September 23, 2008
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.
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.