MCC Board Selects Eligible Countries, Approves $350 Million Compact for Malawi
For Immediate Release
January 5, 2011
Washington, D.C. — At its quarterly meeting today, the U.S. Government’s Millennium Challenge Corporation (MCC) Board of Directors selected Ghana and Georgia as eligible to develop proposals for compacts, the second for each country, and approved a $350.7 million compact with the Government of Malawi.
“This was the first MCC Board Meeting since President Obama announced the U.S. Global Development Policy in September,” said MCC Chief Executive Officer Daniel W. Yohannes. “MCC’s approach to development, which focuses on economic growth, country ownership, sustainability, and accountability, directly aligns with the President’s strategy.”
“President Obama’s new policy, and MCC’s own strategic priorities announced early last year, including an emphasis on results, private sector engagement, gender integration, and effective policy reform, helped frame the Board’s discussion,” added Mr. Yohannes.
At the meeting, the Board selected Ghana and Georgia as eligible to develop proposals for new compacts. These second compacts are contingent on successful completion of first compacts, continued good policy performance, development of proposals that have significant potential to promote economic growth and reduce poverty, and availability of funding.
The Board also discussed the positive conclusion of the Honduras Compact, noting that the experience exemplified the kind of implementation partnership MCC seeks. Mr. Yohannes stated, “MCC recognizes the positive steps taken by the Government of Honduras, as well as its strong commitment to reform and reconciliation. We look forward to continued engagement with the Government of Honduras and future consideration of the country for a second compact.”
The Board agreed that Cape Verde, Indonesia, and Zambia are eligible to continue the process of developing compacts in Fiscal Year 2011.
In addition to approving Malawi’s eligibility for FY2011 funding, the Board approved a $350.7 million compact with Malawi to support the Government of Malawi’s power sector reform agenda, as well as improve the availability, reliability, and quality of Malawi’s power supply by rehabilitating key power generation, transmission and distribution assets.
“MCC looks forward to continuing our work with Malawi as this compact program advances to implementation,” stated MCC CEO Daniel Yohannes. “Success of the program will depend on the Government of Malawi’s continued commitment to good governance, accountability, and transparency.”
MCC and the Government of Malawi expect nearly 6 million individuals to benefit from the compact during and after the five-year compact period. By statute, following MCC Board approval, there is a 15-day congressional notification period before a compact may be signed.
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Millennium Challenge Corporation, a U.S. Government agency designed to work with developing countries, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth. For more information, please visit www.mcc.gov.
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