July 20, 2005
Millennium Challenge Corporation Signs $6.5 Million Compact Development Grant Agreement with the Government of Senegal
Dakar, Senegal Today, the United States, through the Millennium Challenge Corporation (MCC), signed a grant agreement with the Government of Senegal to provide up to $6.5 million to assist Senegal in developing its Compact with the MCC. Senegal’s Compact proposal contemplates the development of a large-scale industrial, commercial, and residential site called the Diamniadio Platform. The proposed project would address one of Senegal’s greatest barriers to poverty reduction and economic growththe lack of suitable space for commercial and industrial expansion on the Dakar Peninsula .
This is an important step forward in the development of Senegal’s Compact proposal and brings momentum to the process, said MCC CEO Paul Applegarth. We are pleased to provide funding to accelerate Compact development and assist in baseline data gathering and feasibility studies.
Mr. Applegarth added, MCC is committed to examining all elements of the Compact program to ensure that they are socially, economically, environmentally and technically sound. MCC looks forward to continuing its ongoing relationship with the government and people of Senegal throughout Compact development.
In addition to Senegal, MCC has approved funding for Compact development or implementation with Cape Verde, Georgia, Ghana, Lesotho, Madagascar, and Nicaragua .
Launched by President Bush with bipartisan support, the MCC represents an innovative approach to providing development assistance by rewarding countries that have sound policies and good governance. These attributes are critical to poverty reduction and economic growth in developing countries. Even though it was started just last year, MCC is already showing results. MCC has signed Compacts with Madagascar, Honduras, Cape Verde, and Nicaragua, and in the ten months since it began receiving country proposals, has approved approximately $640 million in Compacts, Compact development and Threshold Program funding in nine different countries. Of equal importance, independent observers are already reporting they are seeing an MCC effect on good governance as countries implement significant reforms to improve their chances of qualifying for the Millennium Challenge Account.
Millennium Challenge Corporation (MCC), a U.S. government corporation designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of extreme poverty.