A Millennium Challenge Corporation compact is a multi-year agreement between MCC and a partner country to fund programs designed to reduce poverty and stimulate economic growth. Every MCC compact reflects its country’s specific priorities and details program objectives, implementation methods, and monitoring and evaluation strategies, while ensuring financial accountability, transparency, and fair and open procurement processes.
In November 2006, MCC signed a five-year, $461 million compact with the Government of El Salvador to improve the lives of Salvadorans through strategic investments in education, public services, agricultural production, rural business development, and transportation infrastructure. The largest of the compact’s components, the transportation project, unifies El Salvador’s Northern Zone with the rest of the country, enabling new economic opportunities for rural households, lower transportation costs, and decreased travel times to markets. The compact will be completed in September 2012; El Salvador is currently eligible to develop a second MCC compact.
In August 2006, MCC signed a five-year, $547 million compact with the Republic of Ghana to reduce poverty by raising farmer incomes through private sector-led and agribusiness development. MCC investments are intended to increase the production and productivity of high-value cash and food staple crops in some of the poorest regions and enhance the competitiveness of Ghana’s agricultural products in regional and international markets. The compact was completed in February 2012; Ghana is currently eligible to develop a new MCC compact.
In September 2010, MCC signed a five-year, $434 million compact with the Government of Republic of the Philippines to reduce poverty by supporting reforms to modernize the Bureau of Internal Revenue, and investments to expand and improve a successful community-driven development program, and rehabilitate a secondary national road in Samar province. The compact is due to be completed in 2016.
In February 2008, the Millennium Challenge Corporation signed a five-year, $698 million compact with the Government of Tanzania to reduce poverty by increasing household incomes through targeted investments in transportation, energy, and water. These investments will help Tanzanians address the inadequate transportation network by improving roads that will increase commerce and help connect communities with markets, schools, and health clinics; improving the reliability and quality of electric power and extend electricity service to communities not currently served; and increasing the availability and reliability of potable water for domestic and commercial use. The compact is due to be completed in 2013.