Poverty Reduction Blog Tag: Compact
Posted on April 23, 2014 by Andrew Ladson, MCC Department of Congressional and Public Affairs
No service. It’s a familiar modern harbinger of imminent frustration. When this message replaces the reassuring presence of three to five bars in the upper left hand corner of a phone’s display, the mental gymnastics of letting go of email, texts and having the Internet at immediate command begin. But for guests of Grootberg Lodge, located in the ≠Khoadi-//Hôas Conservancy on the Etkendeka Plateau of Namibia’s Kunene region, this message is a reminder that they’re exactly where they want to be.
Grootberg Lodge is part of the Ecotourism Development in Conservancies Project of the Millennium Challenge Corporation’s $304.4 million compact with Namibia,
Established in July 1998 through the Namibian Ministry of Environment and Tourism, ≠Khoadi-//Hôas Conservancy benefits its more than 3,000 residents with programs that take advantage of the region’s extraordinary natural beauty and wildlife. The conservancy’s innovative approach to addressing such challenges as human-wildlife conflict and rare species poaching has made a remarkable difference in the area. The conservancy makes life better for residents by helping them no longer view wildlife as a nuisance or threat and by generating revenue through ecotourism. Grootberg (which means Big Mountain) Lodge—wholly owned by the conservancy’s residents—is a big part of what is making the difference.
Renovated and expanded in 2012 by Millennium Challenge Account-Namibia (MCA-Namibia), the local organization managing the implementation of Namibia’s MCC compact, the lodge offers guests a wide range of ecotourism activities--including black rhino and elephant tracking, visits to the Himba people (an ancient tribe of nomadic herders) and guided walks through the plateaus overlooking the Klip River Valley—all provided by employees from the local community. Over 95 percent of the lodge’s employees are conservancy and community residents, and their employment provides a livelihood much different from subsistence livestock farming or odd jobs. For employees like Susanna !Hoages and Otniel ‘’Areseb, that employment has blossomed into careers.
Susanna !Hoages, 27, began her employment at Grootberg in 2006 as a waitress, with the lodge providing on-the-job training. After taking an interest in the “back of the house” activities in the kitchen, management transferred Susanna in 2009 to another lodge to serve as an assistant chef trainee. Excelling in this role, Susanna was sent to the Namibian Institute of Culinary Education before returning to Grootberg Lodge to serve as food and beverage manager. Susanna appreciates the difference the lodge has made in her life and that of the community at large.
“Employment at Grootberg Lodge is one of my benefits… as well as [for] the community as a whole and my family. I’m working, I’m earning money… the lodge is earning money—which is a benefit to the community. This money that is produced or the profits that [are] coming into the lodge, it’s shared with the community.”
Otniel ‘’Areseb, 48, helped build Grootgerg Lodge. In November 2004, he was literally in the trenches, digging the paths for the plumbing pipes that serve the 16 lodge chalets, main building and staff quarters.
Upon its opening in June 2005, Otniel was employed as a bartender and later promoted to project manager for maintenance. Otniel now serves as floor manager, which means he is responsible for managing the staff that attends to guests in the main building and restaurant—a role critical to guests’ perceptions of their experience at the lodge. A consistently high level of service is Otniel’s continuing goal:
“We have many guests who are here three, four times. This is what we want to see with our service.”
“No service” might be welcome when escaping the modern grind, but while visiting Grootberg Lodge, it will be confined to a phone’s display during a rhino tracking expedition or a plateau walk (yes, there is wifi in the main lodge). For lodge staff, continuing to raise the service bar for themselves and the lodge is the best way to ensure the benefits for the community’s economic prosperity will continue to grow.
Posted on April 7, 2014 by Tamara Heimur, Liberia country team
Each MCC compact is designed to create economic growth. Since the private sector is a key driver for sustainable growth, MCC’s Finance, Investment and Trade team works with partner country colleagues to ensure that companies have input throughout the compact development process.
This work includes consultations with American, Liberian and international businesses to learn firsthand about the challenges they face when considering investment in our partner countries. We then work with our partner countries to design compact grants that address these challenges.
MCC, the Government of Liberia and The Corporate Council on Africa (CCA) recently hosted a roundtable meeting in Washington, DC for companies that are active in Liberia or are interested in investing.
At the roundtable, the Government of Liberia (GoL) and MCC presented the Liberia Constraints Analysis, a report outlining the primary constraints to economic growth and investment in Liberia.
Every MCC partner country develops a constraints analysis, which takes an evidence-based approach to identifying the primary factors that limit investment. The analysis clarifies priorities among a country’s many development needs and identifies potential areas of focus for an MCC compact. The Liberia Constraints Analysis identified the lack of roads and electricity as the primary constraints to growth.
After the presentation of the constraints analysis, the Liberian government delegation presented some initial concepts for potential projects in the roads and energy sectors. We invited feedback and questions from attendees, which helped start a conversation that will help the GoL to refine the proposed projects.
This event is part of a series of conversations that MCC and the GoL have hosted since Liberia qualified for MCC assistance in December 2012. In mid-2013, the GoL organized roundtables with businesses in Liberia to learn what is constraining the growth of local companies, and in late 2012, MCC, the GoL and CCA hosted another event for companies in Washington, DC to provide feedback on the proposed compact projects. We expect to continue the dialogue with companies through more events, webinars, email updates, and other forums as the GoL continues its compact development process.
This type of private sector engagement is an important component of the MCC model. Together with our partners in the GoL, we are ensuring the private sector and other stakeholders provide input every step of the way.
