Guatemala Threshold Program

The Millennium Challenge Corporation and the Government of Guatemala are partnering to improve Guatemala’s human capital and mobilize resources by implementing a $28 million threshold program to increase revenues and reduce opportunities for corruption in customs and tax administration, attract more private funding for infrastructure, and provide Guatemalan youth with the skills they need in the job market.

  • Grant Total
    $28,000,000
  • Grant Committed
    $13,144,231
  • Grant Expended
    $2,101,615
  • Signed:
    April 8, 2015
Resource Mobilization Project

This $5.8 million project increases revenues by improving the efficiency of tax and customs administration within the Government of Guatemala.

MCC and the Government of Guatemala are working together to undertake reforms to improve tax and customs revenue by:

  • reducing the rate of rejected audit cases,
  • using risk management to facilitate clearance of low-risk cargo and compliant traders at ports of entry,
  • focusing on high-risk cargo and traders,
  • implementing a post-clearance audit program for customs, and
  • improving control of the physical movement of people and cargo.

The project is supporting the government’s efforts to implement and promote transparency in public-private partnerships, and seeks to bring one or two projects to market by funding studies and transaction advisory services.

Education Project

This $19.3 million project is supporting the Government of Guatemala to improve the quality and relevance of secondary education to prepare its youth to succeed in the labor market. The threshold program is supporting efforts by the Ministry of Education to develop programs that improve teacher skills, the quality of teaching, and the effectiveness of technical and vocational education and training.

The project is helping to promote high-quality teaching in lower-secondary schools by supporting the Ministry of Education to develop, implement, and refine a continuous professional development system for teachers, as well as establish school networks to improve learning and accountability. MCC is also supporting the Government of Guatemala to develop new tools and strategies to advance the country’s technical and vocational training and education system by designing and implementing new curricula that better meet labor market demand.