November 30, 2009
MCC Board Approves $262 Million Compact with Moldova
Program focuses on agricultural development and road rehabilitation
Washington, DC Today, the U.S. Governments Millennium Challenge Corporation (MCC) Board of Directors approved a $262 million MCC Compact with the Government of Moldova. The five-year, economic development grant will improve irrigation infrastructure and management; increase the production and marketing of high value agricultural products; and rehabilitate part of the countrys national road network.
This grant represents new opportunities, new jobs, new technologies, expanded productivity, and increased access to markets and commerce said Acting Vice President for Compact Development, Darius Teter. This compact is a testament to Moldovas commitment to poverty reduction. MCC looks forward to building a partnership with the people of Moldova to ensure that they have the tools needed to lift themselves out of poverty Teter added.
Moldovas MCC Compact includes major agriculture and transport projects.The Transition to High Value Agriculture Project will help increase agricultural incomes of rural Moldovans by stimulating the production and improved marketing of high value agricultural products, including fruit and vegetables.The project includes plans to provide reliable water for agriculture through the repair of up to 11 large irrigation systems servicing 15,500 hectares.An innovative financing facility and a technical assistance package co-financed by the United States Agency for International Development will support related investments by farmers and entrepreneurs in the shift to higher value agriculture production, post-harvest processing, storage, and marketing.The project also supports restructuring of irrigation management and devolution of responsibility to water user organizations.
The Road Rehabilitation Project includes repairs to a 93 kilometer section of a major highway in the north-east of the country. The highway is a key link for private and passenger travel, and for internal commerce and trade.The project will reduce the time and cost to transport goods and services, and will reduce losses to the national economy resulting from deteriorated road conditions.
Following MCC Board approval, there is a 15-day congressional notification period before the compact may be signed.
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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.