We invite additional input and feedback from private sector firms; please contact the following individuals for more information:
Government of Liberia:
- Monie Captan, National Coordinator, National Millennium Challenge Compact Development, email@example.com.
- Philip Pleiwon, Private Sector Lead, National Millennium Challenge Compact Development, firstname.lastname@example.org.
Millennium Challenge Corporation:
- Evan Freund, Country Team Lead for Liberia, email@example.com.
- Tamara Heimur, Private Sector Lead for Liberia, firstname.lastname@example.org.
Posted on March 28, 2014 by Michelle Adato, Director, Social and Gender Assessment, Department of Compact Operations
MCC is marking World Water Day with a blog series on our investments in the delivery of clean water, effective sanitation services and long-term solutions that help build economic growth. This is the seventh and final blog in the series.
The Millennium Challenge Corporation’s $354.7 million compact in Zambia will build water, sanitation and drainage infrastructure in greater Lusaka’s poor communities. The challenge, though, is ensuring that the projected benefits reach the poor. Recognizing that this means addressing the complex social dimensions in those vulnerable communities, MCC is putting great effort and resources into a holistic approach to these projects.
MCC’s Lusaka Water Supply, Sanitation, and Drainage (LWSSD) project must address not only the engineering complexities of building water and sewer networks in dense, under-planned neighborhoods, but also the social and economic complexities of getting people connected, keeping them connected and bringing about the behavior changes necessary to enable and sustain the intended benefits.
The cases of the “white elephants,” as referred to by one Zambian water and sanitation regulator – where water or sewer networks are built but lie unused because people do not connect or stay connected – happen because not enough focus is placed on the importance of social dimensions of planning for water and sanitation service delivery.
A global literature review commissioned by MCC found that the rate of household network connections is significantly increased when infrastructure is combined with well-designed and executed information and education campaigns that address the why and how of connecting, accompanied by policies that make connections affordable, such as pre-financing and permitting repayment over time. A tariff structure that addresses affordability and social equity principles is also important.
The LWSSD project involves mostly infrastructure but is also strengthened on the institutional side with initiatives that improve the long-term ability of the Lusaka Water and Sewerage Company to manage aspects of service planning and delivery. Some of these aspects include developing policies and planning tools that ensure the integration of social and gender inclusion across the utility, and improving the utility’s capacity to design and implement information and education campaigns on connecting and staying connected; household water management; care and maintenance of facilities; hygiene; keeping drains clean and safe; and employment opportunities in the sector. The goal is to support the utility in adopting best-practices, so that Zambia’s most vulnerable populations can access affordable services and be able to rely on these services into the future.
While the challenges are immense, the ultimate ability of the infrastructure project in Zambia to meet its objectives is dependent on addressing these social dimensions.
Posted on March 28, 2014 by Evan Freund, Deputy Resident Country Director, Mozambique
MCC is marking World Water Day this week with a blog series on our investments in the delivery of clean water, effective sanitation services and long-term solutions that help build economic growth. This is the fifth in the series.
Nacala, home to Mozambique’s deep water port and access point for trade through much of east and southern Africa, is a city whose rapid growth punctuates the entire country’s challenges with access to a clean and reliable water source.
In the towns and villages surrounding Nacala, and in the city itself, the lack of an element so vital for daily life and commerce is a considerable constraint to economic growth.
The road to Nacala’s port is cluttered with new and expanding businesses – many of which are voracious water consumers – and the coast is increasingly crowded with large container ships, transporting the world’s goods into, and out of, the region. The region’s growth is evident at every turn in Nacala.
The MCC-funded expansion and rehabilitation of the aging, inefficient and undersized bulk water supply dam in Nacala – the principal source of Nacala’s water – was an ambitious and technically complex plan which, in part, helps the city meet the growing demand for water. The project also embodied many of the very best characteristics of the MCC model and the necessary characteristics of good project execution: broad engagement and involvement with community entities and people who have a stake in the project’s success, a planning process that included participation by public and private organizations, and country-led solutions.
Piecing together a collaborative and productive partnership between multiple beneficiaries and participants at the international, national and local levels over a three year period prior to construction was critical to ensuring the safe and timely completion of the project. But it was not without its secondary challenges. The announced promise of more water led to understandable expectations of immediate results, especially among the project’s intended beneficiaries. It was important to explain in clear language that considerable front end work on the project would avoid problems on the back end.
So, led by MCA-Mozambique, countless technical meetings, outreach and educational awareness workshops and discussions took place from 2008 to 2011 in order to ensure a project as technically complex and large as this could go forward with as few problems as possible… and that everyone at each level understood what it was going to take.
With a lot of hard work and a little luck, a tight two-year construction period proceeded smoothly and one of MCC’s most technically sophisticated – and one of Mozambique’s most high profile – projects was delivered as planned. The end result is an expanded dam (from 17 to 19 meters) and a reservoir with increased capacity (4.2 million to 6.6 million cubic meters) that now provide a stable foundation for Nacala’s continued development.
Posted on March 27, 2014 by Joana Brito, Deputy Resident Country Director, Cabo Verde
MCC is marking World Water Day this week with a blog series on our investments in the delivery of clean water, effective sanitation services and long-term solutions that help build economic growth. This is the fourth in the series.
How do you take a fragmented, poorly run water and sanitation utility in an extremely dry country like Cabo Verde and make it run efficiently enough to bring high-quality service to a half million people?
This question is moving toward a real solution through the Water, Sanitation and Hygiene (WASH) Project, part of Cabo Verde’s second compact with MCC. At the start of the project’s design, inefficiencies at the utility level were bad enough to pose significant barriers to economic growth. The problems needed to be tackled aggressively and reforms put in place if people were to benefit from a water utility at all.
