MCC Statement on Board of Directors' Discussion of Tanzania at the December 2014 Meeting

For Immediate Release

December 10, 2014

Washington, D.C.—The U.S. Government’s Millennium Challenge Corporation (MCC) issued the following statement after its Board of Directors (Board) held its annual country selection meeting on December 10, 2014:

“MCC takes seriously all of its country partners’ commitments to combat corruption. At today’s meeting, MCC’s Board expressed continued concern over corruption in Tanzania, including the implications of the recent case involving Independent Power Tanzania Limited (IPTL). The Board noted that Tanzania has experienced a significant decline over the past seven years on the key indicator measuring efforts to control corruption. While the Board voted to allow Tanzania to continue working to develop a compact proposal—given its passage on MCC’s policy scorecards and its strong previous performance as an MCC partner—the Board stated its expectation that the Government of Tanzania must take firm, concrete steps to combat corruption before a compact is approved. Further, the Board voted to continue MCC’s engagement with Tanzania with the understanding that, in accordance with the Tanzanian State House December 9 statement, the Tanzanian government would act promptly and decisively on the late November parliamentary resolutions regarding IPTL. The Board also reaffirmed more broadly that Tanzania must undertake a series of previously agreed upon structural reforms to improve the efficiency, effectiveness and transparency of the energy sector, and more generally to deal with wider corruption.”