September 9, 2008
Additional MCC Support as part of USG Assistance for Georgia
MCC, as noted in recent announcements by the Administration, has the capability to provide up to $100 million to the Republic of Georgia to fund development projects under the existing compact. This additional assistance would further leverage MCC funds already committed to Georgia and would be administered in accordance with MCC’s assistance model.
The Millennium Challenge Corporation’s ongoing partnership with Georgia underscores the country’s strong economic foundation and its impressive record of reform. Additional MCC assistance will help the people of Georgia build a prosperous and competitive economy and be directed only toward carefully identified projects showing a direct benefit to Georgia’s poor. MCC’s mission in Georgia and all of our partner countries is to bring about sustainable poverty reduction and long-term economic growth in the country.
Most of the infrastructure projects under consideration were previously included in the original compact but were later scaled back as a result of external pressures such as dollar depreciation and increased international construction costs.
Any amendment to MCC’s $295 million compact with Georgia would require approval by MCC’s Board of Directors and congressional notification. MCC is already coordinating closely with other U.S. Government agencies that are assessing the current situation to study the long-term economic needs of the country. Specific projects are still being identified together with our Georgian counterparts and further details of any amendment to the compact will be made public as soon as they become available.