The WASH Project aims to sustain the long-term delivery of services and goods through a three-pronged strategy: first, motivating reforms at national policy and regulatory agencies so real change can take place; second, operating utilities more efficiently through best commercial practices; and third, improving the quality and reach of the water and sanitation infrastructure through an accountable system for integrated water resource management.
There are about 19 small utilities spread throughout 22 municipalities of the nine inhabited islands of Cabo Verde, each serving a few thousand people in a population of a half million people. These small utilities, called SAASs, suffer from significant bureaucratic interference by municipal authorities, are over-staffed, have a shortage of technically qualified staff, and are not financially sustainable.
The proposed approaches will make the utilities more efficient and more financially sustainable. These include:
• Grouping nine of the small operators of the island of Santiago, Cabo Verde’s biggest island, into a single corporatized, commercially run operator shielded from political interference;
• Improving operations and management by adopting business practices used by commercial entities; and
• Extending service coverage by decreasing the loss of water through leaky pipes and pumps and making sure the most vulnerable people get service.
This, coupled with a strong public information campaign, will increase awareness of the health benefits of better water and sanitation services as well as hygiene practices. Together, it will prompt consumer willingness to pay for good service.
By focusing on transforming the utilities and the way they do business now, the people of Cabo Verde will enjoy increased access to water and sanitation, with reliable service and improved quality… keys for healthy living.
Posted on March 26, 2014 by Cassandra Q. Butts, Senior Adviser
MCC is marking World Water Day this week with a blog series on our investments in the delivery of clean water, effective sanitation services and long-term solutions that help build economic growth. This is the third in the series.
In the fight against poverty, investing in innovative approaches, enhanced technologies and new techniques to improve development outcomes or reduce costs are essential. Partnerships between the public and private sectors are not new, but they are key to reaching people with new technologies and models for services, often with greater efficiency and impact than what could be achieved working alone.
I recently traveled to Zambia’s capital of Lusaka to participate in the public launch of an exciting program that will leverage public-private partnerships to better support access to clean water, reliable sanitation and services to improve the functioning of Lusaka’s drainage system, especially in the city’s poorest areas.
The Innovation Grant Program intends to confront pressing issues affecting Lusaka’s water sector and limiting economic growth in Zambia. Through calls for proposals to introduce improved technology, best practices and targeted services, the grant program aims to decrease incidences of disease spread through contaminated water as well as reduce the cost of sanitation services and business losses from flooding. With improved service delivery in targeted areas, people will spend less on health care, be more productive in their work and abilities to care for their families, kids will miss less school, and businesses will not have to close as often during the rainy season. New models of service delivery can also create new employment opportunities, support entrepreneurship in the city and empower women and youth.
This program will offer the private sector, universities and other organizations in Zambia, the United States and throughout the world, an opportunity to compete for funding in a transparent manner to complement and supplement the other investments in infrastructure and institutional strengthening being carried out through Zambia’s five-year, $355million MCC compact. Together with the Government of Zambia, the Lusaka Water and Sewerage Company and the Lusaka City Council, MCC’s investment will impact more than one million Zambians.
The promise and potential of the Innovation Grant Program will serve the most vulnerable members of society, ensuring that women, children, the poor, and other disadvantaged groups are able to benefit from access to clean water and sanitation services.
Stay tuned: MCA-Zambia will soon announce when it will start accepting proposals. I am excited to see these advances in action!
Posted on December 3, 2013 by Carolyn Pryor, Program Officer, Mongolia
As I reflect on the three years that I worked on the Mongolia Compact, I am proud to have been a part of such a significant contribution to the country’s development in several crucial sectors—a contribution that will ultimately improve the lives of millions of Mongolians.
I joined MCC in 2010, shortly after MCA-Mongolia and MCC agreed to add two new projects, with only three years remaining in the compact’s life. The new Energy and Environment Project (EEP) was slated to target ever-growing air pollution in Ulaanbaatar, and the new North-South Road Project would pave a critical portion of highway connecting Mongolia to its key trade partners Russia and China. These two projects were particularly aspirational because there were only two construction seasons and two winter seasons remaining in the compact.
With MCA-Mongolia’s diligence and the contractor’s commitment to complete the project, the road was finished on time and on budget, while adhering to international environmental and social standards. The perseverance and ambition of the project team to complete this very difficult task within an extremely limited time frame, and in the severe construction climate contractors experience in Mongolia, is quite an impressive accomplishment.
Additionally, the EEP was able to subsidize nearly 100,000 energy-efficient stoves in just two winter seasons. I was able to meet several beneficiaries, and every single person spoke of the fuel savings for their families because of the new stoves. I also met a female sub-district leader who was involved with the EEP’s Greening Grants initiative. Her sense of ownership and pride shined through her stories. She said that she had always wanted to grow trees on her plot of land in the impoverished ger district in Ulaanbaatar, but she did not know how to sustain the health of the trees and shrubs in the harsh Mongolian winters. Through the initiative, she was able to learn about proper tree maintenance, while teaching others and keeping track of the neighbors who participated in the program. Not only did this initiative enable this woman to become a leader in her community, it also enabled this impoverished district to plant foliage in a sustainable manner.
During a visit to Mongolia in July, I noticed immediately the change among people working to create a smoke-free environment. At restaurants and countryside ger camps, I saw patrons stepping outside of restaurants to smoke. The Health Project’s involvement in creating smoke free provinces—along with the new Tobacco Control Law— drove this effort, and the change in daily life in Ulaanbaatar and the countryside is evident.
