MCC Statement on Board of Directors' Discussion of Tanzania at September 2015 Meeting
For Immediate Release
September 17, 2015
WASHINGTON, D.C.—The Millennium Challenge Corporation (MCC) issued the following statement after its Board of Directors quarterly meeting on Sept. 17, 2015.
At today’s meeting, MCC’s Board discussed a proposed $472.8 million compact with Tanzania and expressed support for its strong design and clear goal of strengthening the power sector. The proposed compact aims to increase access to reliable electricity in Tanzania, strengthen utilities and utility management, help Tanzania implement its ambitious plan to reform the energy sector, and catalyze private sector investment. Projects funded under the compact will meet the agency's economic analysis standards.
The Government of Tanzania has undertaken critical reforms in recent months to lay the groundwork for successful implementation of the proposed compact. The design of the proposed compact includes disbursements of funds that are conditioned on Tanzania taking additional specified actions to strengthen the country’s power utilities, deepen sectoral reform, and create the environment to attract increased private investment.
While welcoming those reforms, the Board expressed continued concern regarding corruption in Tanzania. In light of MCC’s fundamental commitment to fighting corruption, the Board agreed that Tanzania must pass the Control of Corruption indicator on MCC’s fiscal year 2016 scorecard before the Board will vote on the compact.
The Board also expressed its expectation that Tanzania’s October 25 general election is free and fair, consistent with the importance MCC places on democratic rights.