Press Release

Millennium Challenge Corporation Signs $6 Million Pre-Compact Grant with Mozambique

For Immediate Release

September 9, 2005

Maputo, Mozambique —Today, the United States, through the Millennium Challenge Corporation (MCC), signed a grant agreement of up to $6 million to assist Mozambique in the continued development of a Millennium Challenge Account Compact.  Mozambique’s Compact proposal aims to reduce poverty and stimulate economic growth by providing improved water and sanitation and business development services in four northern provinces. 

"This signing represents an important step in the Compact development process,” s aid John Hewko, MCC’s Vice President for Country Programs.  "The people and government of Mozambique have submitted an ambitious proposal, and we are excited to work with them in the coming months to develop a successful program.  We applaud President Guebuza and his team for their commitment to advance the Compact.”

Mr. Hewko added, "MCC values the partnership we have formed with Mozambicans and looks forward to continue working together to create opportunities for Mozambicans to have a brighter economic future.  In addition, MCC would like to thank Ambassador La Lime and her staff for their invaluable assistance throughout the process.”

In addition to Mozambique, MCC has approved funding for Compact development with Cape Verde, Lesotho, Georgia, Ghana, Nicaragua, Madagascar, and Senegal . 

MCC has signed Compacts with Madagascar, Honduras, Cape Verde, and Nicaragua and will sign a Compact with Georgia this month.  In the 13 months since MCC began receiving country proposals, it has approved nearly $1 billion in Compact and pre-Compact funding. 

Launched by President Bush, with bipartisan support, the MCC represents an innovative approach to providing development assistance by rewarding countries that have sound policies and good governance.  These attributes 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.