Another aspect of the Health Project that was particularly striking was my visit to Shastin Hospital. The state-of-the-art Stroke and Cardiac Intensive Care Unit established under the compact is a profound step forward in the treatment, management and diagnosis of stroke and cardiac disease in Mongolia. The equipment provided by the compact, coupled with training, will save many lives from these diseases and reduce incidences of disabilities. The rehabilitation unit will help patients suffering from these ailments recuperate more quickly. As a daughter of someone who has suffered from multiple heart attacks, this new unit’s ability to save the lives of Mongolian fathers, mothers, daughters, and sons from one of the most prevalent causes of disability and death in Mongolia strikes a personal chord.
The compact’s involvement in the property rights sector also made crucial progress in bringing economic growth to the most impoverished and vulnerable Mongolians. One beneficiary of the urban component of the Property Rights Project personally told me that the registration process she went through for her plot took her two months; previously, it would have taken her a year. I met with a female herder group leader near Baaganuur, who demonstrated her pride in the investments made in her land plot, including a well and winter shelter area for her cattle. She was working as an interlocutor between other local herders and the dairy market, helping promote sustainable economic growth for her industry as well as the herders in the surrounding areas.
Such investments in infrastructure, health, property rights, and the reduction of air pollution were complemented by the Technical and Vocational Education and Training Project, which trained the leaders of tomorrow in the technical skills needed to properly meet the demands of the growing industries in Mongolia. During my visit to the Zarvkhan Vocational Training Production Center, I learned firsthand about new up-to-date training equipment and simulators that teach students to use heavy-duty machinery properly. Students at this center had high employment rates after graduation and were actually teaching their employers about the newest tricks of the trade!
Finally, it is important to note the government’s commitment to sustain the compact’s results. The Ministry of Economic Development and the Cabinet Secretariat have committed to continue managing like MCA-Mongolia—with a program logic based on economic rates of return, projects that uphold international environmental and social standards and diligent monitoring and evaluation.
I congratulate MCA-Mongolia on the successful completion of all the complex compact projects. This impressive accomplishment will benefit Mongolians for decades to come.
Posted on October 3, 2013 by Paul Weinberger, Vice President of Congressional and Public Affairs
After six months at MCC, I have been looking forward to the opportunity to visit a partner country and see for myself the results of the work we are doing. With one of our larger, more ambitious compacts coming to a close in Morocco, the opportunity presented itself—and it turned out to be a memorable trip.
Travelling with former Ambassador Mark Green, one of our private-sector Board members and the President of the Initiative for Global Development (Read his blog on the trip here: http://bit.ly/1aL0YEm), I met a range of beneficiaries and saw a number of successful projects. Our first day there, we took part in a ceremony marking the completion of our microfinance project. Thanks to MCC, mobile banking vehicles will help microfinance institutions reach those Moroccans who currently lack access to financial services because they live in remote, sparsely populated areas. Meeting with beneficiaries and handing out keys to the vehicles were great experiences.
We also visited a new fish landing site at Salé, just across the Bouregreg River from Rabat, where grateful Moroccan fishers will have the facilities and infrastructure they currently lack to unload, store and sell their catches. We toured gleaming new wholesale fish markets in Marrakesh and Rabat with ice-making and storage facilities, and auction halls where fish prices are electronically recorded and displayed, providing the transparency and price discovery that are key to a well-functioning market. And we saw some of the improved irrigation systems and an olive oil processing plant under construction outside Marrakesh that were built as part of Moroccan efforts to boost fruit tree productivity. It was particularly gratifying to see the large sign at every site that reminds beneficiaries that projects result from the generosity of the “peuple américain.”
That same gratitude was apparent in our meetings with Moroccan government officials. What struck me, however, was that while they were very appreciative of the tangible benefits of the compact, they were even more excited about the methodology and know-how that MCC had shared with them. As one official put it, it wasn’t just the work that was done – how it was done was key. Now the Moroccans have the tools they need to make similar progress in other areas. That kind of knowledge sharing is core to MCC’s mission–and experiencing it firsthand was the best part of my trip to Morocco.
Posted on September 30, 2013 by Daniel W. Yohannes, Chief Executive Officer
World leaders gathered in New York City last week for the opening of the United Nations General Assembly. I was pleased that, even among the pressing global challenges that compete for their attention, they showed a commitment to the important issue of sustaining development’s positive impacts as indispensable ingredients for peaceful and prosperous societies. Clearly, this meeting creates a valuable space not only for heads of state to converge and chat but also for diverse sectors involved in development to come together and discuss challenges, exchange information, create innovative partnerships, and share solutions.
Enduring results were certainly a key topic as I met with presidents and prime ministers from our partner countries on the margins of the General Assembly. In every conversation, we talked about the challenges and successes of implementation, and ways of leveraging each dollar of our development resources to deliver lasting impact with maximum efficiency.
In my meetings with NGO executives and those I attended at the Clinton Global Initiative, we talked about holding ourselves and our partners accountable to measure, monitor and evaluate the long-term impact of our development investments. Given these challenging economic times and the evolving dynamics between donors and recipients of foreign aid, we increasingly rely on evidence-based decision making to drive real change. That is why we see an increased focus on using data in transparent ways to honestly assess what works and does not work in development so that we can sustain the successes and reengineer the failures.
With former U.S. Ambassador to South Africa Donald Gips moderating, MCC also hosted an investment roundtable with the leaders of Lesotho, Morocco, Mozambique, and Tanzania, our four partner countries in Africa who just completed their respective MCC compacts this month. The roundtable discussion centered on the private sector’s role in building upon and sustaining the successes of our initial projects. As we transition from foreign aid to more trade and investment, the private sector will increasingly power the economic growth necessary to improve the quality of life for millions around the world in enduring ways. And, as U.S. businesses seek new opportunities abroad in these expanding markets, Americans too stand to benefit through new jobs and growth.
