MCC’s Board of Directors selected Tanzania eligible to develop a compact in December 2012. Using the results from an analysis conducted under the Partnership for Growth (PFG) initiative, the Government of Tanzania (GOT) developed concept notes for projects in 2013 and 2014 focused on:
- improving the technical and operational performance of the public power utilities;
- expanding access to electricity; and
- improving segments of the secondary road network to enhance the economic potential of key agricultural regions.
Additional analysis on the projects proposed in the concept notes led the MCC and the government to narrow the program scope to focus on the power sector. The government and MCC signed a 609(g) agreement in November 2014 for $9.78 million. These funds were used to study, design and develop a compact program which were presented to MCC's investment management committee. MCC informed Congress of its intent to negotiate a compact with the country in July 2015.
On March 28, 2016, MCC’s Board of Directors voted to suspend MCC’s partnership with Tanzania.