November 20, 2008
MCC and Georgia Committed to Economic Growth
MCC CEO and Georgian Prime Minister Sign Grant for $100 Million in Development Assistance
Tbilisi, Georgia Millennium Challenge Corporation (MCC) CEO Ambassador John Danilovich and Georgian Prime Minister Grigol Mgaloblishvili today signed an amendment to the $295 million compact with Georgia that grants up to an additional $100 million in U.S. Government development assistance to Georgia. The additional funding will complement activities currently funded by MCC, including the rehabilitation of Georgias road network, infrastructure development and energy activities.
The millions of Georgians who live in poverty will benefit in meaningful and tangible ways from this additional investment in Georgiaslong-term economic development.This increased cooperation represents new opportunities, new jobs, new technologies, expanded productivity, and increased access to markets where goods can be traded. Georgians will be able to tap into water sources and heat sources for their homes and businesses said MCC CEO John Danilovich. A new day of hope and growth is dawning, and I am pleased that the collaboration and partnership between MCC and the people of Georgia can make this prosperous future a reality Ambassador Danilovich added.
The additional funding will be used to complete the Borjomi and Kobuleti water systems by building waste water networks and rehabilitate the Kutaisi potable water system as well as three sections of road connecting the Samtskhe-Javakheti region to Turkey and central Georgia. The additional funds will also permit MCC to complete a comprehensive economic, geological and environmental study, technical design and public/private financing plan for the gas storage facility and related infrastructure.
Since April 2006, the Millennium Challenge Georgia Fund, the Georgian entity designated by the Georgian government to implement the programs funded by the compact, has been implementing agribusiness, regional development, municipal infrastructure and energy projects. MCC continues to coordinate closely with the Millennium Challenge Georgia Fund and with a broad range of other United States government assistance programs that support economic development in Georgia.
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The 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 about MCC, please visit www.mcc.gov.