Keeping the spotlight on investment sustainability will define the future of MCC’s partnerships and development effectiveness. We want our initial development resources to attract the necessary follow-on and additional investments—from the private sector, for example—that will help our partners break the cycle of aid dependency and springboard toward greater economic growth and prosperity, fueled by their own productivity, ingenuity and innovation. My meetings this week reaffirmed that our partners share this vision, and together we will continue working to make that goal a reality.
Posted on July 27, 2013 by Daniel W. Yohannes , Chief Executive Officer
I joined Georgians last week in Tbilisi to mark another milestone in their economic development: the signing of a second MCC compact with Georgia that will invest in the education of the next generation. Government leaders, civil society, the private sector, teachers, and parents attended the signing at the Parliament National Library and demonstrated their clear commitment to the compact’s objective of educating Georgians in the science, technology, engineering, and math skills they need to compete and succeed in a modern economy. I share Ambassador Richard Norland’s sentiments that the compact is further proof of the strong and close ties of cooperation between the United States and Georgia.
Before the signing, I met with the Prime Minister, who serves as the chair of the MCA-Georgia board, and we discussed the exciting opportunities the compact brings to Georgia. I also met with other government representatives and business leaders who see the compact as a way to enhance the quality and competitiveness of human capital in Georgia. They all welcome the compact’s projects as ways to better link the skills demanded by the private sector with what the Georgian workforce can offer. This will generate greater private sector activity in Georgia, which ultimately creates jobs, fuels growth and makes the country a stronger trading, investment and business partner at home, in the region and beyond.
MCC’s investment to educate Georgia’s workforce promises to deliver a number of positive effects that will boost earning potential and productivity. Progress like this will replace development dollars with private sector-led growth in Georgia and open new opportunities for Georgian students. MCC is proud to partner with Georgia toward this more hopeful and prosperous future.
Posted on July 25, 2013 by Tsolmon Begzsuren, MCA Gender Specialists, and Jozefina Cutura, MCC Gender Specialists
As Mongolia enters the final year of its $285 million MCC compact, Millennium Challenge Account-Mongolia is eager to emphasize and reinforce its commitment to gender equality.
In March, MCA-Mongolia launched the Women’s Leadership in the Economy campaign to inspire and motivate women to achieve and fulfill their leadership potential. Mongolian women are underrepresented in business and government leadership roles despite their strong participation in the labor force. They are also less likely to choose careers such as construction or mining, where job growth prospects are better and pay is higher in Mongolia.
Through this campaign, our goal was to encourage women to pursue leadership roles and to inspire young girls to enter non-traditional careers.
The campaign showcases exemplary work demonstrated by six role models — one from each compact project. There are women who have succeeded in trades in which the workforce has been traditionally male, including road construction, engineering and leading a herder group. One role model, for example, organized a group of neighborhood women into a cooperative and helped them obtain land titles through the project. They’ve used their new titles as collateral to obtain housing loans, build houses and traditional dwellings known as gers and grow vegetables for food production and income generation.
MCA-Mongolia held a public event in Ulaanbaatar on June 20 with stakeholders and civil society representatives to honor these role models. The women spoke about the challenges they’ve faced, while encouraging girls and young women to enter more self-reliant career paths. The event also held an essay and photo competition around the theme “gender equality through my eyes,” which helped draw attention to the gender-related issues in Mongolia.
Both MCC and MCA-Mongolia believe gender inequality can be a significant constraint to economic growth and poverty reduction, and together we are committed to ensuring that compact projects consider gender issues throughout design, implementation, monitoring, and evaluation. As the compact enters its final months, we look forward to supporting this objective in the final months of the compact.
Posted on July 2, 2013 by Daniel W. Yohannes, Chief Executive Officer
Standing in front of a large gas-fired turbine engine supplied by General Electric—in a modern power plant owned by another American company, Symbion Power—President Barack Obama today discussed Power Africa, a groundbreaking initiative to expand power connectivity in Africa. I was pleased to witness this in Dar es Salaam, as this endeavor reaffirms the power of partnerships to make the promise of energy security a reality.
Symbion first came to Tanzania after winning two contracts through that country’s MCC compact. As you would expect from the private sector, Symbion quickly realized the economic opportunities in a growing market like Tanzania. Since arriving just a few years ago, the company has established itself, with American ingenuity and expertise, as a key player in the Tanzanian energy sector. Just last week in fact, Symbion and GE announced a partnership on yet another investment opportunity in Tanzania. This kind of growth for a U.S. company, after initially working with MCC, is a win-win for the private sector, the people of Tanzania and the United States. And, this is an excellent example of MCC funds serving as a strategic catalyst for additional private sector investment.
But MCC’s portfolio is not limited to one company. Another American company, Pike Electric of Mount Airy, North Carolina, competed for and won a contract financed by MCC to erect more than 800 kilometers of transmission and distribution lines in central Tanzania. Pike completed this project on time and on budget, as part of MCC’s larger partnership with the Tanzanian government to fund a total of nearly 3,000 kilometers of transmission and distribution lines. Millions of Tanzanians are now experiencing the benefits of reliable power. I was also in Tanzania in April to celebrate the inauguration of a 100 megawatt submarine power cable linking Zanzibar to the Tanzanian mainland. Because of this new link, more reliable power is already flowing.
