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Press Release

MCC, Government of Kosovo Launches $202 Million Compact

For Immediate Release

May 1, 2024

WASHINGTON, D.C., May 1, 2024 – Today, the U.S. Government’s Millennium Challenge Corporation (MCC), and the Government of Kosovo launched the $202 million MCC-Kosovo Compact, a grant focused on delivering modern, clean energy solutions to improve the reliability of electricity in Kosovo.

The MCC-Kosovo Compact supports the Government of Kosovo’s efforts to transition toward a more sustainable, inclusive, reliable, and affordable energy future. The compact also encourages more equitable female participation in the country’s energy sector as it is implemented over the next five years. Nearly 2 million people are expected to benefit from the MCC grant.

“The compact will serve as the cornerstone of Kosovo’s transition to green energy, enhancing the country's energy security and driving its socio-economic transformation,” MCC’s Vice President for the Department of Compact Operations, Cameron Alford said. “MCC is proud to partner with the Government of Kosovo to officially begin the implementation phase of the compact to ensure a sustainable, brighter and more equitable energy future for all Kosovans.”

The MCC-Kosovo Compact seeks to introduce a state-of-the-art energy storage system, laying the foundation for reliable, renewable energy sources to be integrated into Kosovo’s grid and reducing the need for coal-generated power and costly energy imports.

“The Entry into Force of the Kosovo Compact is a historical moment for the people of our country. It represents one of the most innovative projects in the region and is our largest energy investment in the past 50 years, thus contributing to Kosovo's economic growth and a prosperous and inclusive future. It is a true testament to the enduring partnership between the Republic of Kosovo and the United States of America”, said the President of Kosovo, Ms. Vjosa Osmani.

The MCC-Kosovo Compact includes an additional $34.6 million contribution from the Government of Kosovo, building on MCC’s $49 million MCC-Kosovo Threshold Program which concluded in 2022. The Threshold Program improved energy efficiency for residents, invested in education and training for hundreds of women in the energy sector, and laid the groundwork for the compact program.

The Millennium Challenge Corporation is an independent U.S. government development agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants that pair investments in infrastructure with policy and institutional reforms to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.