January 21, 2010
MCC and Moldova Sign $262 Million Compact
Program bolsters Moldova's agricultural development and transportation networks
Washington, DC Millennium Challenge Corporation (MCC) Chief Executive Officer Daniel Yohannes and Moldovan Deputy Prime Minister and Minister of Foreign Affairs and European Integration, Iurie Leanc, today signed a five-year economic developmentagreement granting $262 million to Moldova for investment projects in irrigation infrastructure, high-value agricultural production, and road rehabilitation. U.S. Secretary of State Hillary Rodham Clinton and Prime Minister Vladimir Filat of Moldova presided at the signing held at the U.S. Department of State in Washington, D.C.
“I commend Moldova’s commitment to poverty reduction and economic development opportunities,” said MCC CEO Daniel Yohannes. “Moldova’s MCC threshold program has already created an environment where innovative technologies, productivity, and increased access to markets can flourish. Now, with this Compact, MCC looks forward to deepening our partnership with the people of Moldova to foster long-term economic growth.”
“All processes related to our MCC Compact not only comply with our aspiration to modernize the Republic of Moldova but also are the surest way to achieve this,” said Moldovan Prime Minister Filat. “The Compact is a real tool that will help us graduate from a difficult past and move towards a bright future”.
Moldova’s MCC compact program includes major agriculture and transport projects. The Transition to High Value Agriculture Project will help increase agricultural incomes of rural Moldovans by stimulating the production and improved marketing of high-value agricultural products, including fruit and vegetables. The project includes plans to provide reliable water for agriculture by repairing up to 11 large irrigation systems servicing 15,500 hectares. Improving access to credit for agricultural projects and a technical assistance package co-financed by the United States Agency for International Development will support related investments by farmers and entrepreneurs in the shift to higher value agriculture production, post-harvest processing, storage, and marketing.
The Road Rehabilitation Project includes repairs to a 93 kilometer section of a major highway in the northeast of the country. The highway is a key link for passenger travel, and for internal commerce and trade. The repairs will reduce the time and cost to transport goods and services, and will reduce losses to the national economy resulting from deteriorated road conditions.
With todays compact signing, MCC has signed 20 poverty reduction compacts with partner countries throughout the world totaling nearly $7.2 billion.
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Millennium Challenge Corporation, a U.S. Government agency designed to work with developing countries, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth. For more information, please visit www.mcc.gov.