Millennium Challenge Corporation Provides $9.7 Million Compact Development Grant Agreement with Mali

Washington, D.C. —On April 3, 2006, the United States, through the Millennium Challenge Corporation, finalized a grant agreement with the Government of Mali to provide up to $9.7 million to support Mali in its development of a Millennium Challenge Compact. The funding will be used for feasibility studies and environmental impact assessments in three project sites: Bamako-Sénou Airport, Bamako-Sénou Industrial Park, and the Office du Niger agricultural zone.

On January 4, 2006, the Republic of Mali submitted a Compact proposal aimed at reducing poverty and spurring economic growth by expanding and diversifying agricultural production in the Office du Niger zone, facilitating exports through Bamako-Sénou Airport renovation and rehabilitation, and developing the Bamako-Sénou Industrial Park The proposal addresses key constraints to economic growth by improving transportation links for passenger and cargo traffic between Mali and other countries, providing serviced industrial land and increasing agricultural production. Mali 's proposal is currently in the due diligence phase of the Compact development process.

Since its inception in 2004, MCC has signed Compacts totaling more than $1.5 billion with eight nations: Madagascar, Honduras, Cape Verde, Nicaragua, Georgia, Benin, Vanuatu, and Armenia . MCC is also actively engaging with other eligible countries in Compact negotiations.

Launched by President Bush with bipartisan support, MCC is an innovative approach to development assistance that recognizes sound policies and good governance are critical to poverty reduction and economic growth in developing countries.

###

Millennium Challenge Corporation (MCC), a U.S. government corporation designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of extreme poverty.