According to a United Nations study, 47 countries in sub-Saharan Africa, excluding South Africa, generate about 30 gigawatts of electricity, which equals the generation capacity just in Argentina. Nearly a quarter of this capacity is not actually available, however, for a number of reasons. This means that sub-Saharan Africa has the world’s lowest electricity access rate at 24 percent; electricity access in rural areas plummets to 8 percent. To meet increasing demand, the study says that Africa’s power sector needs to install approximately 7,000 megawatts of new generation capacity annually. This translates into real market opportunities.
By working with partner countries to create well-functioning energy sectors that build institutional capacity, promote transparency and remove the legal and regulatory roadblocks for doing business, we are creating the right conditions and circumstances to attract more and more private power investments to meet the obvious demand. And, as President Obama noted, creating an enabling environment for greater private sector investment ultimately drives and sustains the economic growth that will make a meaningful difference in the lives of Africans and create real opportunities for even more American businesses like Pike Electric, Symbion Power and GE.
Posted on May 10, 2013 by Stacy Alboher, Program Officer for East Africa
Asbestos is a hazardous material that can cause lung cancer, asbestosis and other deadly respiratory diseases. In early 2012, MCC discovered that asbestos-containing materials—very common in older buildings in Africa—were present in the majority of health facilities being renovated under the Lesotho Compact’s Health Sector Project, leading to concerns about potential exposure of both workers and surrounding community members.
Additionally, many of the health facilities under renovation have been operating for decades without a systematic nationwide approach for disposing of the medical waste being generated. This waste was deposited in open pits, burned or buried onsite. It contained syringes, medicine or biological waste. And it had accumulated without any markings to indicate where the waste was located.
When contractors began digging at the health facility sites, they often came into contact with this material. In some cases, their earth-moving activities spread the waste across the sites, creating a bigger potential for exposure and contact.
Over the past year, MCC has been working closely with MCA-Lesotho, the project’s supervisory engineer and the construction contractors to put in place procedures for ensuring that the risks associated with both asbestos-containing materials and medical waste are appropriately mitigated. During a recent trip to Lesotho, we developed this video to document the issue and describe the processes put in place to respond to the challenge.
Through the Lesotho Compact, we are not only addressing the immediate risk related to our project but also helping Lesotho to develop a sustainable process to continue addressing these issues in the future.
Posted on March 1, 2013 by Andria Hayes-Birchler, Senior Development Policy Officer
In addition to the obvious role MCC’s scorecards play in selecting MCC’s partner countries, many people have suggested the scorecards provide an incentive for countries to reform policies, strengthen institutions and improve data quality in order to become more competitive for MCC assistance. This is referred to as the “MCC Effect.”
But does the MCC Effect really exist? And if so, how influential is it? Are there circumstances where it may be more or less influential?
Brad Parks and Zach Rice at the College of William and Mary explore these questions in a recently released paper entitled “Measuring the Policy Influence of the Millennium Challenge Corporation: A Survey Based Approach.” Parks and Rice present results of their survey of 640 MCC stakeholders, including foreign government officials, U.S. Government officials, contractors, civil society, and private sector members. For those of you disinclined to read the full 128-page report (although you should!), the authors also published a brief synopsis of their findings.
The good news for MCC? Parks and Rice find evidence to support the idea that the prospect of MCC eligibility has served as an effective incentive for policy reform. In fact, 92 percent of respondents stated that the MCC scorecards had an impact on reform efforts (ranging from “marginal impact to few important reform efforts” to “instrumental to many reform efforts”), and respondents identified 67 governments that undertook reforms to improve performance of their country on at least one of the MCC eligibility indicators.
Here’s what else the report found: The MCC Effect seems to be particularly strong in Threshold Program countries, where 68 percent of respondents from these countries reported that the MCC eligibility criteria were either “central to a few important reform efforts” or “instrumental to many important reform efforts.” Among respondents from compact countries, 64 percent reported that the MCC eligibility criteria were either “central to a few important reform efforts” or “instrumental to many important reform efforts.”
And among respondents from candidate countries—which have never received a single dollar in MCC assistance—41 percent reported that the MCC eligibility criteria were either “central to a few important reform efforts” or “instrumental to many important reform efforts.”
According to the paper, development stakeholders recognize the MCC scorecard as an influential policy assessment. When asked to identify the three most influential external assessments of government performance from a list of 18 options, respondents repeatedly identified the Millennium Challenge Account eligibility criteria and the United Nations Millennium Development Goals.
MCC is delighted to see such strong indications of the MCC Effect in the survey data. As the Center for Global Development points out, these findings are based on the perceptions of MCC stakeholders and additional work is needed to ground-truth these perceptions. MCC recently released an issue brief on the MCC Effect , which outlines how MCC defines the MCC effect, highlights additional findings from the Parks and Rice survey and lists illustrative examples of the MCC Effect in action.
We welcome additional examples and empirical research on the topic from MCC stakeholders, independent evaluators and academics; please e-mail me to share or request additional information.
Posted on February 14, 2013 by Alice Riedel, Lesotho Deputy Resident Country Director
I had the honor of taking part in handing over the newly constructed Lesotho Blood Transfusion Services Center last month. MCC invested in the new center—which is expected to collect 5,000 blood units in 2013, compared to 3,381 in 2008—to help improve health services in Lesotho.
The country’s former blood transfusion center was too small; it lacked proper equipment and operated from a rented property in Maseru that was not designed to provide transfusion services. The new center, part of MCC’s five-year, $363 million compact with Lesotho, provides a dedicated central facility for collecting and processing blood to supply nearby hospitals.
MCC also invested in a mobile blood collection vehicle that will collect and transfer blood to the new center for screening.
