A Shared Commitment to Georgia’s Economic Growth

Posted on July 24, 2009 by Jim McNicholas, Deputy Resident Country Director, Georgia

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 Presidents 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.

The Assomada-Chã de Tanque-Rincão Road: A Bridge between a Prosperous Past and a Promising Future

Posted on July 20, 2009 by Laurent Medhi Brito, Managing Director, MCA-Cape Verde

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 Verdean’s, 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. Rinc_o 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, its 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.