The Millennium Challenge Corporation (MCC), a U.S. Government agency, works with countries that demonstrate a commitment to democratic performance.Given the recent events in Honduras, MCC continues to carefully examine any actions related to the operations of its $215 million compact with Honduras.In response to the recent events in Honduras, MCC is not moving forward with activities under the compact that were not already underway before June 28.
MCC management is in regular contact with MCCs Board of Directors, chaired by U.S. Secretary of State Hillary Clinton, to keep Board members updated about the impact of recent events on MCC activities. The Board makes decisions related to the suspension and termination of assistance under a compact and is aware of the current state of MCC activities in Honduras.MCC also remains in close contact with other US Government agencies on this matter.
MCC signed a five-year, $215 million compact with Honduras on June 13, 2005.The compact focuses on increasing the productivity and business skills of farmers who operate small- and medium-sized farms, and reducing transportation costs between targeted production centers and national, regional, and global markets. The rural development project is providing farmers with training in the production and marketing of high value horticultural crops. The project also aims to improve farmer access to credit by providing technical assistance to financial institutions.Under the transportation project, the CA-5 Highway is being rehabilitated with upgrades to key secondary roads to improve the access of rural communities to markets.
As of MCCs last quarterly status report, over $191 million has been disbursed or committed to contracts under the compact.Approximately $25 million remains yet to be committed to programs or activities.Detailed information regarding the MCC Compact with Honduras is available at:http://www.mcc.gov/mcc/bm.doc/qsr-imp-honduras.pdf.