Readout of the MCC Board of Directors March 2017 Quarterly Meeting
For Immediate Release
March 29, 2017
WASHINGTON, D.C., March 29, 2017 – At its quarterly meeting on March 29, the Millennium Challenge Corporation’s (MCC) Board of Directors received an overview of MCC’s investment portfolio by MCC Acting Chief Executive Officer Jonathan Nash. The Board also received an overview of the recent closeout of the MCC compact with Jordan, along with a preview of anticipated Board investment and country eligibility decisions for the year ahead.
Thirteen years ago, President Bush worked with Congress to create the MCC as a new and different model of development assistance – one focused solely on helping reduce poverty through economic growth. Built on the lessons of decades of development experience, MCC is unique in a number of ways:
- MCC employs a competitive selection process based on objective criteria that reflect American values and target the conditions conducive to economic growth;
- MCC takes a business-like approach, with bedrock commitments to data, accountability, cost-benefit analysis, and evidence-based decisions; and
- MCC focuses on creating the right circumstances for businesses to invest in partner countries, recognizing that private investment is the key to growth and poverty reduction.
Guided by its founding principles, MCC’s core investments, known as “compacts,” have successfully delivered projects that are improving the lives of millions of people around the world. In an increasingly globalized economy, these investments are a down payment on stability and market opportunities for American businesses. MCC’s engagement with a country partner often stands as the cornerstone of the U.S. economic relationship with that country – visible evidence that U.S. economic assistance leads to tangible results – and helps to create a more attractive environment for private investment.
Read more about MCC’s mission and model.
Closeout of the MCC Compact with Jordan
MCC, in partnership with the government of Jordan, recently completed a five-year, $275 million investment that is expected to benefit more than three million people across Jordan. As one of the most water poor countries on Earth, most households receive water only once or twice a week and depend on expensive outside sources of water to meet basic needs. The projects were designed to increase the supply of water available to households and businesses and improve the efficiency of water delivery and wastewater treatment.
Building on earlier work by USAID, MCC’s Jordan Compact provided $93 million to help the government finance the As‑Samra plant expansion. MCC’s investment helped mobilize an additional $110 million from the private sector and $20 million from the Jordan Government, representing MCC’s first large-scale public-private partnership in infrastructure. The public-private partnership financing structure multiplies MCC’s investment impact and furthers the project’s sustainability, with the private sector committed to operating and maintaining the As‑Samra plant for 25 years.
The partnership with the Government of Jordan to invest in key elements of the country’s water infrastructure has resulted in reduced water losses throughout the system, more homes connected to the wastewater network, and improved operating capacity of the water utility.
Read more about MCC’s Jordan Compact.
The Year Ahead
While the meeting was non-decisional, MCC also provided a preview of issues likely to come before the Board in the year ahead. This included updates on compacts and threshold programs anticipated to be presented for Board consideration at upcoming quarterly meetings, as well as a review of key milestones in MCC’s country selection process for fiscal year 2018. In addition, the Board also reviewed ongoing policy performance and eligibility questions within the broader country portfolio.
MCC Board of Directors
The MCC Board of Directors is composed of the Secretary of State, the Secretary of Treasury, the U.S. Trade Representative, the Administrator of USAID, the CEO of MCC and four private sector members appointed by the President of the United States with the advice and consent of the U.S. Senate. The Secretary of State is the Chair of the Board and the Secretary of Treasury is the Vice Chair.
The Millennium Challenge Corporation is an independent U.S. Government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to poor countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights. Learn more about MCC at www.mcc.gov.