Georgian economy through a combination of grants and equity investments for farmers and businesses.  Much of this total has been mobilized since the August war and since the economic crisis has negatively impacted the Georgian economy.

Millennium Challenge Georgia Fund CEO George Abdushelishvili recognizes that he, his team, and partners have a lot of work ahead to deliver on the promise of the MCC grant.  “When Georgia has a good partner, and especially when we hear Vice President Biden highlight our countries’ partnership here in Tbilisi, it makes me want to do more,” he says.