January 31, 2008
In early 2008, MCC, the Government of Vanuatu and MCA-Vanuatu recognized that these constraints and delays in mobilizing implementing entities and contractors limited MCA-VanuatuÍs ability to implement the Transport Infrastructure Project within its allocated budget and timeline. MCC, the Government of Vanuatu and MCA-Vanuatu underwent a joint exercise that reviewed several options for re-scoping the Transport Infrastructure Project. The Government of Vanuatu and MCA-Vanuatu proposed to modify the project by focusing on the construction and sealing of the two largest high-priority national roads, the Efate Ring Road and portions of the Santo East Coast Road. MCC conducted revised economic rates of return (ERR) on the modified scope of the Compact, confirming that the revised ERRs for the Efate Ring Road and Santo East Coast Road continued to exceed hurdle rates.