“The new center is a huge achievement for the Ministry of Health,” said Maleqhoa Nyopa, manager of the Lesotho Blood Transfusion Service.“We have been struggling to implement our activities effectively,” Nyopa said. “Now that we have been given this new building, which is bigger than the one we have been using, our work is going to improve tremendously. The building is large enough to allow us to store as much blood as possible, which will help save lives.”
In addition to this center, the compact’s Health Sector Project is designed to mitigate the negative economic impacts of poor maternal health, HIV/AIDS, tuberculosis, and other diseases. MCC is strengthening Lesotho’s health care system through the construction of up to 138 health centers spread across the country, hospital outpatient departments, staff housing, and a central laboratory and residences to accommodate National Health Training College students.
The infrastructure investments are so numerous and complex and cover such a vast geographic area, that it can be difficult to remember the real impact in the lives of individual Basotho. A colleague’s friend who works in a hospital in Lesotho recently shared with me some of the challenges of managing the blood supply here. He told me that having enough blood to serve all patients is extremely challenging because of the testing required, given the 24 percent rate of HIV prevalence. He is confident that the new blood center, along with blood drives, will alleviate some of these challenges.
I am proud to be part of an initiative that is helping improve health care in Lesotho in practical ways like making sure that there is adequate blood supply when a woman needs an emergency operation while giving birth. We are leaving behind tangible results.
Posted on February 14, 2013 by Tim Clary , Director, Division of Technical Services
For decades, most international health projects have focused on addressing communicable diseases that were major causes of morbidity and mortality in developing countries.
But now, many countries are facing a double burden as non-communicable diseases and injuries (NCDIs) have become more prevalent. More than five years ago, when the Government of Mongolia chose to focus on NCDIs as part of its MCC compact, it probably did not foresee that it would become a leader in providing lessons for other countries seeking to address NCDI issues.
The compact’s $39 million Health Project, geographically covers the entire country and 95 percent of the Mongolian population. It addresses the issue of NCDIs through a multi-pronged approach and on several different technical levels.
Last month, I visited Clinical Hospital No. 3 in Ulaanbaatar, where compact funds will be used to refurbish and provide equipment to help the hospital become the nation’s primary center for diagnosing, caring for and treating Mongolians suffering from strokes and acute myocardial infarctions. In Khentii aimag, I visited hospitals that typically provide primary care services and that now provide both secondary and tertiary health care, such as diagnosing cervical cancer and providing ongoing treatment for diabetes and hypertension. At both levels, health care providers have received extensive training on NCDIs, ranging from emergency care to counseling patients on healthy lifestyles and behaviors. This helps the community by preventing diseases which will help them live longer and healthier lives.
Compact funds have also been used to sponsor a small grants program in the community so NGOs, private clinics and non-health organizations (such as elementary and secondary schools) can receive funding for innovative ideas to support the reduction in NCDIs.
Fundamental to the support for health care workers and their patients have been policy changes within the public and private sectors. Millennium Challenge Account-Mongolia has worked with the Government of Mongolia to revise tobacco and alcohol laws, as well as establishing a health promotion fund to address NCDIs.
Within the private sector, MCA-Mongolia has worked with organizations such as Talkh-Chikher bakery to reduce the salt content within its Atar bread, Mongolia’s leading brand of bread.
The main lesson from my site visit to the Talkh-Chikher bakery in Ulaanbaatar is that advocacy is bringing change.
Posted on January 8, 2013 by Daniel W. Yohannes , Chief Executive Officer
Yesterday, I had the great honor of representing the American people at the inauguration of John Dramani Mahama as Ghana’s next president. President Barack Obama asked me to lead our country’s official delegation to the inauguration. It was a privilege to stand alongside the other delegation members--U.S. Ambassador to Ghana Gene Cretz, Assistant Secretary of State for African Affairs Johnnie Carson and Deputy Assistant Secretary of State for African Affairs Donald Teitelbaum—and witness a peaceful transition of power in Ghana.
Ghanaians traveled from every corner of Ghana to participate in Monday's inauguration; some arrived as early as Sunday night in order to secure a coveted place in Independence Square. In his inauguration speech, President Mahama talked about how a farmer named Tetteh-Quarshie introduced the cocoa bean to Ghana, and today Ghana is the second largest cocoa exporter in the world. The president’s point was that every Ghanaian can contribute in a meaningful way to Ghana’s economic development.
I am proud that MCC too played a part in furthering Ghana’s economic development goals. I had been to Ghana previously to assess progress on MCC’s $547 million compact partnership with the country and later to celebrate that compact’s successful completion. The strong political will to deliver on the compact’s promise for sustainable development that would improve the lives of Ghanaians impressed me from the start. As Ghana continues to work on a second MCC compact under the Mahama administration, I welcome this level of engagement and dynamic leadership.
Meeting with President-elect Mahama right before his inauguration as well as with Minister of Finance and Economic Planning Dr. Kwabena Duffour during my brief stay in Accra reaffirmed such engagement. I remain encouraged and excited by the commitment to inclusive economic growth and self-sufficiency these leaders envision for Ghana. President Mahama said that the U.S.-Ghana relationship is close and he is looking forward to making it even closer. His administration is hoping to keep Ghana’s economy growing at 8 or 9 percent per year between 2013 and 2016. This will require investments in areas such as infrastructure and energy (the focus of a proposed second MCC compact) as well as agriculture (the focus of Ghana’s first MCC compact) in order to create opportunities for Ghana’s youth.
