Press Release

For Immediate Release

September 23, 2008

Contact: 202-521-3880

Email: info@mcc.gov

MCC Compacts Totaling $2.55 Billion Enter Into Force in September

Poverty Reduction Grants in Lesotho, Mongolia, Morocco, Mozambique and Tanzania Begin Implementation Phase

Washington,  D.C.  MCC CEO Ambassador John Danilovich today announced that during the month of   September alone the agency has obligated more than $2.55 billion in MCC economic   development assistance to five partner countries.MCCs poverty reduction grants   to Lesotho,  Mongolia, Morocco, Mozambique and Tanzania have   entered into force. MCCs total commitment to fighting poverty worldwide to   date exceeds $6.5 billion, with compact agreements signed with 18   countries.

The entry into force of these   groundbreaking compacts signals the beginning of the important implementation   phase for these 5-year programs, said Ambassador   Danilovich.Our   MCC partnership with these countries sends a strong signal about the U.S.  commitment to reducing poverty worldwide and the need to provide sustainable,  long-term opportunities for growth for those countries that are willing to   invest in their people, govern justly and foster economic   freedom.

MCCs   economic development assistance encompasses a range of poverty reduction   projects. The   $362 million MCC program with Lesotho entered into force on September 17, 2008, and will improve the delivery of water   supplies for domestic and industrial use, improve health conditions, and help   remove barriers to foreign and local private sector   investments.

MCCs   $285 million program with Mongolia will help increase economic activity in the country, including exports, by   improving the countrys rail network, investing in health and training programs,  and assisting citizens with obtaining secure, long-term land rights.This   compact also entered into force on September 17,  2008.

Moroccos   $697.5 million MCC compact program will stimulate economic growth by increasing   productivity and improving employment in areas such as fruit tree productivity,  small-scale fisheries, and artisan crafts. Small business creation and growth   will be supported also by investments in financial services and small enterprise   support.The Morocco compact entered into force on   September 15, 2008.

Mozambiques   $506.9 million program with MCC will increase access to a safe, reliable water   supply and sanitation services, rehabilitate nearly 500 kilometers of key   segments of the countrys transportation network, upgrade land information   systems and services, improve productivity of coconut farming, and encourage   diversification into other cash-crop production. Mozambiques   compact entered into force on September 22, 2008.

Finally,  the $698 million MCC compact program in Tanzania will fund road improvements that will increase commerce and help connect rural   communities with markets, schools and health clinics.The compact also will   rehabilitate electric power distribution systems, add new generation and   transmission capacity, and will extend electricity service to communities not   currently served.In addition, the compact will increase the availability of   water for domestic and commercial use.These improvements will increase the   health and productivity of Tanzanians by reducing the incidence of water-related   disease, particularly among children. Tanzanias compact entered into force   on September 15, 2008.

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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.