Paving the future for Ghanaians

Posted on February 15, 2012 by Daniel W. Yohannes, Chief Executive Officer

I just witnessed an incredible celebration here in Ghana: thousands of people rejoicing at the opening of the long-awaited N1 highway—renamed the George Walker Bush Motorway—which links the capital, Accra, with major ports, the international airport and the country’s major agricultural regions. This has been a Ghanaian dream since 1965, and it’s finally coming true.

As I drove down the road, thousands of people that live along the road greeted us. School children celebrated. People stood on banisters to catch a better glimpse of the celebration, and crowds waved from their nearby apartments.

There was dancing and chanting. The American and Ghanaian flags swayed together. A nearby large banner read, “Thank you, America.” The celebration resonated deeply with me.

MCC helped improve a 14-kilometer stretch of the highway as part of its five-year, $547 million compact. It runs through the heart of the capital city and for decades has been clogged with people and traffic. The need to widen the highway has been in the planning 40 years, but it only became a reality thanks to the Ghana and MCC partnership. It’s not hard to see why people were so excited.

The highway project was Ghana’s largest public works project in decades, and workers labored until the final minutes of compact closeout to ensure project completion. As President John Atta Mills told the crowd, “This is not President Kufuor's compact. This is not my compact. It’s Ghana's compact.”

During closeout speeches, the chief executive officer of Ghana’s MiDA, the entity in charge of implementing Ghana’s MCC compact, said it best: “MCC is the spearhead for development.” In Ghana, we certainly are spearheading a true partnership based on goodwill, trust and collaboration.

The opening of the N1 highway is a major event in Ghana’s development and a highly visible reminder of MCC’s partnership. It’s a milestone that transcends political parties, both in the U.S. and Ghana. And most importantly, it’s a reason all Ghanaians have to celebrate.

MCC and Cape Verde: Managing Scarce Resources to Reduce Poverty and Promote Investment

Posted on February 14, 2012 by Daniel W. Yohannes, Chief Executive Officer, MCC

A few days ago, I arrived in Cape Verde to sign MCC’s newest compact. Cape Verde is surrounded by ocean, but access to clean, reliable fresh water and sanitation services is a serious problem; only nine percent of poor households are connected to a networked public water supply.

During my trip I stayed in the capital city of Praia, where many residents get their water from communal fountains and lug it back to their homes in large plastic jugs. They use that water for drinking, cooking, and other household functions. Communal fountains are usually only open for one hour each day, and long lines form down the block as people patiently wait their turn at the tap. If the local water utility is experiencing problems the fountain may be shut off for days, forcing local residents to travel farther to reach a functioning water source.

The water utility delivers water to fountains in tanker trucks—an expensive and sometimes unreliable process. While utilities do not profit from water delivery, residents still must pay fees to cover costs. Cape Verde’s water tariffs are some of the highest in Africa.

At the fountain pictured here, users pay 500 escudos, about $6.00, per cubic meter of water, more than five times what I pay in Washington, DC. For a country with nearly 40 percent of the population living on under $2.00 per day, many families cannot afford the water they need. All sectors suffer: health and well-being deteriorate; agricultural crops fail; tourism slows; and economic productivity falters.

The $66.2 million compact that I just signed channels $41 million toward reforming national water policy and regulatory institutions; transforming inefficient utilities into independent corporate entities operating on a sustainable, commercial basis; and improving the quality and reach of water and sanitation infrastructure, benefitting over 250,000 Cape Verdeans.

The compact also includes a $17 million Land Management for Investment Project, which will support the Government of Cape Verde in creating a single reliable, accessible source of land rights and land boundaries information. This project is designed to strengthen Cape Verde’s investment climate and reduce time and costs associated with land registration.

I’m extremely proud of this compact, and of the successful partnership it represents between MCC and Cape Verde. We are looking forward to working with the government and people of Cape Verde to implement this program on time, on budget, and with a constant focus on achieving results.