As the United States prepares for our own presidential inauguration later this month, I recognize that the freedom to choose our leaders and hold them accountable is what unites so many of us around the world in a journey toward democratic values, pluralism and civil liberties. Witnessing what happened in Ghana on Monday with President Mahama’s inauguration affirms our common humanity united by such shared principles.
Posted on December 12, 2012 by Courtney Engelke , Director
Many people in the United States and Mongolia refer to Mongolia’s Energy and Environment Project as “the stoves program.” While it is true that the project has successfully supported consumer purchases of more than 90,000 stoves in Ulaanbaatar, did you know that it also supported the purchase of nearly 25,000 other energy-efficient appliances like insulation, vestibules and energy efficient homes? Did you know that the project also supported small grants for greening and air quality research and the replacement of 15 heat only boilers at 10 student and residential sites throughout the city, representing more than 8 megawatts of heating capacity? And did you know that approximately $6.6 million of the project budget is dedicated to infrastructure and other support for the 50-megawatt wind farm now under construction at Salkhit Mountain?
The project recognized early on that it would not be able to resolve the capital city’s air pollution problem by itself, so we planned to make additional contributions beyond stoves in an effort to demonstrate what works. The Energy and Environment Project intends to provide a short term “bridge” to longer term solutions, such as developing a commercial market for energy efficient products, which we hope might be brought about through the application and enforcement of standards, certification and labeling policies, competition, and affordable finance, and providing more permanent housing and municipal infrastructure.
On my most recent visit to Mongolia, I confirmed that 15 heat only boilers were replaced with more efficient technologies and wet scrubbers to control particulate emissions. I also visited the expanded and upgraded Nalaikh substation, and confirmed the installation of a fiber optic cable that links that substation to the National Dispatching Center control system. I was also pleased to see the first three of 31 General Electric turbines installed at the very windy Salkhit site—a major step toward making the planned wind farm a reality.
The Energy and Environment Project will connect the wind farm to the national grid and train electrical dispatchers to manage variable power with the help of a dispatch training simulator. These achievements would have been impossible without the concerted cooperation of MCA-Mongolia, its consultants, contractors, the Ulaanbaatar government, the national grid company, the national dispatching center, and Clean Energy LLC, the sponsor of the Salkhit wind farm.
Each time I visit Mongolia, I increasingly see the positive impact that stoves are having on air quality and the daily lives of Ulaanbaatar’s poor. What I had not seen until this trip was the project’s larger-scale emissions control initiatives, such as the replacement of the boilers and progress toward the displacement of approximately 50 megawatts of thermal generation that will result from the Salkhit wind farm. As our experience has shown, controlling emissions at the household level in the ger districts is an incredible challenge. Single source solutions represented by heat-only boilers and the Salkhit wind farm demonstrate opportunities to control and reduce air pollution at greater scale, which we hope will help Mongolia more rapidly achieve and sustain its air quality goals.
Posted on November 30, 2012 by Marcel Ricou, Program Officer
About 23 percent of Lesotho’s population is infected with HIV/AIDS, one of the highest prevalence rates in the world. In response, MCC has invested $122 million in health infrastructure and to strengthen Lesotho’s health systems. A major portion of the Health Sector Project focuses on rehabilitating 138 health centers across the country, all of which play a pivotal role in providing primary health care to local communities. MCC’s investments leverage those from other donor and U.S. Government programs, including the President’s Emergency Plan For AIDS Relief, the Centers for Disease Control and Prevention, and the Global Fund to Fight AIDS, Tuberculosis and Malaria.
Program officer Marcel Ricou shows us how MCC and the Government of Lesotho are working together to combat HIV/AIDS.
Posted on October 2, 2012 by Patrick Fine, Vice President, Department of Compact Operations
Two weeks ago, MCC was delighted to host a delegation from the Government of Indonesia (GOI) for the signing of a Project Implementation Agreement (PIA), the document that sets out the operational details for implementing MCC’s compact with Indonesia. The compact focuses on investments in renewable energy and sustainable natural resource use, maternal and child nutrition, and public procurement modernization.
The Indonesian delegation was led by Pak Lukita Tuwo, who is the Vice Minister of the Planning Ministry and GOI’s principal representative for the MCC compact. Pak Lukita was accompanied by members of his staff, including Ibu Emmy, the head of the Ministry’s legal bureau, and Pak Kennedy, its director for bilateral foreign funding.
We were also pleased to be joined by Pak Dino Djalal, Indonesia’s Ambassador to the United States, and Ambassador Djani, who is the head of North American and European Affairs at the Ministry of Foreign Affairs. Ambassador Djani was in Washington for the semi-annual meeting of the U.S.-Indonesia Comprehensive Partnership, where Secretary of State Clinton and Foreign Minister Natalegawa announced the signing of the PIA.
The signing, which took place in MCC’s Washington office, was marked by a sense of celebration and anticipation: MCC and GOI expect the compact to enter into force within the next few months. The PIA sets out the terms for the new Millennium Challenge Account – Indonesia (MCA-I), the first institution of its kind in the country and one that we hope will provide a path-breaking model for other development projects in Indonesia.
We’re also seeing other signs of progress as we move toward entry into force: the first meeting of the MCA-I Board of Trustees, the approval of the first disbursement request for funds, and the signing of five major contracts. I’m proud of what the MCC and GOI teams are doing to move this exciting program forward. Expectations are high, especially among the Indonesian people in the provinces, where many of the compact activities will be implemented.
While much hard work and many challenges lie ahead, we’re already seeing the power of partnership and are confident that the compact will not only improve lives of Indonesians, but strengthen the ties between our two nations.
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- July 2008
- June 2008
- April 2008
- March 2008
- February 2008
- January 2008