Close coordination with governments, other international donors and development agencies saves time and money. This kind of cooperation avoids costly duplication and unsuccessful approaches, minimizes transaction costs for partner countries, and is critical to the success of MCC compacts.
The Lesotho Compact was implemented with the support of strong U.S. Government interagency partnerships. MCC took a ‘whole of government approach’ and coordinated compact projects with CDC, USAID and PEPFAR. The $600,000 PEPFAR Gender Challenge Grant Fund was awarded in July 2010, and has since been used to provide small grants to entrepreneurial women in Lesotho. The Peace Corps and MCC broke new ground in assigning a Peace Corps volunteer to work with a Millennium Challenge Account for the first time. These partnerships supported complementary public health policy, expanded HIV/AIDS prevention and treatment services, and served to strengthen Lesotho’s national health systems.
The government committed approximately $100 million to cover cost overruns during implementation of the compact, and another $50 million after the compact term to complete projects and support sustainability. These additional funds preserved the original scope of the Health and Water Sector Projects, thereby contributing to the country’s stake in compact benefits. Additionally, the government assured funds for staffing and administrative costs of operations for the Commercial Court, mediation and small claim procedures, and the automated case management elements of the Private Sector Development Project following the close of the compact.
As a result of MCC’s role in connecting the government with the World Bank’s Public-Private Infrastructure Advisory Facility with the International Finance Corporation, the parties formed a public-private partnership that addressed internet connectivity gaps in health centers funded by MCC throughout Lesotho.
Finally, MCC coordinated with the World Bank, the European Union, the OPEC Fund for International Development, the Kuwait Fund for Arab Economic Development, the Arab Bank for Economic Development in Africa, and the Saudi Fund for Development on construction of Metolong Dam and a related bulk water conveyance system, one of the largest infrastructure improvement projects in Lesotho history.